MAPUSA
A sharp surge in bitumen prices has triggered confusion and conflicting claims between contractors and the Public Works Department (PWD), even as the State scrambles to restart stalled road works ahead of the monsoon and the upcoming assembly elections.
While the government maintains that contractual provisions exist to compensate contractors for price escalation, sections of the contractor community have disputed this claim, saying the lack of a formal written order has left them exposed to significant financial risk.
Contractors across the State had largely suspended hotmixing operations over the past few weeks after bitumen prices spiked dramatically, with some estimating the increase to be as high as 100 per cent.
The halt brought several road projects to a standstill, raising concerns within the government at a politically sensitive time.
A senior contractor, speaking on condition of anonymity, said work could not resume merely on verbal assurances.
“The rates have gone up steeply. Until there is a clear written directive on how the difference will be compensated, it is risky to restart work,” he said.
Superintending Engineer Jude Carvalho said clauses exist to address price escalation in key materials, including bitumen.
“There is a provision in the contract to compensate contractors for price differences in four materials – structural steel, reinforcement steel, bitumen and cement. Nobody can be denied this, as it is contractually binding,” he said.
However, another experienced contractor claimed that, contrary to the PWD’s position, standard tender agreements do not include provisions for compensating such sharp price escalations.
“In my three decades of work, there has been no such clause covering this kind of situation,” he said, directly contesting the department’s stand.
However, a breakthrough of sorts appears to have emerged after a high-level meeting between contractors, PWD Minister Digambar Kamat and Chief Minister Pramod Sawant.
President of the All Goa Civil Contractors’ Welfare Association, Rupesh Pangam said contractors have now agreed to resume work based on assurances from the Chief Minister.
“The CM has assured us that the difference in bitumen cost will be paid and has asked us to restart work. The government will soon issue a circular on the same. Based on this, we have decided to begin operations,” Pangam said.
He added that the temporary suspension has created a backlog, leading to long queues at hotmixing plants as multiple contractors attempt to restart work simultaneously.
Despite this partial resumption, uncertainty persists within the contractor community, with many still wary of proceeding without formal government orders.
With the monsoon fast approaching – typically setting in by early June – the window for executing road works is rapidly shrinking.
