Solid Waste Management and Recycling

96 JAAP BROEKEMA

After the unit rate was fixed contractors were invited to reflect through advertisements
in three daily newspapers (a leading Telugu, Urdu and English newspaper). The time
span between the call for tenders and the actual start of the work was rather short, only
two weeks. Although there were no demands with regard to the type of company –
meaning that both proprietary firms, partnership firms, registered companies, Labour
Contract Societies as well as individuals were invited to respond – the MCH did
indicate its preference for companies satisfying the following requirements: having
their own vehicles, Labour License, Profident Fund (PF) and Employees State Insur-
ance (ESI) code number, and good record of previous performance. Labour Contract
Societies were specifically mentioned as a contractor category and incited to reflect.
The MCH also had a preference for firms or persons willing to buy Dumper placer
vehicles on a loan basis. Contractors were restricted to a maximum of three units each.
Despite all these demands the MCH received more applications than available units.
Final selection, therefore, was done by drawing lots.

The applicants were requested to make a down payment of Rs 25,000 (US$ 625) for
each unit. This amount, the Earnest Money Deposit (EMD), is meant as an assurance
for the MCH and calculated as 2.5 percent of the annual contractual amount. In case
the contractor, even after repeated warnings, fails to perform well, the MCH is
permitted to terminate the contract, forfeit the EMD and blacklist the contractor.

With respect to the contract requirements it merits to mention one particular incident
that has had far reaching consequences for the contracting approach adopted by the
MCH. In its decision of 3/30/99 the Supreme Court of India awarded a request for the

Table 5.2. Cost calculation per unit

Sweeping unit Amount (Rs) Garbage lifting unit Amount (Rs)

Wages for 21 workers at Rs
1,800.-
Wages for 1 supervisor at
Rs 2,500.-
Implements for male
workers at Rs 130.-
Implements for female
workers at Rs 70.-
Safety equipment at Rs 10.-

Sub-total
Profit 10 percent

37,800.-

2,500.-

910.-

980.-

210.-

42,400.-

4,240.-

Rent for the vehicle with

driver, oil etc.

Wages for 5 lorry workers at

Rs 2,300.-

Wages for 1 supervisor

Implements for vehicle

Safety equipment for workers

at Rs 35.- per head

Disinfectants

Sub-total

Profit 10 percent

18,150.-

11,500.-

2,500.-

100.-

175.-

1,275.-

34,000.-

3,400.-

Gross cost per month 46,610.- Gross cost per month 37,400.-

Source: MCH, 1999b