MES Builders Association Yol Branch Submits Memorandum Highlighting Contractors' Demands and Grievances

Yol: The MES Builders Association of India (Regd.), Yol Branch, submitted a memorandum to the Engineer-in-Chief through the Commander Works Engineer, Army Station Yol, highlighting various demands and grievances faced by contractors associated with the Military Engineer Services (MES).

Chairman Sanjeev Khanna, along with Kulpreet Singh, Pradeep Dhiman, Ashish Chadha, Gani Bhati, Naveen Jain, Akshay Puri and other representatives of the association, were present on the occasion. During the meeting, the Commander Works Engineer discussed the issues raised by the delegation and assured them that the concerns would be looked into for appropriate redressal.

In the memorandum, the association stated that if the issues were not addressed promptly and effectively by the competent authorities of the MES department, they could adversely affect the sustainability of contractors working with the department.

The association highlighted the non-renewal of enlistment of a large number of contractors already registered with the MES for the cyclic period 2025–2032. It also sought financial assistance for contractors to offset losses that it said had been incurred due to the ongoing conflict in the Middle East.

Another major demand was the enhancement of financial limits for all classes of enlisted contractors, which, according to the association, have not been revised since 2010.

The association also raised the issue of pending reclassification and enhancement of tendering limits. It demanded that tenders submitted by E-class contractors should be opened for works valued up to Rs. 50 lakh, the limit up to which GEs are authorised to invite tenders, as per the practice followed earlier.

The association further demanded the immediate release of 100 per cent of the performance security upon completion of work, as is reportedly followed in CPWD, or implementation of the recommendations of the board constituted to examine the matter.

Regarding the E-MB system, the association claimed that technical and operational issues were causing delays in the release of payments to contractors, thereby affecting the cash flow required for ongoing projects. It sought improvements in the system and necessary supporting infrastructure.

The association also called for modifications to the price escalation clause in line with provisions followed by CPWD and Indian Railways, irrespective of the stipulated completion period or contractual period of completion.

It further urged the authorities to reduce the time taken for acceptance of bids after the closing date of bid submission, stating that delays were causing difficulties for contractors executing small-value works.

On the role of the Integrated Financial Advisor (IFA), the association requested that scrutiny be limited to documents before the issue of tenders. It also sought changes in the process of determining the reasonableness of rates and raised concerns over the use of Last Purchase Price (LPP) as a basis for assessing rates.

The association also raised concerns over what it described as abnormally low and unworkable rates. It alleged that despite earlier instructions issued by the E-in-C Branch to address the issue, the problem continued to affect contractors. The association called for appropriate measures to ensure that defence funds are utilised effectively.

Another demand was the implementation of a policy requiring proportionate additional performance guarantees where the lowest quoted rates are significantly lower than the rates considered while preparing the tender. The association also sought strict enquiry and inspection by an independent third party regarding the actual work executed under such contracts.

The association expressed hope that the issues raised in the memorandum would be considered by the competent authorities and that appropriate steps would be taken to address the grievances of MES contractors.