New Delhi, February 23: The International Federation of Consulting Engineers, widely known as FIDIC, has urged Prime Minister Narendra Modi to ensure strict implementation of amended General Financial Rules that prioritize quality assurance over the lowest bid in government contract awards.
Call to Implement Quality-Cum-Cost-Based Selection in Public Procurement
In a statement issued on Monday, FIDIC said the revised General Financial Rules permit the adoption of Quality-Cum-Cost-Based Selection, or QCBS, for awarding government contracts, including infrastructure projects and procurement of goods.Under the amended provisions, it is no longer mandatory to award contracts solely on the basis of the least cost offered. Authorities are also not required to secure a minimum of two quotations for comparison before finalizing contracts.
Instead, works can be awarded at the lowest workable rates, rather than the absolute lowest bid.
QCBS Framework Allows Balanced Weightage to Quality and Cost
As per the updated rules, projects and procurement can be awarded through QCBS, wherein quality carries a weightage of 30 percent and cost accounts for 70 percent.Despite this regulatory change, FIDIC noted that several government projects continue to be awarded to the lowest bidder. According to the body, contracting agencies have been quoting excessively low rates, leading to compromised quality of work, prolonged arbitration proceedings, and extended court disputes.
K K Kapila Calls for Uniform Adoption Across Ministries
K K Kapila, Emeritus President of the International Road Federation and former ambassador of FIDIC for the Asia-Pacific region, said the amended rules offer flexibility in awarding contracts. He also highlighted that contracts can now be awarded even on a single quotation.Kapila, who previously served as president of the Indian Buildings Congress and the Consulting Engineers Association of India, stressed that the QCBS framework should be implemented uniformly across all ministries and departments.
He has requested the prime minister to issue directions to secretaries across ministries to immediately adopt QCBS provisions for all public works and procurement processes.
Push for Reform in Government Contracting Practices
The consulting engineers’ body maintained that effective enforcement of QCBS norms would help curb excessively low bidding practices, improve project quality, and reduce disputes arising from poorly executed contracts.FIDIC’s appeal underscores the need for a shift from a lowest-cost mindset to a more balanced procurement approach that factors in technical competence and quality assurance alongside financial considerations.
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