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Parking contractor says suffered losses due to delay in construction permission

The company which had been allotted the contract for construction of the multilevel parking lot in Sector 17 by the Municipal Corporation has claimed that due to the time gap in allotment of the contract and permission to start construction,losses were suffered.

Written by Express News Service | Chandigarh |
January 22, 2012 2:10:31 am

The company which had been allotted the contract for construction of the multilevel parking lot in Sector 17 by the Municipal Corporation has claimed that due to the time gap in allotment of the contract and permission to start construction,losses were suffered. Arbitration proceedings for the project are going on for the past few months. Municipal Corporation would be giving a reply to the claims.

The proposal for the multilevel parking lot was approved in 2007 during the first year of the previous tenure of the Municipal Corporation. While the General House of the Municipal Corporation approved the project in March 2007,the approval from the Administration was given in September 2007. Thereafter the process of finalising the design started,which took two years to get an approval.

The Municipal Corporation awarded the contract to Subhash Projects and Marketing Limited (SPML). The multilevel parking lot was to be constructed on Build Operate Transfer (BOT) basis. The company was to build the parking lot,which was also to have a commercial area. The company was to manage the lot for seven years after which it was to be handed over to the Municipal Corporation.

However,after the project was awarded it was realised that there were high tension electricity wires at the site,which needed to be shifted. This took some more time. SPML then asked MC to increase the concession period from seven to 12 years as during the time gap,the cost of construction had increased. The condition was not agreed to. Thereafter the project went into arbitration. After the company made its claims,the civic body has to file a reply that would be done in the next hearing.

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