Kerala: Contractors to get 1 per cent bonus for completing works early

Thiruvananthapuram: In a bid to improve the pace of construction works in the state, the government has announced a one per cent bonus for contractors who finish the work by at least 85 per cent of the scheduled time. A government order has been issued for the same.

If work is supposed to be over by 100 days, the contractor will get one per cent of the contract amount or Rs 5 lakh (whichever is lesser) if the work is over by 85 days.

The contractor can avail the money after submitting the final bill and photographs of the work to the PWD. Information will be verified with the e-book before approving the bonus.

Earlier, the bonus was allowed for completing the work on time. However, it was stopped following complaints that the contractors misuse the option by forging documents. Now the system has been replaced with renewed rules.

Running agreements and the ones with a maintenance period of seven years cannot avail this option.

Contractors welcomed the move.