In an effort to facilitate speedy implementation of projects, the Public Works Department has increased rates for construction materials and focused on increased wages to labourers, in its schedule of rates for this fiscal.
The revised schedule of rates has provided a nearly 15%-18% increase in the wages for about 300 types of labourers who work in various government projects. For instance, daily wages for a mason who is engaged in brick work has been fixed at ₹769 this fiscal compared to ₹652 last year. Similarly, a mazdoor would get a daily salary of ₹502 now instead of ₹426. The cost towards labour contributes to 30% of the total project cost.
Officials of the PWD said this is expected to reduce the instances of re-tenders for government projects and delays in meeting deadlines citing low rates. The committee, comprising heads of various government departments, revised rates taking market costs into consideration.
According to the new schedule, contractors would be paid ₹5,800 per metric tonne for cement, which is ₹50 more than last fiscal. The price fixed for steel remains unchanged at ₹45,000 per metric tonne. There has been a 1% increase in costs fixed for other materials.
The schedule of rates was revised based on the Reserve Bank of India Index, Wholesale Price Index and the market rate. The government would pay towards Goods and Services Tax incurred by contractors.
An overall increase of 7% in the schedule of rates has been provided for project estimates of less than ₹100 crore whereas an increase of 5.5% in rates has been fixed for schemes that cost above ₹100 crore. The rates vary because there would be more machinery involved than labourers in projects that cost above ₹100 crore, officials said.
Similarly, building projects would have an increase in rates by 7% compared to rates fixed at 4% for irrigation projects and 2.5% -3% hike in rates fixed for highways projects. This too, is due to different construction components involved in building projects, officials added. These rates would be applicable for new project estimates after the lockdown period.
