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[ Source - Infrastructure Today, Dated - Aug. 07 ]
AFCONS Infrastructure Ltd is a professionally managed company involved in executing large and complicated civil engineering projects in India and abroad, with emphasis on jetties, docks, harbours, roads, bridges & special foundations. AFCONS, began its operation as a civil construction firm way back in 1959. It has become a part of the Shapoorji Pallonji Construction conglomerate since the year 2000. K Subrahmanian, Managing Director AFCONS Infrastructure Ltd responded to INFRASTRUCTURE TODAY'S queries on the roads sector.
On road sector problems and remedial measures:
The three major pressing problems still being encountered in the implementation of road projects are (a) Land acquisition (b) Acute shortage of trained manpower at all levels and (c) Non resolution of contractual issues by Government agencies like NHAI etc., leading to huge blockage of funds for the contractors. As far as land acquisition is concerned, Government should ensure that all the land required for any project is fully or at least substantially (more than 85 per cent) acquired before the tenders are issued to prospective bidders. Regarding shortage of manpower, contractors themselves have started addressing the issue in a big way. Training and Development is given extensive importance within the organizations now-a-days. Regarding non-resolution of contractual issues this seems to be an administrative issue in many government depart¬ments. Of late, due to vigilance, audit culture prevailing in many Government Departments, contractual issues are not getting resoJ.ved in a timely manner. Therefore, through Construction Federation of India, we have suggested certain changes in the contract documents, which will overcome these issues.
Model recommended: At the moment, Design Build Finance & Operate (DBFO) model seems to be an effective model which could be implemented. The difference in this model from other models is that the DPR has to be conducted by the bidder himself. This way, he need not depend on the DPR supplied along with the tender documents.
Accuracy of traffic studies and toll calculations: Normally, the traffic studies supplied along with bid documents are almost 3 to 4 years old thereby rendering it an unreliable commodity.
On slimming profit margins and strategies:
To be profitable on slim and competitive margins, the contractors have to adopt the following:
• Develop innovative construction techniques
• Eliminate wastage of construction materials
• Increase mechanization for speedy and quality construction
• Aim for before time completion
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