Gulermak-Sam JV Wins Kanpur Metro’s Underground Contract
March 9, 2021 Update: Gulermak – SAM India has received UPMRCL’s LOA for Kanpur Metro’s underground contract with a combined value of Rs. 769.23 crore & USD 36.74 million
January 14 Original Post:
Moments ago, Gulermak – Sam India JV emerged as the lowest bidder among 6 firms to construct the first civil package of the 32.385 km Kanpur Metro Phase 1 project’s 8.621 km underground section, after Uttar Pradesh Metro Rail Corporation (UPMRC) opened financial bids.
Excluding the ramp, this package (KNPCC-05) of the 23.785 km Line-1 connecting IIT Kanpur – Naubasta has a length of 3619 meters and includes four stations at Chunniganj, Naveen Market, Bada Chauraha and Nayaganj – each 215 meters long.
UPMRC had invited tenders for this package on July 6, 2020 with an estimate of Rs 1400 crore and expects the assigned contractor to complete work in 36 months.
Technical bids were opened in September to reveal 7 bidders, and technical bid evaluation was completed last week in which 6 firms were shortlisted and Shanghai Tunnel Engineering Co. Ltd. was disqualified for not meeting the tender conditions.
UPMRC’s Estimate: Rs. 1400 crore
Financial Bid Values:
| Firm | Bid |
| Gulermak – Sam India JV | Rs. 1042.26 crore |
| Tata Projects Ltd. (TPL) | Rs. 1179.08 crore |
| Larsen & Toubro (L&T) | Rs. 1224.54 crore |
| Afcons Infrastructure | Rs. 1231.05 crore |
| JMC – CAI JV | Rs. 1259.31 crore |
| Doğuş Construction | Rs. 1984.88 crore |
Tender No: UPMRC/CE-Contract/KNPRCC-05/2020
Package: KNPCC-05
Scope: Design and Construction of Tunnel from start of elevated ramp (after Motijheel Station) to end of Nayaganj station including four underground metro stations (viz. Chunniganj, Naveen Market, Bada Chauraha and Nayaganj) and ramp including Architectureal finishes, E&M, TVS, ECS etc. on Corridor-1 of Kanpur MRTS Project at Kanpur, Uttar Pradesh, India
Gulermak – Sam India’s bid of Rs. 1042.26 crore was well below UPMRC’s estimate of Rs. 1400 crore, so they should receive a Letter of Award (LoA) in the coming weeks.
This particular contract will be financed by the European Investment Bank (EIB) through a €650 million (approx. Rs. 5661 crore) loan approved in July 2020. When awarded, it will be Gulermak’s second underground contract in Uttar Pradesh. Back in 2016, they were awarded Lucknow Metro’s 3.44 km underground package LKCC-06 with 3 stations, which was completed in record time.
Tender notices for the line’s eastern section with 1 underground package (Nayaganj – ISBT) and 1 elevated package (ISBT – Naubasta) are still pending. A list of Kanpur Metro’s packages / contracts can be viewed viewed here.
For more updates on India’s metro systems, check out my Home Page!
– TMRG
That’s a huge difference between estimate and L1
True. I hear some folks calling it a suicide bid.
No it won’t, it will effect the work quality and compensation of JV employees
Hii
how is it possible nearly 400cr less than estimate this seems to be a problem. No quality would be mainted for sure.
Is it safe to award with such big difference between client and contractor. What if the contractor has bid a wrong tendering and later lifts his hands up due to loss.
If the difference was non-existent, there’s still no guarantee that contractors could pack-up and leave midway. Lots of examples across India.
The difference of 400 crore is too much.it points out that either estimates were wrong or the quality will be compromised.
Agreed. Negotiations with vendors (material / machines) will be aggressive as well.
Since the MD of UPMRC has mutual interest in the Sam India company, it is no surprise that Sam India is winning contracts for the elevated section of Agra Metro and underground section of Kanpur Agra
Noida metro also build by sam India
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Tell me more about this. I’m curious.
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Do you know if it will be with slurry TBM?
No idea, but if I had to guess – EPB.
Negotiations with TBM vendors must have started now.
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TMRG do you have in your records any Tender before this for underground metro going so much below than client estimate or it is the first one ?
Unlike other tenders, UG metro tender requires huge investment in terms of equipment like TBM and highly specialized man power.
This is the first one with such a large difference. I’ve never seen anything like this.
Looking at the other bids, UPMRC clearly overestimated its value.
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I would say the estimate was off because there are five bidders substantially lower than the estimate.
SAM has UPMRC’s MD in its pocket. They got L1 but till the end of execution phase, they will escalate their costs and get the variations sanctioned by the Competent Authority i.e. MD.
Kumar Keshav is not new in this shady business.
I don’t think they bid it wrong because on same time n same jv team bid Surat metro above the estimate time.
Secondly where gulmerk doing tunneling work going very smooth
. Lucknow metro then pune metro.
May be during pre bid some item get deleted from the station or change of scope..
Sam India type of company only works for money they never follow quality and if you see the quality of upmrc its like too bad they only care to complete the project in record time.
Sir,I’m current working in i dian railway track construction in southern railway through a private company ITC ltd,kanpilur
But i am more intrested in metro ,brdges,building and highway construction.
Hope for good quality work @kanpur metro
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Estimates were really high .. even L&T quoted 20% below the estimates.. Hopefully SAM with excellent track record of completing the job on time .. will successfully complete the Kanpur UG Metro.
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The difference of 400 crore is too much.it points out that either estimates were wrong or the quality will be compromised.
Wrong comment this copyright
Hope for good quality work @kanpur metro
don’t think they bid it wrong because on same time n same jv team bid Surat metro above the estimate time.
Secondly where gulmerk doing tunneling work going very smooth
. Lucknow metro then pune metro.
May be during pre bid some item get deleted from the station or change of scope..
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