The most common way in which one can participate in a public private partnership project (PPP) is by tender & quotation method. These are regularly provided in the newspapers and you can bid on these projects which the state or central government is going to fund.
A typical tender & quotation works like this:
a) Pay a fee to participate
b) Put your quotation on how much it would cost you to complete the project plus your profit margin.
c) Submit these details to the government and let’s say you win the project.
Winning any infrastructure project will mean that you have to directly coordinate with local politicians such as MLAs or the Mayor or the municipal heads. These are a formality to ensure that your project is completed without them harassing you for trivial things.
There are a lot of things to do now. Such as acquisition of raw materials, land, perform soil tests etc. After these are done you can commence construction.
Construction can commence in several ways. One of the most common ways to do it is sub-contract the construction to another company. Today I saw a small construction company called TGS Constructions. This is a company which is relatively unheard of. So if L&T has won a contract, then they can sub contract this to another company like TGS.
But why sub-contract? Because there are several advantages that offset the reduced profit from sub-contracting.
> A contractor can offset all the liabilities of the PPP to the sub-contractor. Let’s say a worker dies at the site, the main contractor need not pay any workman’s compensation. Have you noticed when a laborer falls to their death in the many construction sites in Bangalore, none of the building companies are actually held responsible?
> A smaller company has less stringent rules on salaries so cost of labor is less. For example, a smaller company need not pay high salaries to its architects or laborers.
> A smaller company can also go under the scanner when it comes to being noticed by the authorities.
Now comes the process of having a flyover collapse. Get inexperienced architects or laborers to take up the project. Have you noticed that smaller builders when they build an apartment complex or a home, the design isn’t so complex? It is usually a square or a rectangular block. Compare that to structures by Mantri or Brigade, it has more life in its design.
When you sub-contract a project, you might skip out on checking if the smaller company is capable of completing the project according to the specifications because the main contractor absolves himself of all liabilities. His only concern is the sub-contractor finishing the project and the two sharing the profit.
Structural integrity and failure is an aspect of engineering which deals with the ability of a structure to support a designed load (weight, force, etc…) without breaking, tearing apart, or collapsing, and includes the study of breakage that has previously occurred in order to prevent failures in future designs.
To highlight how important structural integrity is for a building, let me explain this by comparing Lays and Bingo. If you notice Bingo chips, they are flat, paper thin chips, however Lays chips are wavy and thick.
From a structural integrity point of view, it isn’t possible for Lays to make a thin wavy potato chip because the wavy design cannot maintain its shape and weight if it is thin. It will crumble as soon as it is fried. This is why you see Lays make a thicker potato chip while Bingo makes it simple by keeping it thin. If structural integrity is so important for a potato chip can you imagine how critical it is for a building be able to bear the load?
Also from a deceitful point of view, wafer thin chips give you the illusion that there is more in the pack.
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