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The Tender Dilemma: Cutting Corners, Costing More

6 1
10.02.2026

Infrastructure development is the backbone of any nation’s growth and prosperity. Projects such as tunnels, ports, airports, highways and hydro power facilities are not merely constructions but the temples of the modern world. These projects have a direct impact on the lives of citizens by improving connectivity, providing employment, enhancing energy availability and raising living standards. They also play a crucial role in stimulating the overall economy by facilitating trade, improving efficiency and attracting investment.

Every infrastructure project begins with a planning phase, which lays the foundation for all subsequent activities. Once planning is complete, the project moves into execution, but only after completing all necessary documentation including administrative approvals, financial clearances, technical verifications, tendering and award of work. The scope, rates, quality requirements, technical specifications and methodologies are all documented in the detailed project report prepared by consultants. These reports are rigorously verified and revised to ensure accuracy and feasibility.

Despite this structured approach, the tendering and contract award system in India remains largely outdated. Most tenders are still advertised and awarded based on either a single cover or double cover system under the lowest-bidder criterion. In the single cover system, only the financial bid is considered and the contract is awarded to the bidder quoting the lowest price. In the double cover system, also called the two-envelope system, technical qualifications are first checked before opening the financial bid. In theory, these systems ensure fairness and competitiveness, but in practice they are often inadequate and prone to manipulation. This issue is particularly significant for regions like Jammu and Kashmir, where infrastructure projects are executed in challenging mountainous and seismic conditions. Roads, tunnels, hydropower projects and urban infrastructure in such terrain demand higher technical competence, stricter safety standards and long-term durability. In these conditions, awarding contracts solely on the basis of the........

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