Ahmedabad: A Rs 661.25 crore road resurfacing contract, marked up by 34% over its estimated cost, is set to be reviewed by the road and building committee of the Ahmedabad Municipal Corporation on June 9. This proposal, intended for a single company, follows two previous large contracts awarded to the same firm: Rs 536 crore in 2020 and Rs 641 crore in 2023. Although the corporation employs consultants for roadwork cost estimation, sources indicate that approving a tender at 34% above the estimate suggests possible errors in the initial assessment.Concerns are mounting over persistent cost inflation and quality issues. In 2017, roads resurfaced under a Rs 450 crore project reportedly deteriorated severely after monsoon, prompting a vigilance inquiry by the corporation. Notices were issued to seven additional engineers, and over 90 other officials faced disciplinary action. Three contractors were blacklisted. Additionally, a scandal involving fake bitumen bills for road resurfacing emerged, leading to police complaints against two contractors.Despite this, since 2018, the AMC has routinely approved road resurfacing tenders at 20% to 34% above estimates.On April 17, 2023, the road and building committee approved a Rs 641 crore proposal, 26.90% above its Rs 505 crore estimate. In 2020, a single Rs 536.03 crore tender for various road projects was approved at a 34% markup. Similarly, a 2018-19 tender for Rs 534 crore was approved against an estimated Rs 353 crore. Sources indicate that the 2023 Rs 641 crore tender, awarded to a single company, also saw an additional Rs 26 crore approved for bitumen cost differences. “Such clauses, common in all tenders, consistently lead to approvals significantly exceeding initial estimates, suggesting potential errors in the estimation process,” said sources.The AMC issues two types of road resurfacing tenders: one for roads wider than 60 feet, awarded to a single company for Rs 500-600 crore annually rate contract, and another for roads narrower than 60 feet, awarded to different companies. Tenders are approved at 25-34% above estimated costs, with varying warranty periods: five years for roads wider than 60 feet and three years for narrower roads. Iconic and RCC roads are also being constructed with tenders approved at 25-30% above estimated costs.