BK Int’l justifies high bid for Providence water well

Nov 10, 2012 News

Justifying what appears to be an extremely high bid to construct a well, BK International said that in addition to construction, the company has to also design the structure and maintain operations of the well for two years after completion of works.
According to BK International in a press release yesterday it is required to design, build, deliver and maintain an operating well for two years after works are completed, at a minimum efficiency of 85 percent, inclusive in the cost of the tender.
BK International stated that it is far from overpricing on government contracts, frequently and significantly delivers contracts at costs well below competitive bids.
On November 6, the National Procurement and Tender Administration Board opened a single bid under Guyana Water Incorporated for the supply and construction of potable water well at Providence, East Bank Demerara. The engineers estimate was $107,443,715 while the lone bidder BK International submitted a bid for $174M.
The huge disparity in the engineer’s estimate and the bidder’s submission attracted the attention of Member of Parliament and Leader of the Alliance for Change, Khemraj Ramjattan, who questioned which entities had the correct cost for the project.
Ramjattan had said that it is either the government engineer is lackadaisical and does not know his job or there is something seriously wrong with the specification in the contract which made a bidder place such a high bid for the construction of the well.
“These things need to be investigated and the Procurement Commission needs to be implemented,” Ramjattan had noted.
BK International expressed surprise and disappointment by Ramjattan’s comments.
“BK International is surprised and disappointed by the wholly uninformed, irresponsible and unacceptable comments by the leader of the AFC, Mr. Khemraj Ramjattan, reported in the Kaieteur News of Thursday 8th November, with regard to BK International’s tender for the construction of potable water well at Providence, East Bank Demerara,” the release stated.
According to the company, Ramjattan needs to open his eyes and ensure that he is properly informed before making accusative and defamatory public comments on matters of which he appears to have little or no knowledge.
The company also expressed disappointment that Kaieteur News published comments about the well in its “Dem boys seh…” column without consulting the company to obtain facts.
According to the release, it is the contractor’s knowledge that this is the first occasion that the contractor is required to design, build and then further maintain the well for an operational period of two years after its delivery.
“It has been the practice in the past, at least within the last 25 years, for the contractor to be responsible only for the construction of the well, with the resultant failure of a large number of wells in the country,” the release stated.
The contractor is required, within the cost of the contract, to drill pilot holes to a depth of at least 365metres, supply all logging information and analysis of water bearing formations and test pump the well, prior to construction.
The company will be constructing a well with a cast concrete and steel foundation, building to a much higher standard than otherwise employed in the construction of wells in Guyana and it prides itself on being the only Guyanese contractor employing the specialist expertise necessary to construct this type of well.

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