A sigh of relief to Contractors

Finally, the government has cleared over Rs 62 crore to liquidate its long drawn liabilities accumulated from completed works under the 14th Financial Commission Award (FCA) and Back to Village (B2V) programme, which will be a major relief to service providers, contractors, suppliers and consultants of Jammu Kashmir who had executed their works assigned to them by the PRIs, URL bodies at Panchayats to Blocks to districts projects long back. Payments of their bills for work executed were not released by the administrative offices. They are a large number of businessmen, entrepreneurs and even ordinary vendors whose huge capital had got stuck up in vagaries of officialdom and babudom.
Payment delays are a common issue in government-sponsored projects throughout India. However, the mindset and working of the department in Jammu Kashmir even with change of its status does register a noticeable change in the matter of red-tape, malpractice and lack of accountability. Payment delays have been identified as a leading cause of time and cost overruns, disputes, and bankruptcy. Payment delays have significant economic consequences for contractors, suppliers, and businesses, as well as for jobs and growth. While adequate research has been conducted in India on the causes of construction project delays, almost no research has been conducted on why payment delays occur and what feasible solutions for reducing such payment delays.
If a local survey was given a chance one would find in all major categories of stakeholders directly involved in execution of developmental works and projects, have a serious grouse that their payments were not released by the officials as scheduled in the terms of contracts. Statistical analysis should be carried out that would eventually reveal major implementable points in terms of capacity building, dispute resolution mechanisms, and contract formulation in order to achieve significant impacts in reducing payment delays.
It is obvious that those suffering on account of delayed release of payment would surely have a sigh of relief on the decision, expressing their delight and gratitude for the government's foresight.

The move aims to settle outstanding debts owed to the 14th FCA/B2V initiative for completed civil works and other projects.
The order authorises the release of 62.84 Lakh rupees to the Nodal Officers of Panchayats and local bodies of the following districts: Kulgam, Anantnag, Budgam, Pulwama, Ganderbal, Srinagar, Shopian, Ramban, Reasi, Samba, Udhampur, Poonch, and Kathua, according to the details available.
The allocation of funds will enable the concerned districts to effectively settle the liabilities arising from completed civil works.
The step would restore some credibility among the contractor, suppliers and stakeholder that would improve the overall functioning of these districts, resulting in better infrastructure, more job opportunities, and higher living standards for residents.
The release of long pending money has elicited widespread satisfaction for those who could not carry further their business for the shortage of funds that had been blocked at government level and who had been waiting for the government's decision to clear liabilities.