Complaint Details

Status	:	Closed
Complaint No	:	0001913/2012
Category	:	Non-Compliance
Date	:	29-02-2012
Subject Line	:	Payment stopped and PO terms not followed
Complainant	:	DS Mahadeorao
Address	:	Nagpur
Complainee	:	L&T Special Steels and Heavy Forgings P. Ltd.
Address	:	Hazira,Surat

Complaint Details
Dear Sir,

My contractor firm name is “DSM Erection Enterprise” from Nagpur and I am running this from last 1 year.

I got the work from LTSHF (L&T Special Steels and Heavy Forgings Pvt. Ltd.), Hazira, Surat for erection work of Ash Handling System at a cost of 4.0 Lakhs excluding taxes.

The below are the stepwise major points which I want to discuss:

Sr. Discussion Point Proof
1 I got the purchase order dt. 18/8/2011 and work completion period is 2 months from the date of PO and against site readiness on time (To control the cost of 7-9 manpower for 2 months in Surat and all other work expenditure). As site was not ready, I delayed the work after taking permission from LTSHF.

But LTSHF pressurized me to start the work from 4/10/2011 by committing that they will give other 100% site ready within 1 week. I started the work slowly by giving subcontract to other party from surat itself as I was confident that site will not ready. There is no written commitment that site will be ready on time and extra payments for manpower idle.

Purchase order finalization reference documents (Page No 2 of purchase order) Purchase order & reference document as Annexure1
2 On 7/10/2011, Mr. Garudkar wrote a mail regarding work completion by 20/11/2011. In reply on 10/10/2011, I wrote a mail for written commitment for date of site availability. But there was no reply mail.

Instead they wrote a mail for poor work quality without any specific details & document. There is a third party inspection everyday at site and we have already completed 25% work by this date after quality clearance. We are told that the welding quality is not good but we did not started the welding till that date. Mail copy
attached(Annexure2)
3 I requested LTSHF for extra payment for Argon welding. I sent a mail to LTSHF on 20/11/2011 for 80% work completion and also for extra payment for manpower idle as site is not ready. Also we commit to complete site within 1 week.
On 21/11/2011, LTSHF reply that the balance site will be ready on 23/11/2012 but actual completion date is 14/12/2012. Till that time my manpower were idle.

According to PO, there is a monthly payment against work completion. But there is no payment even after 80% completion by 30/10/2011. Mail copy
attached(Annexure2)
4 So I sent a letter to higher authority for my payment and he agreed to release payment based on my work. But they agreed to release payment for only 50% work which is against PO. Mail copy
attached(Annexure2+ Annexure3-letter copy)
5 I removed my subcontractor from the site as my payment was stopped and LTSHF advised me to depute other subcontractor at site from my end to complete the balance 10% work as plant is under commission by 28/12/2011. When I arranged the new team, they send my supervisor out of site and they are using my team.

The new subcontractor mail is attached as Annexure4. Presently I donot know the status of the project. Mail copy
attached(Annexure4)

Extra Payment Claim:
1) Old Payment : Rs. 220600/-
2) Manpower Idle payment for 61 days:
8 manpower average salary per day considered: Rs. 8X240X61= Rs. 117120/-
3) Argon welding rate @ Rs. 360 per inch diameter:
0.5”-150Mtr = 27000/-
1” – 100Mtr = 36000/-
1.5” – 27Mtr= 14580/-
2.0” – 2 Mtr= 1440/-
3.0” – 60Mtr= 64800/-
4.0” – 100Mtr= 144800/-
6.0” – 26Mtr= 56160/-

= Rs. 343980/-

Total Amount= Rs. 693764/-

The project incharge is Mr. Garudkar and his senior is Mr. Kamlesh Rana from Technical side. The PO is finalized by Mr. Gaurav Bodus who is from purchase department.

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