Letter to Managing Committee regarding Repairs

August 7, 2011
The Chairman / Hon. Secretary,
Saket CHS Ltd.,
Thane.
Dear Sirs,
Sub: My observations expressed in the meeting on Repairs held on Wednesday, Aug.3, 2011.
Present: Mr Chary, Mr,Jaywant, Mr. Nagarkar, Mr. Satish Shah, Mr. Samel, Mr. Dasgupta, Mr. Karnik & Mr. Nene
Apropos the above, I am noting my observations which I had expressed during the aforesaid meeting:
1. The proposed Repair program is the DEFINING program in the life history of Saket and we must not squander the opportunity by hastily putting up proposals which the people may reject.
2. Already, in 2 SGMs, people have twice rejected proposals put up. First, was the recommendation of the 1st Repair Committee, wherein an estimate of Rs. 10 crore was proposed? The same was turned down.
3. Then after tenders were floated and contractors shortlisted, their proposals were put up again in an SGM dated July 12, 2011. The same were also not approved and a 2nd Committee was formed to look in to whether there was any scope of further reduction in costs.
4. Today, we are all here to discuss the report of the 2nd Repair sub committee comprising of Mr. Parag Samel, Mr. Ashim Dasgupta and Mr. Praful Karnik.
5. At the outset, I would like to express my view that apparently, it will be very difficult for us to convince the people to shell out @Rs. 5000/- p m appx. Recommended by the 2nd Repair Committee.
6. I would like to bifurcate the residents of Saket in 4 layers: 200 A/ 200 B / 200 C / 72.
7. Of this, I will keep 72 members aside for the time being as they are not staying in the complex- may be their flats are on rent.
8. Of the balance 600, 200 A group members shall pay whatever is finalized immediately. Another 200 B group members may grumble but ultimately pay up. But the 200 c group category members will oppose the proposal tooth and nail and shall try everything to thwart the proposal. That’s a good 33%.
9. In the past, when last time we had done the Repairs, the then committee had first collected the contribution from members and had Rs. 1 crore appx. with them when they started the Repairs. Today, we don’t have a penny in our pocket and are planning to undertake a project 4 times the size of the one in 2000.
10. The talk of breaking our Sinking Fund is ok. But for that you will have to convince the Registrar and he too may give permission for utilizing maximum 50% - so it means we are going to be dependent on money which we plan to raise – and only then we can spend.
11. In the given situation, when we put a proposal to the public in this SGM, the chances of it getting passed or failing are 50-50 %.
12. If passed ok, but if not, we will have to wait for another 6 months before any new proposal can be put up again – as per the bye-laws.
13. In the given situation, I suggest that we should not rush with starting repairs right now- from September 2011. Anyway, September looks impossible, I feel, even if we rush we can only start the work in January 2012.
14. Therefore, I propose that we defer starting the Repair program by 1 year and starting September put a proposal for building up a corpus for repairs.
15. We may collect Rs. 2500/-pm month from members and not Rs. 5000/-. This will reduce the burden on members.
16. Remember, at a level of Rs. 1000/- maintenance, we have 10% defaulters. If we ask Rs. 5000/- from members, the defaulters list may increase and the entire project may get jeopardized.
17. We can review the situation by March 2012, and then attend to terraces to begin with but the full fledged repairs should be started only after we have adequate money with us- or the program will be a gamble. This is my 1st suggestion.
Now coming to the report submitted by the 2nd Repair Committee. I wish to make it clear that I am not intending to criticize anybody and am only analyzing the report based on the figures in front of me.
 I find that the Committee has given a total cost of Repairs, as per scope defined in the SGM, at Rs. 6.70 crore – inclusive of all taxes and inflation @ 7%.
 I will compare these figures with the final shortlisted contractor’s quotations. M/s. Ajay Construction has quoted Rs. 6.81 crore all inclusive, while M/s. Saloni Constructions have quoted Rs. 6.76 crore all inclusive. (Both have not taken the inflation in to account).
 But the 2nd Repair Committee has left out Capillary Blockers, Geo-textile treatment, Corrosion inhibitors and epoxy treatment from their report while the quotations of Ajay and Saloni include these items.
 In the situation, I don’t see any difference between costing in the report submitted by the 2nd Repair Committee and the earlier quotations recd. from contractors.
 Also, the scope of work as defined by the Secretary in the SGM clearly states that cost reduction should be attempted without compromising on quality.
 But as per their report they have left out Capillary Blockers, Geo-textile treatment, Corrosion inhibitors and epoxy treatment from their report – which, according to me is the basic treatment required when attempting to repair buildings, who as per the Structural Audit Report, have embedded steel corroded up to 50 – 90% - as is in our case.
 Also, while selecting Avon Projects as our Consultant, Geo-textile treatment, Capillary Blockers and Corrosion Inhibitors - was shown as his USP and one of the reasons of selecting him over others. Now, it’s surprising that the same person says that these treatments will not add any value to the construction and consents to leave them out.
 Sirs, I request you that be it any body, any one giving an opinion about the way to go about the rehabilitation and repairs, ask them to give the opinion in writing.
 I also request you again and again to read, analyze the findings and recommendations of the Structural Audit – which says 93 out of 96 points tested, have shown a corrosion level of 50 to 90%.
 This is serious and according to me all these points must be checked, opened up and treated for corrosion. Rest of the work may be taken only after this is done. The corrosion treatment is the very basic and should not be neglected. And the cost will definitely increase to that extent.
 The estimate and plan given by the 2nd Repair Committee has not taken in to account the platforms which you will have to build above the 2nd floor balconies- to protect them from the debris falling from above. Last time, these platforms construction had costed appx. Rs. 20 – 25 lakhs. Now, the cost would be even higher. So to that extent the cost of the estimate will increase.
 I also request you to please ensure that our focus does not shift from getting the job done properly to only cost cutting.
 Personally, I don’t believe in cutting costs in such a important task.
 If the quality of the buildings is bad and work needs to be done at a cost – we have to convince people that it needs to be done. The modus operandi as to how to do it and in what manner can be discussed and finalized.
This is my humble submission.
Regards,
Dayanand Nene