On 20th July 2003, the Petitioner invited tenders for the construction of 1648 tenements for the rehabilitation of project affected households at Kanjur Marg. This was a World Bank Project. The work was to be carried out in two phases. Phase I envisaged the completion of 384 tenements. Phase II involved the completion of the balance. The area where residential premises were to be constructed was densely populated and was congested with dwelling units of an informal nature. The two phase programme of work was to be in accordance with the availability of vacant space for the construction of buildings. The contractor was to initially complete three or four buildings and upon the shifting of project affected families in the space which would be vacated, other buildings were to be constructed. The contractor was on notice that he would have to coordinate the work in such a manner as would avoid any hindrance in progress of the work “for which he would not be paid any additional sum”. The contention of the Petitioner is that offers were invited on a lump sum basis for the entire work without adjustments.

2. The offer submitted by the Respondent was the lowest responsive offer a