CMDA Contractors Urge Immediate Release Of Pending Dues

Chennai: The Chennai Metropolitan Development Authority (CMDA) Contractors Association has submitted a memorandum to the government to immediately release pending certified payments and avert a potential freeze on ongoing civic and infrastructure projects across the metropolitan area.

In a representation addressed to the CMDA Member Secretary and copied to the Principal Secretary of the Housing and Urban Development Department, the association voiced grave concerns over proposals to pause key public development works amidst reported temporary fund constraints.

According to the association, contractors have executed substantial portions of scheduled work in recent months by mobilising manpower, heavy machinery, and critical financial resources through bank borrowings and working capital arrangements. The prolonged delay in releasing certified payments has subjected contractors to acute financial strain, severely impairing their ability to meet statutory obligations, pay labourer wages, cover equipment rentals, and service escalating bank interest.

The association warned that suspending projects at this juncture would trigger cascading financial and operational hardships. Having already committed capital and placed advance procurement orders for essential supplies—including steel, cement, specialized plumbing, lifts, and HVAC systems — contractors cautioned that halting work would trap capital, drive up storage and handling costs, trigger supplier disputes, and risk severe cost escalations.

The group highlighted that any prolonged disruption would affect not just contracting firms, but thousands of daily wage labourers, vendors, and allied industries reliant on Chennai's urban projects.

Urging immediate state intervention, the contractors requested the CMDA and the Tamil Nadu government to promptly disburse all pending certified bills, allocate sufficient funds for uninterrupted project execution, and protect execution partners from financial distress to safeguard public interest and ensure timely project delivery.