Dear Member P,
The bid for the contract has to be seen from the following context:
a) You are keeping people on contractor's roll and paying salary exactly as per the minimum wages
b) You are keeping people on contractor's roll where salary is well above the minimum wages
In case (a) there is no scope for a contractor to get profit margin. However, he might be supplying the manpower since manpower supplied is less compared with (b)
In case (b), as per the bid, contractor does not have profit margin however, he could be taking money from the employees that he hires them. He could take his cut and then pass on the remainder to the employees.
In either context, you may ask price break up of his bid to the contractor. Ask clarification with the admin charges of Re 0.01, how will he be sustain continuity of the operations.
By the way, are going to take security deposit from the contractor? If yes, will you link the refund of the security deposit to the disruptions of his services?
Thanks,
Dinesh Divekar