India mandates monthly payments and monthly price adjustments for highway contractors
Change
India's ministry of road transport and highways mandated monthly payments and monthly price-adjustment disbursements for highway contracts covering Engineering, Procurement and Construction (EPC) and Hybrid Annuity Model (HAM) projects, effective April 1, 2026 through June 30, 2026.
Why it matters
Contract and finance teams must shift from multi-month settlement cycles to a monthly verification and payment timetable, increasing the frequency of measurements and compliance checks required to trigger disbursements. Failure to produce compliant monthly documentation will block price-escalation compensation and delay cash receipts for executed work.
Implications
- • Engineering, Procurement and Construction (EPC) contractors' finance and billing teams must submit monthly measurement claims and quality-compliance documentation to receive price-adjustment payments; failure to submit monthly-complete claims will delay payments.
- • Hybrid Annuity Model (HAM) concessionaires' finance teams must file monthly price-escalation claims under Schedule G to obtain the compensation; absent monthly filings escalation will not be paid.
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Source
Topics
Policy & Regulation Regulatory Actions Supply Chain & Logistics