Road ministry to rate contractors on 7 parameters; move aimed at ensuring quality construction, maintenance of highways

The new rating system by the Road Ministry aims to enhance the quality of highway construction in India by holding contractors accountable for their performance. This initiative is expected to lead to better infrastructure outcomes and improved contractor practices.
Road ministry to rate contractors on 7 parameters; move aimed at ensuring quality construction, maintenance of highways

Key insights

  • 1

    Seven Rating Parameters: Contractors will be rated on timely completion, quality, maintenance, and more.

  • 2

    Focus on Quality: Timely completion and quality will make up 70% of the contractor's rating.

  • 3

    Annual Rating Process: Contractors will be rated once a year, with two evaluation rounds.

A What happened
The Ministry of Road Transport and Highways in India is set to introduce a rating system for highway contractors, evaluating them on seven parameters: timely completion, quality, maintenance, safety, dispute resolution, sub-contracting, and overall performance. Timely completion and quality will account for 70% of the total rating, with penalties for poor quality. This initiative is designed to identify high-performing contractors and encourage all concessionaires to enhance their work quality. The rating will occur annually, with the first round of evaluations expected by March 31. Projects will be categorized based on their financial scale, and joint ventures will receive a collective rating. The ministry aims to use these ratings to incentivize or disincentivize contractors in future projects.

Topics

Business & Markets Economy World & Politics Policy & Regulation

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