New Rating System for Highway Contractors Unveiled
The Indian government has launched a strict new rating system for highway contractors and concessionaires. Companies that fail to meet project quality standards will now receive up to 30 negative marks. This penalty will lower their overall rating and create significant hurdles in securing new contracts in the future.
Rewarding Excellence, Penalizing Failure
In a move to boost accountability, the road transport ministry unveiled the 'Contractor/Concessionaire Rating System for NH Projects' framework. This system, announced on Thursday, sets a maximum score of 100 and will be conducted annually. Contractors who demonstrate excellence will be duly rewarded; those completing projects on time will get 30 marks, and those maintaining high quality will receive 40 marks.
This initiative comes as a direct response to rising complaints about substandard construction, poor quality, and inadequate maintenance on national highways. Both Prime Minister Narendra Modi, during his highway sector review meetings, and various parliamentary panels have repeatedly flagged these critical issues. Highway Minister Nitin Gadkari has also been a strong proponent for taking action against contractors delivering sub-par work.
Detailed Framework and Penalty Structure
The rating framework will evaluate highway builders on seven key parameters: timely completion, quality, maintenance, safety, disputes, subcontracting, overall performance, and user rating, along with negative marks for poor quality.
The system specifies clear penalties for failures. For instance, major defects or stretches getting damaged before project completion or during the defect-liability period will attract up to five negative points. More serious issues, such as failures or defects in retaining walls, will draw a heftier penalty of up to 10 negative points. Contractors will also be penalized for failing to deploy qualified professionals on projects.
Recent incidents, including damage on the Delhi-Mumbai Expressway and the collapse of a retaining wall on NH-66 in Kerala, have served as glaring examples of the poor construction quality the new system aims to eliminate.
Officials clarified that the rating system assigns a substantial 70 marks out of 100 for timely completion and quality, making these the most critical factors. The primary goal is to clearly identify high-performing contractors. "While poor performers will face penalties, good performers will be rewarded," an official stated.
The rating exercise will primarily occur during the construction phase to ensure an objective assessment. All national highway projects completed or provisionally completed in the last three years will be eligible. Furthermore, projects that have been underway for at least 180 days will also be rated. Contracts will be grouped into three categories based on their value: Rs 100 crore–300 crore; Rs 300 crore–1,000 crore; and above Rs 1,000 crore.
