NEW DELHI: Now on, the highway construction agencies, carrying out centrally sponsored works, will declare the contractors and concessionaires “non-performers” if they fail to achieve construction milestones set in the contracts or perform poorly, including failure to put people and machinery at sites within the indicated timelines.
The road transport and highways ministry has issued a long list of conditions, including failure to complete maintenance and rectification works, which will result in declaring contractors “non-performers”. Attaching the tag of “non-performers” can be a roadblock to bid for future projects.
This step has become all the more important as scores of new players are bagging national highway projects, quoting abnormally low prices, as less as 20-30 per cent of the project cost indicated by the authorities.
According to a circular issued by the ministry, in the case of any minor failure of structure or highway resulting in any casualty, the contractor concerned will have to carry out the rectification at its own cost. In addition 5 per cent of the contract value of the failed or defective work or 0.5 per cent value of the entire project cost, whichever is more, will be imposed on such contractors.
In the case of major failure of any structure or highway resulting in casualties, the contractor or concessionaire will be debarred from getting work for up to one year or till completion of the work. The highways authorities will also slap fines. Where any such failure claims any life, the contractor will be barred from bidding for three years.
NEW DELHI: Now on, the highway construction agencies, carrying out centrally sponsored works, will declare the contractors and concessionaires “non-performers” if they fail to achieve construction milestones set in the contracts or perform poorly, including failure to put people and machinery at sites within the indicated timelines.The road transport and highways ministry has issued a long list of conditions, including failure to complete maintenance and rectification works, which will result in declaring contractors “non-performers”. Attaching the tag of “non-performers” can be a roadblock to bid for future projects.This step has become all the more important as scores of new players are bagging national highway projects, quoting abnormally low prices, as less as 20-30 per cent of the project cost indicated by the authorities.According to a circular issued by the ministry, in the case of any minor failure of structure or highway resulting in any casualty, the contractor concerned will have to carry out the rectification at its own cost. In addition 5 per cent of the contract value of the failed or defective work or 0.5 per cent value of the entire project cost, whichever is more, will be imposed on such contractors.In the case of major failure of any structure or highway resulting in casualties, the contractor or concessionaire will be debarred from getting work for up to one year or till completion of the work. The highways authorities will also slap fines. Where any such failure claims any life, the contractor will be barred from bidding for three years.