Govt Develops Comprehensive Rating System for Assessing National Highways Contractors' Performance

The Ministry of Road, Transport and Highways (MoRTH) announced plans to introduce a rating system for contractor firms involved in National Highways projects. This initiative aims to evaluate the performance of these firms effectively.

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In its concept note, the ministry outlined that contracts would be categorised into three groups for rating purposes. These are projects valued between Rs 100 crore and Rs 300 crore, those exceeding Rs 300 crore up to Rs 1,000 crore, and projects over Rs 1,000 crore.

Rating System Structure

The rating process will occur annually. Initially, eligible projects up to February 15 will be assessed and ideally rated by March 31. Subsequently, projects up to November 15 will be evaluated and preferably rated by December 31 each year.

Contractors and concessionaires will also be rated within these categories. The concept note specifies that Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects will be rated together. In contrast, Build-Operate-Transfer (BOT) projects will have separate ratings.

Stakeholder Ratings

All joint venture members or stakeholders with more than a 26% stake in a project will receive the same rating as the project itself. Individually rated projects will be normalised to determine the overall rating of contractors or concessionaires.

The ministry has invited comments or suggestions on this proposed concept note. Stakeholders are encouraged to submit their feedback within 21 days from the date of the letter issued by the ministry.

This initiative reflects MoRTH's commitment to enhancing accountability and transparency in highway construction projects. By implementing this rating system, the ministry aims to ensure high standards in infrastructure development across the country.

With inputs from PTI