NEW DELHI: Highway construction agencies carrying out centrally-sponsored works will declare contractors and concessionaires “non-performers” if they slip in meeting construction milestones set in the contract or poor performance, including failure to put people and machinery at sites within the indicated timelines.
The road transport and highways ministry has issued a list of conditions, including failure to complete rectifications and maintenance which will result in declaring contractors as “non-performers”. Attaching the tag of “non-performers” can be a roadblock to bid for future projects.
As per 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 rectification at its own cost. In addition, 5% of the contract value of the failed or defective work or 0.5% 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.