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MoRTH Proposes Contract Rating Framework
The Ministry of Road Transport and Highways (MoRTH) has released a concept note vide Office Memorandum dated 11 November 2025, proposing a formal Contractor/Concessionaire Rating System for National Highway (NH) projects aimed at strengthening accountability, improving construction quality, and creating a transparent, performance-linked mechanism for evaluating contractors and concessionaires across Engineering Procurement and Construction (EPC), Hybrid Annuity Model (HAM) and Build Operate Transfer (BOT) modes.
The ministry proposes a 100-point rating matrix based on eight key parameters:
- Timely completion
- Quality of work
- Deduction for poor quality
- Maintenance performance
- Safety compliance
- Dispute management
- Subcontracting practices
- Overall performance and user rating
Notably, timely completion and quality together constitute 70% of the total score, underscoring MoRTH’s emphasis on project delivery and construction standards.
Up to 30 negative marks may be imposed for poor quality, including material deficiencies, pavement failures, major structural defects, Non-Conformance Reports (NCRs), damage during construction or the Defect Liability Period (DLP), failures of RE walls or specialised structures. This mechanism is designed as a direct deterrent against substandard execution, especially in light of recent failures on key corridors, including instances of pavement distress and RE wall collapses.
All NH projects completed or provisionally completed within the last three years, and ongoing projects that have crossed 180 days from their last appointed date, will be brought within the rating universe.
Projects will be grouped into three cost categories:
- ₹100 crore – ₹300 crore
- ₹300 crore – ₹1,000 crore
- Above ₹1,000 crore
Rating of EPC and HAM projects will be undertaken jointly, while BOT projects will be assessed separately due to their distinct risk-allocation frameworks. Weightage adjustments will also apply to complex structures such as long-span bridges.
The rating will be conducted twice annually, with rounds closing on 31 March, and 31 December. Contractors and concessionaires will be provided with an opportunity to submit representations or challenges against the provisional ratings. A committee of serving or retired senior officers will adjudicate such challenges. All final ratings will be published in the public domain, enhancing transparency and market discipline.
The proposed system is designed to identify high-performing and under-performing contractors, strengthen construction standards, improve lifecycle maintenance, and guide future procurement policies. It represents a significant shift toward a transparent, performance-linked contracting environment in the national highways sector.
