Delay In Highway Projects Could Disqualify Companies From Future Contracts

Delay In Highway Projects Could Disqualify Companies From Future Contracts

Companies delaying execution of highway projects may be disqualified from bidding in the next round of contracts as the government is mulling over a policy that would debar concessionaires from tenders of fresh road projects if the previous contracts of the same company have missed completion timelines.

According to a proposal, the government is not in favour of completely blacklisting companies that have missed completion timelines of their projects despite receiving the necessary regulatory clearances. “If there is no delay in land acquisition or receiving other regulatory clearances, but the progress on the project is sluggish due to delays on the part of the concessionaire then the government can debar that company from submitting bids for other projects,” a road ministry official told Business Standard.

The debarment would be temporary and subject to certain conditions. For instance, if one highway construction company is executing 10 projects of which, seven are delayed then it can only be allowed to bid for a new project if work gets completed on at least four of the seven delayed contracts. Read More…

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