Wednesday, April 29, 2026
Wednesday, April 29, 2026
Home EquipmentEquipment NewsPerformance-based contracts introduced for road upkeep-PWD

Performance-based contracts introduced for road upkeep-PWD

by Constro Facilitator
road

In response to ongoing criticism regarding the declining quality of roads, the Public Works Department (PWD) has, for the first time, implemented performance-based maintenance contracts for the maintenance of four newly constructed road segments.

These four projects will be financed by the Union Ministry of Highways at an estimated cost of approximately ₹80 crore. Should this model prove successful, it will be extended throughout the state. Previously, maintenance was incorporated within road construction or resurfacing contracts. Under the new framework, a distinct agency will be designated exclusively for maintenance.

A performance-based maintenance contract valued at ₹18.9 crore has been awarded for the 27 km stretch from the Goa border at Chorla Ghat to the Kerim checkpost. The contract for the 9.6 km Ribandar bypass has been awarded for ₹21.7 crore. In a similar vein, a contract worth ₹23.4 crore has been allocated for the 7.7 km Canacona bypass stretch, while the 5.8 km section from Loutolim to Verna on NH-566 will be maintained under a contract valued at ₹17.4 crore.

Although the performance-based model incurs higher costs, amounting to crores per kilometer, it is one of the newer strategies endorsed by the ministry. It is anticipated to yield better results, as contractors will receive payments only upon fulfilling specified performance criteria. Typically, these contracts are awarded for a duration of five years and encompass four components: routine, emergency, special, and periodic maintenance.

Resurfacing is required in the second and fifth years of the contract duration. Performance benchmarks have been explicitly outlined for each component, and payments will be strictly contingent upon compliance. Contractors will not receive payment if the required standards are not achieved. Following the five-year period, contractors will continue to be accountable during a three-year defect liability period, thereby ensuring that road quality is upheld for a total of eight years.

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