[Michael-jeckson2]

The highways depar tment has decided to try a new system to award contracts for road-laying projects amid rising public indignation over substandard work that has resulted in potholes and rutted roads.

Acting on a suggestion by governor K Rosaiah, the department will soon start a ‘Performance-Based Maintenance Contract System’ on a pilot basis in Coimbatore Circle and implement the system in due course across the state.

Instead of the contractor being paid upfront, payments will now be on a yearly b a s i s, based on the quality of work. The contractor will be responsible for the road for five years.

Governor Rosaiah had announced in the assembly last week that the highways department would try out a new payment method to make road contractors accountable after they complete work on a contract.
Instead of floating tenders for a one-time investment on a road-laying project, payments in the new system will be based on the contractor meeting or exceeding clearly defined parameters. “Payments will be based on the condition of the road,” said a highways official.

The new system will measure the contractors’ performance based on work outputs rather than the outcome of the process.

The contractor is currently only given specifications for relaying work. Once the relaying is done, there is no way to ensure that the contractor is fully accountable. The highways department retains 3% of the total project cost against any road damage within a year of completion. “The amount is very small so many contractors are willing to forgo the money,” the official said.

While the system is working well in Andhra Pradesh, fewer companies are likely to be interested in a project with the staggered-payment model. “Only big corporates can afford to spend on the resources and manpower necessary for a five-year project if they are not paid in advance,” the official said.

The new system was briefly introduced in Salem last year without any success. “We have learnt from our shortcomings and will make changes so it works,” said the official.

-times of india