According to the concept note, ratings for Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects shall be conducted together, whereas ratings for Build-Operate-Transfer (BOT) projects shall be conducted separately
New Delhi: In a move that will provide boost to Surety Bonds, the Ministry of Road, Transport and Highways (MoRTH) on Thursday said it is developing a rating system to assess the performance of contractor firms engaged in National Highways works.
The ministry, in a concept note, said that for rating purposes, the contracts would be divided into three classes: projects of Rs 100 crore or more up to Rs 300 crore; projects of more than Rs 300 crore up to Rs 1,000 crore; and projects of more than Rs 1,000 crore.
The note said rating exercise shall be done once in a year, in the first iteration, eligible projects up to February 15 will be taken up and preferably rated by March 31, and thereafter, for eligible projects up to November 15 and preferably rated by December 31 every year.
“Accordingly, rating of contractors/concessionaires would also be done in classes,” it said.
According to the concept note, ratings for Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects shall be conducted together, whereas ratings for Build-Operate-Transfer (BOT) projects shall be conducted separately.
It said all JV members or stakeholders with more than 26 per cent stake in the project shall be given the same rating as the project rating, while individually rated projects shall be normalised to calculate the rating of contractors/concessionaires.
The ministry said comments/suggestions on the proposed concept note, if any, should be submitted within 21 days from the date of this letter.