In a significant move aimed at improving accountability and performance standards in India’s highway sector, the Ministry of Road Transport and Highways (MoRTH) has unveiled draft norms for a new Contractor and Concessionaire Rating System. The proposed framework seeks to create a transparent, uniform mechanism to assess firms executing national highway projects, distinguishing between reliable contractors and those with weaker delivery records.

Under the draft system, contractors and concessionaires will be evaluated across seven key parameters. Quality of work carries the highest weightage at 40 percent, reflecting the government’s emphasis on durable, safe, and high-standard infrastructure. Timely completion of projects accounts for 30 percent, highlighting the importance of adherence to project timelines. Maintenance of completed works contributes 10 percent to the overall rating, while overall performance and user feedback account for another 10 percent. Safety measures are assigned a weight of 5 percent, dispute resolution 3 percent, and sub-contracting practices 2 percent. In addition, the draft framework includes strong deterrents for poor workmanship, allowing up to 30 points to be deducted for quality lapses, including structural or pavement failures.

The Ministry has published detailed concept notes outlining the marking scheme for each parameter. These notes specify how punctuality, quality checks, maintenance efficiency, and safety compliance will be measured, as well as how penalties will be applied for deficiencies in construction standards. The memorandum invites public comments on the draft rating system until December 18, reflecting the government’s intention to incorporate stakeholder feedback before finalisation.

To ensure fairness and comparability across projects of different scales, the draft framework proposes grouping projects into three cost bands: ₹100–300 crore, ₹300–1,000 crore, and projects above ₹1,000 crore. This approach allows performance ratings to be assessed relative to the scale and complexity of each project, avoiding bias against either smaller or larger contracts.

One of the notable features of the draft norms is the emphasis on transparency and contestability. Contractors and concessionaires will receive their individual ratings and will have the opportunity to challenge the scores through a ministry-constituted committee, which will include serving and retired officers. All ratings will also be made public, ensuring that stakeholders—including the government, private investors, and the public—can gauge the reliability and quality of highway developers.

The draft system also differentiates between project types. Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects will be assessed together under the proposed rating methodology. Build-Operate-Transfer (BOT) projects, however, will undergo a separate evaluation process due to their different operational and financing structures. This distinction aims to ensure that the framework accounts for the unique challenges and performance metrics inherent to each type of project.

Officials have emphasised that the rating system is part of a broader initiative to strengthen accountability in India’s highway construction sector. By linking contractor performance to measurable parameters such as quality, timely completion, and user feedback, the government aims to improve construction standards while creating incentives for contractors to uphold best practices.

The inclusion of user ratings in the framework reflects a growing recognition that infrastructure quality is not only a technical matter but also a public service. Feedback from road users will directly influence the overall assessment of contractors, incentivising firms to consider the end-user experience alongside technical compliance.

Negative marking for substandard work is another significant feature. Contractors with persistent quality issues could see deductions of up to 30 points, affecting their overall rating and potentially influencing eligibility for future government projects. This measure is expected to act as a strong deterrent against subpar construction practices and encourage a culture of accountability in project execution.

The government believes that the rating system will also benefit planning and project management. By maintaining a database of contractor performance across multiple projects, MoRTH will be better positioned to select firms with proven track records for high-value and complex projects. Conversely, contractors with weak delivery records can be monitored, and corrective measures applied to improve standards or limit their participation in future projects.

Transparency is central to the new framework. By mandating the public disclosure of ratings, the system seeks to foster confidence among all stakeholders, including taxpayers, project financiers, and the broader public. Contractors will have a clear understanding of how performance is measured and will have the ability to respond to or challenge assessments, reducing disputes and improving governance.

The move comes against the backdrop of India’s rapid infrastructure expansion, where national highways play a crucial role in economic development, connectivity, and logistics efficiency. As highway projects increasingly involve complex contracts, multiple stakeholders, and large financial outlays, the government’s emphasis on objective performance evaluation aims to ensure that public investments deliver intended outcomes in quality, safety, and timeliness.

By creating a structured, measurable, and transparent approach to contractor evaluation, MoRTH’s proposed rating system is expected to set a benchmark for infrastructure governance in India. It not only encourages high standards of construction but also ensures that accountability mechanisms are integrated into the lifecycle of national highway projects.

In summary, the draft Contractor/Concessionaire Rating System represents a major policy initiative to professionalise and strengthen India’s highway construction sector. By linking ratings to quality, timely completion, maintenance, safety, dispute resolution, and user feedback, and allowing public scrutiny, the government aims to improve the overall standard of national highways while promoting fairness and transparency. The framework is now open for public consultation until December 18, after which the Ministry is expected to finalise the norms and begin implementing the rating system across all national highway projects.