Road contracts need quality-first revamp, says Suraksha Group's Valia

Suraksha Group's Sudhir Valia says India's road contracts should move away from the lowest-bid model that fuels poor quality and repeated monsoon damage

Don't want to miss the best from Business Standard?

The system of lowest-quote bidding to award road contracts needs a shift towards the one that prioritises quality and accountability in the bids in order to prevent the recurring road and highway problems, especially during the monsoon season, according to a senior executive of Suraksha Group that operates the Noida-Agra expressway.

 

“Most road contracts are awarded by local bodies through open tender auctions. While this system promotes transparency, the selection process must be based on a thorough evaluation, not just the lowest bid to construct the road,” said Sudhir Valia, director of the Group. 

 

The Mumbai-based Group had acquired the Yamuna expressway as part of the debt resolution plan for Jaypee Infratech.

 

Citing an example, Valia said every year, arterial routes near Mumbai such as Mumbai–Nashik and Mumbai–Vapi deteriorate due to potholes that slows traffic to 20–30 kilometers an hour and add up to two hours of travel time. “This isn’t a one-time problem — it happens year after year,” he said.

 

Valia warned that the current bidding approach encourages contractors to underquote, only to escalate bills later or compromise on materials.

 

“Awarding contracts solely on cost often leads to underquoting, where contractors later raise bills for additional items or resort to using substandard materials to cut corners. The current practice of awarding contracts to the lowest bidder poses a serious risk to road quality,” he said.

 

Despite the persistent problems, India’s road-building costs are globally competitive. "The cost of building a road is important, but the choice of material and construction method matters even more,” Valia said.

 

He stressed that water is the “biggest enemy” of roads, and poor slope design and inadequate drainage accelerate disintegration. He pointed to technologies such as plastic-mixed tar, which reduces water damage, and stone roads in hilly regions, which provide durability and traction at lower labour costs.

 

Toll roads, according to Valia, offer a more accountable model since operators are responsible for both construction and long-term maintenance. “If issues arise, authorities can directly engage with the operator to ensure timely repairs — something that’s often difficult with one-time contractors,” he said.

 

Valia urged Indian agencies to draw lessons from China, where governments award contracts efficiently while maintaining standards. “This structural flaw of the bidding system needs urgent reform. Otherwise, every monsoon we will continue to face the same recurring nightmare of potholes and broken roads,” he said, adding local authorities should first take soil and weather conditions into account while awarding contracts.