Govt changes contract rules for highways, project cost to be sole factor

For work under Hybrid Annuity Mode, operations and maintenance will not be a criteria anymore.

The ministry of road transport and highways, after inter-ministerial consultations, has changed the terms of awarding highway contracts under the Hybrid Annuity Model (HAM), where the project cost will be the sole factor for evaluation of bids.

Earlier, evaluation was done on the basis of combined value of project cost and operations and maintenance (O&M). The ministry also changed provisions under which O&M payments are made to contractors."

For flexible perpetual pavement, including structures, no maintenance charges will be paid for the first year.

It will be 0.40 per cent of the bid project cost each for the second, third and fourth years,