Maharashtra tightens tender rules with new contractor rating system and deadline compliance

12 August,2026 04:57 PM IST |  Mumbai  |  mid-day online correspondent

The Public Works Department (PWD) has issued a Government Resolution (GR) introducing an objective system to assess contractors based on their actual performance during project execution

The performance certificate will remain valid for 12 months. Representational Pic/File


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The Maharashtra government is set to introduce a new performance-rating system for contractors working on major infrastructure projects, with the aim of improving quality, ensuring timely completion and increasing accountability, reported the PTI.

The Public Works Department (PWD) has issued a Government Resolution (GR) introducing an objective system to assess contractors based on their actual performance during project execution.

PWD Minister Shivendrasinh Bhosale said that the new system would make contractor evaluation more transparent, objective and based on verifiable project records, the news agency reported.

Contractors will be assessed on several parameters, including the quality of work, adherence to deadlines, safety standards, compliance with contractual conditions and overall project management.

The state government hopes the system will also reduce disputes caused by subjective assessments and encourage contractors with a strong record to participate in future projects.

Applicable to projects worth Rs 500 cr and above

The new system will apply to upcoming tenders for projects with an estimated cost or tender value of Rs 500 crore or more.

It will cover projects undertaken by several state departments, government corporations, development authorities and local bodies. These include the PWD, Maharashtra State Road Development Corporation, Maharashtra State Infrastructure Development Corporation, Mumbai Metropolitan Region Development Authority, municipal corporations, CIDCO, Maha-Metro, MHADA and the Water Resources Department, among others, according to the PTI.

Contractors bidding for eligible projects will have to submit valid performance certificates for qualifying projects that they have completed or are currently executing.

Quality gets highest weightage

Each eligible project will be assessed out of 100 marks.

- Quality of work - 60 marks

- Completion within the stipulated time - 30 marks

- Maintenance period and overall performance - 10 marks

Quality will carry the highest weightage. The assessment will include compliance with approved specifications and quality assurance plans, laboratory and field test results, closure of non-conformance reports, and the structural and functional performance of the project.

The performance certificate will be issued by an officer of at least the rank of Chief Engineer or equivalent.

Contractors to be placed in three categories

Based on the weighted average of their performance scores, contractors will be placed into three categories:

- Green Category: More than 80 marks

- Yellow Category: More than 60 and less than 80 marks

- Red Category: Less than 60 marks

Green Category contractors will continue to be governed by the normal tender conditions.

For Yellow Category contractors, performance security and additional performance security will be fixed at 1.10 times the amount specified in the tender documents.

Contractors placed in the Red Category will be ineligible to participate in the tender process.

Performance certificates to be valid for 12 months

The performance certificate will remain valid for 12 months. Without a valid certificate, an eligible project submitted to establish technical eligibility will not be considered.

For ongoing projects listed as ‘Work in Hand', the absence of a valid performance certificate will also affect the calculation of the contractor's bid capacity.

Bhosale said completing major infrastructure projects on time was not enough and that projects must also be safe, durable and of high quality.

The government expects the new evidence-based system to reward contractors with a strong track record while restricting those who repeatedly fail to meet required standards.

Officials said the move would also help ensure better use of public money and improve the overall quality of infrastructure projects across Maharashtra.

(with PTI inputs)

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