New Eligibility Criteria Aim to Improve Project Execution
The Ministry of Railways has introduced new construction norms to improve project execution and reduce delays. The changes include increasing the threshold for assessing contractor capability from 35% to 50% of the project value, ensuring only firms with proven capacity to execute large projects can bid for similar works. Additionally, at least 20% of prior experience must be in railway-related work, recognizing that different sectors such as highways, ports, and airports have distinct complexities.
“Contractors will now have to directly execute at least 60% of the work under their own supervision, which will ensure accountability and reduce the practice of passing on contracts after securing bids,” said Ashwini Vaishnaw, Union Railways Minister.
The ministry has also fixed bid security at 2% of the project value, aimed at discouraging frivolous bids and ensuring only serious participants enter the tendering process. The permissible subcontracting limit has been reduced from 70% to 40%. Furthermore, the ministry has introduced mandatory assessment of bid capacity for all projects above โน10 crore and brought in strict punitive provisions banning corrupt, fraudulent, and anti-competitive practices.
The railways is also looking to increase its share in high-value automobile traffic from the existing 25%, and has introduced a reform allowing special wagon designs while giving flexibility to the industry. Manufacturers can now design wagons based on specific origin-destination routes with high-capacity.
Image Courtesy: Construction World
