Performance-based contracts introduced for road upkeep

Panaji: After repeated criticism over deteriorating road quality, public works department (PWD) has, for the first time, introduced performance-based maintenance contracts for the upkeep of four newly laid road stretches. All four projects will be funded by the Union ministry of highways at an estimated cost of around Rs 80 crore.

If the model proves effective, it will be replicated across the state. Earlier, maintenance was included within road construction or relaying contracts. Under the new system, a separate agency will be appointed solely for maintenance.

A performance-based maintenance contract worth Rs 18.9 crore has been awarded for the 27km stretch from the Goa border at Chorla Ghat to the Kerim checkpost. The 9.6km Ribandar bypass contract has been awarded for Rs 21.7 crore.

Similarly, a Rs 23.4 crore contract has been granted for the 7.7km Canacona bypass stretch, while the 5.8km Loutolim to Verna section of NH-566 will be maintained under a contract worth Rs 17.4 crore.

Though the performance-based model is costlier, running into crores per kilometre, it is among the newer approaches recommended by the ministry. It is expected to deliver improved outcomes, as contractors will receive payments only upon meeting specified performance standards.

Typically awarded for five years, the contract includes four components — routine, emergency, special and periodical maintenance. Resurfacing is mandated in the second and fifth years of the contract period.

Performance benchmarks have been clearly defined under each component, and payments will be strictly linked to compliance. Contractors will not be paid if the stipulated standards are not met.

After the five-year term, contractors will remain responsible during a three-year defect liability period, ensuring road quality is maintained for a total of eight years.