Express News Service
NEW DELHI: A panel of parliamentarians has questioned the provision of subcontracting allowed by the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI). Taking note of ‘poor contract management’ resulting in avoidable expenditures and delays, the panel has further suggested that the ministries to assign ‘contract managers’ for effective and transparent management of work awarded to the contractors.
The 31-member parliamentary standing committee on transport, tourism and culture, in its 354th report submitted to both Houses of Parliament earlier this month, further has recommended the ministry to look into the issue on priority. “The committee also desires to be apprised of the reasons as to why the Ministry/NHAI allows contractors to hire or lease out to sub-contractors for carrying out specific work instead of splitting the project into smaller parts so that contractors with limited wherewithal could also bid for the same and legitimately get awarded on merit as principal contractor for the assigned work,” the panel stated.
The committee, headed by Rajya Sabha MP V Vijayasai Reddy of YSR Congress, said that the ministries should assign competent contract managers who have the necessary skills and expertise to effectively manage contracts. “These managers should have a strong understanding of contract law, project management and negotiation skills. Imparting them adequate skill training will enable them to fulfill their responsibilities,” it suggested, while referring to the observation of the Comptroller and Auditor General (CAG), which also flagged off the delays in the finalisation of the negotiated rates and grant of extensions despite poor progress by the contractor.
Making a strong pitch for arrangements to ensure timely completion of projects, the panel said the ministry might develop a transparent and efficient payment management system to minimise disputes.“Emphasis should be laid on establishing clear protocols for verifying contractor invoices, approving payments, and addressing any payment disputes promptly. Timely and accurate payments can help maintain the contractor’s motivation, besides ensuring timely completion of the project,” the committee noted in its report.
It has also proposed provisions of incentives or penalties depending on the performance of the contractors. “The committee suggests that the ministry should incorporate performance incentives and penalties into the contract terms. Incentives can motivate contractors to contribute significantly to the project, exceeding expectations, while penalties can lead to poor performance or non-compliance,” the panel said.
NEW DELHI: A panel of parliamentarians has questioned the provision of subcontracting allowed by the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI). Taking note of ‘poor contract management’ resulting in avoidable expenditures and delays, the panel has further suggested that the ministries to assign ‘contract managers’ for effective and transparent management of work awarded to the contractors.
The 31-member parliamentary standing committee on transport, tourism and culture, in its 354th report submitted to both Houses of Parliament earlier this month, further has recommended the ministry to look into the issue on priority. “The committee also desires to be apprised of the reasons as to why the Ministry/NHAI allows contractors to hire or lease out to sub-contractors for carrying out specific work instead of splitting the project into smaller parts so that contractors with limited wherewithal could also bid for the same and legitimately get awarded on merit as principal contractor for the assigned work,” the panel stated.
The committee, headed by Rajya Sabha MP V Vijayasai Reddy of YSR Congress, said that the ministries should assign competent contract managers who have the necessary skills and expertise to effectively manage contracts. “These managers should have a strong understanding of contract law, project management and negotiation skills. Imparting them adequate skill training will enable them to fulfill their responsibilities,” it suggested, while referring to the observation of the Comptroller and Auditor General (CAG), which also flagged off the delays in the finalisation of the negotiated rates and grant of extensions despite poor progress by the contractor.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
Making a strong pitch for arrangements to ensure timely completion of projects, the panel said the ministry might develop a transparent and efficient payment management system to minimise disputes.
“Emphasis should be laid on establishing clear protocols for verifying contractor invoices, approving payments, and addressing any payment disputes promptly. Timely and accurate payments can help maintain the contractor’s motivation, besides ensuring timely completion of the project,” the committee noted in its report.
It has also proposed provisions of incentives or penalties depending on the performance of the contractors.
“The committee suggests that the ministry should incorporate performance incentives and penalties into the contract terms. Incentives can motivate contractors to contribute significantly to the project, exceeding expectations, while penalties can lead to poor performance or non-compliance,” the panel said.
