Defect Liability period proposed to be increased for major road projects

Accountability of builders in charge of major road projects has become imperative in the present scenario with many defects surfacing within a short period after they are constructed. The present liability on the builders has been limited to just two years. It has been proposed by the Roads Ministry that this period be increased to five years in lieu. Thereby, the builders will be held accountable for the maintenance of roads and repair of defects that may occur at a later stage. The liability period for builders of structures like bridges is already five years.

Defect Liability period to be increased to five years:

The discrepancy in the defect liability period for road projects stipulated for the main carriageway in comparison to associated structures along the stretch is startling. It has been seen that the defect liability period for the main carriageway is comparatively lesser than that of structures like bridges, along the same stretch. Keeping the defect liability period low can lead to compromise in the quality of materials used for construction. To correct this imbalance, it has been proposed that the defect liability period be increased to five years, across the project.

Competitive bidding to be employed in EPC projects:

The Roads Ministry’s proposal comes in the backdrop of the Prime Minister’s instruction to the ministry officials during a meeting on November 11, 2013. The meeting was convened to address issues related to the quality of roads built under the Engineering, Procurement and Construction (EPC) model. Competitive bidding is employed in awarding EPC projects, whereby the government pays a certain sum of money for the construction of the project, to the contractor who has been awarded the project.

Proposal to be submitted to inter-ministerial group:

As per the contract, the contractor will be responsible for the maintenance of the road project during the defect liability period of the project ie, any defect that is detected after the completion of the project will have to be rectified by the contractor. The Roads ministry is in the process of preparing a draft proposal in this regard, which will then be submitted to the inter-ministerial group, headed by the roads secretary. If there is a consensus among all the group members, then a change will be brought about in the model concession agreement. Otherwise, the matter will be taken to the cabinet. The group members will include representatives of the Department of Economic Affairs, the Planning Commission as well as those in the Law and Roads ministries.

Project design for EPC projects provided by NHAI:

There is unlikely to be any change in the parameters governing the quality of projects, even thought the cost involved may be considerably higher. As opposed to PPP projects, the design for EPC projects is provided by the NHAI, where the contractor does not have any say. Moreover, a project director as well as a construction supervisory consultant is also appointed to keep a check on the quality of construction.