MoRTH Mulls Doubling Defect-Liability Period for Road Contracts
The Ministry of Road Transport and Highways is considering extending the defect-liability period under engineering-procurement-construction (EPC) contracts to 10 years, aiming to reduce road maintenance expenses and enhance construction quality. This move, currently under stakeholder consultation, seeks to prompt contractors to improve construction standards, consequently lowering road accidents.
Traditionally, under EPC contracts, the central government assumes responsibility for national highway maintenance after the defect-liability period. With the proposed extension, contractors would be accountable for maintenance for an extended duration, fostering better road upkeep.
The ministry has allocated ₹2,600 crore for road maintenance in 2024-25, aligning with previous years' expenditures. Funded by the Central Road Infrastructure Fund, maintenance operations are carried out by various agencies including state public works departments, the Border Roads Organisation, and the National Highways Authority of India.
Traditionally, under EPC contracts, the central government assumes responsibility for national highway maintenance after the defect-liability period. With the proposed extension, contractors would be accountable for maintenance for an extended duration, fostering better road upkeep.
The ministry has allocated ₹2,600 crore for road maintenance in 2024-25, aligning with previous years' expenditures. Funded by the Central Road Infrastructure Fund, maintenance operations are carried out by various agencies including state public works departments, the Border Roads Organisation, and the National Highways Authority of India.