Maharashtra Introduces Performance Rating System For Contractors Handling ₹500-Crore-Plus Infrastructure Projects
Maharashtra has introduced a Contractor Performance Assessment and Rating (PAR) Framework for all upcoming infrastructure tenders worth ₹500 crore or more. Contractors will be rated on timely completion, quality and maintenance performance, with poor-performing firms facing disqualification and additional safeguards being imposed on lower-rated bidders.
Maharashtra has introduced a performance-based rating framework for contractors executing infrastructure projects worth ₹500 crore or more to improve quality, timely completion and accountability | AI Generated Representational Image
Mumbai, August 11, 2026: The Maharashtra government has introduced a new Contractor Performance Assessment and Rating (PAR) Framework to evaluate the actual performance of contractors executing major infrastructure projects, with the aim of improving construction quality, ensuring timely completion and strengthening accountability in public works.
Under the Government Resolution issued by the Public Works Department on Tuesday, the new framework will apply to all upcoming tenders involving projects worth Rs 500 crore or more floated by government departments, statutory bodies and authorities across the state.
The system will cover agencies including the PWD, MSRDC, MSIDC, MMRDA, municipal corporations, CIDCO, Maha Metro, MHADA and other government bodies.
Performance Certificate Made Mandatory
The new mechanism will make a valid Performance Certificate mandatory for bidders seeking to use completed or ongoing projects as part of their technical capacity.
The certificate must be issued by an officer not below the rank of Chief Engineer or an equivalent authority and will remain valid for 12 months. Projects cited by contractors without a valid certificate will not be considered for technical evaluation.
The performance assessment will be based on three major parameters carrying a total of 100 marks. Timely completion will account for 30 marks, quality of work for 60 marks, and maintenance during the defect-liability period for completed projects or overall performance for ongoing projects will carry 10 marks.
The assessment will rely on documented records such as progress reports, quality and safety reports, inspection records, non-conformance reports, completion certificates and digital construction data.
Contractors To Be Placed In Three Categories
Contractors will subsequently be placed in three categories based on their weighted average performance score. Those scoring above 80 will be classified as Green, those scoring above 60 but below 80 as Yellow, and those scoring below 60 as Red.
Green-category contractors will face normal tender conditions, while Yellow-category bidders will have to provide performance security and additional performance security at 1.10 times the specified rate. Red-category contractors will be disqualified from the tender process.
The government said the rating will not depend on a single project but will be calculated as a weighted average of all eligible projects relied upon by a contractor, with the value of completed work determining the weightage. The framework is intended to discourage non-performing contractors, reward consistent performance and improve value for public expenditure.
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Evaluation To Include Quality And Safety Records
The detailed evaluation will also take into account laboratory and field test results, closure of quality-related non-conformance reports, structural performance, safety, environmental compliance, deployment of manpower and machinery, digital reporting and adoption of new construction technologies.
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