Road builders could face liability for a decade
ROADS & HIGHWAYS

Road builders could face liability for a decade

The Ministry of Road Transport and Highways is contemplating the extension of the defect-liability period in engineering-procurement-construction (EPC) contracts to 10 years. This proposed measure aims to reduce the government's expenditure on road maintenance.

The intention behind this move is to encourage contractors to enhance the quality of construction, ultimately leading to a decrease in road accidents. The ministry is currently in discussions with stakeholders and will soon finalise the proposals.

An official, wishing to remain anonymous, revealed, "Expert consultations are underway to extend the defect-liability period under EPC contracts to 10 years, as the ministry is committed to enhancing the quality of construction."

In the EPC mode of road construction, the central government assumes responsibility for maintaining national highways once the defect-liability period concludes. During the defect-liability period, it is the contractor's duty to handle maintenance.

For the fiscal year 2024-25, the ministry has allocated Rs 26 billion for road maintenance. This amount remains consistent with the budgetary and revised estimates for 2023-24, with a slight increase compared to the Rs 25.73 billion expended in 2022-23.

The Ministry of Road Transport and Highways is contemplating the extension of the defect-liability period in engineering-procurement-construction (EPC) contracts to 10 years. This proposed measure aims to reduce the government's expenditure on road maintenance. The intention behind this move is to encourage contractors to enhance the quality of construction, ultimately leading to a decrease in road accidents. The ministry is currently in discussions with stakeholders and will soon finalise the proposals. An official, wishing to remain anonymous, revealed, Expert consultations are underway to extend the defect-liability period under EPC contracts to 10 years, as the ministry is committed to enhancing the quality of construction. In the EPC mode of road construction, the central government assumes responsibility for maintaining national highways once the defect-liability period concludes. During the defect-liability period, it is the contractor's duty to handle maintenance. For the fiscal year 2024-25, the ministry has allocated Rs 26 billion for road maintenance. This amount remains consistent with the budgetary and revised estimates for 2023-24, with a slight increase compared to the Rs 25.73 billion expended in 2022-23.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?