Western Transport Corridor Project

Due to inappropriate selection of the contractors, a significant delay in the completion of the contracts was caused by (i) weak planning; (ii) weak project management capacity; (iii) poor performance of the contractors; and (iv) inadequate participation of the lead partner, particularly the joint venture contractor, who was awarded three contract packages. Three out of five civil works contracts were ultimately terminated after a considerable delay. The criteria for the qualification of the contractor under a joint venture and for the award of multiple contracts should be strengthened. The contractual provisions to ensure the participation of the lead partner need to be strengthened. The performance of contractors on projects in India has always been a matter of concern. The contractual provisions related to contractors' performance, such as mobilization, staffing, deployment of equipment and funds, release of payments, bonus for early completion, and penalties, need to be strengthened so that poor performance by the contractor is discouraged. The performance of the contractor should be assessed in the initial stages of the contract and the decision on termination, if warranted, should not be delayed