Maharashtra Introduces Performance Rating System For Contractors Handling ₹500-Crore-Plus Infrastructure Projects

Mumbai, August 11, 2026 - The Maharashtra government has implemented a new Contractor Performance Assessment and Rating (PAR) Framework to evaluate the performance of contractors on major infrastructure projects. The initiative aims to enhance construction quality, ensure timely completion, and reinforce accountability in public works.

Effective immediately, the framework will apply to all government tenders involving projects worth Rs 500 crore or more across various state agencies, including the Public Works Department, municipal corporations, and CIDCO.

A critical component of the new system is the requirement for a valid Performance Certificate for bidders. This certificate, issued by an officer not lower than the rank of Chief Engineer, will be valid for 12 months. Contractors attempting to bid on projects without this certificate will be ineligible for technical evaluation. The performance assessment is based on three key parameters totaling 100 marks: timely completion (30 marks), quality of work (60 marks), and maintenance during the defect liability period for completed projects or overall performance for ongoing projects (10 marks).

These performance scores categorize contractors into three groups: Green (above 80), Yellow (60-80), and Red (below 60). Green-listed contractors will adhere to standard tender procedures, Yellow-listed bidders must provide performance security, and Red-listed contractors will be barred from participating in tenders. The rating is calculated as a weighted average of a contractor's performance across all eligible projects, with the weight given to completed work.

To conduct the evaluation, the framework considers various records, including progress reports, quality and safety reports, inspection records, non-conformance reports, completion certificates, and digital construction data. Additional factors such as laboratory and field test results, closure of quality-related non-conformance reports, structural performance, safety measures, environmental compliance, manpower and machinery deployment, digital reporting, and adoption of new construction technologies are also evaluated.