Maharashtra rates infra contractors on performance for ₹500 crore-plus projects
Synopsis
Maharashtra has moved beyond the standard pre-qualification checklist — contractors on its biggest infrastructure projects will now carry a colour-coded performance score that can bar them from future tenders entirely. With quality of work commanding 60 of 100 marks and Red Category contractors shut out of the bidding process, the state is making accountability structural, not discretionary.
Key Takeaways
The Maharashtra government has introduced a performance-based rating system for contractors on projects worth ₹500 crore or more , effective from upcoming tenders.
Contractors are scored on 100 marks : 60 for quality, 30 for timely completion, and 10 for maintenance/ongoing performance.
Ratings are colour-coded: Green (above 80), Yellow (60-80, higher security deposit), Red (below 60, barred from tenders).
A Performance Certificate issued by an officer of at least Chief Engineer rank is mandatory; it remains valid for 12 months .
The system covers major state agencies including MSRDC , MMRDA , CIDCO , Maha-Metro , MHADA , and municipal corporations.
Public Works Minister Shivendrasinhraje Bhosale announced the framework on 12 August .
The Maharashtra government has introduced a performance-based rating system for contractors executing infrastructure projects valued at ₹500 crore or more, marking a structural shift in how the state oversees its largest public works. A Government Resolution (GR) issued by the Public Works Department (PWD) on 12 August lays out the framework, which evaluates contractors on objective, evidence-based parameters and assigns them a colour-coded rating that directly determines their eligibility for future tenders.
What the New Rating System Covers
The framework applies to upcoming tenders across a wide sweep of state agencies — including the Public Works Department, Maharashtra State Road Development Corporation (MSRDC), Maharashtra State Infrastructure Development Corporation (MSIDC), Mumbai Metropolitan Region Development Authority (MMRDA), CIDCO, Maha-Metro, MHADA, municipal corporations, water resources, rural development, urban development, public health, and tribal development departments, among others.
Contractors bidding for projects worth ₹500 crore or more must submit a valid Performance Certificate for each eligible project — completed or ongoing — issued by an officer of at least the rank of Chief Engineer. The certificate, valid for 12 months, assesses delays, their nature and extent, quality of work, and compliance with quality control standards. Without a valid certificate, the project will not count toward technical eligibility.
How Contractors Are Scored and Classified
Each eligible project is evaluated on 100 marks: 60 marks for quality of work (the highest weighted component), 30 marks for timely completion, and 10 marks for maintenance-period performance or overall progress on ongoing works. A Weighted Average Score across all eligible projects determines the contractor's final rating.
Contractors are then classified into three categories. Those scoring above 80 marks fall in the Green Category and face standard tender conditions. Those between 60 and 80 marks are placed in the Yellow Category, where Performance Security and Additional Performance Security are fixed at 1.10 times the amount specified in the tender document. Contractors scoring below 60 marks are placed in the Red Category and declared ineligible to participate in the tender process.
What the Government Said
Public Works Minister Shivendrasinhraje Bhosale said on Wednesday that timely completion of major infrastructure projects is no longer sufficient on its own. 'It is equally important that these projects are completed in a high-quality, safe, durable and transparent manner,' he said.
Bhosale added that the objective, evidence-based evaluation will encourage consistently high-performing contractors while enabling effective control over those who repeatedly fall short of expected standards. The assessment will draw on verifiable project records — including monthly progress reports, quality and safety test reports, NCR registers, site inspection reports, independent engineer reports, minutes of progress review meetings, completion certificates, defect rectification records, PMIS data, and digital construction records.
Financial Safeguard for Ongoing Projects
The GR also addresses contractors who cannot produce a valid Performance Certificate for an ongoing project listed under 'Work in Hand'. In such cases, an amount equivalent to twice the sanctioned value of that work will be counted under 'Value of B' when determining Bid Capacity — a provision designed to discourage contractors from masking poor track records through incomplete documentation.
Why This Matters
Maharashtra is one of India's largest spenders on public infrastructure, with ongoing mega-projects spanning roads, metro corridors, and urban utilities. Critics have long pointed to cost overruns and quality deficiencies on large contracts as a systemic weakness. This is the first time the state has formalised a colour-coded contractor rating tied directly to tender eligibility, moving beyond the conventional pre-qualification checks that assess financial and technical capacity at the bid stage alone. The policy, if implemented rigorously, could reshape the contractor landscape for high-value Maharashtra projects in the years ahead.
Point of View
But the real test lies in execution. Performance certificates issued by in-house Chief Engineers carry an inherent conflict of interest — the same department that awards a contract is now also the one grading the contractor. Independent third-party audits are conspicuously absent from the GR. The Red Category bar of 60 marks also raises a question: in a market where large contractors are few, blanket disqualification could reduce competition on mega-tenders and inadvertently push up costs. The state would do well to publish contractor ratings publicly, creating a market-facing accountability layer that supplements the regulatory one.
NationPress
12 Aug 2026
Frequently Asked Questions
What is Maharashtra's new performance-based contractor rating system?
It is a framework introduced by the Maharashtra Public Works Department that evaluates contractors on infrastructure projects worth ₹500 crore or more on objective parameters — quality, timeliness, and maintenance performance — and assigns them a Green, Yellow, or Red rating that determines their eligibility for future state tenders.
Which contractors does this system apply to?
The system applies to contractors bidding for projects worth ₹500 crore or more across a range of state agencies, including the PWD, MSRDC, MMRDA, CIDCO, Maha-Metro, MHADA, municipal corporations, and several other Maharashtra government departments and corporations.
How are contractors rated under the new system?
Each eligible project is scored out of 100 marks — 60 for quality of work, 30 for timely completion, and 10 for maintenance or ongoing performance. A Weighted Average Score across all eligible projects determines the final rating: Green (above 80), Yellow (60-80), or Red (below 60).
What happens to contractors placed in the Red Category?
Contractors scoring below 60 marks are placed in the Red Category and declared ineligible to participate in future tender processes. Yellow Category contractors face Performance Security set at 1.10 times the standard tender requirement.
What is a Performance Certificate and who issues it?
A Performance Certificate is a mandatory document that assesses a contractor's track record on completed or ongoing projects, covering delays, quality, and compliance. It must be issued by an officer of at least Chief Engineer rank and remains valid for 12 months. Without it, a project cannot count toward a contractor's technical eligibility.
