Road ministry doubles performance security for bridge monitoring contracts to 10%

The ministry of road transport and highways has raised the performance security to 10% from 5% of the contract value for concessionaires bidding for supply, installation, commissioning, and operation and maintenance of sensors for continuous real-time health monitoring of bridges in respect of National Highways and centrally sponsored road works.

This is expected to ensure high safety standards are in place and there is no new incidence of bridge collapse, as had happened in the past.

The amendments have been introduced in the standard request for proposal (RFP) documents. Besides, it has also reduced the time for changes to the bid document to three days from the date of tender opening as against two weeks set earlier while seeking the performance security even in the form of Insurance Surety Bonds and physical bank guarantee if e-bank guarantee is not possible.


It has also brought down the security refund amount to 50% compared to 60% earlier after one year of successful commissioning of a complete bridge health monitoring system while the balance performance security shall be released in two equal instalments, the first installment in the second-last year of the contract period, and the second installment upon completion of six months after the expiry of the contract period or upon completion of the defects liability period.

The earlier provision was to refund the balance part of 40% of performance security in equal installments every two year till 9th year after commissioning.