NHAI to fine companies for major lapses
ROADS & HIGHWAYS

NHAI to fine companies for major lapses

The National Highways Authority of India (NHAI) has issued a strict policy to impose penal action against defaulting firms or personnel if there are any lapses in construction standards of bridges, structures and approaches to structure by concessionaires, contractors or consultants....

The National Highways Authority of India (NHAI) has issued a strict policy to impose penal action against defaulting firms or personnel if there are any lapses in construction standards of bridges, structures and approaches to structure by concessionaires, contractors or consultants.In case of a major lapse leading to loss of human life, a heavy fine up to Rs.100 million and debarment of the firm or personnel up to three years along with rectification by defaulting contractors or concessionaires on their own cost may be imposed. For major lapses where no casualties are reported, rectification by defaulting contractors or concessionaires on their own cost and/or debarment of the firm up to one year with penalty up to Rs.50 million along with debarment of concerned personnel for up to two years from NHAI projects has been provisioned. For minor lapses where no casualties are reported, defaulting contractors or concessionaires will have to bear the expenses to carry out rectification work along with a penalty of Rs.3 million. A written warning to the firm and involved personnel will also be issued. Under the graded penalty, the consultancy firm involved in the project will also be held liable with a fine of up to `4 million and debarment from NHAI projects for a period of up to two years. Key personnel of the consultancy firm will also be debarred from NHAI projects for a period of up to three years.For each repeated lapse by defaulting contractors, concessionaires or consultants, the penalty for the subsequent offence shall be enhanced by an additional 50 per cent compared to the penalty imposed in the previous instance. Suitable action on NHAI officials shall also be taken depending on the extent of dereliction of the duties by the concerned official.As per SOPs, an expert committee will be constituted in compliance with an already established post-accident mechanism to investigate the matter. On the outcome of the investigation, a suitable penalty shall be imposed. During the term of investigation, the concerned personnel of the contractor, concessionaire or consulting firm may be kept under suspension from working on the project or any other projects of the authority.To share your perspective on current industry happenings, write in at feedback@ConstructionWorld.in

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