IRC Code:SP:124-2019 – Model Contract for Maintenance of Roads (Single Percentage Rate)

Efficient road maintenance is crucial for ensuring the safety, durability, and functionality of highways and rural roads. The Indian Roads Congress (IRC) introduced IRC:SP:124-2019, a model contract for road maintenance based on a single percentage rate system. This framework standardizes tendering, bidding, and execution to improve the quality and accountability in road upkeep.

This blog explores the key provisions of IRC:SP:124-2019, including tendering guidelines, financial aspects, maintenance standards, and contractual obligations.

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Why is IRC:SP:124-2019 Important?

The Indian road network is among the largest in the world, making efficient maintenance a major challenge. Issues such as:


🚧 Potholes, cracks, and surface damage
🚧 Drainage blockages
🚧 Fading road markings and signage
🚧 Erosion and vegetation overgrowth
🚧 Safety concerns due to wear and tear

can reduce road lifespan and increase repair costs. The IRC:SP:124-2019 contract simplifies maintenance processes and ensures quality control.

Key Features of IRC:SP:124-2019

1. Single Percentage Rate System

  • Contractors submit a single percentage rate bid based on the estimated cost.
  • This rate applies uniformly across the entire scope of maintenance work.
  • Ensures transparency and uniformity in project cost management​.

2. Tendering & Bidding Process

  • E-tendering system for efficiency and transparency.
  • Pre-qualification criteria for bidders based on:
    • Financial turnover
    • Previous maintenance experience
    • Availability of required equipment​.
  • Bidders must submit:
    Bank guarantees
    Letter of acceptance
    Performance security​.

3. Scope of Work in Road MaintenanceThe contract includes routine maintenance for:

  • Carriageways & shoulders
  • Medians & embankments
  • Bridges & culverts
  • Road signage & markings
  • Drainage & water management
  • Vegetation control & roadside cleaning​.

📌 Contractors are responsible for maintaining these elements within the agreed budget and timeline.4. Contract Duration & Performance Monitoring

  • Contracts typically span 24 to 36 months​.
  • Regular inspections ensure compliance with standards.
  • Penalties for non-performance and incentives for quality work.
  • Mandatory reporting of completed tasks​.

Financial & Legal Aspects of IRC:SP:124-20195. Payment Terms & Bid Security

  • Earnest Money Deposit (EMD) required to qualify for bidding.
  • Payments are made monthly or quarterly based on work completion​.
  • Bid security forfeited if the contractor fails to meet obligations.

6. Performance Security & Mobilization Advance

  • 5% of the contract value must be submitted as performance security​.
  • Mobilization advance available for larger projects.
  • Additional security deposits may be required for high-risk projects.

7. Dispute Resolution & Contract Termination

  • Arbitration & legal framework for dispute resolution.
  • Contracts can be terminated for non-compliance, fraud, or breach of terms​.

Conclusion

The IRC:SP:124-2019 model contract is a game-changer in the Indian road maintenance sector. By implementing standardized guidelines, transparent bidding, and accountability mechanisms, this contract enhances road quality, reduces costs, and ensures safer travel for all road users.

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