Beyond lowest-bid tendering: Developing a risk adjusted contractor performance evaluation framework for Indian highway projects

Persistent time overruns, cost escalation, and quality deficiencies in Indian road construction projects raise concerns regarding the effectiveness of the dominant L1 (lowest bidder) contract award system. This study investigates performance implications of L1-dominated procurement and develops a structured Contractor Performance Evaluation Framework (CPEF) tailored to the Indian road sector. Adopting a mixed-methods approach, the research integrates literature review, quantitative analysis of stakeholder perceptions through Likert-scale surveys, and qualitative thematic analysis of expert interviews involving senior practitioners from MoRTH, MES, BRO, NHIDCL, and allied agencies. Findings establish significant association between L1-based contract awards and adverse project outcomes. A multidimensional, weighted, risk-adjusted CPEF is proposed, incorporating past performance, technical capacity, financial strength, contract administration, organizational behavior, and innovation. A transparent scoring and grading mechanism align contractor capability with project complexity. The study concludes that phased, performance-informed integration of CPEF offers a pragmatic and policy-compatible pathway to enhance delivery outcomes while retaining transparency and legal defensibility.