The Ministry of Road Transport and Highways (MoRTH) has announced that the defect liability period for engineering, procurement, and construction (EPC) contracts will be extended from 5 to 10 years. The roads built under the build-operate-transfer (BOT) and hybrid annuity model (HAM) modes tend to be in better condition, as contractors are responsible for their upkeep.
The extension of the defect liability period for EPC projects aims to improve road quality by holding contractors accountable for longer, incentivising better construction practices. This new policy is expected to significantly enhance the durability and maintenance of national highways built under the EPC model.