Report No.4 of 2017 - Contract Management in Road Works,Government of Uttar Pradesh


The Report No. 04 of 2017 on Performance Audit of “Contract Management in Road Works” has been prepared for submission to the Governor of Uttar Pradesh under Article 151(2) of the Constitution.

Uttar Pradesh is the most populous State in the country and has made massiveinvestments in road sector in recent years to improve connectivity. Still theState stands at 25th position in road density per lakh population and at ninthplace in road density per 100 square km area.

The State has 2,03,457 km ofvarious categories of roads such as National Highways,State Highways,Major District Roads,Other District Roads and Village Roads. During 2011-16,the State government incurred anexpenditure of ` 40,854.63 crore on construction and maintenance of varioustypes of roads in the State excluding PradhanMantri Gram SadakYojana.About 77 per cent funds were utilised on widening/strengthening of existingroads and remaining 23 per cent funds were utilised on construction of newroads.

Audit observed serious irregularities in all the stages of tendering process andcontract management. The basic norms for road design and cost estimationwere not adhered to. The tendering process lacked transparency andcompetition. Large numbers of contractors not meeting the minimum technicalrequirements were qualified in technical evaluation and there were clearindications of collusive bidding in major contracts in most of the districts.Government instructions to check use of construction material from illegalmining were not complied with. Grant of concessions and undue benefits tocontractors was rampant and there was complete neglect of the need to ensureroad quality and protect government interests.

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