The International Road Federation (IRF), a global road safety organisation advocating safer and higher-quality road infrastructure worldwide, has written to Prime Minister Narendra Modi seeking strict implementation of the General Financial Rules (GFR) provisions that allow government contracts to be awarded using the Quality-cum-Cost-Based Selection (QCBS) method.
In its letter, the IRF highlighted that despite amendments to the GFR permitting QCBS—where quality carries a weightage of 30% and cost 70%—government contracts continue to be largely awarded to the lowest bidders, often at the expense of execution quality.
“Although the GFR has been amended to provide for Quality-cum-Cost-Based Selection, it is not being implemented on the ground. As a result, works are still being awarded to the lowest bidder,” said K.K. Kapila, President Emeritus, International Road Federation, and Chairman of ICT Group, in his letter to the Prime Minister.
Kapila noted that aggressive underbidding by contractors has become commonplace, leading to substandard quality of work, frequent disputes, prolonged arbitration, and long-drawn court cases. “Contracts awarded at unworkable rates ultimately prove far more expensive, as contractors are forced to cut corners, compromising quality and project outcomes,” he added.
The IRF has urged the Prime Minister to direct respective secretaries and senior officials across ministries and departments to ensure strict adherence to the amended GFR provisions, with a particular emphasis on quality benchmarks in public works and procurement.
The General Financial Rules (GFR), 2017, issued by the Ministry of Finance, serve as the foundational framework governing public financial management in India. Applicable to all central ministries, departments and attached bodies, the rules aim to promote accountability, transparency and efficiency in government spending. They mandate compliance with established procurement norms, including the use of the Government e-Marketplace (GeM), and stress prudent management of public funds.
IRF’s appeal comes amid growing concerns within the infrastructure sector that a continued focus on lowest-cost bidding undermines long-term asset quality, increases lifecycle costs, and delays project delivery.
