The grading system will help the government in assessing the bids in a better manner and awarding the contract on merits rather than merely the lowest bidder, said Uddesh Kohli, CIDC member secretary and PFC managing director, on Monday.

The two agencies signed an memorandum of understanding to award the rating today in the presence of Icra officials, and the Builders Association of India (BAI).

Addressing a press conference later, Kohli said the voluntary grading system will help in doing away with pre-qualification round of selecting companies, thus speeding up tendering process.

Moreover, the project is more likely to be completed in time and within the stipulated cost as the contract has been given to a meritorious company, he added.

The gradingsystem will be totally transparent and interactive-based on information given by the client. Moreover, the rating will be valid for one year and be monitored throughout the period for any change.