He believes in creating a system where there is little incentive for fraud. For instance, at Konkan Railway he did away with paying contractors based on measurement books.
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It took months to complete, and affected the contractor’s cash flow. Instead, he brought in AV Paulose, an authority on railway finance, to device a system where payments can be made faster, based on bills contractors submit.
By this method, 85 percent of payments were made within 24 hours, no questions asked, and the rest within a week after the bills were scrutinised.
It is based on trust, and penalty for breaching it is high. But, once the cash flows are certain, contractors had little incentive to cut corners. Sreedharan followed the same system at DMRC.