In a move to improve the quality of project execution, reduce delays, and bring down lifecycle costs of National Highway projects, the National Highways Authority of India (NHAI) has issued clarifications to provisions of the Request for Proposal (RFP). These reforms aim to strengthen contractor qualification norms, enforce compliance during project execution, and enhance transparency in financial submissions.
One of the most critical clarifications addresses the “Similar Work” criteria under bid qualification. Previously, contractors with experience in only minor or peripheral works misrepresented their credentials to qualify for large-scale highway projects. To prevent this, NHAI has clearly defined “Similar Work” as completed highway projects that include all major components comparable to the project under bidding. This ensures that only technically capable and experienced contractors qualify, reinforcing the integrity of the bidding process.
The clarifications also target the unauthorized engagement of EPC contractors in HAM and BOT (Toll) projects, as well as subcontractors in EPC contracts. Instances were observed where concessionaires or selected bidders engaged contractors without prior approval or exceeded permissible subcontracting limits. Such practices compromise project quality and regulatory oversight. NHAI has now classified unauthorized subcontracting and subcontracting beyond permissible limits as “Undesirable Practices,” attracting penalties equivalent to fraudulent practices. This measure is expected to instill greater discipline in contract execution.
Another key reform prohibits the use of third-party sourced Bid and Performance Securities. Reports had surfaced of bidders submitting financial securities issued by unrelated third parties, which diluted accountability and raised enforceability concerns. NHAI has clarified that only securities backed by the bidder or its approved entities will be accepted. This step enhances financial transparency, strengthens bidder liability, and ensures contractual obligations are enforceable.
By refining qualification criteria, tightening compliance requirements, and strengthening financial safeguards, these clarifications will ensure that National Highway projects are executed by technically competent and financially accountable contractors. The measures will also safeguard the quality of infrastructure, enable timely completion of projects, and ensure optimal use of public funds.
Overall, the reforms reflect NHAI’s commitment to building a more efficient, reliable, and sustainable National Highway network, laying the foundation for improved connectivity and long-term economic growth.
