NHAI Tightens RFP Provisions to Ensure Quality and Transparency in Highway Projects
NHAI aims to build a more efficient and reliable National Highway network for India’s growing transportation needs
The National Highways Authority of India (NHAI) has tightened its Request for Proposal (RFP) provisions to enhance the quality of National Highway projects, ensure timely completion, and strengthen financial transparency. The move aims to cut delays, reduce lifecycle costs, and promote accountability in project execution.
Stricter Qualification Norms for Contractors
One of the key changes is the clarification of the “Similar Work” criteria in bid qualifications. Going forward, only completed highway projects with all major components will be considered as valid experience. This will prevent contractors from misrepresenting small or peripheral works as eligibility for large-scale highway development.
Crackdown on Unauthorized Subcontracting
The new provisions also address the issue of unauthorized subcontracting in EPC, HAM, and BOT (Toll) projects. Any subcontracting beyond permissible limits or without prior approval from NHAI will now be treated as an “Undesirable Practice”, attracting penalties at par with fraudulent practices. This step will improve quality assurance and safeguard project timelines.
Ban on Third-Party Bid Securities
To enhance financial transparency, NHAI has prohibited bid and performance securities sourced from third parties. Only securities backed directly by the bidder or approved entities will be accepted. This ensures enforceability of contractual obligations and increases accountability.
Better Quality, Timely Delivery of National Highways
According to NHAI, these reforms will ensure that only technically capable and financially competent contractors are awarded projects. By reinforcing discipline in contract execution, the new provisions are expected to deliver:
- Higher quality road infrastructure
- Timely completion of highway projects
- Optimal use of public funds
With these measures, NHAI aims to build a more efficient and reliable National Highway network for India’s growing transportation needs.
