The National Highways Authority of India (NHAI) has revised and clarified provisions under its Request for Proposal (RFP) framework to improve project execution quality, minimise delays, and reduce lifecycle costs of National Highway projects. According to the Ministry of Road Transport and Highways, the changes are aimed at ensuring that only technically competent and experienced contractors qualify for large-scale highway developments.
A key reform focuses on redefining the “Similar Work” criterion in bid qualifications. In the past, contractors often misrepresented minor or peripheral works as equivalent to full-fledged highway projects to gain eligibility. With the new clarification, "Similar Work" will strictly apply to completed highway projects that include all major components comparable in scale and complexity to the project being tendered.
Curbing unauthorised subcontracting practices
The updated norms also target unauthorised practices observed in project implementation, particularly the use of unapproved contractors and subcontractors. Cases were reported where concessionaires engaged contractors without prior approval or exceeded subcontracting limits in EPC, HAM, and BOT (Toll) projects.
Such violations, the ministry noted, compromise quality assurance, project timelines, and regulatory oversight. Under the new framework, unauthorised subcontracting and exceeding permissible limits will be treated as an “Undesirable Practice”, drawing penalties equivalent to those for fraudulent activities.
Boosting financial transparency
Another major reform addresses the misuse of third-party Bid and Performance Securities. NHAI found instances where bidders relied on financial instruments issued by third parties, weakening accountability and enforceability.
To address this, the clarified RFP provisions now prohibit the submission of securities from external sources. Only securities backed directly by bidders or their approved entities will be accepted. This move is expected to enhance transparency, strengthen accountability, and ensure greater enforceability of contractual obligations.
Safeguarding quality and discipline in execution
By tightening bidder eligibility, restricting unauthorised subcontracting, and enhancing financial accountability, NHAI seeks to instill greater discipline in contract execution. The ministry emphasised that these steps would not only safeguard quality and regulatory oversight but also reinforce trust and transparency in the highway development process.