NHAI tightens RFP norms to curb delays and improve highway infrastructure

The National Highways Authority of India (NHAI) has issued clarifications to the provisions of the Request for Proposal (RFP) with the aim of strengthening contractor qualification norms, ensuring compliance in project execution, and enhancing transparency in financial submissions.

These measures are expected to improve infrastructure quality, enable timely completion of projects, and ensure optimal use of public resources, thereby contributing to the development of a more efficient national highway network.

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According to the Ministry of Road Transport & Highways, the modifications will enhance project execution standards, reduce delays, and lower the overall lifecycle cost of highway projects.

“Stringent conditions in various clauses under the RFP will help ensure that only technically capable and experienced contractors qualify for the implementation of National Highway projects,” the ministry said in a statement on Wednesday.

Key Clarifications to RFP

One major clarification relates to the definition of “Similar Work” in bid qualifications. Contractors have often misrepresented minor or peripheral works as comparable experience to qualify for large-scale projects. NHAI has now made it clear that “Similar Work” refers only to completed highway projects that include all major components comparable to those required for the project being bid for.

The clarifications also address the unauthorised engagement of Engineering, Procurement, and Construction (EPC) contractors in Hybrid Annuity Model (HAM) and Build, Operate, Transfer (BOT-Toll) projects, as well as subcontractors in EPC projects.

It was observed that concessionaires and bidders frequently engaged contractors without prior approval or exceeded subcontracting limits. Such practices, the ministry noted, violate contractual norms and jeopardise quality, timelines, and regulatory oversight.

“Any unauthorised subcontracting, or subcontracting beyond permissible limits, will be treated as an ‘Undesirable Practice’ and attract penalties equivalent to fraudulent practices. This will help enforce discipline in contract execution and safeguard the integrity of implementation,” the ministry emphasised.

Another reform prohibits the submission of “Bid and Performance Securities” sourced from third parties. Reports indicated that some bidders furnished securities issued by unrelated entities, undermining accountability and raising concerns about enforceability.

“It has now been clarified that only securities backed by the bidder or its approved entities will be accepted. This step is expected to improve financial transparency and strengthen the enforceability of contractual obligations,” the ministry stated.

With these measures, NHAI aims to ensure that highway projects are awarded only to contractors with proven technical and financial competence, executed by authorised and accountable entities, and monitored with stronger regulatory oversight.