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NHAI has updated its RFP rules for national highway projects to ensure better project execution, cost control, and adherence to contractual norms. The new provisions clarify the definition of "similar work" to prevent misrepresentation by contractors, regulate subcontracting in EPC, HAM, and BOT projects, and prohibit the use of third-party-sourced bid and performance securities. These changes aim to enhance technical accountability, financial transparency, and enforceability, while penalizing practices that threaten quality and timelines. The measures reflect NHAI's ongoing efforts to reinforce discipline in highway project implementation.
The National Highway Authority of India (NHAI) has recently revised its request for proposal (RFP) rules for national highway projects to enhance project execution, reduce delays, and lower development costs. The updated provisions are aimed at ensuring that only technically skilled and experienced contractors are eligible to handle major highway projects. Advertisement
A key clarification in the new guidelines focuses on the definition of similar work in bid qualifications. NHAI pointed out that some contractors have previously misrepresented their experience by claiming eligibility for large-scale projects despite having only worked on minor or peripheral tasks. Now, similar work will strictly refer to completed highway projects that include all major components comparable to those required for the specific project under consideration.
The RFP updates also target the unauthorized engagement of EPC (engineering, procurement, and construction) contractors in HAM (hybrid annuity model) and BOT (build, operate, transfer) or toll projects, as well as subcontractors in EPC projects. NHAI highlighted instances where concessionaires or selected bidders engaged contractors without prior approval or exceeded subcontracting limits. Such practices, the authority said, compromise project quality, timelines, and regulatory oversight. Any subcontracting beyond permitted limits will now be considered an Undesirable Practice and may attract penalties similar to those for fraudulent activities.
Another significant reform addresses the submission of Bid and Performance Securities sourced from third parties. NHAI reported that some bidders had previously used such third-party instruments, raising concerns about accountability and enforceability. Under the revised rules, only securities backed by the bidder or its approved entities will be accepted, improving financial transparency and strengthening contractual compliance.
Source PTI
5th Jun, 2025
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