Highway builders seek realistic bidding, higher O&M payments as NHAI tightens monitoring

The National Highways Builders Federation (NHBF) has called for realistic bidding practices, adequate operation and maintenance (O&M) payments and sustainable contractual frameworks as the National Highways Authority of India (NHAI) moves towards technology-driven monitoring and stricter compliance requirements in highway maintenance.

The industry body said contractors must have the operational and financial capacity to meet increasingly stringent performance requirements under the evolving monitoring regime.

The development follows a presentation by NHAI Chairman to NHBF members outlining an advanced digital monitoring framework that incorporates webcams, drone surveys and automated defect detection.

The proposed system is designed to identify and quantify highway deficiencies, automatically generate notices and track compliance timelines through a live dashboard, enabling agencies to monitor maintenance activities from their respective offices.

While acknowledging that technology-enabled monitoring could improve transparency, accountability and the quality of highway maintenance, NHBF cautioned that tighter scrutiny must be accompanied by contract terms and payment provisions that reflect the actual cost of execution.

The federation said contractors should assess construction costs, maintenance obligations, quality requirements and contractual risks comprehensively before participating in tenders. Bids that fail to account for the actual cost of execution and maintenance could expose contractors to financial stress, damages and contractual disputes, it said.

NHBF seeks revision in O&M payment framework

The industry body reiterated its concerns over the adequacy of O&M payments made by NHAI and called for a revision in payment provisions to reflect the actual costs involved in maintaining highway assets.

These costs include manpower, machinery, materials, pavement repairs, drainage upkeep, road furniture and safety installations.

NHBF said stronger performance expectations and stricter monitoring mechanisms must be supported by a realistic payment framework, allowing contractors to fulfil their contractual responsibilities without compromising the financial sustainability of projects.

It also argued that highway contracts should be evaluated across their entire lifecycle rather than being driven primarily by the lowest initial construction cost.

The concerns highlight the challenge of balancing stricter accountability for highway maintenance with the economics of executing and maintaining road infrastructure projects.

Preventive maintenance to gain importance

The proposed digital monitoring framework is also expected to increase the importance of internal inspections, maintenance planning and timely corrective action by contractors.

According to NHBF, contractors will need to strengthen inspection mechanisms, deploy adequate resources and move from reactive repairs towards preventive maintenance. Timely documentation, coordination between site teams and management, and prompt resolution of identified deficiencies will become increasingly important under the new monitoring regime.

The federation said constructive engagement between NHAI and industry stakeholders would be essential to ensure that technology-led improvements in highway maintenance translate into better asset quality and serviceability.