Search
Advertisement
NHAI tightens RFP norms to boost quality, accountability in highway projects

NHAI tightens RFP norms to boost quality, accountability in highway projects

The Authority has also cracked down on unauthorized engagement of EPC contractors in Hybrid Annuity Model (HAM) and Build-Operate-Transfer (BOT-Toll) projects, as well as subcontracting in EPC projects.

Chetan Bhutani
Chetan Bhutani
  • Updated Sep 17, 2025 3:04 PM IST
NHAI tightens RFP norms to boost quality, accountability in highway projectsThe new clarifications aim to strengthen contractor qualification norms, enforce compliance during project execution, and enhance financial transparency.

In a bid to improve execution quality, reduce delays, and cut lifecycle costs of national highway projects, the National Highways Authority of India (NHAI) has tightened provisions in its Request for Proposal (RFP) documents. The new clarifications aim to strengthen contractor qualification norms, enforce compliance during project execution, and enhance financial transparency.

Advertisement

Related Articles

One of the key changes involves a sharper definition of the “Similar Work” criteria used in bid qualification. NHAI noted that contractors often misrepresented minor or peripheral works to gain eligibility for large-scale highway projects. Going forward, only completed highway projects that include all major components comparable to those required under the bid will be considered as “Similar Work.” This move is expected to ensure that only technically competent and experienced contractors qualify for execution.

The Authority has also cracked down on the unauthorized engagement of EPC contractors in Hybrid Annuity Model (HAM) and Build-Operate-Transfer (BOT-Toll) projects, as well as subcontracting in EPC projects. Any subcontracting beyond permissible limits or without prior approval of the Authority will now be classified as an “Undesirable Practice” — attracting penalties at par with fraudulent practices. According to officials, this measure will reinforce discipline in contract execution, mitigate risks to project timelines, and strengthen regulatory oversight.

Advertisement

Another significant clarification prohibits the use of third-party sourced “Bid and Performance Securities.” NHAI observed that some bidders had submitted guarantees issued by external entities, raising concerns over accountability and enforceability. Under the revised provisions, only securities backed by the bidder or its approved entities will be accepted, thereby improving financial transparency and ensuring contractual obligations are met.

Follow us on

ABOUT THE AUTHOR

Chetan Bhutani
Chetan Bhutani

Chetan Bhutani is a New Delhi-based economic policy journalist with ten years of experience in reporting and breaking stories about economic policy pertaining to India's infrastructure and financial sector, including highways, finance, railways, shipping, telecom, petroleum, and natural gas and currently works as an Associate Editor for Business Today TV. He is a journalist who works across multiple platforms and languages and offers in-depth coverage of the auto industry, regulations, new products, and reviews. Also, he has extensively reported about the actions taken by investigative authorities in relation to corporate and bank frauds as well as significant insolvency cases. Bhutani keeps a tight eye on all aspects of the government's public policies, from their creation to their implementation. In addition to his job, Chetan enjoys scheduling official appointments, travelling, going on road trips, playing cricket, and squash. Also, he is passionate about addressing climate change and road safety. He is a public policy enthusiast and has a master's degree in Public Administration.

Published on: Sep 17, 2025 3:03 PM IST