NHAI Tightens Contractor Norms To Improve Highway Project Quality And Accountability

The National Highways Authority of India (NHAI) has issued a series of clarifications to its Request for Proposal (RFP) framework, aimed at reducing delays, cutting lifecycle costs, and improving overall quality in the execution of highway projects.

The revised norms focus on strengthening contractor qualifications, enforcing compliance during execution, and ensuring greater financial transparency.

One of the key changes involves the definition of “Similar Work” in bid qualifications.

NHAI has clarified that only completed highway projects with all major components comparable to those in the bid will be considered eligible.

This move is intended to prevent contractors from misrepresenting experience through minor or peripheral works to secure large-scale projects.

The new provisions also address unauthorised subcontracting. Instances had been observed where concessionaires under HAM and BOT (Toll) projects, as well as EPC contractors, engaged third-party entities without approval or exceeded subcontracting limits.

Such practices, NHAI stated, would now be treated as “Undesirable Practice” and penalised in line with fraudulent activities. The measure seeks to safeguard quality standards, project timelines, and regulatory oversight.

Financial compliance has also been tightened. The Authority has barred the submission of “Bid and Performance Securities” sourced from third parties.

Reports indicated that some bidders had previously furnished securities from unauthorised sources, raising concerns about enforceability and accountability. Under the revised norms, only bidder-backed or approved instruments will be accepted, ensuring stronger financial discipline.

By refining qualification criteria, restricting unauthorised subcontracting, and tightening financial submissions, the NHAI expects to ensure that highway projects are implemented by technically competent and financially accountable entities.

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