NHAI Tightens Contractor Norms to Boost Highway Quality
ROADS & HIGHWAYS

NHAI Tightens Contractor Norms to Boost Highway Quality

The National Highways Authority of India (NHAI) has revised Request for Proposal (RFP) provisions to enhance the quality of highway projects, reduce delays, and lower lifecycle costs. The updates tighten contractor qualification norms, strengthen execution compliance, and increase financial transparency, the Ministry of Road Transport and Highways (MoRTH) said on Wednesday.
The stricter RFP clauses will ensure that only technically capable and experienced contractors are eligible for national highway projects. RFPs formally invite bids from contractors, specifying project requirements, terms, and evaluation criteria.
A key update clarifies the definition of “Similar Work” in bid qualification. Previously, some contractors misrepresented minor projects to qualify for large-scale highway development. NHAI now specifies that only completed highway projects containing all major components comparable to the bid project will be recognised.
The reforms also address the unauthorised engagement of contractors. In Hybrid Annuity Model (HAM) and Build-Operate-Transfer (BOT) toll projects, concessionaires or selected bidders sometimes engaged contractors or exceeded subcontracting limits without prior NHAI approval. Such practices compromise quality, timelines, and regulatory oversight. Any unauthorised subcontracting beyond permissible limits will now be treated as “Undesirable Practice”, attracting penalties equivalent to fraudulent activities.
Additionally, the submission of bid and performance securities from third parties has been prohibited. Some bidders had previously provided financial instruments issued by third parties, raising concerns about enforceability and accountability. Only securities backed by the bidder or approved entities will now be accepted, enhancing financial transparency and contractual enforcement.
These RFP updates aim to ensure that national highway projects are awarded to competent contractors, executed by accountable entities, and closely monitored. The measures are expected to improve infrastructure quality, timely project completion, and optimal use of public funds, contributing to a more efficient national highway network.

The National Highways Authority of India (NHAI) has revised Request for Proposal (RFP) provisions to enhance the quality of highway projects, reduce delays, and lower lifecycle costs. The updates tighten contractor qualification norms, strengthen execution compliance, and increase financial transparency, the Ministry of Road Transport and Highways (MoRTH) said on Wednesday.The stricter RFP clauses will ensure that only technically capable and experienced contractors are eligible for national highway projects. RFPs formally invite bids from contractors, specifying project requirements, terms, and evaluation criteria.A key update clarifies the definition of “Similar Work” in bid qualification. Previously, some contractors misrepresented minor projects to qualify for large-scale highway development. NHAI now specifies that only completed highway projects containing all major components comparable to the bid project will be recognised.The reforms also address the unauthorised engagement of contractors. In Hybrid Annuity Model (HAM) and Build-Operate-Transfer (BOT) toll projects, concessionaires or selected bidders sometimes engaged contractors or exceeded subcontracting limits without prior NHAI approval. Such practices compromise quality, timelines, and regulatory oversight. Any unauthorised subcontracting beyond permissible limits will now be treated as “Undesirable Practice”, attracting penalties equivalent to fraudulent activities.Additionally, the submission of bid and performance securities from third parties has been prohibited. Some bidders had previously provided financial instruments issued by third parties, raising concerns about enforceability and accountability. Only securities backed by the bidder or approved entities will now be accepted, enhancing financial transparency and contractual enforcement.These RFP updates aim to ensure that national highway projects are awarded to competent contractors, executed by accountable entities, and closely monitored. The measures are expected to improve infrastructure quality, timely project completion, and optimal use of public funds, contributing to a more efficient national highway network.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement