NHAI Tightens RFP Rules To Boost Highway Project Quality

23 Sep 2025 CW Team

The National Highways Authority of India (NHAI) has revised its Request for Proposal (RFP) framework to improve the execution quality of National Highway projects, minimise delays, and reduce lifecycle costs. The Ministry of Road Transport and Highways stated that the changes are intended to ensure that only technically competent and experienced contractors qualify for large-scale highway developments.

A key reform redefines the “Similar Work” criterion in bid qualifications. Previously, contractors often misrepresented minor works as equivalent to full-scale highway projects to meet eligibility requirements. Under the updated provisions, “Similar Work” will strictly apply to completed highway projects encompassing all major components comparable in scale and complexity to the tendered project.

The new norms also address unauthorised practices in project execution, particularly the use of unapproved contractors or exceeding subcontracting limits in EPC, HAM, and BOT (Toll) projects. Such violations compromise quality, timelines, and regulatory oversight. Unauthorised subcontracting will now be classified as an “Undesirable Practice”, attracting penalties equivalent to fraudulent activities.

Another major reform tackles the misuse of third-party Bid and Performance Securities. NHAI found that bidders previously relied on external financial instruments, weakening accountability. The revised rules prohibit submission of third-party securities, accepting only those backed directly by bidders or their approved entities.

By tightening bidder eligibility, restricting unauthorised subcontracting, and enhancing financial accountability, NHAI aims to instil greater discipline in contract execution. The ministry emphasised that these measures will safeguard quality, reinforce regulatory oversight, and strengthen trust and transparency in highway development.

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