Revised RFP provisions issued by NHAI are expected to raise execution standards, minimise delays, and reduce lifecycle costs across India’s national highway network.
The National Highways Authority of India (NHAI) has issued a detailed clarification on key provisions of its Request for Proposal (RFP) framework, aimed at tightening contractor qualification norms, curbing unauthorised subcontracting, and enhancing financial transparency in national highway development.
The revised RFP provisions are expected to improve execution quality, reduce delays, and lower lifecycle costs across the national highway network. According to an official release, the move will ensure that only technically competent and experienced contractors qualify for project implementation.
A critical clarification relates to the definition of “Similar Work” in bid qualification. NHAI has observed that some bidders misrepresent minor or peripheral works as equivalent experience for large-scale highway projects. The authority has now specified that “Similar Work” shall refer exclusively to completed highway projects that include all major components comparable to those required in the bid invitation.
In addition to refining eligibility criteria, the updated RFP guidelines address the unauthorised engagement of engineering, procurement and construction (EPC) contractors in hybrid annuity model (HAM) and build-operate-transfer (BOT) (Toll) projects, as well as subcontractors in EPC contracts. Instances have emerged where concessionaires or selected bidders engaged contractors without prior approval or exceeded permissible subcontracting limits. Such actions will now be classified as “Undesirable Practices” and attract penalties equivalent to those imposed for fraudulent conduct.
Another key reform prohibits the submission of Bid and Performance Securities sourced from third parties. NHAI has flagged cases where selected bidders furnished financial instruments issued by unrelated entities, undermining accountability and enforceability. Only securities backed by the bidder or its approved affiliates will now be accepted.
Collectively, these measures aim to ensure that highway projects are awarded to qualified, accountable entities and executed under stricter regulatory oversight—reinforcing discipline, improving infrastructure quality, and safeguarding public investment.