Refining Contractor Qualifications
NHAI’s updated RFP clarifies the definition of “Similar Work” in bid qualification, which has previously been misrepresented by contractors to secure eligibility for large-scale highway projects. Going forward, only completed highway projects encompassing all major components comparable to the new project will qualify as “Similar Work.” This ensures that only technically capable and experienced contractors undertake complex National Highway projects.
The clarifications also address the unauthorized engagement of EPC contractors in HAM and BOT (Toll) projects and the use of subcontractors in EPC projects. Instances of contractors bypassing prior approval or exceeding permissible subcontracting limits have been observed. Such practices will now be classified as “Undesirable Practices,” attracting penalties comparable to fraudulent activities. This step reinforces discipline in contract execution and safeguards project integrity.
Ensuring Financial Transparency
NHAI has prohibited the submission of bid and performance securities sourced from third parties. Previously, some bidders submitted financial instruments issued by unrelated entities, raising enforceability and accountability concerns. Only securities backed by the bidder or its approved entities will now be accepted, enhancing financial transparency and enforceability of contractual obligations.
Impact on National Highway Projects
By tightening RFP provisions, NHAI ensures that projects are awarded to contractors with proven technical and financial competence. Enhanced regulatory oversight, coupled with strict compliance norms, is expected to improve project quality, reduce delays, and optimize lifecycle costs. These reforms contribute to the development of a more efficient and reliable National Highway network, benefiting public infrastructure and economic growth.
These steps align with broader government initiatives to strengthen public project governance and accountability.