The National Highways Authority of India (NHAI) has introduced stricter clauses in its Request for Proposal (RFP) process to improve the quality, transparency and accountability of national highway projects. These changes are designed to ensure that only contractors with proven technical capacity and relevant experience are awarded contracts.
One major update relates to the “Similar Work” qualification criterion. From now on, bids will only be accepted from contractors who have fully completed highway projects that include all major components comparable to those in the bid. Partial or unrelated project experience will no longer be considered sufficient.
Another critical reform focuses on subcontracting practices. Unauthorized subcontracting or exceeding the permitted limits will now be treated as misconduct, with penalties that are on par with fraud. This step is expected to discourage malpractices and encourage greater responsibility among contractors.
Financial discipline has also been strengthened. Bid and Performance Securities will now be accepted only if provided directly by the bidders themselves or their approved partners. Securities sourced from third parties will not be allowed, tightening accountability and reducing risks of misuse.
Overall, these reforms are expected to lead to better execution of highway projects, reduce delays, uplift infrastructure standards and make more effective use of public funds. With these measures, NHAI is setting higher benchmarks for performance, quality and accountability in road development.
