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NHAI Tightens Highway Bid Rules, Bans Unauthorized Subcontracting and Third-Party Securities

The change seeks to put proven builders on jobs under stricter oversight.

Overview

  • NHAI refined the 'Similar Work' qualification to count only completed highway projects that include all major components comparable to the bid scope.
  • Subcontracting beyond permitted limits or without prior approval will be treated as an 'Undesirable Practice' with penalties comparable to fraudulent conduct.
  • The authority barred bid and performance securities sourced from third parties, allowing only instruments backed by the bidder or approved entities.
  • The clarifications address unauthorized engagement of EPC contractors in HAM and BOT (Toll) concessions as well as subcontracting practices on EPC projects.
  • MoRTH said the stricter RFP clauses aim to improve execution quality, curb delays, cut lifecycle costs, and ensure timely, accountable delivery of national highway works.