Particle.news
Download on the App Store

NHAI Tightens Highway RFP Rules, Bans Unauthorised Subcontracting and Third-Party Guarantees

MoRTH says the tougher bidding framework aims to curb delays by raising contractor standards, tightening oversight, and improving accountability.

Overview

  • NHAI issued formal clarifications to its RFPs to elevate contractor eligibility, enforce execution discipline, and increase financial transparency on national highway projects.
  • The definition of “similar work” now counts only completed highway projects that include all major components comparable to those required in the bid.
  • Unauthorised or excessive subcontracting in EPC, HAM, and BOT (Toll) projects is designated an “undesirable practice” with fraud-level penalties, including forfeiture of bid and performance securities.
  • Third-party-sourced bid and performance securities are prohibited, with only bidder-backed or approved instruments to be accepted.
  • The ministry says the measures will improve quality, speed completion, and reduce lifecycle costs, with an August policy circular also tightening proof-of-experience documentation.