NHAI’s New Rules: Only the Best Builders Need Apply

The National Highways Authority of India (NHAI) has issued clarifications to tighten provisions in its Request for Proposal (RFP) framework, aiming to improve project quality, minimize delays, and reduce lifecycle costs.

Key changes include stricter qualification criteria for contractors, with a clearer definition of "Similar Work" limited to completed highway projects with comparable scope—preventing misrepresentation of minor works as relevant experience. This ensures that only technically qualified and experienced contractors are eligible.

NHAI has also barred unauthorized engagement of EPC contractors in HAM and BOT (Toll) projects, and subcontractors in EPC projects, reinforcing adherence to approved contractual structures.

Additionally, the use of third-party sourced Bid and Performance Securities is now prohibited. Only bidders or their approved entities can furnish financial guarantees—enhancing financial transparency, accountability, and enforceability.

Collectively, these reforms are set to streamline project implementation and strengthen regulatory oversight across the national highway sector.

News by Rahul Yelligetti.