The National Highways Authority of India (NHAI) has issued clarifications to Request for Proposal (RFP) provisions to enforce stricter contractor qualification norms, improve execution accountability, and boost financial transparency. The key changes include:
“Similar Work” criteria will now only count completed highway projects with full components comparable to the bid project, restricting contractors from overstating prior experience.
Unauthorized use of EPC contractors in HAM/BOT projects and improper subcontracting in EPC projects is now designated an “Undesirable Practice,” punishable like fraudulent practices.
Submission of bid and performance securities from third parties (i.e., entities other than the bidder or approved ones) is disallowed, ensuring only securities backed by the bidder or its approved entities are accepted.
These clarifications aim to ensure that only technically and financially credible entities execute national highway contracts, reduce delays, raise project quality, and safeguard public funds.
By tightening the RFP framework, the government is safeguarding infrastructure quality and enhancing contract enforceability. This move helps prevent misuse of procurement norms, reinforces integrity in project delivery, and can lead to more timely and cost-efficient highway development.
Relevant Question for Policy Stakeholders:
How will state highway agencies, contractors, and central oversight bodies adjust capacity, prequalification practices, and compliance systems to respond to these stricter RFP norms while maintaining project timelines and viability?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2167542
