NHAI tightens RFP Provisions to Enhance Quality of National Highway Projects
The strict actions added in various clauses under the RFP will help to ensure that only those contractors will be eligible for National Highways Projects who are technically capable and have vast experience will be eligible for National Highways Projects.
The National Highways Authority of India (NHAI) has issued clarifications to provisions of the RFP that will help the contractor qualification norms, which will enforce the compliance in project execution and enhance transparency in financial submissions. This will improve the quality of project execution and reduce delays and other National Highways projects.
The strict actions added in various clauses under the RFP will help to ensure that only those contractors will be eligible for National Highways Projects who are technically capable and have vast experience will be eligible for National Highways Projects.
According to the press release, one of the provisions is clarification of the Similar Work criteria in bid qualification, which now shall refer exclusively to completed highway projects that include all major components comparable to those required for the project for which the bid has been invited. The clarifications in the RFP also aim to tackle the issue of unauthorized involvement of EPC contractors in HAM and BOT (toll) projects, as well as subcontractors in EPC projects.
Any unauthorized subcontracting or subcontracting that goes beyond allowed limits will be seen as a bad practice and will lead to penalties similar to those for fraud. This move will help to reinforce discipline in contract execution and safeguard the integrity of the implementation process, according to the statement issued by NHAI.
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Another major component of the reform involves prohibiting the submission of “Bid and Performance Securities” that are sourced from third parties. It has been reported that some selected bidders have furnished financial securities issued by third parties, which undermines the principle of accountability and raises concerns regarding enforceability and bidder liability.
Now, it has been made clear that only securities from the bidder or their approved partners will be accepted, not those from outside sources. The step is expected to enhance financial transparency and improve the enforceability of contractual obligations.
The above-cited clarifications to the RFP will help to ensure that National Highway projects are awarded to contractors with proven technical and financial competence, executed by authorized and accountable entities, and monitored with greater regulatory oversight.
These measures will facilitate delivering better infrastructure quality, timely completion of projects, and optimal use of public resources—thereby contributing to the development of a more efficient National Highway network.
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