The National Highways Authority of India (NHAI) on September 17, 2025, announced new clarifications to its Request for Proposal (RFP) provisions aimed at improving the quality, transparency, and timely completion of national highway projects. These changes are designed to ensure that only qualified and experienced contractors are awarded these projects.
A key change is the strict new definition of "Similar Work." To qualify for a bid, a contractor's previous experience must now be in completed highway projects that include all major components comparable to the one being bid on, eliminating misrepresentation from minor or peripheral work. The NHAI has also tightened rules on subcontracting to prevent unauthorized engagement of contractors, classifying such practices as "Undesirable Practice" with penalties equivalent to fraud.
Furthermore, the new rules prohibit bidders from submitting financial securities, such as bid and performance securities, that are sourced from third parties. This is intended to enhance accountability and financial transparency by ensuring that only securities backed directly by the bidder or their approved entities are accepted. The overall goal of these reforms is to deliver better infrastructure quality, ensure projects are completed on time, and optimize the use of public funds.
