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NHAI tightens RFP norms to improve quality, transparency in highway projects

Friday, 19 Sep 2025
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The National Highways Authority of India (NHAI) has issued clarifications for stricter provisions in its Request for Proposal (RFP) framework to enhance quality, reduce delays, and cut lifecycle costs of national highway projects.

The updated norms tighten contractor qualification requirements by clarifying the 'Similar Work' criteria—restricting it to completed highway projects with comparable components, preventing contractors from misrepresenting minor works as experience for large projects. The move ensures only technically capable and experienced contractors qualify. NHAI has also restricted unauthorised engagement of EPC contractors in HAM and BOT (Toll) projects and subcontractors in EPC projects, curbing deviations from approved structures.

Furthermore, the reforms prohibit the use of thirdparty sourced 'Bid and Performance Securities', requiring financial guarantees only from bidders or their approved entities. This is expected to improve financial transparency, strengthen accountability, and make contractual enforcement more effective. Collectively, these measures aim to streamline project execution and enhance regulatory oversight across India’s highway development sector.

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