National Highways Authority of India (NHAI) Contractual Reforms

The National Highways Authority of India (NHAI), operating under the Ministry of Road Transport and Highways, has implemented significant reforms in contractor qualification norms to enhance the quality and efficiency of highway projects.

Key Reforms Introduced

• Contractor Qualification Norms:
  NHAI has tightened the criteria for qualifying contractors to ensure that only those with the appropriate technical capabilities and experience can undertake national highway projects.
• Execution Compliance and Financial Transparency:
  Efforts have been made to strengthen compliance during project execution and enhance transparency in financial dealings related to awarding contracts.
• Request for Proposal (RFP) Conditions:
  • 'Similar Work' Criteria:
    The 'similar work' requirement now strictly refers to completed highway projects with major components comparable to those needed for the project being bid on, eliminating misrepresentation by contractors.
  • Subcontractor Engagement:
    Clarifications address unauthorized engagement of EPC contractors in hybrid annuity model (HAM) and build-operate-transfer (BOT) toll projects, as well as subcontractors in EPC projects.
  • Compliance and Limits:
    Instances of engagement without NHAI's prior approval and exceeding subcontracting limits are being addressed.

These reforms are aimed at improving project quality, reducing delays, and lowering lifecycle costs of highway construction and maintenance.