By Yogima Seth Sharma
Copyright indiatimes
The National Highways Authority of India (NHAI), under the ministry of road transport and highways, on Wednesday said it has tightened contractor qualification norms, strengthened execution compliance, and enhanced financial transparency in awarding contracts, which is expected to help improve the quality of highway projects, curb delays, and cut lifecycle costs.The stringent conditions in various clauses under the RFP will help to ensure that only technically capable and experienced contractors qualify for the implementation of national highway projects, the road ministry said in a statement.Clarifying the provision pertaining to the ‘similar work’ criteria, which has been often misrepresented by contractors to gain eligibility for large-scale highway projects, NHAI clarified that ‘similar work’ 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.In addition to refining the qualification criteria, the clarifications to RFP also seek to address the unauthorized engagement of EPC (engineering, procurement, and construction) contractors in hybrid annuity model (HAM) and build-operate-transfer (BOT) toll projects and subcontractors in EPC projects.Instances have been observed where concessionaires or selected bidders have engaged contractors without the required prior approval of NHAI or exceeded the permissible subcontracting limits, the statement said.Live Events“This not only violates contractual norms but also poses risks to quality assurance, project timelines, and regulatory oversight,” it said. “Any unauthorized subcontracting and subcontracting beyond permissible limits will be classified as ‘undesirable practice,’ thereby attracting penalties on par with fraudulent practices,” it said, adding this move will help to reinforce discipline in contract execution and safeguard the integrity of the implementation process.The ministry further clarified that it has prohibited the submission of ‘bid and performance securities’ that are sourced from third parties. As per the statement, there have been instances where 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 clarified to disallow such third party-sourced instruments, ensuring that only securities backed by the bidder or its approved entities are accepted,” the ministry said. The step is expected to enhance financial transparency and improve the enforceability of contractual obligations.The ministry is of the view that the updates 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 ensure improved infrastructure quality, timely completion of projects, and optimal use of public resources, thereby contributing to the development of a more efficient national highway network,” it added.Add as a Reliable and Trusted News Source Add Now!
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