ANI file photo
NEW DELHI: In a move to ensure quality project execution and reduce delays, NHAI has tightened the norms to check “unathorised” subcontracting of works by main highway builders. It has said that any “unauthorised sub-contracting and subcontracting beyond permissible limits will be classified as ‘undesirable practice’ and thereby attracting penalties on par with fraudulent practices”.The changes in the bid document have been made months after the issue of subcontracting at multiple levels was raised at a meeting chaired by PM Narendra Modi. TOI on June 9 had reported about the PM’s direction to the road transport and highways ministry to formulate “clear norms and standards” for subcontractors engaged by the main highway builder to ensure high quality during project execution.In a statement, announcing the changes in the bid document, National Highways Authority of India (NHAI) said instances have been observed where concessionaires or selected bidders have engaged contractors without the required prior approval of the authority or exceeded the permissible subcontracting limits. It added that such practices not only violate contractual norms but also pose risks to quality assurance, project timelines, and regulatory oversight. The parliamentary public accounts committee (PAC) in its recent report had raised concerns over the practice of subcontracting in highway projects while flagging that “unchecked layering” of contractors and subcontractors has led to diffusion of accountability.NHAI has also changed a key provision in the eligibility criteria for bidding for projects. It said the provision of “similar work” criteria in bid qualification has been clarified considering how it has been often misrepresented by contractors seeking to become eligible for large-scale highway projects despite having experience only in minor or peripheral works that do not reflect the complexity and scale of full-fledged highway development.“NHAI has now 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,” the authority said.Clamping down on third-party securities such as bid security and performance deposits furnished by selected bidders, it has disallowed such third-party sourced instruments. This means only securities backed by the bidder or its approved entities will be accepted.
