The National Highways Authority of India NHAI Updates HAM Project Qualification Criteria – August 2025 has issued a policy circular dated 6 August 2025, announcing key changes to the qualification criteria for Hybrid Annuity Model (HAM) projects.
These changes incorporate modifications notified by the Ministry of Road Transport & Highways (MoRTH) on 10 July 2025 and introduce additional clarifications from NHAI.
This update aims to tighten eligibility requirements, improve transparency, and ensure that only capable contractors participate in HAM tenders.
NHAI Updates HAM Project Qualification Criteria – Key Changes
1. Stricter Work Experience Requirements
Bidders must now demonstrate:
- One similar completed project costing at least 35% of the Estimated Project Cost
OR - Two similar completed projects costing at least 25% of the Estimated Project Cost each
Important:
- “Similar work” must include all major components of the tendered project. Partial works will not be counted.
- Experience must be certified through:
- Standard Statutory Auditor/Client Certificate (Annexure-IV)
- New Annexure-VII HAM Experience Certificate (Download from NHAI Documents Section)
For NHAI projects, the Experience Certificate will be issued by the General Manager (Technical) at NHAI HQ.
2. Ban on Third-Party Bid & Performance Securities
To prevent proxy bidding and ensure financial accountability:
- Bids with third-party sourced Bid Security will be rejected.
- Performance Security and Additional Performance Security from a third party will not be accepted.
For more on NHAI Bid Security Guidelines, refer to the NHAI Tender Manual.
3. Clarified Rules for Joint Ventures
When bidding as part of a Joint Venture (JV):
- Eligibility will be based on the applicant’s proportional share in the JV.
- If the Statutory Auditor certifies that the applicant executed the work of other JV partners, that work may also be counted towards eligibility.
4. Expanded Definition of “Undesirable Practices”
Now includes:
- Changing the EPC Contractor without prior NHAI approval.
- EPC Contractor engaging another EPC contractor/sub-contractor without approval.
Details available in the MoRTH HAM RFP Guidelines.
5. MoRTH Policy Additions
The MoRTH notification also introduced:
- Distinction between standard highway projects and specialised projects (tunnels, major bridges, ROBs, flyovers, etc.).
- Stricter checks on sub-contracting experience.
- Updated definitions of highway and core sector to refine eligibility.
6. New Annexures for Standardisation
- Annexure-VII – Standard HAM Experience Certificate format.
- Annexure-VIII – Format for Net Worth and Ongoing Work Commitments to assess bid capacity.
You can access the NHAI Standard Documents section for the updated annexures.
NHAI Updates HAM Project Qualification Criteria Impact on the Infrastructure Sector
These changes are designed to:
- Improve quality control in HAM project execution.
- Reduce the risk of underqualified contractors winning large-scale projects.
- Streamline documentation for faster bid evaluations.
- Increase transparency and fairness in the tendering process.
Conclusion
With the August 2025 update, NHAI and MoRTH are setting stricter yet clearer benchmarks for HAM project bidders.
For infrastructure companies, this means focusing on documented experience, authentic bid securities, and compliance with the new formats to remain competitive.
For the official circular, visit:
📄 NHAI Policy Circular – 06 August 2025
