Citing “critical lapses” that occurred due to lack of due diligence, the Ministry of Road Transport and Highways (MoRTH) has issued new directives to enhance oversight on National Highway (NH) works carried out by state public works departments and road construction departments (PWDs/RCDs).
The new directive has significantly increased the role for the ministry’s regional officers (ROs) in the project lifecycle, from bid preparation to managing legal disputes. Along with National Highways Authority of India (NHAI) and National Highways & Infrastructure Development Corporation Ltd. (NHIDCL), state PWDs/RCDs are other key agencies who implement road projects for MoRTH.
“It has come to the notice of the Ministry that in several projects pertaining to NH works implemented by State PWDs/RCDs, critical lapses have occured due to lack of due diligence…Such lack of due diligence has led to unnecessary contractual disputes, legal complexities and financial liabilities for the central government,” states the circular dated May 16, 2025.
“It has also been observed that ROs are sometimes neither consulted nor involved during the bidding process or while defending contractual disputes before Arbitration Tribunals or Courts, wherein such disputes are dealt with mechanically often without adequately safeguarding the interest of the central government or aligning with the Ministry’s position,” reads the letter further.
Taking note of the situation, the ministry said that for all NH project works (including those costing less than Rs. 100 crore but excluding maintenance works), the bid documents prepared by state PWDs/RCDs must undergo thorough scrutiny by the concerned RO prior to the finalisation of bids.
ROs will examine the bid documents for any anomalies, inconsistencies or deficiencies, particularly with respect to quantities, schedules, specifications, and contract conditions.
“It is imperative that ROs remain actively involved in all legal contractual disputes adjudication processes including arbitration matters related to NH works. State PWDs/RCDs shall not pursue such matters independently without consultation with ROs,” said the Ministry.
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A senior official of MoRTH said that a detailed guideline will soon be issued by the Ministry in this regard. The Ministry also permitted ROs may engage legal expert from NHAI-empanelled law firms for advice and support.
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