NHAI to inspect 17 highway projects with bids 15% below estimated cost
Synopsis
NHAI has identified 17 highway projects where contractors quoted over 15% below the government's own cost estimate — a classic red flag for corner-cutting — and is deploying 39 specialist engineers for structured quality audits across nine states. The first results are due by December 2026, with a mandatory re-inspection six months later. It is one of the most systematic quality-assurance sweeps NHAI has conducted on discounted contracts.
Key Takeaways
NHAI will conduct special quality inspections of 17 under-construction highway projects where bids were more than 15 per cent below the estimated cost.
Projects were selected on three criteria: construction cost above ₹500 crore , tender discount over 15 per cent , and physical progress between 35 per cent and 80 per cent .
The projects span nine states : Karnataka, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Tamil Nadu, Punjab, Haryana, Gujarat, and Uttar Pradesh.
Inspections will be led by 39 experienced and retired engineers from central and state government organisations.
The first round is due for completion by December 2026 , followed by a re-inspection after six months by a different team.
Works failing to meet required standards will be flagged for corrective action under applicable contract provisions .
The National Highways Authority of India (NHAI) will conduct special quality inspections of 17 under-construction national highway projects whose bid values were quoted more than 15 per cent below the estimated project cost, according to an official statement issued on Wednesday, 30 September 2026. The move, announced by the Ministry of Road Transport and Highways, is aimed at strengthening quality compliance and enabling timely corrective action on projects where abnormally low bids raise construction-standard concerns.
Selection Criteria and Project Profile
The 17 projects were shortlisted using three objective criteria: a construction cost exceeding ₹500 crore, a tender discount of more than 15 per cent below the estimated cost, and physical progress between 35 per cent and 80 per cent. These thresholds are designed to focus scrutiny on projects at a critical construction stage where quality deficiencies, if left unaddressed, could compromise structural integrity.
The projects span greenfield corridors, access-controlled expressways, bypasses, and four- and six-laning works across nine states — Karnataka, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Tamil Nadu, Punjab, Haryana, Gujarat, and Uttar Pradesh.
Inspection Teams and Scope
The inspections will be led by 39 experienced and retired engineers drawn from the Ministry of Road Transport and Highways, Ministry of Railways, Ministry of Defence, and various State Public Works Departments, supported by external technical experts. Teams will verify construction work against approved drawings, technical specifications, contract conditions, and project-specific quality plans.
The scope of each inspection covers the quality of construction materials, workmanship, construction methods, and records of sampling and testing. Road safety measures, traffic management arrangements, and environmental safeguards will also be reviewed wherever applicable.
Timeline and Follow-Up Mechanism
The first round of inspections is scheduled for completion by December 2026. NHAI will then re-inspect all identified projects after six months using a different team of experts to independently verify compliance and check whether earlier deficiencies have been rectified.
Works that fail to meet required standards will be flagged and contractors held accountable under applicable contract provisions. The exercise is in addition to NHAI's routine quality monitoring and is not a replacement for it.
Why Abnormally Low Bids Raise Red Flags
Abnormally low bids — where contractors quote well below the government's own cost estimate — are a recognised risk in infrastructure procurement globally. Such bids can signal that a contractor is cutting corners on materials or labour, intends to claim cost escalations mid-project, or has mispriced complex technical requirements. This is not the first time NHAI has grappled with the phenomenon; earlier audits by the Comptroller and Auditor General (CAG) have flagged quality lapses on discounted contracts.
Notably, the data-driven selection methodology NHAI has deployed — combining cost size, discount depth, and construction progress — marks a more systematic approach than ad hoc spot-checks conducted in previous years.
Broader Accountability Push
Beyond identifying site-level deficiencies, the specialised inspections are expected to help NHAI map recurring quality issues across projects, construction practices that need regulatory attention, and areas where greater accountability is required from contractors, consultants, and other project stakeholders. The findings are likely to inform future bid-evaluation norms and contract management protocols.
With India's national highway network having crossed 1.46 lakh kilometres and annual construction targets running at record pace, the quality-assurance challenge has grown proportionally. The outcome of this inspection round will be closely watched by infrastructure investors, state governments, and road-safety advocates alike.
Point of View
And NHAI's latest move is an acknowledgement that price discovery alone cannot guarantee quality delivery. The three-filter selection methodology — cost size, discount depth, construction progress — is more rigorous than previous ad hoc checks, but its value will depend entirely on whether the findings are made public and whether penalties are actually enforced. Past CAG audits have repeatedly documented quality lapses on discounted contracts without generating meaningful contractor accountability. If NHAI treats this round as a compliance exercise rather than a genuine accountability mechanism, the cycle will simply repeat at a higher scale of infrastructure and risk.
NationPress
30 Sept 2026
Frequently Asked Questions
Why is NHAI conducting special inspections of these 17 highway projects?
NHAI is conducting the inspections because the 17 projects received bids that were more than 15 per cent below the government's estimated project cost — a threshold that signals potential risk of quality compromise. The inspections are aimed at identifying construction deficiencies early and ensuring corrective action before structural issues become irreversible.
How were the 17 projects selected for inspection?
The projects were chosen using three criteria: a construction cost exceeding ₹500 crore, a tender discount of more than 15 per cent below the estimated cost, and physical progress between 35 per cent and 80 per cent. This combination targets large, significantly discounted projects at a stage where quality interventions are still actionable.
Which states are the 17 highway projects located in?
The projects are spread across nine states: Karnataka, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Tamil Nadu, Punjab, Haryana, Gujarat, and Uttar Pradesh. They include greenfield corridors, bypasses, and four- and six-laning works.
When will the NHAI inspections be completed?
The first round of inspections is scheduled for completion by December 2026. NHAI will then conduct a re-inspection of all 17 projects after six months using a different team of experts to independently verify whether standards are being met.
What happens if a project fails the quality inspection?
Works that fail to meet required standards will be identified and followed up for corrective action under the applicable contract provisions. The inspections are also expected to inform future bid-evaluation norms and contractor accountability mechanisms across NHAI projects.
