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Road Ministry tightens bidding norms, introduces disqualification clause for ‘catastrophic failures’ for HAM projects

HAM is a variant of the Public-Private Partnership model, where the government pay 40% of the project cost during construction and the balance 60% as annuity payments over the operations period.

MoRTH HAM rulesDuring the evaluation criteria, minus 30 marks is allocated against Catastrophic Failure, which would have impacted project and quality substantially, leads to loss of lives and lasting damage to road structure requiring re-construction. (Express file photo)
Written by: Dheeraj Mishra
2 min readNew DelhiApr 30, 2026 10:36 PM IST First published on: Apr 30, 2026 at 07:48 PM IST

In a move to create deterrence against construction related failures, the Ministry of Road Transport and Highways (MoRTH) has introduced stricter disqualification norms for Hybrid Annuity Mode (HAM) projects to prevent “catastrophic failures” caused by construction defects.

The circular, dated April 29, extends provisions earlier applied to Engineering, Procurement, and Construction (EPC) projects to HAM contracts as part of the ministry’s broader push to strengthen quality in national highway development.

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HAM is a variant of the Public-Private Partnership model, where the government pay 40% of the project cost during construction and the balance 60% as annuity payments over the operations period.

According to the modified provision, the bidder with a record of catastrophic failure of any highway structure due to construction defects within the past two years from the bid due date may face disqualification in HAM project tenders. The clause applies to both ongoing and completed projects.

Dheeraj Mishra is a Principal Correspondent with the Business... Read More

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