Construction Tenders in India: A Guide for Contractors

Construction accounts for the largest share of government procurement in India — over ₹10 lakh crore annuallyacross roads, buildings, bridges, dams, and urban infrastructure. NHAI alone floated tenders worth ₹3.5 lakh crore under Bharatmala. If you're in construction and not bidding on government projects, you're leaving the biggest market untapped.

Major Issuing Authorities

• NHAI — national highways, expressways, Bharatmala Pariyojana
• CPWD — central government buildings, institutions, residential complexes
• State PWDs — state highways, government buildings, district-level infrastructure
• NHIDCL — highways in northeast and border areas
• Railways — station redevelopment, ROBs, bridges, platform works
• Smart City SPVs — urban infrastructure under 100 smart cities
• Municipal corporations — city roads, drainage, buildings
• Defence (MES) — Military Engineering Services for cantonment works

Types of Construction Tenders

• Civil works — buildings, bridges, dams, tunnels
• Road works — highway construction, widening, resurfacing
• Electrical works — internal electrification, HT/LT lines, substations
• Mechanical works — HVAC, lifts, plumbing in large buildings
• Turnkey/EPC — design + build, common for industrial projects

Contract Types

• Item rate — you quote rates per item/activity in the BoQ. Payment based on actual quantities executed.
• Percentage rate — you quote a percentage above/below the SoR (Schedule of Rates). Common in state PWD tenders.
• Lump sum — fixed price for the entire scope. Risk lies with the contractor.
• EPC (Engineering, Procurement, Construction) — design and build responsibility with the contractor. Used for NHAI projects.
• HAM (Hybrid Annuity Model) — NHAI pays 40% during construction, 60% as annuity over 15 years. Reduces upfront funding burden.

Typical PQ Requirements

• Annual turnover — minimum 30% of estimated cost per year for the last 3 years
• Similar work experience — one completed work of 80% value, or two of 60%, or three of 40%
• Equipment ownership — for road works, ownership/lease of pavers, rollers, batching plants
• Technical personnel — minimum key staff (project manager, site engineer, safety officer)
• Solvency certificate — from a scheduled bank, usually 40% of estimated cost