Kathmandu. The government has implemented a provision to extend the deadline of construction projects that have been incomplete for a long time and have achieved at least 50 percent physical progress.
After the publication of the Public Procurement (115th Amendment) Regulation-2083 in the Gazette, the process of extending the deadline of various big projects including the under-construction Parliament Building in Singha Durbar is to move forward.
The government has made the 15th amendment to the Public Procurement Regulations-2064 BS to give one last chance to the projects stalled due to budget crunch, technical problems or other reasons. However, there has been a mixed reaction at the administrative level to this decision.
The practice of extending the deadline time and again has also been criticized saying that it will further encourage the contractors who do not complete the work on time.
At a time when preparations are underway for a comprehensive amendment to the Public Procurement Regulations at the Office of the Prime Minister and Council of Ministers, there has been dissatisfaction over the issue of a separate amendment brought only to extend the deadline. According to administrative sources, although this provision can be included with the overall amendment, it is understood that a separate amendment has been brought in a hurry.
As per the new provision issued by the government, those projects that have achieved at least 50 per cent physical progress if they fail to complete the deadline within the stipulated time and those projects that have been signed in the fiscal year 2082/83 will get the facility of extension of the deadline.
The contractor, supplier or service provider will have to submit an application to the concerned body for the extension of the deadline along with the reasons for not completing the work within 30 days of the implementation of the rule, its justification and the new work schedule.
The regulation lays down four main grounds for the extension of the deadline. Among them are the suspension of works by the government or public bodies, failure to allocate annual budget, delay in timely payment due to budget crunch or the construction affected due to special circumstances mentioned in the agreement.
As per the amended provision, the contractor will not be able to claim additional financial even if the deadline is extended. In addition, the government will not recover the predetermined compensation for this period.
The regulation has given the legal obligation to the chiefs of the concerned public bodies to decide on the extension of the deadline within 30 days of the application. If the decision is not taken within the stipulated time, departmental action can be taken against the concerned employee or official.
Similarly, if the contractor fails to submit the application within the stipulated time or completes the works within the stipulated time, the contract will be terminated, the performance guarantee will be forfeited and the process will be forwarded to blacklist such entrepreneurs. Likewise, the concerned ministries should carry out regular monitoring of whether the projects have been completed on time or not.
The government has said that this provision has been brought with the objective of completing the stalled development projects. However, the practice of extending deadlines repeatedly has been criticized for weakening discipline in the public construction system and negatively impacting the culture of completing the work on time.
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