The government has set a 30-day deadline for contractors to apply for an extension to complete stalled development projects that have reached the final stage of construction.
According to the revised Public Procurement Regulations, 2064 (15th Amendment), 2083, published in the Nepal Gazette on Ashar 30, 2083, contractors can apply for an extension if they have achieved at least 50% physical progress but failed to meet the deadline.
The revised regulations make it mandatory for contractors to submit an application for an extension within 30 days from the date of publication of the revised regulations. Failure to do so or complete the project within the extended timeframe will result in the automatic termination of the contract.
In addition, the government can confiscate the performance guarantee and recommend blacklisting the contractor. Contractors applying for an extension must provide a valid reason for the delay and a revised project schedule.
The government has specified that extensions can only be granted in cases where there has been a delay in the decision-making process, budget allocation, payment, or other unforeseen circumstances specified in the contract.
Despite providing the facility for extension, the government has made it clear that contractors cannot make any additional financial claims. Contractors must commit to not making such claims when submitting their application.
The revised regulations also state that the government will not charge any pre-determined compensation for the extended period.
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