KATHMANDU: The government has introduced a new provision requiring contractors to apply for deadline extensions within 30 days to complete infrastructure projects that are in their final stages but have remained stalled.
The provision has been incorporated through the 15th Amendment to the Public Procurement Regulations, 2007.
The Office of the Prime Minister and Council of Ministers published the Public Procurement Regulations (Fifteenth Amendment), 2083 in the Nepal Gazette on July 14, bringing the revised rules into immediate effect.
Under the amended regulations, a new provision—Rule 2(a)—allows deadline extensions for projects whose contracts have expired or whose deadlines could not previously be extended, provided they have achieved at least 50 percent physical progress.
Contractors or suppliers seeking an extension must submit their applications within 30 days from the date the amended regulation came into force.
The regulations state that contracts will be terminated if contractors fail to apply within the stipulated period or are unable to complete the project within the extended deadline. In such cases, performance guarantees may be confiscated and the contractor or supplier may be recommended for blacklisting.
Applicants must also submit the reasons for project delays, justify the request for an extension and provide a revised work schedule.
According to the amendment, deadline extensions may only be granted if delays resulted from Cabinet decisions, lack of budget allocation, delayed payments or other compensable reasons specified in the procurement contract.
The revised rules also make it clear that contractors receiving an extension will not be entitled to claim any additional financial compensation. Applicants must formally commit to this condition when applying.
Similarly, the government will not be allowed to impose previously prescribed delay penalties during the extended contract period.
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