Kathmandu. The contract for the construction of Mohana River-Dokebazar-Belauri-Beldangi-Daiji road section of the Postal Highway in Kanchanpur district has been terminated.
Dhangadhi: The Project Office under the Postal Highway Directorate under the Department of Roads has issued a public notice on Thursday terminating the contract agreement with Baba Hans-Siddhisai Joint Venture (JV) Kathmandu for the construction of the road. The contract was signed in the fiscal year 2073/74 BS. Out of 20 kilometers of the road, only five kilometers are left to be blacktopped. The construction progress is around 82 per cent.
According to the Project Office, Dhangadhi, the contract was terminated due to the failure to complete the work despite repeated reminders, failure to carry out works as per the commitment and the site was shut down. The performance guarantee of the contractor who has been terminated will be forfeited.
Why not terminate the contract from the Planning Office Dhangadhi on October 14? The contractor was asked to furnish a 15-day explanation. As the clarification submitted by the contractor was not satisfactory, the contract was scrapped as per the provisions of the Public Procurement Act.
The reasons for not completing the work within the stipulated time, the updated schedule for completing the work, reliable plan of resource mobilization and the official representative of the contractor were not present with the commitment to complete the work, the clarification submitted was not satisfactory and the Public Procurement Act and the contract agreement were violated. It has been recommended that the amount as performance guarantee would be confiscated as per the provision of the Act, the amount required to complete the remaining work would be recovered as government dues and it would be kept in the blacklist.
They have been requested to be present at the office within 15 days for financial verification after evaluating the updated work so far and the remaining works. If the contractor is not present at the office, the office will be evaluated.
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