The Planning Office, Itahari, has stated that the contract was terminated due to non-performance of work as promised and the site being closed.
What you should know
The contract for the construction of the 6-kilometer Ratuwa-Keshaliya road section in Morang along the Postal Highway has been terminated.
The Planning Office, Itahari, under the Postal Highway Directorate under the Department of Roads, has issued a public notice on Tuesday that the contract agreement with Shrestha Construction Company Pvt. Ltd., Hetauda, for road construction has been terminated.
A contract agreement was signed with the company on 23 Kartik 2076 for Rs 839.9 million to complete the road upgrade within three years. The contract agreement was signed to complete the road construction by 23 Kartik 2079, but the construction progress is only about 25 percent. The contract agreement was signed to upgrade 4 and 6 lanes.
The contract agreement was extended twice. The last extension of the contract agreement expired last Jestha. Yubaraj Pokharel, head of the Planning Office, Itahari, said that the contract was terminated because the company did not work despite repeated requests, did not work as promised, and blocked the site.
The project chief Pokharel mentioned that a letter has been sent to the bank for the seizure of Rs 41.9 million for the performance security of the construction entrepreneur whose contract was cancelled and Rs 96.7 million for the advance payment. The advance payment will be recovered with 10 percent interest.
The project office in Itahari asked the construction entrepreneur for a 15-day explanation, saying why the contract was not terminated last Shrawan. The contract was canceled as per the provisions of the Public Procurement Act as the explanation submitted by the construction entrepreneur was not satisfactory.
The official representative of the construction entrepreneur was not present with an updated work schedule, a reliable plan for resource mobilization and a commitment to complete the work, and the explanation submitted was not satisfactory and the contractor did not show any readiness to resume the work. It is stated that the Public Procurement Act and the contract agreement were violated. It has been stated that the amount for the performance security will be confiscated as per the provisions of the Act, the amount required to complete the remaining work will be recovered as government dues and it has been recommended to be placed on the blacklist.
Construction entrepreneurs have been requested to appear in the office within 15 days to evaluate the updated work and the remaining work and make a financial settlement. It is stated that if the construction entrepreneur does not appear in the office, the office will conduct a measurement.
