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CA. Bhava Nath Dahal Advocate Public Procurement National Instructor
July 19, 2013
PMAN by BN Dahal
services) Contract Amendments Extension of contract period Payments (Interim. Retention) Handling Claims Completion or termination Work completion report July 19.Coverage • • • • • • • • • Contract Document Purchase Order/ Site-delivery Variations (goods. Final. works. 2013 PMAN.by BN Dahal 2 .
2056 • Nepal Arbitration Act.by BN Dahal 3 . 2013 PMAN.Numerous Acts for Contract • Public Procurement Act. 2056 • Income Tax Act. 2058 • ………………… July 19. 2063 • Contract Act.
by BN Dahal 4 . • In case of delay in site delivery or free access to site. Always use mile-stone dates or activities. 2013 PMAN.Site Delivery-Start date (works) • Post Bid-conference (PPR111) • Site delivery (at agreed time. contract period/days starts from this date) • Insurance (>1m) • Never use ‘at once’. July 19. ‘as possible’. ‘to the extent possible’ or similar words in the contract.a matter of extension and CLAIMs.
July 19. not to manufacture not bided to PE). Risk of 3rd party payment lies with payer NOT to bidder. – Work plan (mile-stone) as per PPR111. No LC or other arrangement to producer if not a party in contract (local agent is not a bidder) . – To agreed party only (not to third party. 2013 PMAN.by BN Dahal 5 .Purchase Order -Goods • Post Bid-conference (PPR111) • Purchase order (at agreed time) – No PO before contract. – No goods to be received before PO.
2013 PMAN. • Agreed person may be changed if acceptable to employer. • Fee should be as per old-one. experience and competency. • Evaluation of new offer required but Evaluation Committee evaluation not required. if new rate contract amendment procedure. skill.Change of Key Person • Applicable to Consulting. works and goods (some cases). July 19. having equal or higher qualification.by BN Dahal 6 .
• Price Adjustment is not VO/amendment.Variation • Variation Order (±). • Liquidated Damage -Redction in works not VO • Approval based on original contract – See limits in VOs. • VO may be: – ± of BOQ items – New items required for contract execution. use of Provisional Sum and Day-works.by BN Dahal 7 .docx July 19. 2013 PMAN.
If not taken back. make auction and pay remaining amount. • Pre-shipment supervision/test of goods. July 19. 2013 PMAN.by BN Dahal 8 . Letter to take back is must. – If not accepted immediate refund. • Goods test and acceptance.Tests • Test to be done based on contract. • Work acceptance report-for goods and works based on tests and supervision.
by BN Dahal 9 . price adjustment. • Contract signing right cannot be delegated. • Both sides to be agreed on the contract amendment. termination by convenience is not a amendment. 2013 PMAN. July 19.Contract Amendments • Basic output and main substance cannot be changed. • VO. Written contract.
2013 PMAN. – Change in treaty substance (e. HS code) July 19. royalty by Municipality as per new law) – Change in legal interpretation (e.not payable • If additional cost due to change in law or reduction in cost.g.g.by BN Dahal 10 .to be paid or deduct.employer’s risk. – Changes in Nepal law (local or center). • It change the contract amount. air-route) – Change in legal subject (e.g.Change of Legislation • Any change in law that was 30 days before final bid-submission date.
by BN Dahal 11 . – Dispute resolution committee (3 members) – Arbitration (as per Nepal Arbitration Act) July 19.Disputes • Contractor Claim vs Employer’s claim • Claim vs Counter claim • Disputes settlement mechanism – Amicable settlement – Adjudicator (single man appointed by both party) • Upto Rs. • Decision to be made within 30 days. 2013 PMAN. 100 m. claim to be lodged to Adjudicator within 15 days. if amicable settlement not finalised within 30 days.
Other Points • Bankruptcy of JV Partner(s) – Remaining partners are liable for full.by BN Dahal 12 . • Termination by Convenience. 2013 PMAN. • Contract term extension – Possible only if in contract and applied before 7 days – Condition beyond the control or reasonable grounds – PE not provided the inputs as agreed – Upto 6 month by bid approving authority there after DG (public enterprises as per their rule). July 19.
– Work Completion Certificate to be issued. – Approval of completion certificate.Other Points • Work Completion and Taking Over (works): – On completion PE should issue taking over stating the date. – Contractor should file as-built drawings within 30 days from completion.by BN Dahal 13 . if not approved (or disapproved) within 45 days. DLP starts from this date. works deemed to be accepted. July 19. – After completing DLP correction. PE should technically verify the completed work. 2013 PMAN.
acceleration (see FIDIC) – If mandated by contact.by BN Dahal 14 . 2013 PMAN.bonus. – If mandated by contact. • Advance payment and settlement (separately covered) • Interim or final payment (separately covered) July 19.Other Points • Acceleration and bonus.