KATHMANDU: The government has introduced a provision allowing deadline extensions for long-delayed construction projects that have achieved at least 50 percent physical progress.
Following the publication of the Public Procurement (15th Amendment) Regulations, 2083 in the Nepal Gazette, the process of extending deadlines for several major projects, including the under-construction Parliament building at Singha Durbar, is expected to move forward.
The government said the amendment to the Public Procurement Regulations, 2064 is intended to provide a final opportunity for projects that have been stalled due to budget shortages, technical problems or other reasons.
However, the decision has drawn mixed reactions within the administrative sector. Critics argue that repeated deadline extensions could encourage contractors who fail to complete work on time.
The amendment has also generated dissatisfaction because it was introduced separately while the Prime Minister’s Office is preparing a broader revision of the public procurement regulations. Administrative sources said the provision could have been incorporated into the comprehensive amendment rather than being brought through a separate and seemingly rushed revision.
Under the new arrangement, projects that could not be completed within the stipulated time but have achieved at least 50 percent physical progress, as well as projects contracted in fiscal year 2082/83 whose deadlines have expired, will be eligible for an extension.
Contractors, suppliers or service providers must submit an application to the concerned authority within 30 days of the regulation coming into force, explaining the reasons for the delay, its justification and a revised work schedule.
The regulation identifies four main grounds for granting an extension: suspension of work by the Government of Nepal or a public body, failure to allocate the annual budget, delays in payment due to budget shortages, and special circumstances specified in the contract that affected the work.
Even if the deadline is extended, contractors will not be entitled to make additional financial claims. Likewise, the government will not recover pre-determined compensation for the extended period.
The amended regulation requires the head of the concerned public body to decide on the extension request within 30 days of receiving the application. Failure to do so may lead to departmental action against the responsible employee or official.
If contractors fail to apply within the prescribed time or do not complete the work within the extended period, the contract may be terminated, performance security may be confiscated, and the process of blacklisting the contractor may be initiated.
The concerned ministry has also been assigned the responsibility of regularly monitoring whether projects are completed within the extended deadline.
The government says the measure is aimed at completing stalled development projects. Critics, however, warn that repeated extensions could weaken discipline in public construction and negatively affect the culture of completing projects on time.
