PPR - 2007, Rule 127 and 128

 

127. Payment to be Made on Termination of Contract on Convenience Ground:

(1) Where the Public Entity has terminated a contract on the grounds of convenience for public interest in accordance with Sub-section (4) of Section 59 of the Act, it shall have to pay the following amount to the concerned supplier, construction entrepreneur, consultant or service provider. In making such payments, where s/he has received any advance amount, payment shall be made only after deducting such advance.

(a) Payment, if any, remaining to be made for the works, supply or services completed to the acceptable conditions,

(b) The price of the goods manufactured for the purpose of the Public Entity according to the procurement contract, construction materials brought in the construction site,

(c) A reasonable cost to be incurred for removal of equipment from the construction site,

(d) Repatriation expense for foreign employees employed only in construction work, and

(e) If necessary, protection and security cost for the construction work.

(2) Notwithstanding anything contained in Sub-rule (1), the Public Entity shall have to accept goods ready for shipment and goods manufactured within seven days of the receipt by the supplier of the notice given by it for termination of procurement contract on grounds of convenience, at the terms and conditions and price of such contract.

(3) In respect of the goods other than those referred to in Sub-rule (2), the Public Entity may do as follows:-

(a) Procuring the goods after causing it to be completed in accordance with the terms and conditions and at the price stated in the procurement contract, or

(b) Canceling the supply order of residual goods, and make payment of an amount to be agreed through mutual consent to him/her for the goods or services partially prepared by him/her and materials or parts purchased by him/her prior to termination of contract.

128. Remedies to be Available upon Breach of Procurement Contract:

(1) The procurement contract shall have to provide with remedy to be available to the Public Entity for breach of procurement contract by the supplier, construction entrepreneur, and consultant or service provider.

(2) The remedy under Sub-rule (1), in addition to the one referred to in Section 59 of the Act, may be the following:-

(a) Rejecting a defective work,
(b) Removing forthwith the defective goods and to cause the concerned supplier, construction entrepreneur, consultant or service provider to replace,
(c) Obtaining liquidated damages for not completing the work on time,
(d) Terminating the contract and to have such work completed at the cost of the supplier, construction entrepreneur, service provider or consultant who did not perform the work under the contract,
(e) Recovering consequential damages,
(f) Other remedies to be available under prevailing law or the procurement contract.

 

SBD

61. Release from Performance

61.1 If the Contract is frustrated by the outbreak of war or by any other event entirely outside the control of either the Employer or the Contractor, the Project Manager shall certify that the Contract has been frustrated. The Contractor shall make the Site safe and stop work as quickly as possible after receiving this certificate and shall be paid for all work carried out before receiving it and for any work carried out afterwards to which a commitment was made.

62. Suspension of Donor Agency Loan/Credit/Grant

 

62.1 In the event that the Donor Agency suspends the loan/ credit/grant to the Employer from which part of the payments to the Contractor are being made:

a. the Employer is obligated to notify the Contractor of such suspension within 7 days of having received the Donor Agency's suspension notice; and

b.if the Contractor has not received sums due him within the 30 days for payment provided for in Sub-Clause 42.1, the Contractor may immediately issue a 15-day termination notice.