KATHMANDU, Dec 24: The construction company has to pay a daily fine of Rs 88,000 starting Tuesday due to the delay in completing the under-construction flyover at Lalitpur’s Gwarko.
Ashish-Samanantar-Religare JV had signed a contract for the construction of the flyover for Rs 176 million. According to the agreement, the construction company was required to complete the flyover by February 23, 2024, but the deadline was extended by 10 months due to the Covid-19 pandemic.
Gwarko flyover completion delayed by three months, construction...
Pradeep Bhandari, senior divisional engineer at the Quality Research and Development Centre (QRDC) under the Department of Roads, said that the extended deadline ended on December 23, and now the construction company has to pay a daily penalty of Rs 88,000.
According to the QRDC, the construction company has to pay the fine at the rate of 0.05 percent of the contract amount.
The QRDC said that since the contract is based on the Engineering Procurement Construction (EPC) model, there will be no extension of the deadline. Now, the construction company must proceed with the work by paying compensation.
If the construction company completes the work sooner, the fine will be less. However, as only 82 percent of the work has been completed so far, it is estimated that an additional three months will be required. If the company can finish the work within three months, it will need to pay a fine of Rs 8 million to the government. Otherwise, the amount will increase.
