Kathmandu, July 15: The Federation of Contractors’ Associations of Nepal (FCAN) has welcomed the second amendment to the Public Procurement Act, 2063 (2007), saying the revised law is expected to accelerate infrastructure development and address longstanding challenges in the country’s construction sector.
In a statement issued on Tuesday, FCAN said the amendment is likely to resolve many of the problems faced by contractors, particularly by ending the mandatory practice of awarding contracts solely to the lowest bidder and introducing an average bidding method for contract awards.
The federation also welcomed new provisions requiring government agencies to ensure budget allocation or resource availability before initiating procurement processes. In addition, bids can now be invited only after land acquisition, compensation payments, site clearance, and environmental approvals have been completed.
FCAN said the amended law also introduces several important reforms, including preparing project cost estimates in accordance with government standard, clearly defining the responsibilities of employers, contractors, suppliers and consultants, providing incentives and bonuses to employees who complete quality work on time, and rewarding contractors with incentives and certificates of appreciation based on their performance.
FCAN General Secretary Shivahari Ghimire said the amendment would make Nepal’s public procurement system more systematic, transparent and credible.
He welcomed provisions that limit the performance bond to five percent, allow contractor qualifications to be assessed after company mergers, extend the deadline for bid submissions, and ensure implementation of decisions made by the Public Procurement Review Committee.
The federation expressed gratitude to Prime Minister, the Ministry of Physical Infrastructure and Transport, and the concerned secretaries and government officials for introducing reforms that link the Public Procurement Act more closely with the country’s infrastructure development goals. #nepal
