Extension of Time Clause in Construction (PPMO)

Overview

Sometimes, after a contract agreement, the contractor fails to execute the specified work in the agreed-upon time frame due to different compensation and variations in order placements, like

• if the employer fails to give access to the site on time to the contractor.
• if various other contractors working on the site hinder work progress.
• if the subcontract doesn't get approved on time.
• different unforeseen conditions
• changes in drawings and specifications, etc.

In such conditions, the contractor should submit the application for a time extension before 21 days of the intended project competition date. After studying and analyzing the issues, the project manager, who approves the bolpatra, can extend the project competition time. Essential documents shall be submitted within 21 days of the intended project competition date.

Documents Required

• Performance Guarantee Extension
• Insurance paper extension
• Advance payment guarantee extension, if applicable
• Construction work schedule revised

A contractor can get an extension from the bank and insurance company after receiving a request letter from the employer for a time extension.

Special Case

Just in case the contractor fails to get approval from the employer due to various reasons within 21 days of the intended project completion date, the contractor can request a time extension within 1 week after the intended project completion date from one-step senior personnel to the project manager. The authorized personnel can extend the completion date by studying the case and issuing the next completion date within the next 15 days.

What if the contractor doesn't meet the above criteria?

In such a scenario, the contractor will be liable for a penalty for work delay. The per-day fine will be 0.05% of the contract amount; the maximum limit is 10% of the contract amount; and the contractor shall complete the work within 200 days. If the contractor fails to complete the work within the next 200 days, the contract will be terminated.

 

Others

The source of these terms and conditions is the Public Procurement Act (Sarbajanik Kharid Yen) 2064. You can find the Public Procurement Act online for further information.

Sample Request letter for time extension

Date:……………

To,

Executive Head

(Name of office)

(Address)

 

Subject: Request for time extension

 

We refer to our agreement regarding the …………………………………….. Tender No. ………………..herein we would like to kindly notify you that we were supposed to complete the project by ……….. but due to variations in civil items in our Bill of Quantity (BOQ) and new items being added to the contract (specify the reason for not completing the work on time), we could not meet the deadline for the completion of the work. As scenarios were beyond our control, we would like to request a time extension for the completion of the project up to...................We would also like to offer our apologies for not living up to your expectations. We completely realize how much of an inconvenience our work performance during the past few weeks would have been for you and for our other co-workers. We want to assure you that we have understood the seriousness of the project and will do our best to complete the remaining work within the extended time frame. Also, we would like to kindly inform you that we have attached a revised work schedule with milestones along with it.

 

Thank you.

Best Regards,

 

...........................

Seal and stamp

Note: The application has to be on company letterhead.