Kathmandu. Kalika Municipality has slapped a fine of Rs 11.6 million to the construction company for not constructing the administrative building on time. The fine was imposed without extending the deadline for failing to work despite repeated extensions.
According to Mayor Binod Regmi, Rabina Construction had taken the work order on February 29, 2019 to complete the project within two years. As the deadline could not be completed, the municipality extended the deadline four times till Kartik 30, 2081 BS.
There is a provision in the Procurement Act that if the work is not completed after the expiry of the deadline, a fine can be imposed on the work. The municipal council has also approved the decision to impose the fine after the municipality failed to work despite the facilitation required by the municipality.
Devraj Chaulagain, chief administrative officer of the municipality, said that the contractors had filed a case at the High Court, Hetauda as they were not satisfied with the municipality’s decision. According to him, the court has dismissed the case. The construction company has completed 95 percent of the work. The contract for the construction of the building was made at a cost of Rs 11.56 crore.
The company has been paid Rs 7 crore so far. The contractor has requested the municipality to pay the municipality by deducting 10 percent of the amount. According to Chaulagain, the construction company is trying to hold discussions with a mediator.
The company is preparing to hand over the building to take the remaining amount later if the fine is removed after the discussion.
According to him, the municipality is ready to pay the remaining amount except the fine amount. The building was vandalized during the Genji movement. The construction company has already claimed insurance and repaired the repairs. The municipality has been compelled to live in a rented building for the past 9 years due to delay in the construction of its building.
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