Construction Entrepreneurs Federation Demands 20% Advance Payment for Road Projects

Kathmandu. The Federation of Contractors' Associations of Nepal has demanded that the 20 percent advance payment that should be received according to the law for construction projects operated under the Department of Roads and newly called construction projects be provided in a lump sum. The Federation submitted a letter of attention to the Director General of the Department of Roads with the said demand.

According to Section 52 (a) of the Public Procurement Act, 2063 (Second Amendment) and Rule 113 of the Public Procurement Regulations, 2064, there is a clear legal provision that construction entrepreneurs should be provided with an advance payment of 20 percent of the contract amount in a lump sum. However, the Federation has expressed serious concern that this advance payment is not being provided in a lump sum for projects under the Department of Roads.