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Contractors Weighing Options after Cancellation of Tender

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Contractors Weighing Options after Cancellation of Tender
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September 11: Construction companies are divided over the cancellation of the contract of the disputed Kakadvitta-Inaruwa section of the East-West Electric Railway.

Some contractors have decided not to go through the legal process considering that cancellation of tender is a common issue while others are in the process of seeking legal remedy. The companies seeking legal remedy are now consulting with lawyers.

However, the government agencies while inviting bids generally include a clause stating that the tender can be canceled at any time. Contractors have been bidding for proposals by accepting the provision.

Due to this, the right to cancel the tender will be vested upon the public body, informed an official of the Railway Department. “As this provision has been made while inviting tenders, the canceled tenders will be automatically rejected legally. So a new tender should be called again to move the contract forward,” the official added.

However, Ravi Singh, president of Mahadev Khimti Construction Services Pvt Ltd on Tuesday, September 8, informed that he will seek legal solution against the department for cancelation of the contract of 54 packages of 106 km long railway line.

Singh is also the president of the Federation of Contractors Association of Nepal, an umbrella organization of construction companies. He said that he had written to the Railway Department on Thursday seeking a written reply for reasons for the cancellation of the contract. 

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