chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Public Procurement Act 2063

Chapter 6 Provision Relating to Review of Procurement Proceedings or Decision

Section 48: Review Committee
1) For review of the application under Section 49, the government of Nepal shall constitute a public procurement Review Committee consisting of the following chairperson and members:
(a)
One person from among the former judges of the Appellate Court, a Judge of the Appellate Court, or a person retired from a special class post in the Government of Nepal.
Chairperson
(b)
One person from among the persons retired from the gazetted first-class post of the Nepal Engineering Service of the Government of Nepal
Member
(c)
One person from among the persons having experience and expertise in public procurement
Member
2) While making an appointment of a member under clause (c) of sub-section (1), no employee currently holding a post in a Public Entity shall be appointed.
3) The tenure of the chairperson or member appointed pursuant to sub-section (1) shall be three years.
Provided that in appointing the members for the first time, one member shall be appointed for one year and the other member shall be appointed for two years.
4) The tenure of the chairperson or member under sub-section (1) may be extended up to another term.
5) The terms and conditions of the service, remuneration, and facilities of the chairperson or member under Sub-section (1) shall be as specified by the Government of Nepal.
6) Before assuming the office, the chairperson or member under sub-section (1) shall have to submit the information of the details as prescribed to the Government of Nepal through the Public Procurement Monitoring Office.
7) The Government of Nepal may remove the chairperson or a member in the following conditions:
(a) If s/he commits misconduct,
(b) If s/he fails to discharge the functions and duties as per the responsibility of the post due to a lack of performance capacity or skill, or
(c) If s/he is found guilty by a court of law of a criminal offence of moral turpitude.

Public Procurement Act 2063

Chapter 6 Provision Relating to Review of Procurement Proceedings or Decision

Section 49: Application May be Filed Before the Review Committee
A bidder or proponent may file an application for review before the Review Committee in the following conditions:
(a) If the chief of the Public Entity does not make a decision on the application filed before the Public Entity pursuant to Section 47 in respect of the procurement proceedings of the amount above the prescribed threshold within the period as referred to in sub-section (6) of the same Section or if the applicant is dissatisfied with the decision made by him/her,
(b) In the matter of the procurement contract concluded pursuant to Section 52.
Public Procurement Act 2063

Chapter 6 Provision Relating to Review of Procurement Proceedings or Decision

Section 50: Method of Review
1) A bidder or consultant filing an application for review under Section 48 before the Review Committee shall have to file an application in the case of clause (a) of Section 49 within seven days and in the case of clause (b) of the same Section within a period of thirty days from the date of conclusion of such contract.
2) Within three days of receipt of the application pursuant to sub-section (1), the Review Committee shall notify, by transmitting a copy of such application and document attached to such application, if any, to the Public Entity concerned to provide the information about the action taken in that respect and comments thereon.
3) Within three days of the receipt of notice pursuant to sub-section (2), the Public Entity shall provide to the Review Committee with information and comments related thereto.
4) The Review Committee shall have to make decision within thirty days of receipt of the application pursuant to sub-section (1) on the basis of the information and comments received in accordance with sub-section (3), the evidence submitted by the applicant along with the application and, if necessary, by hearing both the parties.
5) In making a decision pursuant to sub-section (4), the Review Committee may decide as follows:
(a) Dismissing the application,
(b) In the cases where the procurement contract has not been concluded:
(1) Giving an order to the Public Entity not to commit or make an unauthorised act or decision, or to pursue an incorrect procedure,
(2) Annulling the whole or part of an unauthorised act or decision made by the Public Entity,
(3) If bids or proposals need to be re-evaluated due to the occurrence of an error in their evaluation, issue an order for re-evaluation, citing such error as well, if any, in the evaluation.
(c) Where a procurement contract has already been concluded, if the Review Committee considers that such a contract should have been awarded to the applicant, it recommends that the Public Entity pay a reasonable amount (quantum merit) to the applicant, having regard to the grievances suffered by the applicant.
6) An applicant filing an application for review pursuant to this Section shall have to deposit security as prescribed.
7) In cases where an application is dismissed pursuant to clause (a) of sub-section (5), such security shall be forfeited.
Public Procurement Act 2063

Chapter 6 Provision Relating to Review of Procurement Proceedings or Decision

Section 51: Procurement Proceeding to be Withheld
1) Upon receipt of the notice of the application for review filed pursuant to sub-section (1) of Section 50, the Public Entity shall have to withhold procurement proceedings until the Review Committee makes a decision in respect of such application.
2) Notwithstanding anything contained in sub-section (1), procurement proceedings need not be stopped in the following conditions:
(a) If the Public Entity informs the Review Committee certifying the matter that there is an urgency to keep the procurement proceedings continuing due to an important public interest lying in the procurement proceedings, or
(b) If the Review Committee fails to make a decision within the period under sub-section (4) of Section 50,
(c) Where the procurement contract has been concluded.
3) If the Public Entity does not withhold the procurement proceedings pursuant to clause (a) and (b) of sub-section (2), it shall have to give information thereof to the Review Committee.

Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 52: Procurement Contract and Terms and Conditions Thereof
1) In making procurement other than for low-value items, in accordance with this Act, the Public Entity shall have to conclude a procurement contract in accordance with this Section.
2) The procurement contract under sub-section (1) shall include the terms and conditions as referred to in the bidding documents, documents relating to the proposal and documents relating to sealed quotation, and such terms and conditions may, according to the nature of the contract, be the following:
(a) Name and address, telephone, fax number of the parties to the procurement contract and their contact person for implementation of the contract,
(b) Scope of the procurement contract,
(c) Details of the documents included in the procurement contract and their priority order,
(d) Work performance schedule,
(e) Supply time, performance time or whether time can be extended or not,
(f) Procurement contract amount or procedure for determining it,
(g) Terms and conditions for acceptance of goods, construction work or services,
(h)
1
……. Terms and methods of payment, including payment in foreign currency,
(i) Force majeure,
(j) If price adjustment can be made, provision thereof,
(k) If a procurement contract can be amended and a variation order can be issued, provision thereof,
(l) If insurance is necessary, provision relating thereto,
(m) Security required,
(n) Liquidated damages for failure of performance within the stipulated time,
(o) Provision concerning a bonus to be given if work is completed before the stipulated period,
(p) Conditions under which the procurement contract may be terminated,
(q) Provision whether sub-contract can be concluded or not,
(r) Mechanism for settlement of disputes,
(s) Applicable law, and
(t) Other matters as prescribed.
1 Taken from the First Amendment.
Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 52A: Provisions Relating to Advance Payment
1) A public body may, after the conclusion of a procurement agreement, obtain an advance bank guarantee from the supplier, construction entrepreneur or service provider and provide an advance payment not exceeding twenty percent of the procurement agreement amount.
2) When providing an advance payment pursuant to sub-section (1), the first advance payment shall not exceed half of the approved advance payment amount, and the remaining amount may be provided based on the progress of the work.
3) Except in the case of sub-section (5) of Section 10, the advance payment shall be paid only through a bank account opened separately for the work for which the agreement was made.
4) The supplier, construction entrepreneur or service provider shall commence the work within thirty days from the date of receipt of the advance payment for the first time pursuant to sub-section (2).
5) The details of the purpose for which the advance payment pursuant to sub-section (2) has been spent shall be updated and provided to the concerned public body as prescribed.
6) If the advance taken pursuant to this section is not found to have been used for the relevant work, the advance bank guarantee taken in accordance with sub-section (1) shall be forfeited.
7) Other provisions relating to the advance shall be as prescribed.

Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 53: Amendment to Procurement Contract
Unless otherwise provided for in the procurement contract, a procurement contract may be amended by the written consent of both parties, subject to non-alteration of the basic nature or scope of the work.
Provided that the procurement contract does not need to be amended, issuing a variation order pursuant to Section 54 or making a price adjustment in accordance with Section 55.
Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 54: Variation Order
1) If a situation arises during the implementation of the contract that could not have been foreseen at the time of making the procurement agreement, the following authority may issue a variation order by adopting the prescribed procedure, stating the clear reasons for the same:
(a) Variation up to five percent by the Head of the concerned public body, Gazetted Second Class or its equivalent,
(b) Variation up to ten percent by the Head of the public body, Gazetted First Class or its equivalent,
(c) Variation up to fifteen percent by the Head of the department,
(d) Variation from fifteen percent to twenty-five percent by the Secretary of the ministry concerned or the Head of the concerned body,
(e) Variation above twenty-five percent by the Government of Nepal Council of Ministers in the case of a public body referred to in sub-clause (1) of clause (b) of section 2,
(f) Variation above fifteen percent by the Public Body referred to in sub-clause (2) of clause (b) of section 2 Variation by the highest executive body of that body.
2) While issuing a variation order pursuant to clause (e) of sub-section (1), in the case of a public body referred to in clause (b) of section 2, the concerned ministry may form a group of experts and conduct necessary investigations through that group and issue a variation order only on the basis of the recommendation received by the Government of Nepal, the Council of Ministers, and in the case of a public body referred to in clause (b) of section 2, the highest executive body of that body may form a group of experts and conduct necessary investigations through that group and issue a variation order only on the basis of the recommendation received by the group.
3) Notwithstanding anything contained in clauses (a) and (b) of sub-section (1), an officer lower than the officer approving the cost estimate shall not issue a variation order.
4) Notwithstanding anything contained in sub-section (1), a variation order exceeding fifteen percent of the procurement work up to six hundred thousand rupees may be issued by the departmental head.
Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 55: Price Adjustment in Procurement Contract
1) Unless otherwise provided in the procurement contract, if the price needs to be adjusted in the course of implementation of a procurement contract having a duration exceeding fifteen months, the competent authority may adjust the price.
Provided that where a procurement contract has been concluded to procure a public construction work following the invitation of national level bidding and the price of any construction materials is increased or decreased unexpectedly by more than ten percent of the previous price, price shall be adjusted as prescribed by deducting ten percent in the amount so increased or decreased.
2) Notwithstanding anything contained in sub-section (1), price adjustment cannot be made where the work under the contract is not completed within the period prescribed in such contract and has taken more time due to the delay by the person who has obtained procurement contract or if procurement contract is concluded on the basis of lump sum contract or fixed budget.

Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 56: Provision Concerning Extension of Contract Period
1) Provisions concerning the extension of the period of the procurement contract shall be as provided in the procurement contract concerned.
2) Notwithstanding anything contained in sub-section (1), if the period of procurement contract is to be inevitably extended due to force majeure, failure of the Public Entity to make available the materials to be made available by it or other reasonable causes, the competent authority may extend the period on the prescribed grounds upon submission of application by the person obtaining procurement contract.

Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 57: Payment of Bill or Invoice
Subject to the procurement contract, the Public Entity shall have to make payment of the bill/invoice as prescribed.

Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 58: Mechanism for Dispute Settlement
1) Any dispute arising between the Public Entity and the construction entrepreneur, supplier, service provider or consultant in connection with the implementation of the procurement contract shall be settled amicably.
1
1A) If the dispute cannot be resolved by mutual agreement pursuant to Sub-section (1), the procurement agreement shall state that the dispute shall be resolved through arbitration in accordance with the prevailing law.
2
2) .
2
3) ……
2
4) ………
2
5) ………
1) Added by the First Amendment.
2) Deleted by the First Amendment.
Public Procurement Act 2063

Chapter 7 Provisions Relating to Procurement Contract

Section 60: Public Notice of Procurement Contract
After a procurement contract has been concluded pursuant to this chapter, the Public Entity shall publish, as prescribed, a notice including the results of the bid or consultancy service evaluation.

Public Procurement Act 2063

Chapter 8 Provision Relating to Conduct

Section 61: Conduct of the Official Involved in Public Procurement Proceedings
Any officials involved in the act of formulating a procurement plan, operating procurement proceedings, implementing a procurement contract or other act as prescribed relating to the procurement of the Public Entity, shall have to follow the following conduct:
(a) Discharging one’s duty impartially so that bidders fairly compete in the procurement proceedings,
(b) Operating procurement proceedings in the public interest,
(c) Not committing an act of conflict of interest with the procurement from his/her work, conduct, or behaviour,
(d) Keeping confidential all proprietary information of the bidder known by him /her in the course of the procurement proceedings,
(e) Not working with a person, firm, organisation, company or any other institution of a private nature with which s/he had had dealings of procurement at the time of holding the post for two years after retirement,
(f) If s/he knows that his/her nearest relatives have participated as a bidder or proponent in the procurement proceedings of his/her involvement, not taking part in such procurement proceedings by giving immediate notification to the one level higher authority,
Explanation: For the purpose of this clause, the nearest relative means husband, wife, father, mother, son, daughter of a joint family, mother-in-law, father-in-law, elder brother, younger brother, elder sister, younger sister, son-in-law, sister-in-law or brother-in-law.
(g) Not committing an act in contravention of the prevailing law while carrying out procurement proceedings,
(h) Not committing a corrupt or fraudulent practice, nor being involved in such an act,
(i) Not colluding or being involved in a group prior to or after submitting a bid or proposal with the objective of forbidding or causing the benefit of competition to be forbidden.

Public Procurement Act 2063

Chapter 8 Provision Relating to Conduct

Section 61A: Departmental Action to be Taken
1) If the Taluk Office or the authorized body, during monitoring, finds that the concerned official has not fulfilled the responsibilities mentioned in this Act or the rules made under this Act or has not followed the conduct, it may write to the authorized officer to take departmental action against such an official in accordance with the prevailing law.
2) If a letter is received pursuant to sub-section (1), departmental action shall be taken against such an official in accordance with the prevailing law relating to his service and conditions, and the information thereof shall be given to the body that sent the letter in this manner.
Public Procurement Act 2063

Chapter 8 Provision Relating to Conduct

Section 62: Conduct to Bidder or Proponent
1) A bidder or proponent shall have to accomplish such obligations as referred to in this Act or Regulations made thereunder, procurement contracts and other documents relating to procurement.
2) Without prejudice to the generalities of the provision of sub-section (1), a bidder or proponent shall not carry out or cause to be carried out the following act with the intention of making interference in the procurement process or the implementation of the procurement contract:
(a) Giving or offering directly or indirectly improper inducement,
(b) Submitting a fact by distortion or misrepresentation,
(c) Engaging in corrupt or fraudulent practice or engaging in such an act,
(d) Intervening in the participation of other competing bidders or proponents to be involved in any way in the proceedings relating to the bid or proposal,
(e) Commit an act of threatening directly or indirectly to cause harm to the body, person or property of any person to be involved in the procurement proceedings or a coercive act,
(f) Making collusion or involving in groupism prior to or after submission of bid or proposal with the objective of allocating procurement contract among the bidders or proponents or fixing the price of bid or proposal artificially or noncompetitively or otherwise forbidding the Public Entity the benefit of open and free competition,
(g) Contacting the Public Entity from the opening of the bid or proposal until the notice of acceptance of the bid or proposal is given with the objective of causing interference with the bid or proposal or committing an act of interference in the examination or evaluation of the bid or in the evaluation of the proposal.
3) A bidder responsible for preparing bidding documents or specifications of a procurement contract or for supervising the implementation of the procurement contract or a person or firm or organisation or company affiliated with him/her, or an employee working in such firm or organisation or company, cannot participate in the bidding proceedings of such procurement.
Provided that this provision shall not be applicable in the case of a turn-key procurement contract or procurement contract so concluded as to carry out both the design and construction work.
Public Procurement Act 2063

Chapter 8 Provision Relating to Conduct

Section 63: Blocklisting and Exclusion from the Blocklist
1) The Public Procurement Monitoring Office may blocklist a bidder, proponent, consultant, service provider, supplier, construction entrepreneur or other person, firm, organisation or company on the following grounds for a period of one year to three years on the basis of the seriousness of their/ act:
(a) If it is proved that s/he has committed an act contrary to the conduct as referred to in Section 62,
(b) If a proponent of a proposal selected for acceptance does not come to sign the contract pursuant to Section 38,
(c) If it is proved later that s/he had committed a substantial defect in implementing the procurement contract or had not substantially fulfilled the obligation under the contract, or the work carried out according to the procurement contract is not of the quality as per the said contract,
(d) If convicted by a court of law of a criminal offence liable to disqualify for taking part in a procurement contract,
(e) If s/he/it is proved to have signed the procurement contract by falsifying qualifications or misrepresenting,
(f) Any other conditions as prescribed.
2) A bidder, proponent, consultant, service provider, supplier, construction entrepreneur or other person, firm, organisation or company blocklisted pursuant to sub-section (1) shall be debarred from taking part in the procurement proceedings of a Public Entity up to that period.
3) Notwithstanding anything contained elsewhere in this Section, a person, firm, organisation or company blocklisted by a competent authority under prevailing law for not paying a loan of a bank or financial institution shall not be eligible to take part in the procurement proceeding of a Public Entity during the period of such blocklisting.
4) If the person, firm, organisation or company ineligible to take part in the public procurement proceedings pursuant to sub-section (2) or (3) is found to have taken part in the procurement of a Public Entity, no action shall be taken over his/her bid or proposal.
5) Other provisions concerning blocklisting pursuant to sub-section (1) shall be as prescribed.
6) A bidder, proponent, consultant, service provider, supplier, construction entrepreneur or other person, firm, organization or company blocklisted pursuant to sub-section (1), (2), (3), (4), and (5) shall be excluded from the blocklist as per the criteria prepared by the Public Procurement Monitoring Office for exclusion from the blocklist.

Public Procurement Act 2063

Chapter 9 Provision Relating to Monitoring of Procurement Activities

Section 64: Public Procurement Monitoring Office
1) A Public Procurement Monitoring Office under the Office of the Prime Minister and Council of Ministers shall be established in order to monitor procurement activities.
2) The chief of the office, as specified in sub-section (1), shall be an employee of the gazetted special class of the civil service of the Government of Nepal.
3)
1
.
1 Removed by the First Amendment.