Daily penalty of Rs 200,000 for missing deadline for TU cricket stadium

Kathmandu, July 16: The construction companies failing to complete the works to build a parapet and fix floodlights at the Kirtipur-based Tribhuvan University (TU) Cricket Stadium have been penalized for being unable to meet the deadlines.     

The companies have been penalized as per the contract agreements that mandated them to pay 0.05 percent of the total budget of the project on a daily basis in fine.     

According to Spokesperson at the Ministry of Urban Development, Narayan Prasad Mainali, BKOI-KCDC-BG JV has been contracted for constructing the parapet while Vishan Ishwori Joint Venture has been contracted for fixing floodlights at the cricket stadium.     

It was agreed to construct the parapet at the cost of Rs 492.5 million and install floodlights at the cost of Rs 473.7 million. Both companies missed the deadlines for completing the projects by July 14.     

The construction companies have been informed about the penalties imposed on them since Tuesday or July 15 for missing the deadlines. It shall remain in effect until the works get completed, said Chief of Federal Secretariat Construction and Management Office, Chakravarti Kantha.     

As per the provision, the companies are allowed to continue work for a maximum of 200 additional days or by paying a fine equal to 10 percent of the total project cost. If they miss the extended deadline again, they will be blacklisted.     

 Kantha said the companies have promised to complete the works by a month. So far, 4,000 chairs have been set up for the parapet ant it reports 63 percent fiscal progress and 77 percent physical progress. Towards the floodlight installation, the fiscal progress is 29 percent followed by 45 percent physical progress.(RSS)