Public Procurement Act & Regulation

Invitation to Bids:
  • For invitation of national level bidding or prequalification proposals, a period of at least thirty days shall be given and at least forty five days shall be given in the case of a notice on invitation that of international level bidding or prequalification proposals.
  • A notice for invitation to bids or prequalification proposals shall be published in a daily newspaper of national circulation and, in the case of an international bid. It may also be published in any international communication media.
International Level Bidding:
  • Where the Public Entity has certified that the goods or construction works, being of complex and special nature, have to be procured through an international level bidding.
  • Where under an agreement entered into with a donor party.
  • Where no bid was submitted in response to invitation to Nepal level bidding.
Non-procession of bids:
  • Where it is  not sealed,
  • Where it is not submitted within the time frame,
  • The bids withdrawn,
  • If it is not in accordance with required condition,
  • The bids submitted by mutual collusion,
  • The bids cancelled.

# Bid shall be lowest evaluated substantively responsive bid. Where, on examination, the qualification of such bidder is found not be in conformity with qualification as evaluation criteria set forth in the bidding documents, such bid shall be excluded from evaluation; and qualification of the next bidder having the next lowest bid price shall be examined on the same grounds respectively.

Sealed Quotation:

Inviting a sealed quotation, a notice shall be published in a national or local level newspaper by giving a period at least of fifteen days for amount up to 2 million.

Mechanism for Dispute Settlement:

–     By an adjudicator

–      By three-member dispute resolution committee,

–      The  provision that if a person is not satisfied with the decision               made under clause (a) or (b), such dispute shall be resolved through arbitration pursuant to prevailing law.

  • In the case of procurement, other than the procurement of a construction work of up to six million Rupees, ascertaining whether the bid qualification proceeding requires to be carried out or not.
Variation Order:

In the case of procurement of goods and other services, variation order of up to 15 % of the contract price, by the chief of the concerned Public Entity by assigning technical justification.

Price Adjustment:

The maximum amount of price adjustment to be made pursuant to this Rule shall not generally be more than 25% of the initial contract prices.

Liquidated Damages:

Generally 0.05% of the contract price per day not exceeding 10% of the contract price.

Rate Fixation Committee:
  1. Chief District Officer – Chairperson
  2. Local Development officer
  3. Chief, Treasury and controller Officer
  4. One of the District Development Committee designated by the District Development Committee
  5. Representative, Nepal Federation of Construction Entrepreneur
  6. Representative, Chamber of Industry and Commerce
  7. Chief, District Technical Office – Member – secretary
Request for Proposals (RFP):

After the preparation of a short list Request for detailed proposals will be invited.

Tool Box Talk:

Each annual average range 100 people are killed during construction work (2 a week). The tool box talks address the most basic points concerning activities, location and topic.

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