Para 10.4.2 - Delivery Extension | KartavyaDesk
Original Rule Text
10.4.2 Extension or Refixation of Delivery 1. If at any time during the currency of the contract, the contractor encounters conditions hindering timely delivery of services, he shall promptly inform the concerned officer in writing. He should mention its likely duration and make a request for extension of the schedule accordingly. On receiving the contractor’s communication, the procuring entity shall examine whether the delay is attributable to the contractor or not (Please refer to para 10.4.1 above). 2. Refixation of Delivery: In case the delay is not attributable to the Consultant (or in case of Force Majeure) the proposal (refer to Annexure 21) and, on approval from the CA, may agree to re-fix delivery period (i.e. a fresh delivery period, treated like original delivery period), which is arrived at by recasting the original contractual delivery period after taking care of the lost period for which the consultant was not responsible, without LD and without the denial clause (as defined in Para 10.4.4 below), for completion of the contractor’s contractual obligations. 3. Extension of Delivery: In case the delay is attributable (fully or partly) to the Consultant the proposal (refer to Annexure 21) and, on approval from the CA, may agree to extend the delivery schedule, with or without LD and with or without the denial clause (as defined in Para 10.4.4 below), for completion of the contractor’s contractual obligations, provided: a) That a higher rate in the original tender was not accepted against other lower quotations in consideration of the earlier delivery; and b) That there is no falling trend in prices for this item as evidenced from the fact that, in the intervening period, neither orders have been placed at rates lower than this contract nor any tender been opened where such rates have been received even though the tender is not yet decided. In cases of certain raw material supplies, where prices are linked to the PVC, extension may be granted even in case of a falling trend in price indices, since the purchaser’s interests are protected by the price variation mechanism. However, in such cases it should be ensured that extensions are done with the denial clause. 4. Extension/ Refixation of time after its expiry: The power to extend the time for performance under Section 63 of the Indian Contract Act is not inherently limited to
What This Means
Para 10.4.2 of the Manual for Procurement of Consultancy Services deals with situations where the consultant can't deliver the services on time. It outlines the process for either extending the original deadline or completely re-fixing it. If the delay is due to reasons beyond the consultant's control (like a natural disaster or a change in government policy), the delivery period can be re-fixed, essentially giving them a fresh start without penalties. However, if the delay is the consultant's fault, the procuring entity can still grant an extension, but they might also impose penalties like liquidated damages (LD) and a 'denial clause' (which likely means the consultant won't be compensated for increased costs during the extended period).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Consultant must promptly inform the procuring entity of any delays.
- •Delay can lead to either 'Extension of Delivery' or 'Refixation of Delivery'.
- •Refixation applies when the delay is not the consultant's fault (or due to Force Majeure).
- •Extension applies when the delay is attributable to the consultant, possibly with penalties.
- •Extension may not be granted if a lower bid was rejected for faster delivery or if prices are falling.
Practical Example
M/s TechSolutions was contracted by the Ministry of Rural Development to provide a consultancy report on improving rural infrastructure for ₹50 Lakhs, with a delivery deadline of 6 months. After 3 months, a major flood hit the region, making data collection impossible for a month. TechSolutions immediately informed the Ministry. The Ministry, after investigation, determined the delay was due to the flood (Force Majeure). They approved a 'Refixation of Delivery', granting TechSolutions an additional month to complete the report, effectively resetting the timeline without any penalties. In another scenario, if TechSolutions' delay was due to internal resource mismanagement, the Ministry might grant an 'Extension of Delivery' but also impose liquidated damages for the delayed period.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the difference between 'Extension of Delivery' and 'Refixation of Delivery'?▼
What is 'Force Majeure' and how does it affect the delivery schedule?▼
What is a 'denial clause'?▼
What happens if the consultant doesn't inform the procuring entity about the delay?▼
Can the delivery period be extended even after the original deadline has passed?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 10.4.2 of the Manual for Procurement of Consultancy Services, if a consultant encounters conditions hindering timely delivery, what is the first action they are required to take?
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