Para 10.4.3 — CONSULT_MANUAL

10.4.3 Performance Notice A situation may arise where the supply/services has not been completed within the stipulated period due to negligence/fault of the consultant; however, the supplier has not made any request for extension of the delivery period, but the contracted goods/services are still required by the purchaser and the purchaser does not want to cancel the contract at that stage. In such a case, a performance notice (also known as notice-cum-extension letter) may be issued to the supplier by suitably extending the delivery date and by imposing LD with denial clauses, and so on, along identical lines as in para 10.4.2 above. The supplier's acceptance of the

10.4.4 Denial Clause If delay in delivery is attributable to the consultant, the procuring entity should protect itself against extra expenditure during the extended period by stipulating a denial clause (over and above levy of LD) in the letter informing the supplier of extension of the delivery period. In the denial clause (applicable for delays attributable to consultant), any increase in statutory duties and/or upward rise in prices due to the PVC clause and/or any adverse fluctuation in foreign exchange are to be borne by the consultant during the extended delivery period, while the purchaser reserves his right to get any benefit of a downward revisions in statutory duties, PVC, and foreign exchange rate. Thus, in cases of delays attributable to Consultant, PVC, other variations, and foreign exchange clauses operate only during the original delivery period. The format of the denial clause is available in Annexure 22.

Manual for Procurement of Consultancy Services, Second Edition, 2025 performance notice and further action thereof should also be processed in the same manner as mentioned above. The text of the performance notice will be on similar lines to the Annexure 22.