Para 9.4.3 - Delivery Extensions | KartavyaDesk

Original Rule Text

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 9.4.2 above). 2. Refixation of Delivery: In case the delay is not attributable to the service provider (or in case of Force Majeure) the proposal (refer to Annexure 17) 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 service provider was not responsible, without LD and without the denial clause (as defined in Para 9.4.5 below), for completion of the contractor’s contractual obligations. 3. Extension of Delivery: In case the delay is attributable (fully or partly) to the service provider the proposal (refer to Annexure 17) and, on approval from the CA, may agree to extend the delivery schedule, with LD and with the denial clause (as defined in Para 9.4.5, 9.4.6 and 9.4.7 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 extensions granted before the original deadline. It can be exercised even after the stipulated time has passed, provided there is consent from both parties. The contract does not automatically terminate upon the expiry of the initial delivery date, if there is a shared intention to continue the contractual relationship and fulfil the obligations, albeit under a revised timeline. Therefore, such extension/ refixation of time can be done, even after expiry of original period, provided consent of the contractor is obtained. However, it is prudent to formalize the extension before the original delivery period expires, to avoid any arguments about the contract's validity or of extension of time after the initial deadline. 5. Extension/ Refixation of the delivery date amounts to amendment of the contract. Such an extension/ refixation can be only done with the consent of both parties (that is, the procuring entity and service provider). No extension/ refixation of the delivery date is to be granted suo motu unless the contractor specifically asks for it. However, in a few cases, it may be necessary to grant an extension/ refixation of the delivery period suo motu in the interest of the administration. In such cases, it is legally necessary to obtain clear acceptance of the extension/ refixation letter from the contractor. 6. No correspondence should be entered into with the contractor after expiry of the contract delivery period or towards the end of it, which has the legal effect of condoning the delay/ breach of contract. When it is necessary to obtain certain information regarding past services, it should be made clear that calling for such information is not intended to keep the contract alive and that it does not waive the breach and that it is without prejudice to

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• •Delays attributable to the service provider may result in an extension with Liquidated Damages (LD) and a denial clause.
• •Delays not attributable to the service provider (Force Majeure) may result in a refixation of the delivery period without LD.
• •Extension or refixation requires a proposal (Annexure 17) and approval from the Competent Authority (CA).
• •Extension/Refixation can be done even after the original delivery date, with mutual consent.
• •Extension/Refixation of the delivery date is considered an amendment to the contract.

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.