Sanjay Bumbroo
Panchkula, February 24
The Panchkula Municipal Corporation has terminated a contract with Vasu Construction Company after it failed to construct the MC office building within the stipulated time in Sector 3 here.
The work to construct the MC office building was allotted to Vasu Construction Company on December 5, 2019. As per the terms and conditions, the construction work of the office building was to be completed within 16 months i.e. by April 4, 2021.
In the orders issued by MC Commissioner Virender Lather, it has been said that in view of the violations of the agreement as well as the reluctance of the firm to complete the work, there was no other option but to terminate the pact as per clause 56 of the agreement.
The notice further said the construction company would have to pay a compensation of Rs 2.94 crore as per the terms of the contract. Penalty to the extent of 20 per cent of the value would be payable for non-completion of work as per the contract. The firm has been banned from tendering for a period of two years. Besides, Rs 1.47-crore bank guarantee of the firm has been ordered to be forfeited.
The firm did not perform the work as per the contract and committed breach of agreement. As per the contract, the firm was required to submit a bar chart containing the schedule for the construction of the office building. Since the bar chart was not submitted, the firm was asked on January 1, 2020 and September 17, 2020 to submit the chart within a week, but it failed to do so. Non-submission of bar chart was clearly a violation of the terms of the agreement entered into by the firm. It is clearly stated in the orders that despite repeated notices, the firm failed to complete the work.
The notice further said as per the agreement, the contractor was not supposed to lift the earth from the construction site. However, the firm lifted 650 to 700 square feet earth. The said soil was excavated even before formal permission was obtained from the Mining Department regarding the excavation work. The mining officer concerned also served a show-cause notice to the firm on January 24, 2020 as per the provisions of the Mines and Minerals Act and the rules made thereunder for illegal excavation and diggers were also caught by the police.
Rs 1.47-cr bank guarantee forfeited
A notice said the construction company would have to pay a compensation of Rs 2.94 crore as per the terms of the contract. Penalty to the extent of 20 per cent of the value would be payable for non-completion of work as per the contract. The firm has been banned from tendering for a period of two years. Besides, Rs 1.47-crore bank guarantee of the firm has been ordered to be forfeited.
