Relief To Construction Works Contractors
Government agencies to give up to six months extensions to construction and goods and services contractors. “In a major relief to contractors, all central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts,” Finance Minister said, adding that the agencies can also release partial bank guarantees.
All contractors to central agencies like railways, road ministry, central public works department can be given an extension of up to 6 months without any additional costs. This covers construction works and goods and services contracts. It will cover obligations including completion of work, intermediate milestones and extension of the concession period.
Arindam Guha, Partner, Leader – Government and Public Sector, Deloitte India on FM’s announcement for Road contractors said, “For road sector contractors and PPP concessionaires, a standstill period of 6 months has been announced with no associated penalties for not meeting project milestones, automatic extension of contract period etc. This is another example of simplifying the investment climate with contractors or concessionaires not having to seek extension on a case by case basis.”