The Division Road Office, Bhaktapur has initiated the process of terminating the contract with Gauri Parbati Company, which was awarded the contract for the construction of the Dhulikhel-Khawa road section under the Araniko Highway.

The Division Road Office, Bhaktapur, issued a notice on Monday stating that it is going to terminate the contract as the company failed to work as per the agreement.

The Division Road Office has given seven day’s time to the construction company to submit a written explanation on why it should not terminate the contract. As per the notice, the company has abandoned the construction work and is contactless despite repeated written and verbal instructions.

The Division Road Office, Bhaktapur, and the construction company reached an agreement on June 3, 2022, to complete the road expansion and upgrading work in 22 months. During the 10 months of expansion and construction of the four-kilometer road section, the contractor has completed only 10 percent of the work. Due to the slow pace of construction, the office proceeded with the process of terminating the contract.

The company was supposed to complete the work by April 1. However, it has completed only 10 percent of the work till date. The division had awarded the contract to the company for Rs 201.9 million for the expansion and upgrading of the road section.

The Division Road Office, Bhaktapur plans to confiscate the performance bond after contract termination. In addition, the office said that the cost of completing the remaining work will be recovered from the construction company.