The Ministry of Works and Human Settlement (MoWHS) has taken a private construction company to court for failing to carry out the Tingtibi-Praling road improvement works in Zhemgang.
It is seeking more than Nu 31.2 m in refund and penalties from the construction company.
The ministry had told Zhemgang District Court where the case was filed in October last year that Ms Ringdreel Construction Company Pvt. Limited was awarded the work to improve the 36-kilometer national highway from Tingtibi to Praling at the contract price of over Nu 110 m.
The contract period was 15 months from August 1, 2015 to November 1, 2016. The ministry said the contractor was also paid a mobilization advance of over Nu 11 m before the works began.
However, the construction company failed to achieve the expected work progress despite several notifications, stated the ministry in the court.
According to the ministry, the company had completed only 4.25 per cent of road improvement works by the completion deadline.
It added the contractor did submit an application, seeking an extension in the contract period but the request could not be accepted due to lack of reasonable reasons.
The regional office of the ministry then forwarded the case to the headquarters, which resulted in the termination of the contract.
The ministry stated that the contractor had also failed to refund the mobilization advance despite having been given ample of time to do so.
Therefore, the ministry requested the court to charge the contractor 20 per cent penalty for the remaining works as per the tender agreement.
Further, the ministry also requested the court to make the contractor to pay 24 per cent interest per annum for the mobilization fund to the government as per financial rules.
The rebuttal hearing for the case is scheduled for next week at the Zhemgang District Court.
Meanwhile, the road improvement works of Tingtibi-Praling is currently being carried out by another contractor. The road connects Tingtibi to Panbang.
