The construction of the Gwarko flyover in Lalitpur has been significantly delayed, leading to financial penalties for the contractor, Ashish-Samanantar-Religare JV. Initially, the project was contracted for Rs 176 million under the Engineering Procurement Construction (EPC) model. The original deadline was February 23, 2024, but it was extended by ten months due to the COVID-19 pandemic.
Despite the extension, the revised deadline of December 23, 2024, has passed with only 82 percent of the work completed. As per the contract, the construction company is now required to pay a daily penalty of Rs 88,000, calculated at 0.05 percent of the contract amount. Since the contract is based on the EPC model, no further extensions are permitted, and the company must continue work while paying the fine.
It is estimated that an additional three months are needed to complete the project. If the company meets this timeframe, the total fine will amount to approximately Rs 8 million. Any further delays will result in a higher penalty, increasing the financial burden on the contractor.
