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Daily Legal Advice Series

PPRA Rules on Direct Contracting/Negotiated Tendering

Client Query 022:- Hello, hope all is well at your end. Wanted to discuss a query from you.  NADRA issued a Purchase Order for renovation work after processing an open tender. The BOQ consisted of 20 items and amounted to 5 Million rupees. After completion of work a board was formulated for inspection of work. After inspection one item was removed from the BOQ and a payment of 4 Million rupees was made to the vendor. Now some additional work is required under the provision of 15% as per Rule 42-C. Please advise shall the 15% be calculated on the amount of original PO i.e. 5 Million rupees or the finalized bill i.e. 4 Million rupees.

 

Hassan Riaz, Canada

 

Answer:- Thank you very much for your query and for putting forward your query to us. In response to your query, according to PPRA Rule 42 (c)(iv) which speaks about the 15% increase of the original procurement made, any Procuring Agency may determine amount of its original procurement & enhance it up to 15% accordingly. Hope this helps you.

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