Client Query 021:-Hello, hope everything is well. Wanted to have an expedite reply from the expertise of your law firm. We had a contract with the firm for the provision of janitorial services in year 2015 after due fulfillment of the PPRA rules 2004. Now the contract is going to be expired and contractor/firm submitted request for the extension of the contract on the same rates for the next financial year 2016-2017 in the light of clause of the terms and condition of the agreement which is reproduced as follows:- ” VALIDITY OF THE CONTRACT”. The contract shall remain valid for the period from December, 2015 to December, 2016. However the same may be extended for next financial year with mutual understanding/consent of both the parties. Further, the contractor will provide the services until the new contract will become operative/effective”. Please advice us in the matter that whether we may extend the contract for the next year on the same terms and conditions and rate as highlighted in clause (j) of definition of General Provision of the PPRA Rules 2004 or we may go for new tender for hiring of same janitorial services. An early response in this regard will highly be appreciated.
Bilal Malik, Pakistan
Answer:- Thankyou very much for lying your trust in our firm and writing to us. Based on your query we would like to advice you, that if the provision of extension in contract was available in the bidding documents or in the initial tender floated then the contract can be extended otherwise new tender is required to be floated. Hope this will help you!
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