Section 55: Price Adjustment in Procurement Contract

1) Unless otherwise provided in the procurement contract, if the price needs to be adjusted in the course of implementation of a procurement contract having a duration exceeding fifteen months, the competent authority may adjust the price.

Provided that where a procurement contract has been concluded to procure a public construction work following the invitation of national level bidding and the price of any construction materials is increased or decreased unexpectedly by more than ten percent of the previous price, price shall be adjusted as prescribed by deducting ten percent in the amount so increased or decreased.

2) Notwithstanding anything contained in sub-section (1), price adjustment cannot be made where the work under the contract is not completed within the period prescribed in such contract and has taken more time due to the delay by the person who has obtained procurement contract or if procurement contract is concluded on the basis of lump sum contract or fixed budget.