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FBR imposes upto Rs4.2m liquidated damages on contractors

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The board has advised all its other contractors and suppliers to abide by the given time-lines failing which penal provisions as incorporated in the related contract agreements will be invoked.

The delay is affecting implementation of FBR's Tax Administration Reform Program' (TARP) launched with financing from the World Bank/DFID.

"FBR has imposed Liquidated Damages ranging from Rs.65,000/-to Rs.4,200,000/- on M/s EMBA Corporation for delayed delivery of the goods, M/s National Engineering Works, Ahmad Hussain Jagirani, M/s Perk Engineers & Contractors and M/s SKB for delayed completion of the interior development and refurbishment of the contracted activities," said a statement issued here Wednesday.

The statement said that FBR is in the process of implementation of TARP through financing from the World Bank/DFID adding the process was started in January 2005 and financing of this program is completing by December 31, 2011.

The statement added that there were different activities undertaken under this program, including infrastructure upgradation which included both Information Communication Technology (ICT) and physical infrastructure upgradation.

Under this program, Tax Offices throughout the country were upgraded through interior development and refurbishment while at 13 locations, Transit Accommodations were constructed.

For this purpose, after completion of the prescribed processes by the World Bank, contracts were awarded to different contractors/suppliers for completion of the jobs.

In every contract there were given time-lines for completion of the activities and in case of intentional default by the contractors/ suppliers Liquidated Damages (LD) are imposed on the contractors/suppliers.

Since some contractors have failed to follow the time-line so they were imposed liquidated damages while others were warned to abide by the given time-line.

Copyright APP (Associated Press of Pakistan), 2011