construction work contract foreclosed


Our Company was awarded the work of Construction of 3 schools by "C.P.W.D" in November 2011. However the work could not be started due to Election Code of Conduct as well as other hinderences such as opposition from local people. We managed to dig footing trenches in one school site after which no work could be carried out.

Now yesterday we recieved a letter from C.P.W.D admitting that...

"owing to circumstances beyond the control of C.P.W.D the hinderances from site could not be removed and that "C.P.W.D cannot accertain with certainity the date of commencement of the project due to various hinderances and it is decided by C.P.W.D to Foreclose the present contract without prejeduce to rights or interest arising in favour of C.P.W.D by virtue of contract or under law"

Now please guide me...

The project is worth = 1 Crore

We have given bank guarantee of 7 lakhs to C.P.W.D

Amount of Work done = Rs 60 thousand (Approx)

 

Now please tell me if i can challenge this foreclosure and claim "Anticipated Profits" as C.P.W.D failed to provided hinderance free site conditions..

 

Please help me.

 
Reply   
 
Consultant & Legal Analyst

CPWD cannot foreclose the contract unilaterally and arbitrarily without the mutuial consent of the contractor, he being the party to agreement. You may take up the case for arbitration, as per the terms of agreement.

 

P S Dhingra

Principal Consultant

Dhingra Group of Consultants

New Delhi

dcgroup1962@gmail.com

 
Reply   
 



thank you very much for your prompt reply.

Further can you tell me how whould we proceed.

should we send them a letter stating that we are taking up the matter for arbitration?

or should we approach a lawer and send them a Notice..

we are unaware as to how this arbitration works so please guide us as to how takeup the matter for Arbitration...

regards,

 
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please guide as how to proceed further .

 
Reply   
 
LAW OFFICER

send him a legal notice stating that you are proceeding for appoinment of arbitrator before Hon'ble High Court

 
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Dear sir,

              We are Cecil Anthony & Associates , Jabalpur , (M.P.) we were awareded a construction work worth 15Cr at IIITDM Jabalpur by CPWD but due to lack of funds the work was stopped by CPWD on sept 2015 the sortage of funds the work was consequently foreclosed by the department on may 2016 now my question arrises that the defect libality period of S.D.(Security Deposit) should end on sept 2016 but the department says that it should end on may 2017.

                              What are the Rules please suggest.

Cont. No. 9425151253

 
Reply   
 

Dear sir,

              We are Cecil Anthony & Associates , Jabalpur , (M.P.) we were awareded a construction work worth 15Cr at IIITDM Jabalpur by CPWD but due to lack of funds the work was stopped by CPWD on sept 2015 the sortage of funds the work was consequently foreclosed by the department on may 2016 now my question arrises that the defect libality period of S.D.(Security Deposit) should end on sept 2016 but the department says that it should end on may 2017.

                              What are the Rules please suggest.

Cont. No. 9425151253

 
Reply   
 

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