Public procurement in Nepal is a critical component of public financial
management, accounting for about 60% of the annual national budget. As
the government continues to award contracts for infrastructure projects,
services, and goods, public procurement disputes in Nepal have
become a critical area of focus. With large-scale public contracts, disputes
are inevitable, often arising from issues like bid rejection,
non-compliance with tender requirements, delay in project execution,
or contract termination. Resolving these disputes efficiently
is essential for both contractors and government agencies to ensure the smooth
execution of public projects.
The Public Procurement Act, 2063
and Public Procurement Regulation, 2064 serve as the backbone of Nepal’s
procurement system, setting out clear legal framework for public procurement,
including the steps to be taken in case of a dispute. Common public
procurement disputes involve claims of unfair tender processes, ambiguous
contract clauses, or disagreements over project timelines and specifications.
Disputes can also arise during contract implementation,
especially when contractors feel they have been unfairly treated or when public
entities fail to meet their contractual obligations.
Effective resolution of
procurement disputes is essential to maintain the integrity of public projects.
In Nepal, several mechanisms are available for dispute resolution,
including negotiation, mediation, arbitration, and litigation.
Alternative Dispute Resolution (ADR) methods, like arbitration, are often
favored due to their cost-effectiveness and faster resolution, compared to
court litigation. However, if the dispute cannot be resolved through ADR, it
may escalate to court proceedings, where the Public Procurement
Monitoring Office (PPMO) or related government authorities become
involved.
Arbitration in public
procurement disputes is particularly favored when the contract
contains an arbitration clause. Nepal’s Arbitration Act 2055
facilitates this process, providing parties with a structured approach to
resolving their conflicts. Litigation in public procurement
cases, on the other hand, can be time-consuming and requires a deep
understanding of both public procurement laws and the broader legal framework
in Nepal.
Whether it’s resolving disputes
over contract performance, addressing breaches of
procurement regulations, handling project delays, negotiating
with government agencies, representing clients in arbitration or
litigation, having an experienced legal team by your side is crucial to
protect your interests and ensure a fair outcome.
For those involved in public procurement disputes, A.H.N. Legal is the best law firm to contact. Our team of experts offers specialized knowledge in public procurement law, providing strategic dispute resolution services that ensure your rights are protected and your project stays on track. We also recognize the importance of proactive measures. From diligent contract drafting to advising on procurement compliance, AHN Legal is dedicated to helping you avoid disputes before they arise. In cases where disputes are unavoidable, we provide expert representation to achieve fair outcomes and ensure project continuity. With A.H.N. Legal, you're in the right hands to navigate even the most complex procurement disputes efficiently and effectively.
Please note that the above-mentioned is general information to help the reader understand the related laws in Nepal, and the same should not be construed as a legal opinion. For a detailed opinion or inquiry, please inquire:Atit Babu Rijal
Partner, Attorney-at-law
+977-9851243536
atit@ahnlegal.com