(1) The circumstances under which the contract can be terminated must be disclosed in the purchase agreement.
(2) The conditions according to sub-section (1) may be mainly as follows:-
(a) If the supplier, consultant, service provider or builder does not perform the work in accordance with the purchase agreement, if the conduct is not followed in accordance with sub-section (2) of section 62 or if the submission is misused, the public body can terminate the purchase agreement,
(b) The situation where the public body can terminate the purchase agreement (termination y convenience) on the basis of convenience for the public interest. (c) the conditions under which the supplier, consultant, service provider or builder may terminate the purchase agreement, and
(d) The situation in which the purchase contract can be terminated in circumstances beyond control.
(3) When terminating the purchase agreement in accordance with sub-section (1) in the purchase agreement, the arrangement related to financial adjustment and compensation shall be mentioned along with the following items:-
(a) Payment, if any, of any outstanding payment for works, supplies or services that have been acceptably completed,
(b) Due to the failure of the supplier, consultant, service provider or construction contractor to perform the work according to the purchase agreement, the responsibility to be borne by the public body for the additional expenses incurred in carrying out the said work,
(c) The amount of actual loss suffered by the public body due to the termination of the procurement contract by the public body without any fault (default) of the supplier or consultant or service provider or builder.
(4) Unless otherwise provided in the procurement contract, the public body may terminate the procurement contract on the basis of convenience for the public interest.
(5) In case of the termination of the purchase agreement according to sub-section (4), the public body shall pay the amount for the following works completed before the termination of the agreement:-
(a) payment due under clause (a) of sub-section (2),
(b) Provision of payment of any expenses as research admissionSuch expenses actually incurred,
(c) Value of goods specially made for the public body under the procurement contract,
(d) the loss of profits and the expenses incurred in terminating the purchase agreement other than the amount referred to in clause (c) of sub-section (3), and
(e) Other expenses as specified.
(6) Notwithstanding anything written elsewhere in this section, the person entering into the purchase contract shall not be entitled to terminate the contract without prior notice to the public body.
(7) If the person entering into a purchase agreement with the public body does not start the work according to the agreement, if the work is started and left in the middle, or if the work does not progress according to the agreement, the public body can terminate such agreement at any time.
(8) Sub-section (7) If the agreement is terminated, the entire security deposit for that work will be forfeited. Due to the termination of the contract, whatever amount is required to complete the remaining work according to the contract, the amount will be collected from the bidder who does not perform according to the contract as the government debt.
(9) If the contract is terminated according to sub-section (7), to complete the remaining work according to the contract, the contract can be made by asking for a financial proposal as specified by giving a deadline of fifteen days from among the bidders selected according to section 25.
(10) According to sub-section (9) before asking for a financial proposal, approval should be obtained from an officer one level above.
(11) The financial proposal as per sub-section (9) will be applicable only in case of the contract made through open bidding for construction works.
(12) If an agreement cannot be reached according to sub-section (9), the procurement process shall be initiated by following the procurement process as per this Act.