(1) According to the terms of the contract, if the contractor has agreed to pay the amount due to the Government of Nepal in Gani Mahsul, Gani Kista or Kistabandi, for the year for which he got the contract, that year Damasahi should divide the amount to be paid in equal installments for each year and pay it as written in sub-section (2) and (3). The amount cannot be used until the contractor has paid the first installment to be paid in accordance with those subsections.

(2) If the contractor has agreed to pay the contract fee as a fee, the annual installment for the first year to be established as per subsection (1) shall be his. The annual installment of each subsequent year must be paid within seven days from the date of acceptance of the tender or stamp and at least one month before the beginning of that year. If so, according to sub-section (1), if the contractor is a Nepali citizen, four and a non-Nepali citizen, the rupees for the annual installment of each year shall be re-divided into three equal installments and the first installment of the first year shall be accepted within seven days from the date of receipt of the tender or stamp and thereafter. Each installment should be paid within the following period –

(a) The second installment of the first year and every subsequent installment at least one month before the commencement of the term of the installment for accepting the payment of Rs. (b) For agreeing to pay the contract amount in installments:-
(1) If the contractor is a Nepali citizen, the second installment of the first year shall be paid within five months from the date of the first installment and the other installments within three months from the date of the previous installment.

(2) If the contractor is a non-Nepali citizen, the second installment of the first year shall be within seven months of the payment of installments and subsequent installments within four months from the date of payment of the previous installment.

(4) Anything in sub-sections (2) and (3)If the contractor fails to submit the payment of any installments other than the first installment and the final installment of the contract within the time limit written in those sub-sections, if an extension is requested, the contract settlement officer or designated authority may grant an extension of up to a maximum of one month and the Government of Nepal can grant an extension of up to a maximum of two months. If the deadline is extended in such a way, the contractor should pay the installment at the rate of hundreds of ten thousand per annum, including the interest for the extended period. Apart from that, money security will be taken from the contractor for the installment in respect of which the deadline has been extended and the interest as per that sub-section. Such deposit must be filed with the contract settlement officer or any other designated officer within seven days from the date of extension of time.