(1) According to this act, when any amount of contract is settled, it will be done for a period of three years. Nothing written in this sub-section shall be deemed to be a hindrance to settlement of such contract even for a shorter or longer period.

(2) In accordance with this Act, when settling a contract of any amount, the contractor agrees to pay the contract fee, installments of rupees. Or the condition of payment in one of the installments will be kept.

However, if deemed appropriate from the point of view of economic benefit or national interest, the Government of Nepal shall not be deemed to be hindered from prescribing any other condition instead of such condition regarding the method of payment of the contract money.

(3) In the settlement of any other government work contract other than the amount, the duration of the contract and the payment of rupees shall be as per the terms and conditions between the government of Nepal and the contractor.