(1) In accordance with sub-section (4) of section 59 of the Procurement Act, the local body shall pay the following amount to the relevant supplier, builder, consultant or service provider for terminating the contract on the basis of convenience for public interest. While making such payment, if he has taken any advance amount, then he shall pay only after deducting such advance:-
(a) the payment, if any, of the outstanding payment for work, supply or service which has been acceptably completed,
(b) Price of goods produced for the purpose of the local body in accordance with the purchase agreement, construction materials brought to the construction site,
(c) reasonable expenses incurred in removing the equipment from the construction site,
(d) Repatriation expenses of foreign employees engaged only in construction work,
(e) Protection and security expenses of construction work if necessary.
(2) Notwithstanding anything written in sub-rule (1), the supplier shall be ready for shipment within seven days from the date of receipt of the notice given by the local body to terminate the purchase agreement on the basis of convenience for public interest and shall accept the terms and price of such agreement.
(3) In relation to the goods other than the goods mentioned in sub-rule (2), the local body may do the following:-
(a) to complete any part of the goods and receive them on the terms and at the price specified in the contract, or
(b) To cancel the supply order for the remaining goods and to pay the amount approved by mutual agreement for the goods or services partially prepared by the supplier and the materials or parts purchased by the supplier before the end of the contract.