(1) The local body shall obtain a bond guarantee in accordance with this regulation when making submissions to any person, firm or organization for the purchase of goods, provision of services or construction work. However, there is no need to take a bond guarantee when making submissions to organizations, consumer committees and their own employees that are owned by more than fifty percent of the government of Nepal or local bodies.
(2) In the acknowledgment of the contract that payment must be made, it must be mentioned in the terms of the acknowledgment that if the work is not completed within the specified period and the payment remains outstanding, interest and interest at the rate of ten percent per annum from the date of expiry of such payment shall be mentioned in the terms of the acknowledgment.