RAWALPINDI, Dec 30: Nazims may invoke penal action against contractors who fail to execute a contract in accordance with the terms and conditions of the agreement.

This has been stated in the recently promulgated Punjab Local Government (Contract) Rules 2003.

With the enforcement of the new rules, the former Punjab Local Councils (Contract) Rules 1981 has been repealed. However, all contracts awarded under the 1981 rules shall remain unaffected till their completion.

All contracts on behalf of local governments would now be signed by Nazims or any officer authorised by them. The rules state: “All agreements by or on behalf of a local government shall be signed by a Nazim or an authorised officer and attested by two witnesses and bear the seal of the local government and be executed in such a form as shall bind him (Nazim) if it were made on his own behalf and may in the like manner be altered and discharged.”

The new rules call upon Nazims making contract to be personally responsible for ensuring that no official or member of the council concerned or district government, city district government, tehsil municipal administration (TMA) or union administration, as the case may be, is directly or indirectly interested in the contract.

The Nazims would also have to ensure that the contract has been made without coercion, undue favour/influence, fraud, misrepresentation, and that the contract does not involve favouritism.

It would also be the responsibility of Nazims to ensure that the contract is in the best interest of the local government, is legally in order and that the parties are competent to make the contract.

The Nazims would have to invite tenders at least seven days before the signing of the contract for projects involving an expenditure of Rs50,000 and above in case of district governments and city district governments; Rs25,000 or more in case of TMA and town administration and above Rs10,000 in case of union administration.

The formality of calling tenders may be dispensed with in case of a natural calamity, war or emergency declared by the governor, district government or city district government. Any tender which appears to be most advantageous can be accepted.

A Nazim would have to record the reasons if he rejects the lowest tender or all the tenders. In case the agreement is entered into with the approval of the council concerned, the council’s approval shall have to be obtained before the rejection of the lowest tender.

The Nazims would have to certify the completion of the projects and in cases wherein contracts are awarded through the consent of the council, a report would have to be submitted to the council.