Thiruvananthapuram: Kerala water authority interim payment clause has been upheld by the Kerala High Court in a major decision related to Jal Jeevan Mission contracts. The court ruled that contractors working for the Kerala Water Authority (KWA) must follow the tender condition that limits interim payments for supplied materials to 80% of the estimated rate or the quoted rate, whichever is lower. The judgment is expected to impact ongoing and future infrastructure contracts in the state.
Kerala Jal Jeevan Mission Contract Case: Kerala High Court Directives
The Kerala High Court held that contractors cannot demand interim payments beyond the limit mentioned in the tender documents. The court said that once a contractor accepts the tender conditions and signs the agreement, those conditions become legally binding on both sides.
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What Is the 80% Interim Payment Clause
Under the Kerala Water Authority’s tender conditions for Jal Jeevan Mission projects:
- Interim payment for supplied materials is limited to 80% of the estimated rate or the contractor’s quoted rate, whichever is lower.
- The remaining payment is made according to the contract terms after further stages of work are completed.
Why Did Contractors Approach the Court
A group of contractors filed writ petitions before the Kerala High Court. They argued that the restriction on interim payments was unfair and sought higher payments for materials already supplied under Jal Jeevan Mission projects.
Kerala Jal Jeevan Mission Contract Case: Court’s Reasoning
Justice Ziyad Rahman A.A. observed that the tender conditions were clearly mentioned before the contracts were awarded. The court noted that contractors voluntarily participated in the bidding process and accepted those terms. Therefore, they cannot later seek to change the agreed payment conditions through court proceedings.
Read also: Jal Jeevan Mission 2.0: Key Changes, New Rules & Future of Rural Water Supply in India
