Public Procurement and Government Contracts
Public contracts make up a significant share of the economy, giving public entities a route to value-for-money goods, works and services from private businesses. Public procurement is also one of the more procedurally demanding areas of commercial law, requiring detailed knowledge of the rules that govern how government buys, not just general contract expertise applied to a government counterparty.
We advise foreign and domestic companies on every aspect of government contracts in Nepal, from due diligence on a project, through the tendering procedure, to drafting, reviewing and implementing the resulting contract.
The Legal Framework
Public procurement is governed by the Public Procurement Act, 2063 (2007) and the Public Procurement Regulation, 2064 (2007), which set out procedures for procuring goods, works, consultancy and other services. The Act established the Public Procurement Monitoring Office, which oversees the system and issues standard bidding documents, and a Public Procurement Review Committee to review procurement decisions.
Different bidding methods apply depending on the scale and nature of the procurement, with National and International Competitive Bidding each carrying their own validity periods for bids and bid security. Section 58 of the Act matters most once a dispute arises: it makes arbitration the required route for procurement contract disputes where amicable settlement fails. Local-level procurement additionally intersects with the Local Government Operation Act, 2074 (2017) following federalisation.
What We Do
- Procurement due diligence before a client commits resources to bidding or performing.
- Tendering procedure advisory: bidding, qualification and evaluation requirements under the Act.
- Government contract drafting and review built to withstand regulatory scrutiny and the practical realities of implementation.
- Contract implementation advisory in accordance with the applicable rules.
- Bid protests at the pre-award and post-award stage.
- Procurement litigation and arbitration: challenging an award decision or defending a procuring authority’s position.
Who We Represent
Private bidders, and equally government departments, public bodies and utilities at federal, provincial and local level. We help clients set objectives, choose the right legal approach and manage the process from tender through to award and implementation, whichever side of the table they sit on.
