Kathmandu, July 16 -- Nepal has amended its Public Procurement Act 2007, introducing criminal liability for contractors who misuse advance payments, shortening bidding timelines and changing the way public contracts are awarded in a bid to improve project delivery and reduce delays.

The amended Act also includes provisions on price adjustment, a long-standing demand of construction companies.

Under Section 58A(3) of the amended law, contractors, suppliers and consultants may face criminal prosecution for fraud and forgery if they are found to have deliberately used advance payments or other funds provided by public agencies for purposes unrelated to the contracted work.

The law allows action against contractors who misuse mobilisation ...