Section 7A in General Rules and Directions for the Guidance of Contractors
7A. - Time limit for payment of Final Bills - The final bill shall be paid within 3 months for contracts costing upto Rs. 3 lacs and within 6 months for contracts costing more than Rs. 3 lacs on presentation by the contractor. If there shall be any dispute about any item (s) of the work, then the undisputed item(s) only shall be paid within the said period of 3 months or 6 months as the case may be. The contractor shall submit a memorandum of the disputed items alongwith justification in support within 30 days from the disallowance thereof and if he fails to do this, his claim shall be deemed to have been fully waived and absolutely extinguished.
