My firm is carrying out various Housing Development Projects in different locations in Haryana all under the Housing Board Haryana.

The Executive Engineer has invoked a maximum penalty amount to 10% of the total amount of agreement due to slow progress under clause 2 on one of our projects. The Chief Engineer has confirmed the same. The board is taking immediate action as per clause 3c of the agreement by taking final measurements and applying risk and cause when it is on completion stage. As per board we have completed 47% of work under total agreement time of 27 months.

The main reasons for delay in work:

1. Non-availability of drawings for around 7-8 months by the board.

2. Change in nature of work from Load Bearing wall to RCC frame structure which requires a longer time duration and huge quantity variations from original bond.

3. Uneven surface of land and land 9-10 feet below the surface, hence construction activities take time.

4. Heavy rains led to problem of water logging and work was affected.

5. Ban by Supreme Court on Mining and excavation activities led to shortage of materials.

6. Non – payment of running bills on time by the board and a huge amount held by board in part rates and withheld in measurements.

We have discussed the above said issues with department but without taking them in consideration and on one sided hearing, they have imposed heavy penalty on us. Also no such penalty or notice has been issued to other agencies working under Housing Board whose progress is even slower than our agency. In our other projects under the housing board, we have got time extensions which are under different Executive Engineers but same Chief engineer. Despite of High Rise in market rate, our agency is still willing to complete the project by July, 2014. Also I have approach high court of Chandigarh, which have asked me to take recourse to the appropriate civil remedy in accordance with law and as per the terms of contract, the remedy of arbitration for the dispute is excluded. What are the possible options for me ? Should I stop all the work as all projects are affected? What are the chances of case in our favor?