GEORGETOWN, Guyana, CMC – The Guyana authorities denied allegations that it had not paid contractors for work on a challenge right here. It warns distributors and contractors “towards any try to bully or manipulate the federal government into paying for incomplete tasks.”
The Ministry of Public Works has denied a newspaper article printed earlier this week wherein a contractor mentioned that work on a challenge had been stalled “attributable to excellent cash owed to him” by the federal government.
“The Ministry class refutes this declare,” it mentioned, including that “honestly, the federal government would really like nothing higher than to place behind its again. Lastly, this inherited mismanaged challenge, a slap-in-the-face and illicit act towards taxpayers.”
The Ministry mentioned that the final administration had signed a contract price GUY$413.2 million (One Guyana greenback=US$0.004 cents) to finish the six-month challenge, “with the contractor receiving as much as GUY$199,435,000 in funds, which amounted to about 50 p.c of the contract sum on the time, and but the challenge was nonetheless incomplete a yr after”.
The Ministry mentioned contracts often supplied a 15 p.c advance fee for work to get began; nonetheless, below the earlier authorities, there was an obvious disregard for the procurement practices and a transparent breach of the Fiscal Administration Accountability Act.
“This corrupt and poorly managed challenge, which was anticipated to be accomplished by June 7, 2019, stays a thorn within the aspect of the federal government as we speak, with a contractor making an attempt to extort cash, at the same time as solely two p.c of the work is alleged to be remaining on the challenge.
“The Ministry notes that this specific contractor has manifested opportunism all through the execution of this contract, using perceived deficiencies and ambiguities within the invoice of portions as a foundation for making claims for extra funds for the execution of points of works.”
It mentioned these embody claims for extra fee for actions which can be inherent to the execution of the works and that are sometimes catered for within the invoice charges on the bidding part.
The Ministry mentioned two notable examples which have had important monetary implications on the contract are (1) the Contractor’s declare for extra fee for clearing the riverbed on the challenge web site of obstacles earlier than driving the prestressed concrete piles for the stelling and (2) the declare of extra fee for slicing of prestressed concrete piles to the design cutoff stage after driving.
“The Ministry needs to notice that the Transport and Harbours Division (T&HD), which is liable for all Stellings, has sought amicable decision to the contractor’s claims and has negotiated affordable settlements with the contractor.”
It mentioned that ten variation orders have been resolved below the contract up to now, with the Contractor being absolutely compensated by negotiated agreements.
“These have been addressed below Addendum No.1, ratified between the Contractor and T&HD in December 2022. Subsequently, the Contractor’s assertion that the Ministry is reluctant to resolve respectable claims below the contract is dishonest.
“Additional, in a negotiation assembly convened earlier than the ratification of Addendum No.1, the Contractor dedicated to finishing the challenge expeditiously (earlier than the June 5, 2023 deadline) and inside the revised contract sum of GUY$6o7,259,260.00. The Contractor has did not ship the challenge in concord with this dedication.
Moreover, the Contractor has intentionally delayed the execution of works at a vital juncture within the challenge execution when the linkspan bridge set up is required to finish the main infrastructure works on the challenge.”
The Ministry mentioned there isn’t a impairment to the Contractor putting in the linkspan bridge. The T&HD has processed funds because of the Contractor to supply the money movement wanted to execute this excellent facet of the works.
This challenge is at present three months over the contract completion date stipulated in Addendum No.1, the Ministry mentioned, including that the “contractor’s failure to meet the excellent challenge obligations as directed by the Ministry will end result within the software of recourse and compensatory provisions for nonperformance by the Contract and nationwide procurement framework.”
The Contractor in query has but to answer the assertion by the Ministry.
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