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East Demerara four-lane expansion…Contract stands to be terminated

Jul 01, 2012 News

The East Coast Demerara four-lane road expansion from Better Hope to Montrose is far from being completed even though the contract should come to an end this week. There is a possibility that the contract, valuing $468.2 million could be revoked from the contractor, Falcon Transportation and Construction Services.
Poor quality works being executed by Falcon Transportation and Construction Services have raised concerns among Engineers within the Ministry of Public Works and Communications.
Transport and Hydraulics Minister, Robeson Benn, has confirmed that the Ministry is displeased with the quality of work and is currently reviewing the contract and project.
He declined to comment if the Ministry would be withdrawing the project from the contractor.
Completed works did not satisfy the Ministry’s standards. Apparently, Public Works encountered a constant battle to ensure the contractor produced quality work.
One source close to the project, related that the Ministry is currently reviewing invoices submitted by the contractor. It is also reviewing finished works to ascertain how much money is either owed to the Ministry or the contractor.
It was noted that the bond for advance payment has expired with the contractor still to provide invoices to satisfy those advances. The contractor was given 30 percent of the contract sum as an advance payment to purchase construction materials.
The source said this large advance is unusual since contracts normally provide for 10 to 15 percent advance payment.
However, an Engineer of the Ministry said that the percentage to be advanced to the contractor is in the contract document. The percentage advanced to Falcon Transportation and Construction Services is not irregular.

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