State mulls legal action against contractor for unfinished doctors’ quarters

Nov 13, 2018 News

The State is considering taking legal action against a contractor in a bid to recover a large sum of money paid for the construction of doctors’ quarters at Port Kaituma Hospital, which remains incomplete.
Permanent Secretary of the Ministry of Public Health, Collette Adams told Kaieteur News yesterday that the defaulting contractor has since been issued a letter of termination.
The contractor was hired to construct buildings for the Ministry of Public Health in Region One, as far back as 2016.
However, according to the 2017 Auditor General Report, the contractor failed to complete the project, despite being advanced more than 50% of the contract sums.
According to the information contained in the report, based on the ministry’s capital expenditure, the doctors’ quarters at the Port Kaituma Hospital Complex were not only incomplete, but the works done were valued at far less than the money paid over to the contractor.
The AG had therefore recommended that the contract be terminated and efforts taken to recover the monies already disbursed.
Adams therefore noted that based on the recommendations, the matter was sent to the office of the Attorney General, the State’s legal representative, for legal action to be taken against the contractor.
In addition to the contractor being fired for non-performance, Adams noted that a consultant hired as a third party in the bidding process was also let go.
“At present, we are advertising for a new contractor to finish the project “the Permanent Secretary added.
The Auditor General’s report had noted that the contractor received payments totalling $45M or 72% of the contract sum as at 31 December 2016.
Physical verification of the works on 30 August 2017 revealed that actual works measured only $14.768M or 24% of the contract sum,” the report said.
According to the report, approval was granted by the National Procurement Tender Administration Board, (NPTAB) for the award of a contract in the sum of $58.341M for the construction of doctors’ accommodation at the Port Kaituma Hospital Complex.
The Engineer’s Estimate was for $62.291M. The contract was signed on July 19, 2016.
The contract stipulated the commencement date of the project as 14 days after the signing, with a duration of 18 weeks and defects liability period of six months.
However, the works were not completed and there was no evidence that extension time was granted to the contractor.
As such, the Audit Office has recommended that the head of the budget agency present a letter of termination to the contractor to recover any amounts overpaid on the contract.
Back in 2016, contracts were awarded to R. Bassoo and Sons Construction Company for works to the main building of the hospital.
However other contractors responsible for other aspects of the project are Alvin Chowritmootoo, N and A Constructions, Cummings Electrical, Satar Mohamed and Son Construction and Hardware Supplies, J. R. Edmondson Building Works and Integrated Works. The Supervisory Consultancy firm for the project is Kalitech Inc.
While Chowritmootoo is tasked with completing the mortuary and administration building, N and A Constructions are responsible for the Infectious Diseases building.
Cummings Electrical is tasked with the electrical works, Satar Mohamed has responsibility for construction of the nurses’ quarters and J. R. Edmondson has been contracted to construct the doctors’ quarters.

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