Despite significant delays in works, Public Infrastructure Ministry still extended contract time for Hunter Street project

Jan 04, 2021 News

Kaieteur News-The Ministry of Public Infrastructure (MOPI) under the previous administration had on three separate occasions, extended the contract time for an $86M Hunter Street project, despite significant delays in works by the contractor. These and other details were shared by the Auditor General in his report of 2019.

The report reminded that in relation to the Geometric Improvement – Hunter Street, Georgetown, a contract was signed on May 8, 2019, in the sum of $86.685M. The works comprised the construction of pedestrian sidewalk with concrete drains between Front Road and Daisy Street, and Water Lilly Street and Mandela Avenue on the eastern side of the carriageway, along with widening of road shoulders, full construction of concrete drains at the western side and asphalt concrete road surface finish.

As at December 31, 2019, the AG’s report states that amounts totalling $13.003M were paid to the contractor, which represented approximately 15% of the contract sum. Subsequently, four interim payments were made in 2020, resulting in the total payments amounting to $35.041M, which represented approximately 40% of the contract sum.

Concerningly, the report highlights that the method of procurement used by the Ministry to engage the services of the unnamed contractor could not be determined, as there were no details regarding when the works were advertised, the duration for submission of bids, and how many bids were received. Only the contractor’s form of bid dated December 20, 2019, was seen.

It went on to say that the tender evaluation report was also not presented for audit examination, and as such, the government auditors could not confirm whether tendering and award of the contract was in accordance with the Procurement Act of 2003.

The contract’s start date for the works was June 10 2019, the report notes, with a completion date of December 11 2019. The defects liability period was twelve months. “The contractor was granted three extensions, resulting in a revised contractual completion date of 7 August, 2020. A physical verification done on 9 October, 2020 revealed that the works were incomplete; even though the revised contractual completion date expired. It should be noted that at the time of the physical inspection, there was minimal work activity, with the contractor’s work force on site comprising only one foreman and seven workers,” the report states.

It continued, “The contractor failed to pursue the works diligently, yet the Ministry granted three extensions of time, instead of taking action against the defaulting contractor. Moreover, the completion date was extended from 11 December, 2019 to 13 March, 2020, then to 17 July, 2020, and finally to 7 August, 2020. The third extension was granted even though the Ministry via letter dated 9 July, 2020, highlighted to the contractor that he was performing poorly, and that “the site was abandoned on 16 December, 2019, and constructive production never began again for five weeks”.

It should be noted that justifications for these extensions of time were not seen. As a result, the basis of the extensions could not be determined.

It went on to state that the sum of $120,000 was paid for Safety and Traffic control. However, it was highlighted that at the time of the physical verification, there was no traffic control, caution signs, caution tape, barricades or traffic cones indicating that the work site was in operation. Follow-up checks conducted randomly by the Audit Office revealed that poor traffic management remained, resulting in frequent traffic congestion, as equipment and construction materials were often left precariously along the road side without any precautionary measures being in place.

“The final account is yet to be prepared, pending the completion of the works. However, it must be reiterated that the last extended date for completion was August 7, 2020. As such, the contract would have attracted liquidated damages”, the report concluded.