Govt. tightens noose on delinquent contractors

Nov 25, 2021 News

…to introduce ‘demerit system’

Kaieteur News – Head of State, President Irfaan Ali, in announcing a raft of new measures to be implemented by the administration to address deficiencies in the timely execution of government contracts has announced the introduction of a ‘demerit system.

Head-of-State, President Irfaan Ali addresses contractors at ACCC on Monday

’He also said firms that have unfinished works on current contracts will be barred from getting any new project. Citing a recent interaction with the contractor for one of Guyana’s major projects underway, President Ali recounted, having “a meeting with the contractors doing the Mandela to Eccles four lane highway, [and found out] they weren’t working in the night. Suddenly after that meeting, we have full capacity to work in the night and we are seeing the progress in the last week.”

Timely Completion

The President was at the time addressing a specially organised meeting between the administration and scores of contractors taking on primarily large-scale contracts—$100M and above—at the Arthur Chung Convention Centre (ACCC) on Monday last.
During the activity, the President outlined that “timely completion [of projects] is important for the government” and as such, “at the end of this year, we will have an assessment of every contractor.”
To this end, President Ali announced that government would then be introducing a ‘demerit system’ and explained that the demerit system will work in such a way that “the net value of outstanding work will be transferred to the new-year and will become your net value of work in progress.”
Such a system, Dr. Ali explains, “…would disallow you from having new contracts or disallow you from a certain level of new contracts.” He said, this measure is among the new inclusions to be encompassed in the new bidding documents to be issued by budget agencies.
President Ali, in clarifying his position for the contractors present in the dome of the ACCC for the conference, explained, “if you go over to the new year with $500M in projects that was supposed to be completed but was not completed, it becomes a demerit factor for you; so you can fall from a tier one contractor back to a tier three contractor; I am being very open and transparent with you.”

Local Content

Additionally, President Ali announced too that his administration will be introducing a ‘performance based award system.’
He explained saying, “in addition to price and technical qualifications, there will be a performance based award system.” To this end, the President cautioned those in attendance that with the click of a button, information can be had on each of the contractors in the system.
“So you will have a performance based award system that will be incorporated into the bid document.”

Addressing the Oil and Gas sector specifically and the proposed Local Content Legislation, the President told contractors that more local opportunities will be opening up.
“The Local Content Legislation is going to open up tremendous opportunities for you; tremendous opportunities for that would even deplete our contractor pool currently,” President Ali asserted.

To this end, the President urged contractors present, to choose one of two options, either “adopt a winning culture,” or alternatively, “stay where you are, be happy and slowly be pushed out of what is happening.”
He elucidated saying, in order to adapt, this will require investment in capacity and resources and cited as example that the cement required for the New River Bridge across the Demerara Harbour Bridge, would overwhelm all of the batching plants in Guyana, collectively.
As it relates to the proposed, Amaila Falls Hydro Electric Project, President Ali said, “we are nowhere close to having any capacity in supplying the concrete [for that project].”
These, he said, references only two proposed government projects and called on contractors present to, “imagine the impact down the line for other folks.”

According to President Ali, his government’s investment programme constitutes various levels and that “our national infrastructure transformation is going to set us on a pace and trajectory that is second to none in the world.” To this end, he highlighted ongoing and new projects such as a building of a number of new four lane highway networks across the low coastal plain, an industrial estate that will require billions of dollars in contractual services, the New Bridge and Hydro project, among others.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News