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Leguan Stelling in limbo
…as Govt. accuses contractor of extortion
Kaieteur News – While the Leguan Stelling project is still to be completed after some six years , the Ministry of Public Works on Tuesday accused the contractor – Sattrohan Maraj of S. Maraj Contracting Services, of trying to extort money for some unfinished works at the facility.
The ministry in a release yesterday addressed a news article published in another section of the media, which stated that the contractor alleged that works on the stelling stalled due to outstanding money owed to company by the government.
“Contractors and vendors providing service to the Government of Guyana through the Ministry of Public Works, are hereby warned against any attempt to bully, and or manipulate the government into paying for incomplete projects,” the ministry stated after refuting the claims by the contractor.
The ministry went onto explain that the Leguan Stelling project which was expected to be completed by June 7, 2019 after the contract was signed in 2018, remains a thorn in the side of the government today, “with a contractor trying to extort money, even as only 2% of the work is said to be remaining on the project.”
The Leguan Stelling where rehabilitation works have been ongoing.
According to the ministry, the contractor has manifested opportunism throughout the execution of the contract, utilising perceived deficiencies and ambiguities in the bill of quantities, as a basis for making claims for additional payments for the execution of aspects of works.
These include claims for additional payment for activities that are inherent to the execution of the works, and which are typically catered for in the bill rates at the bidding phase.
According to the ministry, one of two notable examples that have had significant financial implications on the contract is the contractor’s claim for additional payment for clearing the riverbed at the project site of obstacles prior to driving the pre-stressed concrete piles for the stelling. In addition, another obstacle is the claim of additional payment by the contractor for cutting of pre-stressed concrete piles to the design cut-off level after driving.
The ministry noted that the Transport and Harbours Department (T&HD), which is responsible for all stellings, has sought resolution to the contractor’s claims and has negotiated reasonable settlements with entity.
The release stated that a total of ten variation orders have been resolved under the contract to date, with the contractor being fully compensated in accordance with negotiated agreements.
“These were addressed under Addendum No.1 which was ratified between the Contractor and T&HD in December 2022. The Contractor’s assertion that the Ministry is reluctant to resolve legitimate claims under the contract is therefore dishonest,” the ministry mentioned.
The ministry said it held a negotiation meeting with the company prior to the ratification of Addendum No.1 and it noted that the contractor gave a commitment to completing the project expeditiously prior to the June 5, 2023 deadline and within the revised contract sum of $607,259,260.00.
“Additionally, the Contractor has deliberately delayed the execution of works at a critical juncture in the project execution when the links pan bridge installation is required to complete the major infrastructure works on the project. There is currently no impairment to the Contractor installing the link span bridge. The T&HD has processed payments due to the Contractor to provide the cash flow needed to execute this outstanding aspect of the works,” the ministry said.
According to the ministry, the T&HD issued multiple directives to the contractor regarding the completion of the link span bridge installation in accordance with the contract requirements and that the outstanding claims for payment to the contractor will be resolved in accordance with the provisions of the addendum.
The Public Works Ministry noted that the contractor’s failure to fulfill the outstanding project obligations as directed by the ministry will result in the application of recourse and compensatory provisions for non-performance in accordance with the contract and national procurement framework.
The contract for the rehabilitation of the Leguan Stelling was signed in 2018 by the APNU+AFC government and since then, the contract sum has ballooned from $413 million to $607 million.
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