Latest update October 20th, 2024 3:20 PM
Oct 20, 2024 News
Kaieteur News – The Auditor General’s Office has flagged poor construction practices at the Mahaica Hospital dormitory project in the office’s 2023 Report.
In the report, Auditor General Deodat Sharma said that some of the construction practices undertaken by the contractor were deemed “poor and unacceptable”.
The $112.471 million project which is being executed through the Ministry of Human Services and Social Security was awarded to Hoosein Logistics & Supplies Inc. for $112,471,000 on November 3, 2023.
The contract was the lowest evaluated bid of the 14 bids submitted to the National Procurement and Tender Administration Board (NPTAB) website, that contract was awarded to
According to the Report, the contract was signed on November 16, 2023 with the project scheduled to commence on November 20, 2023 and completion date set for 18th February, 2024.
“For the period ending 31 December 2023, the Contractor received a mobilization advance of $16.870M, representing 15% of the total Contract sum,” the AG stated.
The Auditor General detailed that a physical verification exercise conducted by his team on June 13, 2024 revealed that the works were still in progress, four months beyond the contractual completion date of February 2024.
At the time of the Audit Office’s verifications, it was revealed that works on the foundation, ground floor columns, curb wall, and floor slab were completed, while the pouring of concrete for the first-floor beams was in progress.
The agency noted that during that exercise, the following were observed, “a) No quality control procedures were being adhered to during concrete batching and pouring operations on site. A ransom was being used for mixing concrete, however, cubic boxes for consistent mixture ratios was not being used by the Contractor. In addition, concrete cubes for compressive strength testing were not being prepared and, slump tests were not being done.”
“These poor and unacceptable construction practices by the Contractor should not be allowed and the pouring of concrete should have been stopped by the Ministry. As a result, the compressive strength and quality of concrete which was poured by the Contractor for this phase of the works cannot be established,” the AG added.
The AG noted too that approval for extension time together with justifications were not submitted for audit review and as a result, it could not be determined whether liquidated damages should be deducted.
In responding to the AG’s findings, the Ministry informed that reinforced measures are in place, which include but are not limited to being present while concrete is being poured, but to also ensure there is strict adherence to standards.
As it relates to the project going beyond its deadline as highlighted by the AG, the ministry explained that “the timeline set out in the bidding document had a clerical error where the project deadline catered for three months. However, a project of this magnitude could not be executed within such a timeframe, therefore a timeline of nine months was issued by way of commencement order.”
The ministry added that in the past it was done this way but, in the future, they will ensure that there will be conformity.
Following the findings, the Audit Office recommended that the Human Services Ministry ensures proper supervision and monitoring of contracts and that all payments are in keeping with Contractual Clauses.
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