DEPW recommends contract termination

CEBU, Philippines -  Three months after it broke ground, the construction of the Carbon Market Unit II has not progressed a bit.

The Department of Engineering and Public Works has recommended for the termination of contract with Young Builders Corp. because of the contractor’s lapses.

Engineer Juanito Pua, Chief of the Construction Division, said they have submitted a verified report to the Mayor and the mayor shall forward it to the Termination Committee.

In the verified report, the project engineer has indicated the chronology of events and the status of the project.

Pua said that Young Builders only mobilized for a day after the ground breaking last October 27 and did not even finish the fencing of the project site and left the job.

Delaying the implementation is already a lapse on the part of the contractor.

Young Builders have several demands from the city before they proceed with the project. One of which is price escalation since they said prices of materials have already increased.

The contractor want the project cost be adjusted immediately.

They also demand from the city some past obligations, which is still covered by a court case.

Young Builders and the city government are yet to settle a case related to the same project filed in court years ago. The project was up for implementation during the Garcia administration, but the city government terminated the project during the time of Rep. Tomas Osmeña due to technical problems.

The termination prompted Young Builders to file a case demanding payment for the initial works done at the site.

During the time of Mayor Michael Rama, the project was revived and was awarded to the same contractor.

Engineer June Nadine Sison, DEPW Assistant Department Head, said that

Young Builders could file for price escalation, but only after the project is completed.  The contractor however does not want to take the risk.

But Pua said that they tried to negotiate with the Young Builders for an acceptable price escalation, the latter however insisted on a higher price than the new estimated price of the DEPW.

Rama said that he will check with the DEPW why things have come to this point. He said the project has suffered enough delays.  (FREEMAN)