City, CCMC contractor to sign deal

CEBU, Philippines —  Cebu City Mayor Tomas Osmeña is now authorized to enter into a contract with C.E Padilla Construction Inc. for the implementation of the second phase of the new Cebu City Medical Center (CCMC) building.

This was after the City Council approved the resolution of Councilor Jerry Guardo giving a go signal to the mayor to forge the agreement.

Guardo told The FREEMAN that the ceremonial signing of contract will be scheduled next week.

Last January 23, the contract for the second phase of the hospital building was awarded to C.E Padilla Construction Inc. for a total contract price of P283.4 million. The figure covers all costs and expenses for labor, materials, equipment, tools, mark-ups, and profit for the completion of the project.

The scope of work of the contractor involves furnishing and supplying all necessary materials, equipment and others in accordance with the Program of Works and Estimates (POWE).

The second phase of construction involves installation of power lines and communication tools, which is expected to be done within 150 calendar days.

C.E Padilla is expected to start the implementation of second phase upon the issuance of the Notice to Proceed duly signed by the mayor.

“The SECOND PARTY (contractor) shall complete the mobilization of all necessary equipment and personnel prior to the Commencement Date in order to ensure completion of the PROJECT within the period provided for in Article III,” portion of the contract reads.

If the contractor fails to finish the project on time, the contractor may be liquidated with damages, the contract stipules.

“The second part should be liable, for liquidated damages in the amount equivalent to the 1/10th of the one (1) percent of the cost of the unperformed portion for that day,” it states.

Further, the city government can terminate the agreement if the contractor incurs delay for more than seven calendar days.

The city can also terminate the contract if C.E Padilla will not perform well with its obligations.

To recall, the contract was referred to the City Legal Office before it was forwarded to the council for perusal.

“Moreover, a meticulous scrutiny of the above-mentioned construction agreement show that the provisions contained therein are in accordance with law, and are not contrary to morals, good customs, public order or public policy,” the contract reads. — JMD (FREEMAN)