GEORGETOWN, Guyana, CMC – The Guyana government denied allegations that it had not paid contractors for work on a project here. It warns vendors and contractors “against any attempt to bully or manipulate the government into paying for incomplete projects.”
The Ministry of Public Works has denied a newspaper article published earlier this week in which a contractor said that work on a project had been stalled “due to outstanding money owed to him” by the government.
“The Ministry category refutes this claim,” it said, adding that “truthfully, the government would like nothing better than to put behind its back. Finally, this inherited mismanaged project, a slap-in-the-face and illicit act against taxpayers.”
The Ministry said that the last administration had signed a contract worth GUY$413.2 million (One Guyana dollar=US$0.004 cents) to complete the six-month project, “with the contractor receiving up to GUY$199,435,000 in payments, which amounted to about 50 percent of the contract sum at the time, and yet the project was still incomplete a year after”.
The Ministry said contracts usually provided a 15 percent advance payment for work to get started; however, under the previous government, there was an apparent disregard for the procurement practices and a clear breach of the Fiscal Management Accountability Act.
“This corrupt and poorly managed project, which was expected to be completed by June 7, 2019, remains a thorn in the side of the government today, with a contractor trying to extort money, even as only two percent of the work is said to be remaining on the project.
“The Ministry notes that this particular contractor has manifested opportunism throughout the execution of this contract, utilizing 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.”
It said 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.
The Ministry said two notable examples that have had significant financial implications on the contract are (1) the Contractor’s claim for additional payment for clearing the riverbed at the project site of obstacles before driving the prestressed concrete piles for the stelling and (2) the claim of additional payment for cutting of prestressed concrete piles to the design cutoff level after driving.
“The Ministry wishes to note that the Transport and Harbours Department (T&HD), which is responsible for all Stellings, has sought amicable resolution to the contractor’s claims and has negotiated reasonable settlements with the contractor.”
It said that ten variation orders have been resolved under the contract to date, with the Contractor being fully compensated by negotiated agreements.
“These were addressed under Addendum No.1, ratified between the Contractor and T&HD in December 2022. Therefore, the Contractor’s assertion that the Ministry is reluctant to resolve legitimate claims under the contract is dishonest.
“Further, in a negotiation meeting convened before the ratification of Addendum No.1, the Contractor committed to completing the project expeditiously (before the June 5, 2023 deadline) and within the revised contract sum of GUY$6o7,259,260.00. The Contractor has failed to deliver the project in harmony with this commitment.
Additionally, the Contractor has deliberately delayed the execution of works at a critical juncture in the project execution when the linkspan bridge installation is required to complete the major infrastructure works on the project.”
The Ministry said there is no impairment to the Contractor installing the linkspan 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.
This project is currently three months over the contract completion date stipulated in Addendum No.1, the Ministry said, adding 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 nonperformance by the Contract and national procurement framework.”
The Contractor in question has yet to respond to the statement by the Ministry.
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