The Attorney General’s Chambers has recommended the termination of the contract of a West Demerara construction firm, after it failed to complete its job on the East Coast Demerara (ECD) four lane road extension project.
The Ministry of Public Works began making moves to terminate the $468M contract several weeks ago after it discovered that the firm, Falcon Transportation and Construction Company (FTCC), was lagging behind in its work schedule.
The ministry sought the advice of the Attorney General’s Chambers and Stabroek News was told on Thursday by a government source that the latter advised that based on information and an investigation, that the contract be terminated. Other recommendations for more actions were also outlined.
Stabroek News was told that the Ministry will also move to secure more than a dozen street lamps which the firm had taken possession of prior to the commencement of its contractual obligations.
FTCC had been making moves to uplift money it claims is owed to it for work undertaken on the ECD four-lane road project, but the Works Ministry halted the release of funds after it was determined that only 35% of the work was completed in June which was about a month shy of the nine-month deadline. Among other findings, the officials also discovered substandard concrete work was being done by the company.
Stabroek News was told that the contractor approached the Finance Ministry recently to uplift funds which the firm claims it is owed for works done so far on the roadway. The company was still carrying out works several weeks ago even though its contract was in jeopardy. The company started work on Lot One of the expansion of the roadway between Better Hope and Montrose during the last quarter of 2011.
Stabroek News was told that Falcon had informed the Public Works Ministry earlier this year that it would not uplift money until after the work was completed. A source said, however, that the firm had been lodging valuation forms in order to uplift payments. But the Works Ministry had recognized that the firm was lagging behind in its contractual obligations and a team visited the site in December and discovered what appeared to be substandard work.
“The Works Ministry recognized at this point that the company had already collected more than half of the project cost so a hold was put on the payments after it was realized that the company hadn’t even finished 50% of the work,” Stabroek News’ source stated.
The firm, along with Dipcon Engineering started work on Phase One of the project, which began in October last year. Government had previously stated that the work entailed the clearing of the right of way; the laying of a white sand base; the construction of reinforced concrete drains on either side of the road; and the construction of temporary timber bridges at key locations to facilitate access during the construction period between Better Hope and Triumph.
Government had secured US$900,000, from the Kuwaiti government to prepare the design for the road expansion.
