Up to September last year, all lots of the $3.8B East Coast Highway improvement project were behind schedule and contractors cited varied excuses including a shortage of construction material, according to the 2013 report of the Office of the Auditor General.
The amounts of $400m and $735m were spent in the years 2011 and 2012. For 2013, $1.106b was budgeted to be spent for studies and the design of the four-lane highway from Better Hope to Golden Grove and on preparatory widening works from Better Hope to Annandale. An amount totalling $1.029b was spent during 2013 bringing total payments as at December 31, 2013 to $2.164b.
Lot 1 which had been originally awarded to Falcon Transpor-tation and Construction Services was terminated and that matter is now in court. The OAG report said a valuation at the termination of the contract determined that the contractor was indebted to the value of $81.5m.
Lot 2 was then amended to take in the remaining work from Lot 1 and the value of Lot 2 increased by $522m. The original Lot One works had been valued at $468m.
Lot 2- Montrose to La Bonne Intention (LBI) – is being done by Dipcon Engineering Services Ltd. A $671.6m contract was awarded on September 19th, 2011 for preparatory works along the proposed route to accommodate the widening of the existing road. Work began on October 3rd, 2011 with an intended completion date of July 3rd, 2012. However, the Ministry sought and was given approvals from the National Procurement and Tender Administration Board (NPTAB) up to October last year. The reasons given for the extensions were utilities removal, the increased scope of work and poor weather. As of December 31, 2013, payments amounted to 69% of the contract sum. At the time of verification last year the project was approximately 70% complete.
Lot 3 – LBI to Beterverwagt-ing to the value of $349m was awarded to Courtney Benn Contracting Services Limited and signed on December 31, 2012. Work began on March 18, 2013 with a contractual completion date of March 17, 2014. The ministry sought and was granted an extension approval by the NPTAB up to June this year. The OAG found that two advances paid were not in keeping with the contract. At September 2014, 79% of the contract sum had been paid out while 30% of the project had been completed.
Lot 4 from Beterverwagting to Triumph was awarded to Compustruct Engineering. The OAG report said that a $322.3m contract was signed on December 31st, 2012. Work began on March 18, 2013 with a contractual completion date of March 17, 2014. It added that the ministry had sought and obtained approval from the NPTAB for an extension of works up to June 17, 2015. Again, the OAG found that two advances were paid in breach of the contract. At September 2014, 64% of the contract sum had been paid while physical verification showed that 30% of the project had been completed.
For Lot 5 from Triumph to Mon Repos which was awarded also to Dipcon Engineering Services Limited, the OAG report said that a $328.4m contract was signed on December 31, 2012.
Work began on March 18th, 2013 with a contractual completion date of March 17, 2014. Again, the ministry sought and was granted approval by the NPTAB for extension up to June 17, 2015. At the time of the verification of the project, 80% of the work had been done.
Lot six from Mon Repos to De Endragt was awarded in the sum of $345.6m to Colin Talbot Construction and the contract signed on December 31, 2012. Work started on March 18th, 2013 and the contractual completion date was March 17, 2014. The Ministry applied for and was granted approval by the NPTAB for an extension up to June 17th, 2015. At the point of verification in September last year, approximately 90% of the work had been done.
The section from De Endragt to Good Hope valued at $498m was also awarded to Colin Talbot Construction and signed on December 24, 2013. The contractual completion date was June 26, 2014. The OAG said that on September 17, 2014, three months after the intended completion date, the Ministry sought approval for an extension to October 31, 2014. At the time of the writing of the OAG report, a response was still being awaited. At the time of the verification of the project in September last year, approximately 80% of the work had been completed.
The OAG recommended that the ministry closely monitor the execution of these projects to ensure that contractual obligations are met.
