Unit II Carbon Market Project, Rama warned against holding another bidding

CEBU, Philippines - A contractor warned Cebu City Mayor Michael Rama of a possible law suit if he continues with his plan to hold another bidding for the construction of the Unit 2 of Carbon Public Market.

 Lawyer Caessar Tabotabo, counsel for the Young Builders Corporation, said Rama is inviting legal problems because his client has an existing and valid contract to undertake the project.

In fact, Tabotabo said the Young Builders Corporation reiterates its commitment to proceed with the project.

Rama issued an order last February 18 terminating the contract with Young Builders Corporation for the reconstruction of the multi-million renovation project.

The mayor terminated the contract because of the contractor’s alleged failure to finish the project on time. Rama even accused the contractor of abandoning the project.

But Tabotabo claimed his client did not abandon the project and they are willing to pursue it as long as the requirements, which he did not elaborate, are complied with. He said they will raise the matter before the Construction Industry Arbitration Commission (CIAC) to find out the propriety and legality of the order.

He said to hold another bidding for the project may not be legally feasible since the termination of the contract is believed to be improper and illegal.

“Proceeding with the pre-bidding and its consequent award could result in disastrous consequences, should YBC’s claim be upheld by CIAC,” said Tabotabo.

The records show that YBC has a valid contract entered into between the city last April 5, 2001 that prompted the YBC to start working for the project until the city during the stint of then Mayor Tomas Osmeña stopped the project.

YBC brought up the matter with CIAC after the city that time refused to pay its expenses incurred with the initial stage of the construction.

The mayor said despite of the city’s demand to YBC to continue the project, the private contractor failed to comply with it.

“Despite the issuance of the orders and as of Jan. 13, 2013, the Office of the City Engineer found that there had been no contractor or activity at the project site,” Rama said. — (FREEMAN)