Lapu-lapu City projects ‘overpriced’

CEBU, Philippines - The contract prices of four completed and fully paid projects ofthe Lapu-lapu City Government were found by the Commission on Audit (COA) to have exceeded by P1.4 million.

COA, in its 2012 audit report, said that the amount of overprice could possibly increase to P2.5 million if the unfinished concreting project of various roads in Olango Island with excessive contract price of P1.1 million is not settled by the contractor.

The allowable cost for the improvement of the Lapu-lapu City Cooperative and Livelihood Center was P745,614 but the amount paid to Velonta Construction was P816,182, or an excess of P70,568.

  The allowable cost for the concreting of Hoopsdome Access Road  including curb, gutter and sidewalk was P6.8 million but the amount paid to San Narciso Builders was P8 million.

The Sangi-Cemetery Road concreting project should only P2.92 million but the City Government paid to Gonzalodo Enterprises P2.99 million.

For the concreting of Agus-Ibabao Road, only P2.13 million was allowed but the contractor, JJ & J Construction, was paid P2.16 million.

`The concreting of various roads in Olango Island was allowed to spend P8.25 million but the contract amount was P9.3 million.

Goldfin Construction was already paid P3.19 million while the unpaid amount is P6.2 million, still in excess of P1.1 million.

COA said that of the five projects, only four were completely paid as of December 31, 2012.

The City Engineer acknowledged that indeed there were discrepancies primarily in the unit quantities of Portland cement after a careful review of the program of work and estimates on the Improvement of Lapulapu City Cooperative and Livelihood Center project due to plain oversight.

The City Government and the contractor reportedly agreed that an additional work for the kitchen area and other portions that need improvement shall be undertaken to cover the excess cost.

Regarding the findings noted in the concreting of Hoopsdome Access Road, the discrepancies were reportedly attributed to the lack of proper site inspection by the Engineering Department, which explained the variance in the quantities of the materials.

On the aspect of the unit cost, the haulers and contractors could not maintain a unit cost similar to mainland Cebu’s since they will have to observe the load limit restriction enforced on the bridges, thus entailing additional trips, thereby increasing the cost.

The same explanation was given for the observation on the concreting of the Sangi-Cemetery Road where there is a price variance in the cost of aggregate base course and the aggregate surface course.

COA required the concerned contractors to refund the excess of the contract cost of the mentioned projects.

It also recommended to negotiate with Goldfin Construction for the possible reduction of the contract price by P1.1 million of the ongoing concreting projects of various roads in Olango Island.

“If no agreement is reached, cause the withholding of said amount from its remaining collectibles until such time that the subject issue is fully settled,” COA said. (FREEMAN)