P7M water system project contract faces termination

CEBU, Philippines - The P7-million water system project in Pinamungajan town is facing termination of contract following the 95 days delay in its completion.

The Commission on Audit has found that the design and build of Anislag and Guimbawian-Duangan Level II Water System, which was supposed to be completed by September 2013, was still 60.88 percent accomplished as of December 31, 2013.

Examination of the accomplishment report as of July 29, 2013 which was approved by the municipal mayor and other documents supporting the second partial payment to EM Paule Construction and Trading/POIEL Engineering & Management Services Joint Venture were below the expected accomplishment indicated in the Individual Project Program of Works, invitation to bid, cash flow and payment schedules submitted by the contractor.

The Notice to Proceed for the project was received by the contractor on March 27, 2013.

COA said that from the data of the NTP, the target date to complete the project can already be ascertained.

“As can be noted from the foregoing computation, the completion of the project was already 95 days delayed as of December 31, 2013,” read the 2013 audit report.

COA said the December 31 negative slippage was already 39.12%, a ground for termination of contract for default.

“Non-completion of the project at the target completion date delayed the delivery of benefits to the constituents,” it said.

The municipal government of Pinamungajan commented that the project was suspended because of land dispute.

But COA said no suspension order was furnished to them.

This prompted the agency to recommend to the management to instruct the officials tasked to closely monitor the status of work accomplishment for the project so as to avoid the incurrence of negative slippage of more than 10 percent, which is already a ground for the termination of the contract. — (FREEMAN)