‘Gray areas’ in contract prompts PB to defer nod on Capitol bldg

CEBU, Philippines - The feasibility study for a 12-story building project of the Capitol would take a little longer to start following the deferment of a resolution authorizing Governor Hilario Davide III to enter into an agreement with contractor.

The measure has been stalled at the PB since last month.

The Office of the Governor has been seeking to conduct a study for a 12-story building project, which would cost the Capitol P57 million for the study and engineering services alone. The budget would be sourced from the 2015 budget.

The study and other engineering works, however, cannot be done without an authority from the PB.

During the discussion in their session last week, Board Member Edsel Galeos, a licensed civil engineer, said there were unclear stipulations in the contract that needed to be looked into to safeguard the province’s interest.

“Based on my reading of the draft contract, there seems to be some vague and gray areas…which this humble representation would like you to clarify before this august body, considering that this consultancy project was initiated long before. Let it be misconstrued, the purpose of this query is to safeguard and ensure the best interest of the provincial government,” he said.

He cited clauses 53 and 54 of the draft contract that stated that the mode of payment would be on a monthly basis.

Galeos said that while it is okay for the province to pay the contractor monthly, the contract lacks a safety net that would assure that the contractor would deliver and perform an actual output by the end of each month.

“It is possible that we are paying the consultant even if there actually is no output produced because it is being stipulated in the contract” he said.

“If the study is not viable under the contract, does that mean the provincial government still has to pay the monthly payment to the consultant even if the project cannot proceed?” he asked.

He added that if the result of the feasibility study would show that the project is viable, he asked why the province would limit the project to a mere 12-story building.

“If it is viable then we can construct a 15- or (a) 20-story building in order to maximize this project,” he said.

Jone Siegfred Sepe of the Bids and Awards Committee said it was agreed by the committee during the procurement process that the payment would be determined based on a “milestone or activity and not on monthly basis.”

“For example, the procurement for this consultancy is broken down into six phases like among other feasibility (studies) pre-engineering, construction, all of which have corresponding activities that certain committee will assess if they have already complied with and (if) the needed supporting documents (are there) for billing,” he said.

Sepe said the contractor has to finish first the feasibility study before it can proceed with the next phase any other activities. The assessment would be done by the engineering office and the project monitoring committee that will be formed by the governor.

As to the number of floors, he said the original design is only 12 and the budget was based on the proposed design of the building.

“But if the FS will tell us that we can accommodate more floors maybe we can do that,” he said.

Board Member Christopher Baricuatro said his only two concerns on the proposed project are parking area and traffic flow, particularly near the entrance of the Capitol compound where the building would be constructed.

He said these two concerns should be covered in the feasibility study and architectural design.

He requested the Provincial Engineering Office to submit to the PB the proposed design of the building to make sure it won’t ruin the façade of the Capitol building.

Vice Governor Agnes Magpale agreed, saying, “The Capitol building really is a landmark in Cebu and nindot tan-awon everywhere.”

Following the questions and concerns raised by colleagues, Board Member Raul Bacaltos, chairman of the committee on laws and review of ordinances, moved for the deferment of the resolution.

“The question is there but the answer was not found in the contract itself. Why don’t we refine the contract so that we can incorporate the answers that you (Sepe) said,” he said.

The P57-million fund for the proposed 12-story building will cover the works for detailed engineering and architectural designs; feasibility study; designs for civil, mechanical and electrical works; and environment impact assessment study and supervision during the construction phase of the project.

In an earlier press statement, the Capitol said the design and feasibility study is a requirement for the next phases, such as construction and operation, where the Capitol will be collaborating with funding agencies or the private sector for a public-private-partnership (PPPs).

Provincial Engineer Hector Jamora said the project would cost the government P800 million, P57 of which is for the consultancy.

“Based on engineering practice, consultancy is eight to 15 percent. But our estimate for this project is (that it is) only 7.3 percent of the P800 million cost. It falls within the industry practice of eight to 15 percent,” he said in response to the query of Board Member Sun Shimura. (FREEMAN)