The Government of Guyana has re-tendered for the contract to build the Ministry of Health headquarters in Brickdam – one of several troubled contracts that the People / Civic Progressive Party (PPP / C) had to terminate over cuts by the contractor.
According to a published notice, phase one of the project will be re-tendered and bids will be opened on May 4, 2021, in accordance with the Procurement Act 2003. The notice further informed that bidding documents can be purchased from April 9.
“A pre-motion conference will be held on April 22, 2021, in the boardroom of the Permanent Secretary of the Ministry of Health, Lot 1 Brickdam… bids will be opened in the presence of motion representatives and anyone who chooses to attend on May 4 , ”The notice was further clarified.
After repeated breaches of agreements, long delays and nearly tripling of contract costs, the Government in November 2020 had brought the $ 356.8 million contract awarded to Chung Global Initiative to build the Ministry of Health headquarters .
In a letter, Attorney General Anil Nandlall had written to Cleon Chung of Chung Global Enterprise informing him that the contract was being terminated to take effect on October 31, 2020, on the basis of breach of contract.
Chung’s was awarded the contract in 2017, to build the Ministry of Public Health’s head office at Lot 1 Brickdam up to $ 356.8 million. Work began on July 19, 2018, and the contractor was due to complete the project within one year.
However, in September 2020, despite receiving $ 308.4 million for advance payments and moving expenses, as well as two extensions worth 317 days, 70 percent permanent work was completed at the site.
To add insult to injury, the contractor submitted a thousand reshaped quantities, demanding an additional $ 513.3 million on August 3, 2020 – just one day after the Government officially changed hands with swearing President Dr. Irfaan Ali.
The new quantity bill introduced by the contractor included a breakdown of all works completed and their corresponding cost, together with an analysis of the outstanding work and their estimated cost.
“In further breach of that contract, you failed to respond within the required time in submitting additional information requested on the bill of quantities valued in accordance with Clause 28.2 of the General Conditions of Contract which provides that the contractor, at the employer’s request, within seven days the employer will provide the employer with a detailed breakdown of price changes in quantities that specify the rates for types of work and the value of consumables. The employer will evaluate those rates and value of consumables against the quantity bill, ”Nandlall wrote to the contractor.
Therefore, the Attorney General instructed the contractor to stop all work immediately, secure and leave the site as soon as possible. According to Nandlall’s letter, the Government not only terminates the contract but also initiates legal action against the contractor for breach of contract and specified damages.
Previously, Auditor General Deodat Sharma himself had highlighted the delayed state of the project under the nose of the former Government And National Unity Partnership / Alliance for Change (APNU / AFC).
In the 2017 audit report, it was highlighted that the project remained static during a site visit in August. By this time, the contractor had already collected $ 71.3 million in advance payments.