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Manila Bulletin devider Philippines devider National devider COA to LRTA: 'Go after contractors with delayed projects, demand damages'

COA to LRTA: 'Go after contractors with delayed projects, demand damages'

Published Jun 8, 2023 07:48 am
The Commission on Audit (COA) has asked the Light Rail Transit Authority (LRTA) to go after the contractors who have incurred delays in their contracts and to seek liquidated damages. In its audit report, COA disclosed that seven rehabilitation projects with an aggregate cost of P741.956 million were not completed on the revised date of completion, with delays ranging from 62 to 1,135 days as of Dec. 31, 2022. It said the delays violated Section 68 of Republic Act No. 9184, the Government Procurement Reform Act, which provides that all contracts "shall contain a provision on liquidated damages which shall be payable by the contractor in case of breach thereof." In failing to demand liquidated damages from erring contractors, the COA said that the LRTA failed to protect the government from losses resulting from breach of contract. "Since LRTA is a public utilities agency of the government, delay in the completion of the projects as planned has adverse effects on the public that are intended to benefit from such projects," the COA explained. "It can also be noted that the granted time extension and work suspension for the projects, especially the Design and Build for the improvement of Line 2 Stations and Facilities Project and Improvement of Line 2 Depot Offices, reached 1,065 and 751 days, respectively, which exceeded the original duration to complete the projects," it added. The other five projects mentioned in the COA report are the  Replacement of Precision Air Conditioning System at Depot, which has been delayed for 490 days; the Supply, Delivery, Testing and Commissioning of OCS Truck, which has been delayed for 740 days; the Consultancy Services for Structural Investigation and Related Works at LRT Lines 1 and 2, which has been delayed for 490 days; Consulting Services for Restoration of Various Line 2 System Equipment Damaged by Fire, which has been delayed for 235 days; and the Rehabilitation of Fire Detection and Alarm System and Fire Suppression System, which has been delayed for 1,135 days. COA said that LRTA agreed fully with its recommendations.

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