Manila Bulletin
COA recommends imposition of penalties, blacklisting of contractors in P118 billion in delayed projects
COA recommends imposition of penalties, blacklisting of contractors in P118 billion in delayed projects
COA recommends imposition of penalties, blacklisting of contractors in P118 billion in delayed projects
Published Sep 2, 2019 08:58 pm
By Ben Rosario
The Commission on Audit has recommended the imposition of penalties and the blacklisting of erring Department of Public Works and Highways contractors as audit findings revealed that infrastructure project worth at least P118.401 billion have been delayed or were not implemented.
Commission on Audit (MANILA BULLETIN FILE PHOTO)
COA disclosed in its 2018 DPWH annual audit report that a total P118,400,838,831.64 worth of public infrastructure projects have not been implemented due to various reasons.
“Inadequate detailed engineering due to absence of proper coordination mechanism with LGUs, and other concerned agencies; and failure to establish the technical viability of the projects, during the feasibility and preliminary engineering study resulted in delayed completion and non-implementation of projects totaling P118,400,838,831.64,” COA reported.
Auditors blamed both the DPWH and contractors for the serious lapses in the implementation of the projects.
Contractors blamed for the slow completion of the projects and for reneging on their obligations as stated in the contracts should be asked to pay liquidated damages for every day of delay, COA said.
Termination or rescission of existing contracts should be initiated by DPWH as soon as liquidated damages and negative slippages reach 10 percent and 15 percent, respectively and if the contractor is found to be at fault or found to be negligent in completing the projects.
"It should be pointed out that of the 3,784 delayed infrastructure projects, 157 projects with contract amount totaling P5,621,067,725.11 have incurred delays that exceeded the allowable 10 percent of the specified original/revised contract time,” COA disclosed.
Auditors lamented that the DPWH did not ‘rescind/terminate’ the contracts awarded to erring contractors. Neither were liquidated damages imposed by the agency.
COA asked the DPWH to disqualify and/or blacklist erring contractors from participating in other infrastructure and public works projects of the agency.
The audit report revealed that infrastructure projects, school buildings and farm-to-market roads were among those affected by the delays.
DPWH records indicated that from 2012 to 2018, a total of 3,784 projects with a total cost of P107.23 billion “were not finished nor completed within the specific contract time or required completion date.”
A total of 291 projects worth P8.81 billion were suspended while 18 projects worth P218.22 million were terminated.
ON the other hand, 222 projects with a total funding of P2.13 billion “have not been started at all.”
Among the DPWH offices that were unable to complete projects were the Office of the Secretary, P3.16 billion; Region IV-A, P8.69 billion; Ilocos Norte 1st District Engineering Office, P1.51 billion; Region II, P7.3 billion; Region V, P20.7 billion; Camarines Norte DEO, P3.50 billion; Region X, P5.30 billion; Region XII, P3.66 billion; and Albay DEO, P2.44 billion.
“Perusal of the report showed that significant delays in the implementation of the projects were caused by numerous suspension orders, time extensions and variation orders issued by the DPWH offices,” COA reported.
The audit agency said DPWH consultants and officials have failed to consider during the preliminary engineering stage on the viability of the projects the following: typhoon or unfavorable weather conditions; peace and order situation, road right-of-way, modification of plans, design and program of works, insufficient workforce provided by contractors and scarcity of materials in the locality, among others.
Audit examiners noted that lack of coordination with local government units is a common problem that adversely affected the completion of projects.
“Absence of coordination mechanism in place which is among the vital parts of the feasibility and preliminary engineering study hampered the immediate completion of the projects that resulted in inefficient implementation of the programs/projects,” auditors stressed.
Commission on Audit (MANILA BULLETIN FILE PHOTO)
COA disclosed in its 2018 DPWH annual audit report that a total P118,400,838,831.64 worth of public infrastructure projects have not been implemented due to various reasons.
“Inadequate detailed engineering due to absence of proper coordination mechanism with LGUs, and other concerned agencies; and failure to establish the technical viability of the projects, during the feasibility and preliminary engineering study resulted in delayed completion and non-implementation of projects totaling P118,400,838,831.64,” COA reported.
Auditors blamed both the DPWH and contractors for the serious lapses in the implementation of the projects.
Contractors blamed for the slow completion of the projects and for reneging on their obligations as stated in the contracts should be asked to pay liquidated damages for every day of delay, COA said.
Termination or rescission of existing contracts should be initiated by DPWH as soon as liquidated damages and negative slippages reach 10 percent and 15 percent, respectively and if the contractor is found to be at fault or found to be negligent in completing the projects.
"It should be pointed out that of the 3,784 delayed infrastructure projects, 157 projects with contract amount totaling P5,621,067,725.11 have incurred delays that exceeded the allowable 10 percent of the specified original/revised contract time,” COA disclosed.
Auditors lamented that the DPWH did not ‘rescind/terminate’ the contracts awarded to erring contractors. Neither were liquidated damages imposed by the agency.
COA asked the DPWH to disqualify and/or blacklist erring contractors from participating in other infrastructure and public works projects of the agency.
The audit report revealed that infrastructure projects, school buildings and farm-to-market roads were among those affected by the delays.
DPWH records indicated that from 2012 to 2018, a total of 3,784 projects with a total cost of P107.23 billion “were not finished nor completed within the specific contract time or required completion date.”
A total of 291 projects worth P8.81 billion were suspended while 18 projects worth P218.22 million were terminated.
ON the other hand, 222 projects with a total funding of P2.13 billion “have not been started at all.”
Among the DPWH offices that were unable to complete projects were the Office of the Secretary, P3.16 billion; Region IV-A, P8.69 billion; Ilocos Norte 1st District Engineering Office, P1.51 billion; Region II, P7.3 billion; Region V, P20.7 billion; Camarines Norte DEO, P3.50 billion; Region X, P5.30 billion; Region XII, P3.66 billion; and Albay DEO, P2.44 billion.
“Perusal of the report showed that significant delays in the implementation of the projects were caused by numerous suspension orders, time extensions and variation orders issued by the DPWH offices,” COA reported.
The audit agency said DPWH consultants and officials have failed to consider during the preliminary engineering stage on the viability of the projects the following: typhoon or unfavorable weather conditions; peace and order situation, road right-of-way, modification of plans, design and program of works, insufficient workforce provided by contractors and scarcity of materials in the locality, among others.
Audit examiners noted that lack of coordination with local government units is a common problem that adversely affected the completion of projects.
“Absence of coordination mechanism in place which is among the vital parts of the feasibility and preliminary engineering study hampered the immediate completion of the projects that resulted in inefficient implementation of the programs/projects,” auditors stressed.