COA affirms CIAC's grant of P2.8-M claim against Tondo Medical Center in Manila
The Commission on Audit (COA) has affirmed the ruling of the Construction Industry Arbitration Commission (CIAC) that ordered a partial grant of P2.8 million money claim of Jaderock Builders against Tondo Medical Center (TMC) in Manila.
In its decision, the COA said: "At this juncture, it is emphasized that the Final Award of CIAC has already attained finality. This Commission is devoid of power to modify or set aside a final judgment of a court or other tribunal but has to respect it in deference to the judicial power or authority of the court or tribunal.”
The decision was signed by COA Chairperson Gamaliel A. Cordoba and Commissioner Mario G. Lipana. Commissioner Roland Cafe Pondoc dissented.
Records of the case showed that Jaderock, represented by Rolando Rante, won the award for the project-renovation of OB-Gyne Wards, elevation of linen building, elevation of hospital ground, elevation of dormitory, and improvement of perimeter fence of the Tondo Medical Center with a budget of P11,799,602.83.
The contract provides that the project should be completed from Sept. 4, 2013 to April 30, 2014. TMC, for its part, paid Jaderock in three billing progresses amounting to P822,016.81, P2,266,599.15, and P2,106,529.30 or a total of P5,195,145.26.
However, several issues arose that affected the execution of the project. It was even learned that Rante committed several contract violations that caused inordinate delay in the execution and completion of the project.
When Dr. Maria Isabelita M. Estrella assumed office as medical center chief II of TMC in 2014, she issued a Notice to Terminate. Rante then filed a request for arbitration before the CIAC on Aug. 28, 2015 claiming compromise of unpaid retention fee, return of performance cash bond, and unpaid variation orders.
The CIAC rendered its final award upholding the validity of TMC's termination on June 20, 2016, but ruled that Rante is entitled to the payment of a portion of the retention fee, return of the entire performance bond, and other things worth P2,840,323.94.
Adhering to the competence of the CIAC to handle construction disputes, the COA affirmed CIAC’s decision.