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Bayambang town fails to impose damages on delayed infra projects

Aug 9, 2016 @ 12:15

The municipality of Bayambang in Pangasinan failed to impose damages on contractors responsible for the delay of four infrastructure projects worth P7.61 million in 2015, state auditors said.

In a 2015 report, the Commission on Audit (COA) said four projects worth P7.61 million implemented by the municipality were delayed by two to 12 calendar days, but no liquidated damages were imposed as required under the contract documents.

This also violated the implementing rules and regulations of the Government Procurement law which imposes liquidated damages on contractors for breach of contract, or the amount of one-tenth of one percent of the cost of the unperformed portion for every day of delay.

Auditors said its review of paid vouchers and their supporting documents showed that the completion of these projects were delayed by two to 12 calendar days, and yet no liquidated damages were imposed on the contractors.

The delayed projects for the concrete paving of the farm to market roads should have cost the contractors the liquidated damage of P243,930.8, the auditors said.

The COA recommended to the municipal government led by mayor Ricardo Camacho to impose the liquidated damages for all contracts and comply with the provisions of the law.

The municipal engineer took note of the audit findings and vowed to comply with the recommendation.

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