COA urges Catbalogan City to blacklist contractors of delayed P144-M projects

Due to significant delays, state auditors have advised the Catbalogan City government in Samar to consider terminating two infrastructure contracts and put the contractors on a blacklist.

The Commission on Audit (COA) recommended that the Catbalogan City government act on the delayed P139.6-million Sky City Multi-Purpose Complex and the P5-million Barangay San Andres farm-to-market road concrete project.

Although both projects were supposed to be finished by February 18, 2023, auditors discovered that neither the multipurpose project nor the FMR were finished by January 27, 2024.

A contractor should receive a warning and be required to submit a comprehensive catch-up program if there is a 5% negative slippage (delay), according to Government Procurement Policy Board (GPPB) Circular No. 03-2019. The contractor is given a final warning and an opportunity to submit a revised catch-up plan with weekly physical targets once the negative slippage reaches 10%. 

If the negative slippage reaches a 15% threshold or above, the procuring entity must start the process of terminating the contract or taking over the ongoing work.

Sky City Multi-Purpose Complex was still classified as “ongoing” with a completion percentage of only 19.75% and was already delayed by 333 days.

The San Andres farm-to-market road was supposed to be finished in 60 days, but had a 33-day delay because no equipment was sent and materials were piled up at the location.

The audit team’s recommendation to assess the projects for potential contract termination and liquidated damages imposition was accepted by the Catbalogan City government. – Rappler.com