THE Commission on Audit has ruled that the Department of Public Works and Highways (DPWH) does not have to pay China International Water and Electric Corporation’s (CIWEC) P46.17 million claim for payment of idle time of manpower and equipment plus other overhead expenses.
In a five-page decision released last week, the COA Commission Proper denied the Chinese contractor’s petition, citing lack of documentary support to show that the demand for payment is valid.
On July 24, 2000, CIWEC was awarded the P159.85 million contract for the Package 2-Construction of the Parapet Wall and Floodgates along Napindan River. This was part of the Metro Manila Flood Control Project-West of Manggahan Floodway.
Work timetable on the project was for three years — from August 16, 2000 to August 1, 2003.
However, auditors said the project was “satisfactorily completed” only on November 11, 2005 or more than two years beyond the original target completion date.
After inspection and evaluation, the DPWH Project Management Office—Major Flood Control Projects certified the project free from failures and defects on February 1, 2007.
Records showed the DPWH approved several requests by CIWEC for contract time extensions and revision of overall construction schedule but subject to the understanding that no monetary claim for damages incurred as a result of delays will be made by the contractor.
