COA allows firm to be paid for work done without bidding

MANILA, Philippines – The Commission on Audit (COA) has allowed the payment of a contractor who facilitated the construction of a school in Pasay City, which supposedly did not go through public bidding.

In a decision dated Oct. 21, COA says Armando U. Khong Hun General Contractor, Inc. deserves to be paid for fully building Phase II-A of a four-story building at the Pasay City North High School even though certain requirements were not met.

However, Armado Khong Hun, who made the petition, would only receive P18.27 million instead of his claim of P23.77 million worth of expenses.

The P18.27 million figure is based on the determination of the Technical Audit Team in its evaluation report done last February 2012.

The project was undertaken in 2010 back when Mayor Wenceslao Trinidad requested Khong Hun to construct the school. Khong Hun said he agreed to construct the building based on a promise that he would be paid and that his work would be endorsed to the next mayor.

“In several cases, this Commission applied the principle of unjust enrichment in allowing payment to contractors and suppliers for the completed projects on quantum meruit basis. Quantum meruit allows recovery of the reasonable value regardless of any agreement as to value,” COA explained.

COA mentioned various reasons why Khong Hun should receive a payment “as much as he reasonably deserves,” like an implied obligation to be paid in exchange for undertaking the project.

The commission also cited the Statement of Work Accomplishment dated Aug. 1, 2010, and the Certificate of Completion dated Aug. 14, 2010 — both signed by the Office of the City Engineer.

“The city recommended payment in favor of Khong Hun based on quantum meruit since the public is already reaping benefits from the accomplished project,” COA relayed.

Aside from these, it was also noted that Khong Hun received the contracts for the Phase III and IV of the project — civil works at the center and the right wing of the building.

They also considered the statement of the Department of Education’s division of Pasay City, which attested that the building is being used by the Pasay City National High School.

“The finishes and other architectural works undertaken by Khong Hun were justified to make the school building usable,” COA said.

“In the letter dated September 12, 2011 of Ms. Estrellita V. Puti-an, Ed.D., OIC Assistant Schools Division Superintendent, Department of Education Division of Pasay City, to Engr. Javaluyas, it was stated that the school building in which the finishes and other architectural works were performed is presently utilized by the PCNHS,” COA added.

/atm