COA rejects contractor’s P210M claim for flood project

The Commission on Audit. FILE PHOTO

MANILA —  The Commission on Audit has denied a P210.44-million claim filed by the contractor of the CAMANAVA Area Flood Control and Draining System Improvement Project over project delays.

In a recently released decision, CoA Chairperson Michael Aguinaldo and Commissioners Jose Fabia and Isabel Agito held that Nishimatsu Construction Company, Ltd. (NCCL) was not entitled to collect on project extension costs from the Department of Public Works and Highways (DPWH).

This was because the costs were already covered by the computation of the project’s contract price, the CoA said.

The P3.48-billion project was undertaken from June 10, 2003 to June 4, 2007. But, the work schedule had to be revised several times due to right-of-way issues, and the project was only completed on Sept. 4, 2008.

As NCCL pressed the government for payment, the DPWH advised the contractor to file a claim before the CoA for the timetable adjustments.

But, the CoA found the DPWH not to be accountable based on the contract’s provisions. Section 42.3 of the conditions of contract stated the contractor was supposed to “bear all costs and charges for special and temporary rights of way required by him in connection with access with access to the site.”

“The above provision is very clear,” the CoA said. “Hence the costs incurred by NCCL during said extension of contract time due to ROW problems should not be charged to government funds.”  SFM