COA rejects contractor’s P210M claim for flood project

/ 07:46 AM January 04, 2017
The Commission on Audit has reported that governors and mayors squandered P2.7 billion in pork barrel funds in 2013—the last year of the funds’ deployment after the system was declared unconstitutional—either because they were corrupted or misused or stashed away in their bank accounts to collect interest earnings. FILE PHOTO

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

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Audit, CAMANAVA Area Flood Control and Draining System Improvement Project, Commission On Audit, Contractors, delayed government projects, Department of Public Works and Highways, flood works, Government contracts, Isabel Agito, Jose Fabia, Ltd., Michael Aguinaldo, Nishimatsu Construction Company, procurement, right of way
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2020 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.