City Hall may cut contract for Carbon II project

CEBU City government engineers are now looking into the possibility of terminating the contract of Young Builders Corp. for the Carbon Market Unit II reconstruction because of delays.

Engr. June Nadine Sison, head of the construction division of the Department of Engineering and Public Works (DEPW), said the winning contractor has not yet started the construction work which Mayor Michael Rama started in October 2012 as his birthday gift to the market vendors.

Sison said the contractor is asking for an increase in the project cost because of the escalation of the cost of materials.

Carbon Market Unit II was burned 13 years ago.

This is not the first time City Hall encountered problems with Young Builders Corp.

During his term as mayor, Cebu City south district Rep. Tomas Osmeña worked for the building’s reconstruction. But the Osmeña administration figured in a disagreement with the contractor on the payment, resulting in suspension of project implementation.

The reconstruction program was worked out by Mayor Rama who also allowed Young Builders to continue the construction project. But to date actual works have not been started.

“Nag sige ra ni ug tuyok tuyok nga project. Ato pa ni gipangitaan ug paagi nga ma terminate na lang ang contract,” (They have been running circles. We’ll find a way to terminate their contract),” Sison said.

Mayor Rama for his part said he wanted to meet with city hall officials overseeing the project for a status report.

“Ako usa na mitingon nganong na abot nag ingon ana. Ug nganong wala gyud na ma sulbad?” (I will meet with them to determine why it has come to this. Why the problems have not been solved?),” Rama said.

An initial funding of P170 million is now available for the Carbon Market Reconstruction Project.

The City Council made a commitment to pass an additional appropriation for the purpose when the existing appropriation is already used up.

Engr. Joel Reston of DEPW said the engineering department is now drafting a verified report on the lapses which Young Builders have committed against their construction contract with the city.

Without having to elaborate on the contents of the verified report, Reston said that as a procedure the report is forwarded to the mayor, the city’s contract termination committee and then the legal office for consideration.

Whatever will be the outcome of the project review will also determine the fate of Young Builders Carbon Market contract, Sison said. But she said that if their contract with the city is terminated, they would still qualify to offer their services during the re-bidding of the reconstruction project.

A rebidding would already carry with it a new project cost using the recent prices of construction material.