Delayed road projects: Govt terminates T&T company’s contract for Conversation Tree project

…Avinash construction gets to keep Cemetery Road works

Having faced a number of delays with the project, Avinash Construction and Metal Works will get to keep the contract for the $475M Cemetery Road, Georgetown works.
This was revealed by Public Works Minister, Juan Edghill during an interview with this publication on Tuesday.
The current revised deadline for the project was March 31, 2024.
However, according to Edghill, the government’s evaluators decided against terminating the contract with Avinash Construction and Metal Works since the company has significantly advanced works.
Nevertheless, he said the government will pursue liquidated damages from the contractor for the delays suffered in the execution of the contract.
“On the Cemetery Road contract, we have gone into the liquidated damages phrase because March 31 deadline would have passed and the fact that the contractor would have advanced the work significantly terminating now is not the first option, getting them to finish is the first option,” Edghill said.
The multi-million project will see the two-lane carriageway being extended into four lanes. When completed, it is expected to significantly alleviate traffic congestion.
The project was awarded to Avinash Construction and Metal Works Company and was initially expected to be completed in July 2023.

Conversation Tree project
Meanwhile, the Guyana Government is moving to terminate the $1.8 billion contract awarded to Kalco Guyana Incorporated for the completion of Lot 8 B of the Conversation Tree to Dennis Street project.
Edghill told this publication that the contractor “did not live up to expectations” and the People’s Progressive Party Civic (PPP/C) administration will not delay the project further.
Currently works are not ongoing on the site, even though the initial project deadline was set for November 5, 2023.
In fact, during and inspection conducted on March 4, Edghill was informed that Kalco Guyana Incorporated instructed its engineers to halt operations.
“The conversation tree we are engaging the contractor with the view of terminating…Kalco did not live up to expectations,” the minister disclosed.
Stern warning
Just a few days ago during a meeting with representatives of ministries and agencies responsible for awarding and monitoring government contracts, President Dr. Irfaan Ali ordered that penalties outlined in a number of government contracts be enforced for companies that continue to default on their contractual obligations.
During said meeting, the Head of State also instructed that project updates for several ongoing works be completed for review and according to Minister Edghill, works are ongoing to fulfill the President’s order.
The project updates will be provided to the Attorney General and Minister of Legal Affairs, Anil Nandall and issue the letters of notice while the Ministry of Finance was tasked with calculating the liquidated damages.
Liquidated damages refer to a provision allowing for the payment of a specified sum in the case of a breach of contract. In this case, the President says the government will go after those defaulting contractors that have gone past their project deadline and the justifiable extensions.
“All projects beyond the contracted time, where we have exhausted justified extensions, (we will) issue a letter today instructing that the liquidated damages be instituted immediately. We cannot tolerate this”.
“The Minister of Finance (Dr. Ashni Singh) will ensure that the internal auditors clarify the related damages and ensure that there calculated and deducted,” Dr. Ali said at the time.
Further, the Head of State disclosed that actions must now be taken to strengthen project management teams in the public sector.
As a result, the Attorney General’s office will now have a specialised unit dealing with contracts and project management, as part of efforts to ensure compliance.
Dr Ali noted that all project managers and senior engineers under this unit will be properly qualified.
“We are adopting a no-nonsense approach in contract management. We are going to have an independent team managing and reviewing project files so that we have project audits. As project engineers and project managers you have to ensure that your files are updated, your minutes are recorded and signed. As we take action, we have to get paper work intact,” the Head of State said. (G1)