CONTRACTORS accused of defying Department of Public Works and Highways (DPWH) cease-and-desist orders (CDOs) face suspension, blacklisting from government projects and other contractual sanctions, the agency said as it cracks down on unauthorized construction in Taguig City.
The DPWH has issued show-cause orders (SCOs) to contractors who continued work despite CDOs covering questioned projects at the Lakeshore Complex in Barangay Lower Bicutan.
DPWH Secretary Vince Dizon said on Monday the agency will determine the appropriate sanctions against defiant contractors after reviewing their explanations.
Under government procurement rules, contractors found liable for violations during contract implementation face suspension and blacklisting, which potentially bars them from participating in government bidding for one year for a first offense, and two years for a second offense.
Government infrastructure contracts may also provide for liquidated damages for breaches or delays, while sufficiently serious contractual violations can lead to contract termination and other sanctions.
Liquidated damages for infrastructure contracts are generally at least 0.1 percent of the cost of the unperformed portion for every day of delay, with termination possible once accumulated damages reach 10 percent of the contract price.
None of the contractors in Taguig have been penalized so far, but Dizon warned that “whatever the order is, it should be complied with.” Construction has continued at sites despite CDOs issued in connection with questioned reclamation activities along Laguna de Bay.
Sen. Panfilo Lacson raised concerns over construction continuing at the sites despite the existing stop orders, prompting the DPWH to immediately check the projects.
Dizon said district engineers issued SCOs to the contractors involved and directed them to comply with the CDOs.
One of the documented cases involves the contractor of two multipurpose buildings at the Lakeshore Complex. A Sept. 18 SCO said the contractor allegedly continued construction despite the CDO issued on Aug. 20.
The contractor was given five days to submit an explanation.
Dizon said the immediate objective has been achieved: construction at the questioned site has stopped.
“As of our latest reporting, no construction work is continuing at the site. I personally had it checked yesterday and there are no longer workers on the ground,” he said.
The next step is for the DPWH to determine whether the contractors actually violated the CDOs and, if so, what penalties are warranted.
