By Sue-Ann Wayow
WORKS at the billion-dollar Central Block at the Port-of-Spain General Hospital are still ongoing even though main contractor Shanghai Construction Caribbean Group Ltd (SCG) terminated the contract last year.
The Urban Development Corporation of Trinidad and Tobago Limited (UDeCOTT) has taken responsibility for the remaining work and have paid off SCG for work that was already completed, UDeCOTT stated in a press release on Wednesday.
It is affirming that there is no collapse on the project that was expected to enhance care in the public healthcare system.
As a result of the contractor withdrawing its services on November 19, 2021, UDeCOTT took possession of the site shortly after midnight on November 20, 2021.
On Tuesday, UDeCOTT, hosted a media conference to clarify matters related to the project for the redevelopment of the Central Block which arose based on claims made by Opposition MP Dr Roodal Moonilal on Monday.
At a United National Congress (UNC) virtual meeting, Dr Moonilal said, “The $1 billion contract collapsed, gone through and they have spent and will spend on this failed project, $300 million down the drain.”
UDeCOTT stated the contract between UDeCOTT and SCG was executed on May 13, 2019 and the commencement date, as notified by the engineer was December 20, 2019.
By letter dated November 5, 2021, SCG issued a Notice of Termination to UDeCOTT.
The withdrawal of SCG from the contract with UDeCOTT followed a period of lengthy discussions and exchanges of correspondence over several months and UDeCOTT continues to dialogue with SCG in an effort to resolve some of the issues which arose, the company stated.
UDeCOTT stated, “The impact of the Covid-19 Pandemic has presented challenges to several entities and UDeCOTT is not exempt in this regard.
“In relation to the claim that a sum of $300 million has been lost on the project, UDeCOTT informs that all sums paid to SCG (Caribbean) Group Limited were certified by an independent engineer and were directly related to the milestones achieved and works completed under the contract to date. As such, UDeCOTT cannot support any claims that the monies dispersed to date are a loss to the project.”
UDeCOTT stated “In response to the allegation that the contract was ‘organised in a way for a new local subcontractor to get into that project’ and that there was an attempt to force a local subcontractor to take over the project, UDeCOTT advises that the contract for the redevelopment of the Central Block is guided by the FIDIC Yellow Book, under which the contractor, in this case S.C.G (Caribbean) Group Limited, has sole responsibility for the selection and management of subcontractors.”
The company stated that it was guided by Sub-Clauses 4.4 of the General Conditions of the contract and Sub-Clause 4.4 of the Particular Conditions which state that the contractor shall be responsible for the acts or defaults of any subcontractor, his agents or employees, as if they were the acts or defaults of the contractor. Unless otherwise stated in the Particular Conditions.
“The employer shall not be financially or contractually responsible or obligated whatsoever for the performance of any subcontractors and the contractor shall be responsible for managing, coordinating and paying the subcontractor for all the work performed. All disputes between the contractor and subcontractor shall be resolved between them, the sub-clause also states. “
UDeCOTT stated that at no time during the contract did UDeCOTT engage any subcontractor for the project or assert control over the subcontractors engaged by the contractor.
“UDeCOTT therefore categorically and emphatically denies all allegations related to the forcing of a sub-contractor on the project,” it stated.
In terms of completed works, the building’s foundation was complete, the erection of the structural steel previously commenced and a shipment of additional steel for the project was expected to arrive by March, UDeCOTT stated.
UDeCOTT has since awarded the contract for the removal of the asbestos from the Central Block and the demolition of the old building will commence shortly after the removal of the asbestos.
The company is assuring the public that soon enough, it will also receive the Central Block.
Last week, Prime Minister Dr Keith Rowley admitted there were challenges to the project one of which was the threat to terminate which UDeCOTT had no major issue with.
