Tough new measures for contractors, consultants

— President warns Permanent Secretaries can lose jobs
– Severe penalties, including liquidating damages, will be imposed on contractors who fail to deliver on time
THE government is insisting on value for money from contractors and consultants on state development projects and President Bharrat Jagdeo yesterday warned that even the jobs of some Permanent Secretaries will be on the line if they unduly delay project cycles.

‘I have made it clear that some people are going to lose their jobs if they do not perform’ – President Jagdeo

He made it clear that severe penalties, including liquidating damages, will be imposed on contractors who fail to deliver on time and warned that the government will also take a firm stand on consultants found wanting.

Related ministries will also have to do a better job in shortening project delivery, Mr. Jagdeo reiterated.

He said some Permanent Secretaries “sit on Cabinet decisions for ages” and their jobs will also be on the line if they do not measure up.

“I have made it clear that some people are going to lose their jobs if they do not perform”, he said at a meeting the government convened with contractors and consultants at the International Conference Centre in Liliendaal, East Coast Demerara.

He noted that this year’s capital budget is the largest ever and it is extremely important that contractors deliver on projects.

“This is very, very important for me”, the President said and made it clear that the flippant variations on contracts granted by consultants will have to end.

“We plan to take steps to deal with this”, he said.

Total expenditure in the 2009 budget is projected at $127.8 billion, an increase of 11.6 per cent over the 2008 level and capital expenditure is projected to increase by 27.8 percent to $46.5 billion.

Presenting the budget to the National Assembly in February, Finance Minister, Dr. Ashni Singh, said sources of growth in non-interest expenditure are increased maintenance, especially of physical and social infrastructure in accordance with some programmes.

The significant growth projected in capital expenditure primarily reflects the allocations for major sectors such as drainage and irrigation, electricity, public safety, and environmental and pure water supply, he said.

Dr. Roger Luncheon, Head of the Presidential Secretariat; Finance Minister Singh; Minister in the Finance Ministry, Ms. Jennifer Webster; Local Government and Regional Development Minister, Mr. Kellawan Lall; Works and Hydraulics Minister, Mr. Robeson Benn and Home Affairs Minister, Mr. Clement Rohee were at the all day session, along with senior officials from their ministries.

In an address in the afternoon, President Jagdeo said the capabilities of contractors will be rigorously tested from now on and the government will start with pre-qualification.

He announced that lists will be compiled of those contractors who are in good standing and of those who have not lived up to their contracts and those falling in the latter category will find it difficult getting future contracts.

Penalties will be implemented, including liquidating damages across the board, he announced, adding that the government expects contractors to improve their capabilities.

Mr. Jagdeo acknowledged that the government is at fault at times and said the Finance Ministry should consistently speak with contractors to keep them in line.

He suggested too that seminars should be organised to address concerns, particularly of small contractors.

Ms. Webster said that at a meeting in the morning, consultants and representatives from some donor agencies were clearly told that consultants will face severe penalties and sanctions for non-performance.

One contractor commended the government for convening the meeting and Mr. Jagdeo assured that payments and some other concerns contractors raised will be addressed.

The President pointed out that Guyana has some of the most modern procurement laws and said the government has an obligation to assist contractors, including devising a methodology to ensure some do not bid for projects beyond their capabilities.

He said those getting contracts also have to make maximum use of the good weather available between the two annual rainy seasons to advance projects and to ensure set cycles are achieved.
“We have to do a much better job to shorten the project cycle”, he said.

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