GOVERNMENT has discovered that under the previous administration, many companies cheated their way through the tender process by underbidding their competition in order to secure contracts. This was conveyed by Minister of State Joseph Harmon at a press conference yesterday at the Ministry of the Presidency.
Harmon explained that some bidders would underbid projects in order to get the work, and then try to make up the difference through change order and extra work claims. This would result in more capable companies being side-lined, frustrating the entire process.
This occurred predominantly in the public works sector, where government agencies are often required by law to select the lowest qualified bidder.
“Cabinet had some very firm words to say in the manner in which contracts were executed under the previous administration and the fact that contracts sums were being extended beyond the sum that was actually catered for in the award of the contract. But it would appear to cabinet that some of these contracts that were coming before it had been deliberately under-bidded (undervalued) knowing fully well that they will come later on for variations,” the Minister of State emphasised.
CHEATING
He noted this caused capable bidders to lose the tender because it was wilfully undervalued. “They were actually cheated out of the contract because some persons deliberately bidded low and the contract was awarded to the lowest bidder knowing fully that they will come back for variations which took the contract sum beyond the engineers’ estimate.”
In giving an example, Harmon said this was noted in the award of an extension for a consultancy service for the Kato Primary School. “This is a primary school that started at $500M and is reaching almost $1B now and it’s still not finished.”
The company that is supervising the work of that contract, he said, has actually returned to Cabinet to ask for an extension. The Education Minister will be calling in these contractors to inform them that the government will not tolerate any further extensions.
Underscoring the path government plans to take, Harmon said the Finance Ministry has been tasked with preparing new guidelines for contractors of what is required of them during their service.
“This would basically brief contractors of what is required of them for the award of a government contract and the penalties which they can anticipate for breaches of the awards of those contracts,” Harmon explained.
“All existing contracts will be scrutinised for areas of default, areas of shoddy work and matters of that nature, (and) an inspectorate division will also be created to inspect government contracts.”

By Rabindra Rooplall