DELINQUENT contractors will not be spared for breaching contracts as the government is taking a firm stand and will be applying liquidated damages for unjustifiable delays.
The government has been battling insubordinate contractors for quite some time; however, with the massive number of national infrastructural works ongoing and the administration’s plans to reel out another cycle of projects, delays cannot and will not be tolerated.

As such, Head of State, Dr Irfaan Ali, last week, highlighted that efforts will be made to ensure accountability in contract execution such as penalties for breaches.
“I had a report from project managers across all national projects, letters have been sent out to contractors on liquidated damages to the value of about $3 billion; those are projects that are going beyond their timeline,” President Ali told reporters at a press conference.

He emphasised that institutions and agencies have been instructed to ensure that the liquidated damages for contractual breaches are applied.
“So once there is no justifiable reason for an extension of project time, liquidated damages must be charged,” he firmly stated.

Recently, Attorney General and Minister of Legal Affairs, Anil Nandlall, S.C. unveiled a series of measures aimed at ensuring the timely execution of contracts and reinforcing the government’s commitment to upholding contractual obligations.

First highlighting the government’s stance on contract breaches and delays, Nandlall said: “All of this is part of the government’s no tolerance for breach of contracts and delay in the execution of contractual obligations.”
One of the key measures announced by Nandlall is the resuscitation and functionalisation of units within various ministries, tasked with evaluating contractual performance and activating relevant contract clauses.

These units will be responsible for assessing delays, breaches, and other contractual issues and imposing sanctions on delinquent contractors, including liquidated damages, forfeiture of bonds, and termination of contracts.
Addressing criticisms from some quarters regarding increased bureaucratic layers and taxpayer burden, Nandlall clarified that these measures will not incur additional costs for the government or taxpayers.

“The intent is not to create another unit or another layer of bureaucracy,” he said, adding that existing staff within the Attorney General’s chambers will man the new unit, eliminating the need for hiring new personnel.
Nandlall further underlined the legality and transparency of the government’s actions, stating, “Under the law, under the Procurement Act, it also provides for further sanctions. For example, blacklisting of contractors once the proper process is followed.”

“Government will not countenance negligence from contractors. The government will not countenance delinquency. The government will not countenance breaches of contractual obligations. These contracts are multimillion dollars in nature. So, it’s not a question of contractors not making money. There are cases where a delay may be justified, or a breach may be justified,” Nandlall declared, stressing the state’s commitment to upholding promises made to the public regarding project delivery timelines.

Addressing contractors directly, Nandlall warned, “You cannot breach your contracts with impunity.”