Gov’t terminates dozens of contracts due to delays

ATTORNEY General and Minister of Legal Affairs, Anil Nandlall, SC, has disclosed that dozens of contracts have been terminated across various sectors because of non-performance, with errant contractors facing over $4 billion in liquidated damages.
He made this revelation at his ministry’s year-end press briefing on Saturday last. “Dozens of contracts have been terminated. I remember the last time I received information—over $4 billion of liquidated damages have been imposed on different contractors…”

Liquidated damages are an exact amount of money, or a set formula to calculate the amount of money a party will owe if it breaches a contract or fails to deliver on a contract.
At a meeting held at 05:00 hours on November 4, 2024, at State House, President Dr. Irfaan Ali convened with cabinet members, contractors, permanent secretaries, and engineers to tackle significant delays in government projects. During the session, he issued a firm reminder that the nation cannot afford continued setbacks in project execution.

“There is absolutely no excuse for these delays. All the projects that are beyond the contracted time, where they have exhausted justified extensions—we will issue a letter today instructing that the liquidated damages be instituted immediately. We cannot tolerate this… liquidated damages must be instituted,” the Head of State stressed. President Ali, along with his cabinet members, has been visiting communities across the country to inspect various projects.

Meanwhile, AG Nandlall had previously explained that the enforcement of liquidated damages and termination of contracts are part of ongoing efforts to ensure transparency and efficiency in the execution of public projects. “Government will not countenance negligence from contractors. Government will not countenance delinquency. Government will not countenance breaches of contractual obligations. These contracts are multimillion dollars in nature,” he said.
While acknowledging that some delays or breaches may be justified, Nandlall stressed that each case would be evaluated individually. He had clarified that the government’s intention is not to unjustly penalise contractors, but rather to ensure compliance with contractual obligations.

Currently, several massive infrastructural projects are underway across the country. These include the rehabilitation of small community roads and the construction of major highways and bridges, schools, hospitals among other initiatives geared at improving the lives of all Guyanese.
In some instances, justified extensions were granted to contractors; however, delays were persistent on some projects. The imposition of liquidated damages is a measure essential to protecting taxpayers’ money and ensuring value for the substantial investments being made by the government, holding contractors accountable for delayed or substandard work.