Airport firm set to penalize contractor for delay
March 11, 2011
CLARK FREEPORT — The Clark International Airport Corporation (CIAC) said Friday that it will penalize Laguna-based AG Araja for the delays it had caused the P308-million Terminal 1 expansion project.
CIAC, the operating arm of the Diosdado Macapagal International Airport (DMIA), indicated that it will require the contractor to pay liquidated damages upon presentation of their final billing.
As of Friday, AG Araja has already incurred liquidated damages amounting to P1,964,438.68 for the delays in the construction of the expanded DMIA T1.
The penalties will be deducted from its final billing or retention money when CIAC accepts the expansion project, airport officials said.
The completion of the expanded DMIA T1 had been extended to July 15, 2011.
According to DMIA T1 Expansion Project Management Office Manager Architect Ronald Asuncion, the extension of the completion schedule and the variations on design plans were all done aboveboard and in accordance with Republic Act (RA) No. 9184 (the government procurement law) and Terms of Reference of the Project.
CIAC is still not in the position to forfeit the Performance Security because the liquidated damages did not yet exceed the 10 percent of the total contract price, which is P30.88 million, according to a press statement sent to Sun.Star Pampanga.
“We understand and appreciate [Congressman Carmelo Lazatin's] concerns given the importance of the DMIA terminal expansion project,” the statement added.
“Like Representative Lazatin, CIAC is similarly doing everything possible, and with a sense of urgency, to put this project into immediate use and operation for the benefit of our people,” it added.
The statement was referring to Lazatin’s statement in another paper assailing CIAC officials for “overly favoring” the contractor, saying the performance bond should have been forfeited in favor of the government a long time ago.
As mutually agreed by all parties and with the full knowledge of the CIAC board, the project’s completion schedule was extended up to July 15 last year because of unforeseen delays caused by various factors, such as the discovery of unexploded vintage bombs within the construction site, unknown underground utilities installed way back during the time of the US Air Force at Clark, and design enhancements deemed necessary for the efficient operations of a passenger terminal, said Asuncion.
Asuncion, however, said the contractor shall be penalized for the delays and that CIAC has been imputing liquidated damages equivalent to at least 1/10th of one percent of the cost of the unperformed portion of the works for every day of delay commencing on July 16.
CIAC will automatically forfeit the contractor’s Performance Security if the total liquidated damages it has been charged will exceed 10 percent of the total contract price, which is approximately P30.88 million, pursuant to Item 8, Annex “E” of the Implementing Rules and Regulations of RA 9184, Asuncion said.
The contractor, he added, posted a Performance Security in the form of a surety bond in the sum of P92,664,000.
“All equipment installed as prescribed in the contract are fully functional and operational since July of last year. Training of CIAC personnel for maintenance and operation of all the commissioned equipment are currently ongoing,” he said.
To pave the way for the start of commercial operations of the expanded terminal, CIAC has already invited prospective bidders/investors for the lease of commercial spaces including the VIP Lounges and Coffee Shop.
The “Invitation for Proposals” had already been published on February 18, 2011 in national dailies, Asuncion noted.
He said CIAC is also currently in talks with various international airlines, particularly legacy carriers that will make extensive use of the newly installed passenger boarding bridges.
As practiced in other airports around the world, budget carriers operating at Clark also avoid using the passenger boarding bridges to cut costs on ground-handling services and be able to offer cheaper air fares to passengers.
CIAC president and CEO Victor Jose I. Luciano said that combined personnel of CIAC and the Ninoy Aquino International Airport (NAIA) will conduct a two-day simulation exercises at the expanded DMIA T1 starting on Tuesday.
Airport personnel will install “stop bar and nose wheel markings” for incoming Airbus 320s.
Luciano also said the airport personnel will use the aero-bridges in the expanded DMIA T1 for actual “tuck-in” of a Seair Airbus aircraft, one of the local airlines scheduled to launch international flights out of the Clark airport.
Other airlines that have signified intentions to utilize the two new aero-bridges of the expanded DMIA T1 are Jin Air and Asiana Airlines, both of South Korea. (Reynaldo G. Navales)
Source: http://www.sunstar.com.ph/pampanga/local-news/airport-firm-set-penalize-contractor-delay
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