GOVERNMENT auditors have recommended that the National Housing Authority (NHA) file legal action against contractors for breach of contract over 50 delayed government projects totaling P7.754 billion.
Forty-five of the delayed projects were undertaken under the Yolanda Permanent Housing Projects in the provinces of Leyte, Iloilo, Antique, Negros Occidental, Aklan, Palawan, Cebu, Eastern Samar, and Biliran, according to the Commission on Audit’s 2022 audit report released on July 12.
The NHA said its regional and district offices have taken action against contractors of delayed projects, including collection of liquidated damages through deductions from their progress billings and termination of contracts.
The 45 Yolanda shelter projects have a combined value of P7.092 billion.
The remaining five projects are the resettlement housing project in Bagamanoc, Catanduanes for victims of typhoon “Nina” (P49.794 million); resettlement projects in Baganga (P151.58 million) and Boston (P62.92 million) for victims of typhoon “Pablo” in Davao Oriental; and two public works projects in relation to the 2017 Marawi siege namely, the P197.825 million Marawi Convention Center and the P199.494 million Sarimanok Sports Stadium both in Marawi City.
Among the biggest uncompleted Yolanda housing projects are the P292.84-million Knightsridge Residences in Tacloban City that should have been turned over in November 2018; the P289.8-million Chamberry Homes in in Manapla, Negros Occidental that was supposed to be delivered in April 2018; and the P288-million St. Vincent Village in Carles, Iloilo that had a target completion date of December 2017.
Also in the list are the Patnongon Vista Residences in Antique (P281 million, target completion date August 2018), Dumangas People’s Village Phase 3 in Iloilo (P280.06 million, target date December 2022), and the P245.98 million Libertad People’s Village in Antique (set date September 2018).
“Liquidated damages were not imposed, collected, or deducted from payments made to contractors who incurred delays in the completion of contract ranging from 16 to 1,897 days as of Dec. 31, 2022, from the revised target schedule,” the audit team said.
COA also reminded the NHA that under the revised implementing rules and regulations (RIRR) of RA 9184, it is mandatory for contractors to pay liquidated damages equivalent to one-tenth of 1 percent of the cost of the unfinished portion of the project for every day of delay.
Another option available to the housing agency is to terminate and take over a project once the liquidated damages has reached 10 percent of the total contract price.
“Audit revealed that despite noticeable instances of non-completion of the above enumerated projects within the stipulated contract period… the corresponding liquidated damages were not imposed or deducted from any money due or which may become due to the contractor,” the COA said.
