…cites repeated delays as reason
The Government has terminated the multimillion dollar contract for the rehabilitation of the Leguan Ferry Stelling, which was awarded to S. Maraj Contracting Services over constant delays.
S. Maraj Contracting Services was awarded the $413.260M contract on September 20, 2018, and the project was expected to be completed on June 18, 2019, however, approximately 20 months after, the project is still to be completed.
In a letter addressed to Sattrohan Maraj of S. Maraj Contracting Services, Attorney General and Minister of Legal Affairs, acting on behalf of Government, informed the company of the termination.
It was pointed out that the Transport and Habours Department (T&HD) had granted several extensions of the contract but notwithstanding these extensions, the project has been delayed for approximately 20 months.
“Thus far, your company has only completed a minimal amount of the schedule of works,” the Attorney General told Maraj, while noting that such constitutes a fundamental breach of the terms of the contract.
He further detailed that the contract was being terminated on two grounds. “Breach of Clause 40.2 (a) for failing to comply with the schedule of works; [and] breach of Clause 40.2 (g) read along with the special conditions of the contract for inordinate delay in the completion of works under the contract,” the Attorney General explained.
It was noted that the Government will enforce provisions of the contract regarding the performance bond of $43.325M, the mobilization bond of $81.3M, the 10% of the contract sum as liquidated damages and the value of the works not performed.
The company was also informed that the Government reserves the right to institute legal proceedings to secure compensation for breach of the contract and unjust enrichment.
