Monday, December 02, 2013

Comedy of errors in Lae roads

There has been a comedy of errors in Lae road designs including concrete pavements, a report released  by Department of Works (DoW) reveals.
The rehabilitation and upgrading of Lae City roads is an on-going project consisting of various stages, with Stage 1 completed and Stage 2 still in progress, and two projects under Stage 3 have commenced.
Dekenai Construction, East West 1, FTM Construction and Lae Engineering procured four contracts for Stage 1 amounting to K24.4 million.
Shorncliffe, Dekenai Construction, Cameron Construction, FTM Construction, East West 1 and R & Sons procured 12 contracts procured for Stage 2 amounting to K104.3 million plus variations.
“There was no proper design and engineer’s estimates initially for all the contracts in Stage 1 and 2,” the report said.
“Also, the rates for existing contracts are quite high.
“The initial scope of works is very poor.
 “In some contracts, bill of quantities (BOQs) is excessive while in others, total opposite.
“Proper procurement process was bypassed to procure these projects.
“The National Executive Council (NEC) condition of contract is new. 
“Most contractors are not familiar with this condition of contract.
“The NEC conformed contract documents have major irregularities and contradictions.
“Examples of such are the appointment and responsibilities of the employer’s representative, the engineer/project manager and the engineer’s representative/supervisor.
“This was not clearly spelt out in the agreement, contract data and in the condition of contract.
“The option of concrete pavement is new in Papua New Guinea.
“Very little or no detailed scope of works, technical drawings, standard works, quality control management plan, environmental management plan and traffic management plan were provided to the contractors in Stages 1 and 2.
“This has delayed the completion of all the projects and seriously impacted the quality of the finished concrete roads.
“Cost blow out is also evident due lack of technical information.”
In stages 1 and 2, projects were managed by NME, Lae City Authority and DOW at various stages and the employers’ representative was Department of Finance (DoF)).
“DOW’s involvement was minimal or nil until August 2012,” the report said.
“These contracts were executed under certificates of inexpediency (COI).
“Mismanagement of the projects under Stage 1 and 2 in design/construction and financial is evident.
“The government directed projects funds to the DOW to manage and execute the remaining works under Stage 2.
“Stage 3 projects were awarded in August 2013.
“Contractors have mobilised on site and commenced works.
“The cost of these two projects is K42million.
“Both projects are programmed to be completed in June 2014.
“Works has commenced and in progress.”

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