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Thursday, July 27, 2006
Extra labor, not overpricing: City
By Rene H. Martel
Sun.Star Staff Reporter
Cebu City Administrator Francisco Fernandez yesterday said he checked the transaction leading to P4.7 million in variation
orders in the construction of the Ramos Public Market and found it in order.
The bidding failed because all participants quoted amounts higher than the City’s estimate of P24.64 million, he explained.
But since WT Construction quoted the lowest amount of P29.38 million among bidders, it was awarded the project.
WT built the market for 24.64 million, excluding P4.7 million worth of items the City took from the original program of works and estimates of the City Engineer’s Office.
Fernandez said that after the City acquired the money, it had the contractor add the items earlier deleted from the original proposal, for P4.7 million more.
State auditors are looking into possible overpricing in the construction of the market, after P4.73 million was paid for variation orders.
May demand refund
It warned that WT Construction should refund the amount, if results of an ongoing review will show there was indeed duplication of payments for items in the variation order that were already in the original proposal.
State Auditor IV Carolina Mendez, audit team leader, said in her report that several items worth P4.7 million resurfaced as additional materials after WT started construction.
The items, she said, were deleted earlier from the construction company’s original bid of P29.37 million.
On Oct. 27, 2003, the City entered into a contract with WT for Phase I, for P24.64 million.
The contract cost was based on WT’s revised cost proposal, which excluded carpentry, doors and grills, painting and laboratory/material testing from the original proposal. The excluded items amounted to P4.72 million.
Fernandez explained what happened through an analogy: Imagine a man who built just four, instead of five, rooms for his house because his budget was not enough. After he secured the additional amount, he went on to build the fifth room.
Funds for pool
Also, Fernandez promised that “in a couple of weeks,” the swimming pool at the Labangon Elementary School can already be used.
The pool was the subject of a Commission on Audit (COA) report that raised the possible waste of funds, after the pool remained unused since its construction in 2004.
COA told City Hall to have the contractor correct the defect in drainage, so the pool can be used. Fernandez said there was no defect, as the City also intended the pool as a reservoir so fire trucks could get water from there.
But since the water has to be rid of impurities for swimmers, the City needs to set up an ionization system and water connection. The City is setting aside P200,000 from its monthly share of funds from the Philippine Amusement and Gaming Corp.
For Bisaya stories from Cebu. Click here. (July 27, 2006 issue)
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