The Cebu City Government's target to make the new Cebu City Medical Center operational by January 2027 is in jeopardy due to missing documents and contractual issues from previous contractors hampering Phase V contractor Dakay Construction and Development Corp.
Dakay Construction is hesitating to connect new wiring and installations to work done by a previous contractor without safety verification, fearing potential liability for defects originating from earlier phases.
The City Council called an executive session for city officials to present project issues and seek legislative measures to help resolve documentation hurdles and keep the P683.94-million Phase V project on track.
THE Cebu City Government’s target to make the new Cebu City Medical Center (CCMC) operational by January 2027 could be in jeopardy as missing documents from previous contractors hamper the continuation of works by the contractor tasked to finish the hospital.
City officials are waiting for the outcome of an executive session of the City Council to determine what measures can address the documentation and contractual issues involving previous contractors, allowing current contractor Dakay Construction and Development Corp. to proceed with the remaining works.
Kenneth Siasar, chief of staff of Mayor Nestor Archival and a CCMC administrator, said the City retrieved and reviewed documents covering the hospital’s construction from its earlier phases up to the Phase V project.
The review showed that several previous contractors lacked formal termination orders from the mayor, while the City could not find complete documents establishing the completion and acceptance of earlier works. This creates a problem for Phase V contractor Dakay Construction, which must build around existing installations — specifically mechanical, electrical, plumbing and fire protection systems.
Safety and liability concerns
Siasar said Dakay continues construction in non-problematic areas but hesitates in specific sections until the safety and condition of existing installations are verified. Primary among these concerns is the electrical system, where Dakay must connect its wiring to work done by a previous contractor. Dakay remains reluctant to make the connections without assurance that the prior work meets safety standards, fearing potential liability for defects originating from earlier phases. Consequently, the City has asked the previous contractor to submit proof of compliance.
However, establishing compliance is difficult because several installations have been in place for years, including work rushed during the height of the Covid-19 pandemic to accommodate additional patients. Missing records have also stalled payment claims, including one contractor’s claim for over P100 million that the City cannot release due to insufficient supporting documents. The City Legal Office is now reviewing how to legally settle work done under previous contracts while enabling Phase V to move forward under its issued notice to proceed.
Legislative action sought
To address these hurdles, the City Council called an executive session where city officials will present the project’s issues and seek legislative measures to expedite progress. While Dakay continues work on unaffected sections of the P683.94-million Phase V project, city officials emphasize that existing mechanical, electrical, plumbing and fire protection works must be reconciled before final connections can be made safely. Resolving these documentation and liability issues remains crucial to keeping the hospital on track for its targeted December 2026 completion and January 2027 opening. / CAV