The contractor stopped construction and demanded an adjustment to the contract unit price
Route named D30, 778.5m long, 30m wide, belongs to Vinh Hiep commune and Vinh Trung commune (Nha Trang city). The route connects two major roads in the city, October 23 with Vo Nguyen Giap. The project has a total estimated investment of nearly 130 billion VND from the provincial budget. Of which, the construction cost is nearly 80.7 billion VND, the rest is compensation for clearance, resettlement, project management,...
When the road is completed, the foundation will be asphalt concrete, with a rainwater drainage system, lighting and a bridge over the Quan Truong river made of reinforced concrete.
The project was started at the end of 2020, expected to be completed in 360 days. Because the project has not been cleared, the investor and contractor have signed to extend the completion time many times. The value of completed volume by contractors to date has reached 40.93 billion VND (reaching 78.34%).
According to the report of the investor, the Management Board of Investment and Construction of Agricultural and Rural Development Works of Khanh Hoa province, this project has 37 cases that must be cleared. Up to now, there are only 3 households on 23/10 street that just handed over the premises on June 27, 2024.
The remaining volume of items has not been constructed from October 23 Street to Quan Truong bridge; gravel foundation, asphalt concrete for road surface, tiled sidewalks, sidewalk soil embankment, traffic signal lights at 2 intersections...
For this unconstructed part, the contractor said that it will carry out the construction when price adjustment is allowed because otherwise, it will incur heavy losses due to increased raw material prices compared to the time of signing the contract in 2020.
In the report sent to the People's Committee of Khanh Hoa province, the investor said that if the contract with the contractor is terminated, the project will not be completed in July 2024 as required by the province.
Not to mention, terminating the contract will lead to a higher re-estimation value compared to the time the contract was signed in November 2020 and the procedure for organizing and selecting a contractor to construct the remaining volume will take some time.
After calculation, the investor still proposed that Khanh Hoa province allow the termination of the construction contract for the remaining volume.
Khanh Hoa province does not agree to terminate the construction contract
Mr. Tran Hoa Nam - Vice Chairman of Khanh Hoa Provincial People's Committee requested the leaders of the Project Management Board to work again with the contractors to speed up the remaining volume of the D30 road project, ensuring completion. completed in July 2024.
Mr. Nam requested that, in case of failure to complete within the above deadline, the board's leaders must take full responsibility related to implementing the investor's tasks before the Chairman of Khanh Hoa Provincial People's Committee.
According to the leader of the People's Committee of Khanh Hoa province, the above project is not subject to unit price adjustment according to the above legal regulations. Therefore, the province does not agree to terminate the construction contract with the contractor as requested by the investor.
Mr. Quach Thanh Son - Director of Construction Investment Management Board of Agriculture and Rural Development Works of Khanh Hoa province said that after receiving instructions from the province, the investor organized a mobilization and the contractor agreed to work again.
Regarding the timeline of 7.2024 that Khanh Hoa province set for completion, Mr. Son assessed that it will be difficult to achieve but will work with the contractor to bring the project to completion as soon as possible.
