On June 24, the Project Management Board (PMB) for Investment, Construction and Urban Development of Hue City said that it had issued a decision to terminate the contract for the work part performed by Dong Tam Group Joint Stock Company at package No. 21 of the To Huu extended road project to Phu Bai airport.
The package has a total value of more than 583 billion VND, constructed by a consortium including Joint Stock Company 456, Dong Tam Group Joint Stock Company, An Phu Quang Ninh Construction Investment Consulting Joint Stock Company and FECON Joint Stock Company. The item includes a section of about 6.1km long, a planned cross-section of 60m and a transformer station on the route.
According to the Project Management Board for Construction Investment and Urban Development of Hue City, Dong Tam Group Joint Stock Company did not ensure the progress according to the contract and signed commitments. From May 15 to June 12, this contractor stopped all construction activities at the construction site, seriously violating the contract terms.
Although the investor has repeatedly issued written reminders and requested to speed up the progress, the contractor still has not remedied it. Up to now, the PMB has issued 2 decisions to sanction Dong Tam Group Joint Stock Company with a total amount of 411 million VND for violating construction progress.
According to the contract termination decision, the contractor must coordinate with the guarantee bank to carry out procedures to confiscate the guaranteed contract value of more than 10 billion VND, and at the same time return the unrecovered advance amount of more than 38 billion VND.
The Project Management Board said that after terminating the contract with Dong Tam Group Joint Stock Company, the remaining members of the consortium are responsible for dividing the workload to continue project implementation. In case the consortium does not implement it, the investor will consider terminating the contract for the entire consortium.
The To Huu extended road project to Phu Bai airport has a total length of about 9.59km, connecting from Zone E - An Van Duong New Urban Area to the intersection of Thuan Hoa road with National Highway 1 (Phu Bai ward), with a total investment of 1,143 billion VND.
The project includes 2 construction packages. In which, package No. 21 is about 6.1km long, worth more than 583 billion VND, constructed by a consortium of Joint Stock Company 456, Dong Tam Group Joint Stock Company, An Phu Quang Ninh Investment Construction Consulting Joint Stock Company and FECON Joint Stock Company. The project started on January 20, 2025, and is expected to be completed after 900 days.
Package No. 20 includes a section of about 3.49km along with a transformer station system on the route, worth more than 132 billion VND. The joint venture of Thua Thien Hue Road Management and Construction Joint Stock Company, Thua Thien Hue Road I Joint Stock Company and Viet Anh Investment Joint Stock Company is the construction unit. The package was started in November 2024 and is expected to be completed in 720 days.
