Heavy fine for Dong A Company for continuously delaying the progress of the road to Phin Ngan

Đinh Đại |

Lao Cai - After many extensions, but the construction volume only reached about 30%, Dong A Company was fined more than 309 million VND.

On February 28, information from Bat Xat Commune People's Committee, Mr. Nguyen Manh Hung - Chairman of Bat Xat Commune People's Committee just chaired a working session with the Bat Xat Regional Construction Investment Project Management Board, the supervision consulting unit and Dong A Import-Export Production Joint Stock Company (Dong A Company) to review the progress of package No. 5, belonging to the Road to the center of Phin Ngan commune (old Bat Xat district) project.

According to Bat Xat Commune People's Committee, the legal representative of the contractor was invited but did not attend the correct composition. The enterprise sent officials from the Technical Department to attend the meeting but did not have a power of attorney as prescribed.

The project was approved in 2022, started at the end of 2022 with a implementation time of 518 days, total investment of more than 34 billion VND. During the implementation process, the investor has repeatedly extended the progress, and the final completion milestone was adjusted to December 31, 2025.

However, by January 2026, the construction volume only reached about 30% of the contract value. Many main items are still unfinished. Despite many documents urging and requesting the development of a plan to overcome and accelerate construction, the contractor still does not meet the committed progress.

Through inspection, the contractor has not mobilized enough manpower according to the bidding documents; machinery is gathered at the construction site but construction is not organized simultaneously on the sections that have been handed over the site; there is no detailed and feasible plan for the remaining work.

Based on the clauses on bonuses, penalties and responsibilities for contract violations, the parties agreed to impose a fine of 10% of the contract value, equivalent to 309,641,800 VND for Contract No. 113/2022/HD-TCXD signed on December 26, 2022.

Leaders of Bat Xat Commune People's Committee affirmed that this is a serious violation, requesting the Project Management Board to complete the dossier for handling administrative violations, and at the same time advise on issuing a decision to terminate the contract according to regulations.

The locality also assigned research to select a new contractor with sufficient capacity and experience to carry out the remaining volume, ensuring project progress and investment efficiency.

Đinh Đại
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