The government has started to seriously crack down on defaulting contractors and Vice President Dr. Bharrat Jagdeo on Thursday said the administration may not seek the services of those delinquent workers again.
The Vice President, during a weekly press conference, explained that the administration was not stern with many contractors before.
Now, however, Jagdeo said the government will be implementing stiff penalties such as liquidated damages and tapping into performance bonds contractors provide once they secure contracts.
Liquidated damages refer to a provision allowing for the payment of a specified sum in the case of a breach of contract.
“A number of contracts have also been cancelled for people who cannot complete the contract.
“So let me also indicate that if you have contracts that you haven’t completed, then that goes against your track record when you bid again,” the Vice President told reporters.
He added, “In the past, because of the paucity of contractors, we have turned a blind eye to some of these… more and more this is going to be a factor in ensuring that people are penalised for not implementing or completing their contracts.”
For weeks now, President Dr. Irfaan Ali and other senior government officials have issued public warnings to contractors. Those warnings come as several ventures- including major road projects- have been delayed, prompting the cancellation of some contracts.
Previously, Jagdeo said rigid criteria could help to curtail delays and keep contractors, particularly new ones, in check.