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Contractor lock-out sends warning message to incapable contractors
The Quang Ninh provincial authorities have decided to prohibit two contractors to implement the projects funded by the Quang Ninh local budget. Prior to that, some contractors were dismissed after their problems were discovered.
On November 15, the Quang Ninh provincial people’s committee released a notice, stating that the province refuses two contractors–the Thang Long Construction Company No 9 and Vinaconex Xuan Mai, not allowing them to undertake any projects funded by the local authorities.
The decision has been made after the two contractors were found as seriously violating the Bidding Law. Due to the bad capability, the two contractors did not fulfill the assigned works on schedule, while citing reasons to refuse to implement other volume of works in the signed contracts. These have caused bad consequences to the project implementation.
The province has requested the Board of Management for Investment and Construction of key projects to clarify the responsibility of individuals and relating companies in the case, consider the economic contract and the regulations of the Bidding and Construction laws, and then suggest the punishment on the contractors. The report must be submitted to the provincial authorities in November 2011.
On November 16, Vinaconex Xuan Mai replied, affirming that it has fulfilled its responsibility and the assigned works, and that the project delay is not the mistake of Vinaconex Xuan Mai.
Dang Hoang Huy, Director of Vinaconex Xuan Mai, said that the provincial authorities have their reasons to make such a decision, but it is not true that Vinaconex Xuan Mai has weak capability. Prior to that, the company well fulfilled a lot of other projects, including the Bai Chay Bridge and Cam Pha cement.
Stern decision applauded
Experts highly appreciate the behavior of the investors to apply drastic measures to eliminate incapable contractors who do not respect their contracts.
An expert said that Vinaconex Xuan Mai needs to take responsibility for the implementation tardiness, even though it does not play the important role in the implementation. It should have withdrawn from the project when it realized that the partner has problems.
Several days ago, Minister of Transport Dinh La Thang, during an inspection trip, witnessed the tardiness in the implementation of the project on Da Nang international port’s terminal, decided to dismiss the head of the board of the management. Observers said that right after the decision was made and a new head of the board of management was appointed, the project has been moving more rapidly.
Dr Pham Sy Liem from the Vietnam Construction Confederation said that it is necessary to find out the problems behind the delay and the bad implementation of the projects in order to find out reasonable solutions.
Regarding the case of the two contractors in Quang Ninh, Liem said that the provincial authorities have reasons to make such a decision. However, he thinks that the local authorities should listen to the explanations of the two contractors
Dr Vu Khoa, Chair of the Vietnam Construction Contractors’ Association said that it is not a new thing that local authorities refuse some contractors. A case happened in the past that two companies which joined the bid for a project, colluded with each other and they were dismissed later.
The two contractors are just one of cases among a lot of big contractors which have been dismissed by the leaders of the Ministry of Transport. Analysts believe that dismissing incapable contractors is a tendency, and that more contractors will be refused in the time to come, especially when Vietnam strives to restructure and tighten public investments.
Nguyen Nga
vietnamnet
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