A timely warning to errant contractors by the AG

It took some time in coming, but ‘better late than never.’ This is in relation to the statement from Attorney General and Minister of Legal Affairs, Anil Nandlall, SC, who emphasized most unequivocally that the People’s Progressive Pary/Civic Government “… will be imposing strict actions against errant contractors who have been causing substantial disruptions with incomplete and substandard work on public projects.” I mean it’s about time. The AG is right in ‘every which way.’

In making the strong utterance, the AG detailed that “These are contractors who are issued with contracts from the Government, and, for whatever reason, have been breaching those contracts, (thereby) causing tremendous delays in the execution and completion of public works across the country, (and thus) stalling the Government’s infrastructural development drive.” And I add, driving the populace to frustration and fostering criticism on the Government.

Nandlall firmly iterated that “We (the PPP/C Government) cannot continue to have contractors not discharging the contractual obligations in accordance with the contractual specifications. Government will not tolerate substandard work and breach of contracts from contractors who are paid billions of dollars to discharge their contractual obligations.” Amen!

So? Well, I think that there is no ‘second-guessing.’

Readers and Editor, it is widely known that the government of the day has the right to repurchase items and services elsewhere and charge any excess in relation to procurement costs to the contractors in default. Specifically, when it comes to the ‘consequences of breaching’ a contract, recouping will include financial losses, legal remedies such as compensation for

damages, specific performance (forcing the breaching party to fulfil their obligations), or termination of the contract. In fact, it is well-established that any termination for default translates to the reality that the government may terminate all or part of a contract for anything that was done that was not in the interest of the government. This will encompass attempted fraud, failure to meet quality requirements, failure to deliver the supplies or perform the services within the time specified in the contract, failure to make progress and that failure endangers performance of the contract, and failure to perform any other provisions of the contract.

So then, this naturally leads to some pending action from the Guyana Government, and I am pleased, that Nandlall, in a no-nonsense manner, spelled out that “In order to tackle this problem, the Ministry of Finance has been given instructions to expeditiously carry out an audit to identify contractors who are not in compliance. Once identified, this information will be transferred to his office, noting that he has been explicitly instructed to inform the errant contractors of actions to be taken, enforce liquidated damages as permitted by contract terms, and commence legal proceedings for contract violation.”

I really am in accord with this stance, as according to the AG, “We cannot continue to have contractors not discharging the contractual obligations in accordance with the contractual specifications. Government will not tolerate substandard work and breach of contracts from contractors who are paid billions of dollars to discharge their contractual obligations.”

Now that the Government of Guyana has started to hold contractors accountable for failing to finish their projects within the allocated period, I am expecting a change of culture from these contractors, or the alternatives of heavy fines and jail time. I mean too much is at stake - the people’s money is being wasted, Government is getting blamed, and developmental plans are stalled.

My hope is that the likes of the contractor, Sattrohan Maraj of S. Maraj Contracting Services, contracted for undertaking works to the Leguan Stelling, will be hauled in. The word from the Ministry of Public Works is that “… the entity missed another contractual deadline to complete the structure, six years after the contract was signed under the previous APNU+AFC government.”

Enough is enough. I am so gland that AG Nandlall is targeting these defaulters.