FIRM TO CH: PAY P61M
Company asks arbitration body under DTI to compel the Cebu City Government to pay P61.2M for its work on Carbon Market Bulk of the amount represents “work in excess of contract quantities” by Young Builders Corp.
Saying there is no more legal impediment to implement the court decision, a construction firm is asking the Construction Industry Arbitration Commission to compel the Cebu City Government to pay the P61.2 million the latter owes it over the reconstruction of Carbon Public Market Unit 2.
Young Builders Corp. (YBC), through its counsel, has filed a motion for issuance of writ of execution.
Of the amount, YBC said P50.6 million represents the work accomplished in excess of contract quantities, P6.3 million for the balance of approved accomplishment and P3.8 million in interest, among others.
On Feb. 19, 2013, the Court of Appeals (CA) rendered a decision partially granting the petition of YBC, but only directed the City to pay the P6.3 million and the interest.
It excluded the P50.6-million claim of the contractor because it was not included in the contract.
The Supreme Court (SC), through a resolution dated Sept. 16, 2015, upheld the CA decision, which became final and executory last March 1, 2016.
When sought for comment on the matter, City Attorney Joseph Bernaldez said he will have to read first the motion of YBC before the City file any counter on it.
Bernaldez said that they will inform the CIAC about the exclusion of the P50.6 million, which was upheld by the SC.
“I will inform the mayor about this when he arrives from Bacolod. From there, we will see what is our next move,” he told SunStar Cebu.
In a text message to SunStar last night, Mayor Tomas Osmeña said: “If COA says okay, no problem. I remember there was no valid documentation on the work performed on the foundation.”
YBC filed the case for breach of contract against the City and demanded the payment of its initial works in 2008 during Osmeña's previous term.
Work on the project was halted because Osmeña wanted to change the design of the building and include a parking on the rooftop to decongest the Carbon area from vehicles that park by the roadside.
The market was rebuilt after the old building was razed by fire in 1998.
Of the P140-million project cost, the City only paid YBC P24 million since the contractor did not finish construction.
After Osmeña's term expired in 2010, his successor Michael Rama allowed YBC to pursue the project but the latter failed to resume, prompting Rama to revoke the contract and award it to Geety Realty Construction.
But the construction was again halted due to the pending case involving the project.