Contractor to city: Pay us P10.55 million

Contractor Young Builders Corp. is asking the Construction Industry Arbitration Commission to issue a writ of execution demanding to collect P10.55 million from the Cebu City government over the unfinished construction of Carbon Public Market Unit 2.

The amount represents an unpaid obligation plus interest and other costs.

In a motion dated August 4, lawyer Remo Alindato, counsel of the corporation, said the Court of Appeals directed the city government in 2013 to pay P6.39 million to the construction company with interest of 6 percent per annum.

“It is respectfully prayed that a writ of execution be issued commanding the assigned sheriff to collect from the respondent, City of Cebu, the amount of P10,555,258.44 to be paid to the claimant to satisfy the award of this Honorable Office, as modified by the Court of Appeals,” read part of the four-page motion.

The motion was received by the City Legal Office yesterday morning.

According to Alindato, the city has to pay to Young Builders Corp. P9 million for the principal and interest for seven years, P299,309 for the cost of arbitration, and P45,476 in additional costs, for a total obligation of P9.4 million before interest.

Alindato said the city has to pay P1.13 million in interest, hence the total P10.55 million.

Sought for comment, Mayor Tomas Osmeña said he is willing to pay the P10.55 million under a certain condition.

“If Commission on Audit says okay, no problem,” he told The FREEMAN.

To recall, the building of the old unit II Carbon Market was razed by fire in 1998.

In 2001, then-mayor Alvin Garcia signed a P140-million contract with Young Builders for the reconstruction project but Garcia lost in the succeeding elections to Osmeña.

During that time, Osmeña said the city did not pay the demanded amount of the corporation because it could not determine the real cost of their initial project consisting of the piling of foundation.

Osmeña wanted to change the design of the market building that would accommodate parking on the rooftop.

Because of the stalled project, Young Builders sued the city for breach of contract and demanded payment of its initial expenses.

Out of the P140 million contract cost, the city already paid about P30 million to Young Builders.