The Government on Monday announced the termination of two multimillion-dollar contracts held by BK International and Courtney Benn Contracting Services for the construction of two secondary schools.
In letters sent to the two major companies, Attorney General and Minister of Legal Affairs, Anil Nandlall listed breaches of clauses 40.2 (a) for failing to comply with the schedule of works, and 40.2 (g) …for the inordinate delay in the completion of works, as reasons for the terminations.
Courtney Benn Contracting Services on August 8, 2018, had agreed to build the St Rose’s High School at a sum of $352, 709, 745. The project was expected to be completed before the end of April 2020.
“Thus far, your company has completed only nine per cent of the schedule of works. As a consequence, your company has committed a fundamental breach of the terms of the contract and therefore, the Government of Guyana hereby exercises its right to terminate the contract with immediate effect,” the letter stated.
Meanwhile, the Government informed BK International that it has only completed five per cent of the scheduled construction of the Yarrowkabra Secondary School.
The company undertook that project on December 31, 2019 at a cost of $826, 757, 737. The completion date for that project was March 12, 2021.
In this regard, the Government said it will be enforcing the provision of the contract regarding the enforcement of 10 per cent of the contract sum as liquidated damages and the surrendering of the performance security as a consequence of the company’s breach of contract. The letters to the companies said the Government reserves the right to institute legal proceedings for compensation for breach of contract.
