The chairperson of the Urban Development Corporation of Trinidad and Tobago (UdeCOTT) said on Wednesday contractors are "padding" claims to the tune of millions.
Jearlean John said some contractors who are owed as little as $2 million are now changing their costs and submitting claims for up to $30 million and $50 million.
The contractors are making claims for work carried out during the previous Manning People's National Movement (PNM) government and former UDeCOTT executive chairman Calder Hart.
John was speaking at a meeting with members of the Joint Consultative Council for the Construction Industry (JCC) whom Housing Minister Roodal Moonilal invited to air their concerns.
The President of the JCC president, Afra Raymond, responded to John's comment. "We have to be very careful we are not cultivating mischief," he said.
"A contractor can make a claim for whatever work he does, and that claim has to be verified by an engineer or a quantity surveyor, and that engineer or quantity surveyor is employed by the client, whether it be Royal Bank or HDC.
"There are 35 claims inside that are not being paid; we need to be very careful not to give rise to these misunderstandings".
Last week, the Contractors Association of Trinidad and Tobago said government is owing contractors $600 million and added that there is no need to query the claims since they have all been certified.
John insisted that some of the claims are suspicious. "In the settlement of claims, contractors will bring all kinds of things inside of here...we have a lot of padding inside of these things and particularly at UDeCOTT," she said.
"We cannot go out and just pay what contractors are demanding of us; many claims would have started at $2 million, verified certificate for payment, but today, they would be at $30 million, $50 million, all on the basis of extension of time, escalation of cost.
"Trinidad is the only place with price trending upwards; the rest of the world is trending downward because we have these large sums being claimed for escalation in cost," she added.
John also said UDeCOTT's accounts are "in a mess". She said she has hired an accounting firm to go through the accounts, which were last audited in 2004.
She added that the paperwork for about $300 million is missing and there is no bank reconciliation for some ten years at the Housing Development Corporation (HDC).
Jearlean John said some contractors who are owed as little as $2 million are now changing their costs and submitting claims for up to $30 million and $50 million.
The contractors are making claims for work carried out during the previous Manning People's National Movement (PNM) government and former UDeCOTT executive chairman Calder Hart.
The President of the JCC president, Afra Raymond, responded to John's comment. "We have to be very careful we are not cultivating mischief," he said.
"A contractor can make a claim for whatever work he does, and that claim has to be verified by an engineer or a quantity surveyor, and that engineer or quantity surveyor is employed by the client, whether it be Royal Bank or HDC.
"There are 35 claims inside that are not being paid; we need to be very careful not to give rise to these misunderstandings".
Last week, the Contractors Association of Trinidad and Tobago said government is owing contractors $600 million and added that there is no need to query the claims since they have all been certified.
John insisted that some of the claims are suspicious. "In the settlement of claims, contractors will bring all kinds of things inside of here...we have a lot of padding inside of these things and particularly at UDeCOTT," she said.
"We cannot go out and just pay what contractors are demanding of us; many claims would have started at $2 million, verified certificate for payment, but today, they would be at $30 million, $50 million, all on the basis of extension of time, escalation of cost.
"Trinidad is the only place with price trending upwards; the rest of the world is trending downward because we have these large sums being claimed for escalation in cost," she added.
John also said UDeCOTT's accounts are "in a mess". She said she has hired an accounting firm to go through the accounts, which were last audited in 2004.
She added that the paperwork for about $300 million is missing and there is no bank reconciliation for some ten years at the Housing Development Corporation (HDC).
No comments:
Post a Comment