Project slowdowns could lead to blacklistings and non-payment for companies awarded government deals, the Department of Transportation (DOTr) department warned
“Upon the instruction of the President, the DOTr, through Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra, immediately issued a memorandum to stipulate in government contracts that a work slippage of more than thirty (30) days would result in non-payment, cancellation of contract, blacklisting of the erring contractor and the engagement of another contractor to finish the project,” the department said in a statement.
This is in addition to sanctions provided under the Government Procurement Reform Act.
“Transportation Secretary Arthur Tugade said the Department will not allow irresponsible contractors to take part in government projects, as it will not only result to delays but inflict further suffering of the people who are anxiously waiting for improvements,” the department added.
It explained that the memorandum follows President Rodrigo Duterte’s directive that officials address government project delays.
“The order shall immediately take effect and will be cascaded to contractors who are presently engaged with government projects,” the department said.