Pahw Punishes Contractors Who Fail To Meet Deadlines

The Public Authority for Housing Welfare (PAHW) is pursuing aggressive legal action against contractors who fail to complete projects on schedule or are unable to execute them for whatever reason.

According to reliable sources, a total of 104 million dinars in fines is being collected from defaulting contractors after they were found guilty of failing to complete 30 projects on time.

The sanctions comprised the liquidation of bank guarantees, delays, and the costs of the supervisory body, according to the same sources. The organization also pursued legal action against one of the consulting firms for failing to carry out the terms of a consulting services contract in a critical housing project.

The PAHW noted in a letter to the Central Tenders Committee that sanctions were imposed against the offending office in compliance with the applicable regulations and controls.

The PAHW, according to the source, does not hesitate to punish companies that fail to complete work on time in accordance with the terms and conditions of the contracts signed between the two parties, citing a number of procedures that include prohibiting companies that are more than 10% late in completing the contract for local companies and 12% late for foreign companies from bidding on tenders until the completion percentage is adjudicated.

"All contractual fines are also applied in accordance with the provisions of the contract as soon as the work is delayed beyond the contractual date, as well as the costs of the supervisory body during the delay period," the source added.

According to the source, the Central Agency for Public Tenders is being advised of the status of defaulting enterprises that have been fined in accordance with the norms and procedures in place as part of the implementation of the Public Tenders Law.

According to the source, if the contractor fails to complete the work, the project will be pulled from him since he is unable to fulfill the contract work.

The five actions taken against defaulters are: prohibiting the defaulting company from participating in future PAHW tenders; notifying CAPT of the troubled companies' situation; imposing penalties in accordance with regulations and controls; withdrawing the project if the contractor has failed and is unable to complete the contract work; the liquidation of bank guarantees; and deduction of the supervisory body's costs.

The following are 5 actions taken against defaulters:

1 - Disqualifying the late company from bidding in future PAHW tenders.

2 – Presenting the situation of distressed enterprises to the Central Agency for Central Tenders.

3 – Penalties are imposed in conformity with regulations and controls.

4 – If the contractor has failed and is unable to complete the contract work, the project will be canceled.

5 – Bank guarantees are liquidated, and the supervisory body's costs are deducted.

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