Contractor sues Talisay for P3.9-M unpaid dues

The contractor of the proposed public market-cum-terminal in Talisay City has asked the court to order the city government to pay the P3.9-million balance it withheld to the firm.

In his six-page complaint, Apollo Enriquez, through his lawyer Alan Gaviola, said that in September 2003, the Talisay City government tasked the AS Enriquez Engineering Consultancy the architecture and engineering designs of the project, which costs about P8.640-million.

The city also contracted the AS Enriquez Engineering to undertake the project, which started in March 2004. But according to Enriquez, on August 4 that year, Mayor Socrates Fernandez issued a notice terminating the contract with them due to alleged major changes of the project.

The city then paid the firm P3,052,950 for the phase 1 of the project.

"The percentage of work is equivalent to 94.44-percent manpower utilized and out-of-pocket expenses disbursed, a notice of termination was unilaterally issued by Mayor Socrates Fernandez, without the benefit of consulting (the firm)," the complaint read.

Enriquez said they have the right to collect compensation for their services under the terms and conditions stipulated in the contract.

The city and the firm then agreed to settle for P1,347,702 as partial payment to the firm from its total collectible of P5,277,319.55. But the city refused to pay the P3, 929,617.50 balances despite the several demand letters sent by the firm.

Enriquez asked the court to compel the city government to pay the remaining balance and the 18 percent interest per annum. He also demanded P300,000 for moral damages, P150,000 for attorney's fees, and P50,000 for litigation expenses from the city.

Talisay City legal officer Aurora Econg told The Freeman that they are now preparing the reply to the complaint. - Garry B. Lao