Over P2.9M unpaid project Contractor files raps vs. VSMMC

CEBU, Philippines - An Ozamiz City-based contractor has filed a civil case for collection of money against the Vicente Sotto Memorial Medical Center over an unpaid project.

Nelson Lee is demanding at least P2,928,167.70 from the government-run hospital in Cebu representing his unpaid construction works and attorney’s fee. He is likewise demanding a 12-percent interest of the unpaid amount every year starting the filing of the complaint.

Lee said the VSMMC owes him a total of P2,188,167.70 for the construction of the P3.4 million expansion project of the hospital’s orthopedic and internal medicine wards in 2008.

According to Lee, his construction firm won in the public bidding and was awarded the project.

However, the members of the executive committee led by hospital director Gerardo Aquino, Jr. terminated the contract in 2009 because of the alleged negative slippage in the construction work.

Lee said when their contract was terminated they have already accomplished at least 55-percent of the construction work. In fact, he had already spent P2,188,167.70 for the actual and additional works.

Lee named Aquino and the members of the executive committee as respondents of the case.

“They have been grossly negligent in bad faith in the performance of their official functions, exceeded their authorities and have gravely abused their discretion as such members of the Executive Committee of Medical Center,” the complaint reads.

Lee denied the allegation of the executive committee that the project was delayed. According to Lee, they are supposed to finish the project within 180 calendar days.

The complainant accused the VSMMC management of being uncooperative. Lee said they have asked for a 40-percent price adjustment because of the rapid increases in the prices of construction materials.

He explained that price adjustment is allowed under the Republic Act 9184 or the Government Procurement Reform Act.

But instead of granting their request the executive committee fired Engr. Cleofe Mariflor, the technical person assigned as project coordinator.

“The termination was very crucial and prejudicial to the project,” Lee said.

Despite of it, Lee said they continue with the construction of the project until they received a letter from Aquino in March 2009 accusing him of a “negative slippage.”

Lee explained that the project was not delayed since the timetable was temporarily suspended because of the committee’s alleged failure to provide them with adequate access to the site and in action to their valid request for price adjustment. A notice of termination of the contract later followed.

Lee said they demanded payment of 55-percent work completed but Aquino refused. — /FPL (FREEMAN)