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Contractor asks transportation secretary to review its lost deal

Posted by Michille on July 31st, 2006

Contractor asks transportation secretary to review its lost deal – Sun.Star Cebu!

ARN BUILDERS may have to refund some P8 million out of the P16.6-million mobilization fund that it received from the airport authority. The company is now fighting for a P110.8-million contract for the airport apron extension that the Mactan-Cebu International Airport Authority (MCIAA) board voided.

But aside from its earlier threat of a lawsuit, the contractor has also brought up what it calls the baseless and illegal cancellation of its contract before Department of Transportation (DOT) Secretary Leandro Mendoza.

The Mactan-Cebu International Airport Authority (MCIAA) board had voided the contract with ARN because of alleged “irregularities and misrepresentation.”

An arbitration committee was tasked to determine the extent of the work ARN Builders has accomplished on site and give an estimated amount, as basis for negotiation.

The committee already submitted its report to the board.

With its technical support group, the committee pegged ARN’s work, equipment, field office, bunkhouse rentals and other temporary facilities, including two vehicles, at P10.6 million.

If the two vehicles and the field office consisting of two vans will be returned to ARN, the amount that the MCIAA would owe ARN will only be around P8.5 million.

The committee said its estimates could be reviewed by an independent body such as personnel from the Commission on Audit or the Department of Public Works and Highways.

But lawyer Elias Espinoza, ARN’s legal counsel and one of its financiers, called the attention of the DOT about the matter.

He cited that ARN was the lowest bidder and has already started its work after a notice of award and notice to proceed.

He said the board has “no legal and factual basis” to rescind the contract because ARN did not commit any breach of the terms and conditions.

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