3 months ago
17
Asha Javeed
Lead Editor Investigations
The Housing Development Corporation (HDC) says it has not made any payment to contractor Ricky Raghunanan for the controversial Trestrail Development.
Last week, the Sunday Guardian reported that the HDC had decided that more than half of the 100 housing units constructed by Raghunanan at Trestrail will be demolished due to infrastructure issues which have plagued the development.
It noted that because of the design-build-finance contract, the sum to be paid to Raghunanan is being negotiated between him and the HDC’s lawyers since he was fired from the project in April. It also noted that, unlike other design-build-finance contracts in the public service, Raghunanan did not post a performance bond and was allowed by the HDC to start and almost complete the project without posting a performance bond, or any part thereof.
The project, which began at $72 million VAT exclusive, is now estimated to be $112 million.
At the UNC’s Monday night forum, Oropouche East MP Dr Roodal Moonilal questioned how much Raghunanan had been paid by the HDC so far and whether any remedial work had been undertaken.
He had said when the issue was raised, Housing Minister Camille Robinson-Regis said the contractor would fund remedial work on the project, not the Government.
“I ask today: who funded remedial work? Because there’s none, they’re going to demolish everything. They build a dollhouse! They’re going to demolish after that project moved from $72 million to $110 million. How much has the contractor received so far? How much did the contractor spend on the remedial works when there was never any remedial work?
“Why was a contract awarded minus performance bond? Why was he allowed to construct homes without this bond? This contract was given months before the 2020 general elections, so you give him (a) contract, no performance bond, no history of building houses,” Moonilal asked.
In a statement yesterday, the HDC said it has a remedy for defective works, which can be “set off” under the contract. It noted that the HDC awarded a Silver Book design-build-finance contract to the Ricky Raghunanan Group of Companies, which places the overall responsibility and risk for the design and construction of the project on the contractor.
“It must be noted that contrary to the assertions made no fees have been paid, as the HDC will only remit funds for certified “fit-for-purpose” units. Further, remedial works will be performed by Clause 14.17 of the FIDIC contract which states “without prejudice to any other right or remedy, the employer (including any right or remedy of deduction or set off), may deduct from any sum due, or to become due to the contractor, under or in connection with the contract and from any sum retained from any payment otherwise due to the contractor, any sum, due or to become due, from the contractor under or in connection with the contract,” the HDC said.
It noted that the performance bond represented $7.2 million (ten per cent) of the contract.
“The HDC did recognise in 2020, after the execution of the contract, that the contractor failed to provide such bonds. Despite being instructed to so do, on several occasions and noting his recent attempts, to date, this remains unsuccessful. Given that a performance bond has not been provided, and the HDC has made no payments to the contractor, the HDC has suffered no financial loss.
“Further, the Ricky Raghunanan Group of Companies has performed in the past on several projects for the HDC before commencing this contract. The HDC wishes to assure its clients that it is committed to building units that are certified fit-for-purpose for the citizenry of Trinidad and Tobago. The HDC reiterates that the MP for Oropouche East’s inference on the lack of construction experience by the contractor is incorrect.”
Last Thursday, the HDC invited several contractors to tour Trestrail and “invite you, amongst others, to submit a quotation for the provision of demolition services for Trestrail Phase 1 R.”
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