THE Commission on Audit has recommended the enforcement of liquidated damages against Legazpi Premium Development Corp. (LPDC), the contractor of two building projects of the National Defense College of the Philippines (NGCP) worth a combined P521.73 million.
This after a team of government auditors found that work has yet to start more than a year since Defense Secretary Delfin Lorenzana signed the contracts and notices to proceed on Dec. 7, 2018 for the International Student Dormitory with multi-level parking and on Feb. 6, 2019 for the Academic Building with Amphitheater classroom.
The contract price for the dormitory was set at P139.98 million while the Academic Building and amphitheater was at P381.75 million.
Lorenzana signed the contracts because the project costs exceeded the threshold of the signing authority of the NDCP president.
Both projects had a timetable of 330 calendar days, including the design phase starting from the date the contractor received the notice to proceed. For the dormitory, LPDC received the go ahead on Dec. 11, 2018 while for the academic building the NTP was received on Feb. 15, 2019.
Based on the site development plans, the new dormitory was to be erected at the NDCP Compound specifically between the Intelligence Service of the Armed Forces of the Philippines (ISAFP) and the old NDCP dormitory.
On the other hand, the academic building with amphitheater was to be constructed in front of the NDCP main building, specifically between the Joint Special Operations Group (JSOG) offices and the Camp General Emilio Aguinaldo (CGEA) golf range.
However, the audit team was informed by the NDCP and members of the Technical Working Group that the ISAFP belatedly objected to the proposed locations on security grounds.
On October 18, 2020, the DND chief approved the NDCP’s recommendation to build the new building adjacent to each other in the area between JSOG and the Camp Aguinaldo driving range.
“The approved transfer of construction site …did not form part of the bidding documents (Invitation to Bid, Drawing, Site Plan, etc.) since the bidding was conducted prior to the said approval,” the audit team pointed out.
Worse, the change of project site led to substantial changes and non-applicability of the preliminary plan and design, rendering the conduct of bidding and awarding of contract invalid.
The COA noted that mobilization fees for the dormitory project amounting to P21 million was already released on December 12, 2018 while for the academic building P57.26 million was paid out on February 20, 2019.
“Construction works commenced only in January 2021; thus, the delay in the commencement and completion. Inquiry further disclosed that the contractor did not request for contract time extension,” auditors said.
