DAEWOO Engineering and Construction Co. Ltd.’s claim against the Department of Public Works and Highways (DPWH) for compensation for supposed losses incurred on the extension of the contract time on a flood control project has been denied by the Commission on Audit.
In a five-page decision released last September 29, the COA Commission Proper said the claimants failed to submit necessary documents to establish the validity of the obligation.
From the evidence at hand, the commission said it remained unclear how it determined the losses happened and how it came up with the amount being claimed.
“(T)he claim was not sufficiently supported with documents that would aid this Commission in ascertaining with reasonable certainty the amount being claimed. The claimant failed to discuss …why a particular amount is considered as an additional cost due to delay or suspension,” the COA said.
The ruling was signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Café Pondoc and Mario G. Lipana.
According to Daewoo’s petition, it was the contractor for Package 1 of the Metro Manila Flood Control Project-West of Manggahan Floodway, specifically the Lakeshore Dike (Taguig Section to Napindan River) and Taguig, Hagonoy and Labasan Regulation Ponds (except the dike section in Taytay).
It said the DPWH issued six suspension orders between October 30, 2000 to January 25, 2002.
Work resumed on April 19, 2002 but a partial suspension was issued again on May 18, 2004 citing right-of-way problems in the Taguig City area. Daewoo was told to concentrate its equipment and workers on the “workable areas.”
On the basis of suspensions, Daewoo asked and was granted an extension of the contract time but the DPWH made a condition that no monetary claim for damages will be made by the contractor.
Daewoo, however, notified the DPWH that it is reserving the option to avail of its rights under the contract in relation to time extension.
On April 30, 2009, Daewoo filed a claim for damages/losses amounting to P51.655 million but the DPWH Extraordinary Claims and Review Committee (ECRC) recommended payment for only P15.05 million.
On May 18, 2011, Daewoo filed the petition for a money claim with the COA for the recommended amount.
In denying the claim, the COA CP clarified that it is not bound by the ruling of the DPWH-ECRC as it is mandated to make an independent evaluation of the settlement of claims against the government.
“There was also no evidence showing the basis of the equipment/rental rate of the idle equipment, and in the event that the equipment was rented, contracts, official receipts and other related documents should have been submitted. In the absence of supporting documents, it cannot be determined whether the foregoing circumstance was considered in the computation of the stand-by cost of equipment,” the COA added.
