Friday, September 12, 2025

Manila told to pay contractor’s P7.26M claim

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AFTER 19 years, a construction and trucking firm can finally get paid for its service after the Commission on Audit granted its claim for compensation totaling P7.26 million against the city government of Manila.

NC David Construction and Trucking won the P97.3-million contract to haul and deliver earth-filling and embankment materials for the city government’s Baseco Project in January 2004.

However, since the materials delivered turned out short for the requirements of the project, the trucking firm continued delivering additional truckloads from April 19, 2004 to May 6, 2004 for a total volume of 3,300 truckloads of filling materials worth P21.572 million. The deliveries were backed by receipts and were confirmed by the city’s Engineering Division.

But upon receiving no pay for the additional loads, businessman Nelson C. David sued the city before the Bataan Regional Trial Court under Civil Case No. 770-ML.

The court, in a decision dated Jan. 21, 2009, ordered the city to pay P21.572 million as allowing it to retain the filling materials without payment to the contractor would amount to unjust enrichment.

Manila filed a petition on Feb. 6, 2009 before the Court of Appeals asking it to reverse the RTC ruling. But two weeks later, then city Mayor Alfredo Lim, approved a recommendation of city legal officers to settle the claim since the contractor is willing to accept a 20 percent reduction to the cost equivalent to P4.315 million.

On Feb. 27, 2009 the city paid David a partial amount of P9.997 million, which left a P7.261 million balance.

Again years passed and the balance remained unpaid until the CA issued a decision on Aug. 10, 2011, which modified the RTC ruling to the effect that payment for NC David Construction be based on quantum merit or reasonable compensation commensurate to the amount of work accomplished. The CA ruling became final on March 1, 2012.

 

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