The Port Qasim Authority (PQA) has imposed heavy penalties on the contractor for unsatisfactory performance in the channel maintenance dredging works 2004-2005.
According to details available here, besides the penalty of Rs 31,399,044.72, the contract for next year's dredging has not been extended to Van Oord due to their unsatisfactory performance.
At the last board meeting, the case was presented by the Director General (Technical).
He informed the board that in January, the contract for the work of channel maintenance dredging 2003-2004 was awarded to Van Oord and it was signed at the overall dredging unit rate of Rs 114.70 per cubic metre, at the total cost of Rs 481.738 million for a total dredging quantity of 4.2 cum. The payment was to be made on the basis of actual dredged quantity.
The dredging contract was concluded on June 30. Total quantities dredged by the contractor are as under:
-- Approach channel A-B area 1,295,667.33 cum.
-- Approach channel B-C area 267,725.82 cum.
-- Inner channel 447,114.58 cum.
-- Total area: 2,010,507.73 cum.
The contractor has not been able to undertake dredging as per the estimated quantities based on in-survey (pre-dredging) results. As per contract, a mandatory dredging of 50 percent of in-survey quantities has to be executed. In case the contractor is unable to do so, necessary penalty is to be imposed.
Accordingly, total penalties to be imposed on the contractor as per contract provision are summarised below:
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Approach channel A-B area: Rs 21,944,551.36
Approach channel B-C area: Rs 6,847,334.49
Inner channel: Rs 2,607,158.87
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Total: Rs 31,399,044.72
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Based on various dredging rates of different areas, which are Rs 93.60, Rs 146.30 and Rs 60.50 respectively in approach channel A-B area, B-C area and inner channel, the amount payable to the contractor after deducting penalties is Rs 232,034,136.93.
This works out to Rs 115.41 per cum. The overall dredging rate is Rs 0.71 more than the overall dredging rate of Rs 114.70 approved by the board, and overall gross rate works out to Rs 131.03 per cum for total dredging quantity, without deduction of penalties for mandatory dredging.
The PQA board resolved to agree with the recommendations of the technical division (channel dredging department) and approved gross overall rate of Rs 131.03 per cum for total quantity of 2,010,507.73 cum (without deduction of penalties for the mandatory dredging) for accounting purposes and Rs 115.41 per cum for the same quantity as the net overall rate after deduction of penalties for the mandatory dredging, as against Rs 114.70 per cum previously approved by the board.
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