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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