Road Contractors Cautioned Against Exploiting Delay of Payments

Jasikan/Hohoe, Oct. 2, GNA - Mr Albert Obeng, Chairman of the Parliamentary Select Committee on Roads and Transport on Wednesday implored road contractors to refrain from exploiting the phenomena of delay of payments for non-performance and delivery. He pointed out that, as much as this phenomena was becoming a norm, it could however not be justified in all cases, since funding for some road projects were secured and intact. Mr Obeng, who is also the Member of Parliament for Prestea/Huni Valley, disclosed this to the Ghana News Agency after members of the Committee inspected works on some on-going road construction projects in the Hohoe Municipality and Jasikan district. It included the three-kilometre Hohoe town roads estimated to cost GH¢1.17 million, being undertaken by Survivors Construction Limited and the Hohoe-Baika-New Ayoma Feeder road, spanning 10-kilometres and being undertaken by Messrs Esteldan Construction and Kaddacon Limited at a cost of GH¢14.436 million. He advised road contractors to ease the delay syndrome by submitting promptly their certificates for payments, emphasizing that, the Ghana Road Fund Secretariat and the Ghana Cocoa Board, financiers of cocoa roads projects have positioned themselves to honour their financial obligations punctually. Mr Obeng urged contractors to negotiate for flexibility with their Bankers to facilitate early completion of projects and maximize their profit margins.

He appealed to the Volta Regional Directorate of the Ghana Highway Authority (GHA) to assist in solving the impasse between Survivors Construction Limited and the utility companies in the Hohoe Municipality to pave way for the early completion of works on the Hohoe hospital segment of contract works. Alhaji Amadu Seidu, National Democratic Congress (NDC) Member of Parliament for Yapei/Kusawgu and Ranking Member on Roads and Transport who queried the slow pace of works, lamented that, the phenomenon would arbitrarily inflate the cost of construction. He urged government to demand liquidated damages from contractors who flout the contract provisions, by failing to deliver on schedule, in order to make contractors accountable. Alhaji Seidu however praised road contractors in the region for quality works. Mr Kwame Korankye-Adjei, Volta Regional Director of GHA said most of the major trunk roads are receiving attention and at various levels of works.

Mr Herbert Koranteng, Volta Regional Director of Department of Feeder Roads (DFR) said a total of 98.1 kilometres out of the 354.86 kilometres of road network earmarked for construction have been completed from January to date. These include routine maintenance, spot improvement, surfacing, town roads and access bridge sites. Mr Castro Dela Ahorsu, Managing Director of Survivors Construction Limited said the recent energy crisis, relocation of utility lines, delay payments and the temporary closure of the cement factory militated against completion of works on time. Mr Aaron Mensah Dansu, of Esteldan Construction said an addendum to the original contract and technicalities being adopted by DFR to calculate the percentage of works done limited his capacity to access money to complete the project, which is within schedule. 02. Oct. 08