Gov’t to deduct payments from contractors if public property damaged & not fixed


After the “wanton destruction” of public properties by contractors, the Government of Guyana is now including contractual clauses that those contracted companies must restore any damaged facility to the state it was prior to the damage or destruction.

Failure to do so, a release from the Attorney General’s Chambers noted, will result in sanctions including the deduction of payments.

See below full statement from the Attorney General’s Chambers:

Article 32 of the Constitution of Guyana imposes upon the State and by extension the Government of Guyana, a duty to take care of and protect public property.

In light of the wanton destruction of public property and the properties of public utilities by contractors in the execution of their contractual obligations in infrastructural projects and other public works, the Government of Guyana has resolved that with immediate effect, all contracts executed by the Government of Guyana, Public Authorities and State Agencies, shall contain express clauses that would compel contractors to repair and rehabilitate all damages or destruction caused or occasioned to any public property or the property of any public utility in the execution of their contracts, with the intent of restoring the property damaged, as far as possible, to the state it was in prior to the said damage or destruction.

These clauses shall further provide that a breach of the aforesaid clauses by contractors shall empower and authorise the other party of the contract to assess the value of the damage or destruction caused, the public loss and inconveniences suffered thereby and the cost of repairing and rehabilitating the said damage or destruction in the manner aforesaid; and the total value thereof shall be deducted from or levied against Performance or other bonds lodged, retention securities provided, or from payments due under the contract

1 Comment
  1. habeeb says

    If such clauses are not in the contract, that’s a oversight by Government. Poor drafting of contracts.
    Everywhere in other countries, restoration of damaged sites is a MUST, especially in the public domain.
    Now, it is like rushing to build the LATRINE, when you want to go bad.

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