Attorney General and Minister of Legal Affairs, Anil Nandlall SC said several contracts were terminated and the government has been imposing penalties for contractual breaches.
“Dozens of contracts have been terminated,” Nandlall said at his ministry’s yearend press conference on Saturday.
He added that the government, through his ministry, has begun instituting penalties in the form of liquidated damages for contract breaches.
Liquidated damages refer to a provision allowing for the payment of a specified sum in the case of a breach of contract. Breaches could vary from shoddy work to unjustified delays.
Termination, liquidated damages & blacklisting for errant contractors
Nandlall noted that about $4 billion in liquidated damages have been imposed since the government took a much firmer stance on contractors earlier this year.
In an early morning meeting at State House, Georgetown in November, President Dr. Irfaan Ali chastised both errant contractors and government workers whose shortcomings may be impacting the execution of projects countrywide.
The President made it clear that contractors whose projects will be incomplete by yearend and four months or more beyond the completion date will be sanctioned.
“All the projects that were supposed to be completed by the end of this year, or four months beyond completion date, and (with) no justifiable extension… They will be sent to the tender board and they will be terminated,” he said during the meeting broadcast live.
Previously, he noted that the government could collect about $3 billion for overdue projects after liquidated damages are applied.
