States owed £400,000
Monday 21st April 2008, 2:30PM BST.
THE States is owed £400,000 by Miller & Baird, the company which built St Sampson’s Marina, said Public Services minister Bill Bell.
The company had been claiming more than the original contract price. In a letter sent to States members updating them on the financial status of three outstanding capital project contracts, Deputy Bell gave the unexpected news.
‘With the final certificate now issued, I can confirm that we are in the unusual position where the contractor actually owes the States monies,’ he said.
‘Taking into account various issues such as prepayments made in the early stages of the contract, penalty payments for late completion, legal costs and the money due in respect of the contractor’s occupancy of the St Andrew’s reservoir industrial site, the States is owed in the region of £400,000.
‘Steps are now being taken to seek recovery of these monies.’
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Must be election time!!!
Perhaps Bill Bell should reflect on why the company were allowed to get into the position where they were overpaid and what it says about the due diligence of his department.
Doesn’t increase confidence one little bit.
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Bill Bell’s comments are obviously premature, if the dispute with the contractor has not yet gone to arbitration which he says it hasn’t, how can he possibly now what the final cost is.
It is arrogant to just dismiss the Contractor’s contractual claims in this way.
He mentions penalty payments which will only become due when the arbitrator’s judgement is made, he mentions legal costs which again will be part of the judgement by the Arbitrator.
The rental of States land at the St. Andrews reservoir is surely a seperate agreement which would not form part of the contract for the St. Sampsons Harbour.
Sounds to me much like the wool is being pulled over the publics eyes yet again.
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If the states engineer had realised what everyone else knew already, that Guernsey is built on ROCK, there would not have been the necessity for the overspend. Why doesn’t anyone look into who provided erroneous advice upon which quotes were provided, in the first place?
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The states KNOW what they have specified in the tender documents, so why do they argue when the actual conditions change from those specified initially.
Lets face it the specifications were not right, the ground reports were not right.
Why did we pay so much for consultants?
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