The Chief Executive Officer (CEO) of Ghana First Company Limited (GFCL), Mr. Frank Okuley has challenged members of the Association of First Contractors of Ghana to provide their contract documents which guarantee them payments.
The Association accused government of being complicit in the matter regarding what they described as botched contract with Ghana First Company Limited (GFCL).
The contractors executing various automated modern toilet facilities across the country for Ghana First Company Limited under a Public Private Partnership with Government of Ghana also claimed they have been scammed because the Company deceived them to believe that it had adequate funds to make 60% of the contract sum after a collaborative visit which has been done.
Meanwhile, speaking to the CEO of GFCL, Mr. Frank Okuley he asked the contractors to stop the ugly noises and the incessant call for payment over the past two years and rather present their Contract Document which clearly entitled them to the payments.
Mr. Frank Okuley explained that the Company entered into Agreement with the Contractors after each signed a Contract Agreement which he believes, each and every contractor read and understood before confirming and accepting to the terms and conditions of the contract.
According to him, the contract the Company has with the contractors is guided by Clauses in the Agreement both parties signed, stressing that GFCL has not erred in delivering on its part of the contract.
Meanwhile, a thorough look through the Contract Agreement the Contract is a Turn Key Project and that the Contractor shall be paid only upon full completion and hand over of the entire project.
Below are some details of the Clauses in the Contract Agreement which the contractors seem to have lost understanding.
“Clause 5. ii. That the limit for the completion of the project in clause 3 ii supra shall be 90 days from the date of handing over of the proposed site to the Contractor
- That the contractor agrees that the Contract is a Turn Key Project and that the Contractor shall be paid only upon full completion and hand over of the entire project.
- a. the total sum shall be paid to the contractor 3 months after completion of works and certificate of completion upon recommendation by project manager and approval by the Chief Executive Officer.
- That in the event of the Contractor abandoning the project for any period of 28 continuous days without prior notice to the Employer, the contract shall stand abrogated and the cost of the abandonment including any delay occasioned to the project thereby shall be surcharged the Contractor.
xii. Further to clause 5 sub xi, on the occurrence of either the said abandonment and or delay arising from the Contractor leaving some skeletal workers not being its full capacity of workers required for the project within the said 28 days period, the contract shall not only stand abrogated but any investment made by the contractor within this period shall be forfeited.
xii. In the event of the project stalling arising out of liability of the Employer and where the contract is thereby abrogated in the results, the Contractor shall be paid a quantum merit of the work so far undertaken up to the date of the occurrence of this event.
xiv. That is the event of the occurrence of the matters in clauses of abandonment, the Employer shall without recourse to the Contractor be at liberty to engage another Contractor place same on the site to continue and complete the project from whatever stage it got to.
xvi. That the parties shall not resort to a court of law in the first instance in the event of any dispute and misunderstanding which may arise in connection with this agreement.
xvii. That the parties shall endeavor to settle any dispute and misunderstanding in connection with this agreement amicably and where same fails or it is impossible the parties shall refer the dispute to an arbitrator appointed by each party and the two arbitrators shall appoint an umpire who shall be a Legal Practitioner of high repute and of good standing.
xviii. That where amicable settlement fails the parties each may be at liberty to have the dispute adjudicated by a court of competent jurisdiction in Ghana.
Clause 39. Which talks about Payments indicates that;
39.1 Without prejudice to Clause 5 v of the contract agreement, the Employer reserves the right to pay part of the total sum amounting to 60% of the quantum sum after collaborative site visit and inspection is done by the employer, the bankers and the contractor.
The employer therefore, without any doubt reserves the right to uphold this said payment when defects are detected after the collaborative site visit and inspection. Payment will therefore be done after these defects are remedied by the contractor.
Clause 40. Compensation Events
40.4 The Contractor shall not be entitled to compensation to the extent that the Employer’s interests are adversely affected by the Contractor’s not having given early warning or not having cooperated with the Project Manager.
40.5 The Employer shall hold the Project Manager liable for payment of compensation in the event of Clause 44.1 a, d, e and k supra.
44.1 The Contractor shall pay liquidated damages to the Employer at the rate per day stated in the Contract Data for each day that the Completion Date is later than the Intended Completion Date. The total amount of liquidated damages shall not exceed the amount defined in the Contract Data. The Employer may deduct liquidated damages from payments due to the Contractor.
Payment of liquidated damages shall not affect the Contractor’s liabilities.
44.2 If the Intended Completion Date is extended after liquidated damages have been paid, the Project Manager shall correct any overpayment of liquidated damages by the Contractor by adjusting the next payment certificate. The Contractor shall be paid interest on the overpayment, calculated from the date of payment to the date of repayment, at the date specified in Sub-Clause 43.1.
Clause 52. Termination
52.1 The Employer of the Contractor may terminate the Contract if the other party causes a fundamental breach of the Contract.
52.2 Fundamental breaches of Contracts shall include, but shall not be limited to, the following:
(a) The Contractor stops work for 28 days when no stoppage of work is shown on the current Programme and the stoppage has not been authorized by the Project Manager.
(b) The Project Manager instructs the Contractor to delay the progress of the Works, and the instruction is not withdrawn within 28 days.
52.5 if the Contract is terminated, the Contractor shall stop work immediately, make the Site safe and secure, and leave the Site as soon as reasonably possible.”
With these, the CEO said the Company cannot be liable for any infringement on its part and that, the contractors themselves can attest to the fact that they have not lived to the tenant of the Agreement.
