Local contractors save govt $$
Government’s decision to use local contractors for the continuation of the Solomon Hochoy Highway Extension to Point Fortin has saved taxpayers millions of dollars, Works and Transport Minister Rohan Sinanan has reported.
As he joined Prime Minister Dr Keith Rowley and Communications Minister Stuart Young to open completed segments of the project which cost $515 million, at Mosquito Creek on Friday, Sinanan said dividing the project into packages resulted in a saving as it boosted competition among local contractors, driving the prices down.
They also turned the sod for another package to complete the widening of 2.5 km of the South Trunk Road between Mosquito Creek Bridge and the Godineau River Bridge.
Explaining how the savings accrued, Sinanan said at the financial evaluation stage for package 2A, Junior Sammy Contractors Ltd (JSCL) and Kall Co Ltd (KCL) submitted tenders that were over the engineer’s estimate. “That is, 7.8 per cent and 22.1 per cent higher than the engineer’s estimate respectively,” he said.
JSCL won the award with a revised bid of $95,006,954 VAT inclusive, which was 0.9 per cent lower than the estimate. JSCL also secured package 2B from among six bidders at a cost of $121,820,187.16 VAT inclusive, 1.4 per cent lower than the estimate.
For package 5A, Jusamco Pavers Ltd and Namalco Construction Services Ltd were 4.32 per cent and 2.4 per cent lower than the estimate, while Lutchmeesingh’s Transport Contractors Ltd, Sinohydro Corporation Ltd, and General Earth Movers Ltd’s offers were higher by 8.4 per cent, 15.51 per cent and 19.3 per cent respectively.
After evaluation Jusamco was determined to have offered the most economically advantageous price and was recommended for negotiations, following which a revised final bid of $280,976,489.08 VAT inclusive, some 6.54 per cent lower than the estimate, was submitted.
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