COA to LRTA: Go after contractors with delayed projects

Metro Manila (CNN Philippines, June 8) – State auditors have asked the Light Rail Transit Authority (LRTA) to seek liquidated damages from contractors for delayed projects.

In its 2022 report uploaded to its website on June 7, the Commission on Audit (COA) noted delays of up to three years in seven rehabilitation projects with a total cost of over ₱741 million.

Auditors found that some of the delays exceeded the original duration for the completion of projects.

They said the delays violated procurement laws which state that liquidated damages must be paid in case of a breached contract.

“Since LRTA is a public utilities agency of the government, delay in the completion of the projects as planned has adverse effects on the public that are intended to benefit from such projects," the COA said.

The projects include the improvement of LRT Line 2 depot offices and the rehabilitation of fire detection and alarm systems.

The LRTA agreed to impose liquidated damages on the contractors who failed to complete the projects within the target date.