Trouble mounts against BIUST contractor

The project is already two years behind schedule. The LAD penalty is charged at P128,700 per day from the agreed completion date until the day the contractor finishes the project. The penalty now amounts to about P3 million.

The Permanent Secretary in the Ministry of Infrastructure Science and Technology, Dikagiso Mokotedi said that the penalty is deducted from the P429 million contract amount.  He said that the penalty was imposed because the contractor, China Civil, failed to meet the completion date of the project. The deduction started in early 2011, which was the original completion date of the project. "As we speak the LAD is on and we will continue to impose the penalty until the project is completed as agreed," added Mokotedi.