Contractor fleeing Hue IT package faces difficulty in settlement

On October 15, Hue City Information Technology Center, the investor of package 12 of the Hue City IT Center building project, said that up to now, the construction unit of this package has not yet submitted enough documents to present the additional volume for payment and completion of the work.

This has resulted in the investor not being able to recover the contract guarantee for the construction of this package No. 12 (nearly 1 billion VND) along with the advance payment from the winning bidder, Cong Thanh Construction Development Investment Joint Stock Company. This has resulted in the delay in the process of implementing the steps of re-inviting bids and continuing to complete the construction of this package.

Package 12 of the Hue IT building construction project is "on hold" after the contractor "ran away".

In December 2023, the consortium of Cong Thanh Construction Development Investment Joint Stock Company - Hoang Nhat Phat Trading Company Limited won the bid for package No. 12 with a price of nearly 34.6 billion VND after reducing the bid by 6.4 billion VND. Cong Thanh is the main contractor, performing the basic construction part, Hoang Nhat Phat only performs the fire prevention and fighting part. The implementation period is until June 30, 2025.

This consortium has completed approximately 44% of the contract value, including additional work. Because Cong Thanh Company no longer has the financial capacity to continue construction of package No. 12, on July 18, Hue City IT Center decided to terminate the contract with this consortium.

The investor has disbursed 54% of the contract value, equivalent to nearly 18.68 billion VND, of which payment for completed volume accounts for 70.3%; the remaining advance payment value not yet recovered accounts for 29.7%, equivalent to more than 5.54 billion VND. To date, the contractor has refunded nearly 50%.

Hue City IT Center has sent a document to the Military Bank (MB) and Saigon Hanoi Commercial Joint Stock Bank (SHB ) to request the refund of the guarantee money to the investor after terminating the contract with this contractor consortium on July 18.

Once the steps to recover the guarantee are completed, as the investor, Hue City IT Center will send a report to the Department of Finance and Hue City People's Committee to have a plan to re-implement and complete this package.

Source: https://nld.com.vn/chay-lang-khoi-goi-thau-cntt-hue-nha-thau-cu-cua-hoan-tat-thu-tuc-196251015104142696.htm