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Builder 'who failed' is awarded contract

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Neko Grant

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

FORMER Minister of Works Neko Grant yesterday blasted the government for its decision to award a new building contract to a “non-performing contractor”.

Mr Grant, MP for Central Grand Bahama, took issue with reports that Holiday Industrial Builders International Ltd (HIB) has been awarded a contract to build a replica of the same project from which contractors were terminated in 2008.

HIB was awarded a contract to construct a new building for the Ministry of National Security on John F Kennedy Drive, with Lloyd Smith as the general contractor,  according to Minister of Labour and National Insurance Shane Gibson in The Nassau Guardian yesterday.

The building will be a replica of the office of the Attorney General, which was formerly proposed as the new Ministry of Tourism.

The structure, located west of the Ministry of Works building on John F Kennedy Drive, was originally contracted in 2004 for $5.9 million. However, the total cost of the project had rocketed to just over $14 million as of September 2008. 

In documents tabled by former Prime Minister Hubert Ingraham in the House of Assembly, cost overruns were attributed to “defective work”, overpayments and suspected criminal activity.

At that time Mr Ingraham revealed that an investigation was requested into allegations that the initial general contractor HIB wrongfully removed and withheld materials; however the matter had not been resolved. Last night Mr Gibson did not respond to questions placed up to press time.

The building had been originally slated for the Bahamas Mortgage Corporation (BMC) and the Department of Housing when the first contract for its construction was signed between the BMC and Lloyd Smith of HIB.

The BMC terminated its contract with Holiday Industrial in November 2008, after which an independent review of the project by Construction Cost Engineering (CCE) was commissioned by the National Insurance Board (NIB). 

Cost overruns were also attributed to “erratic” project management, according to the report, which indicated that the original contract documents were inadequate and did not include cost control schedules to guide the valuation of interim certificates and change orders.

According to the CCE report overpayments to Holiday Industrial, exclusive of professional fees, stood at $2.1 million between 2004 and 2007. It stated that overpayments were the result of arithmetical and miscalculation errors in authorised payment requests sent by the contractor; the incorrect application and record-keeping of payment deductions; and the failure to record direct purchases made on behalf of the contractor by the BMC.

The NIB contracted Jones Construction Company to complete the building in September 2009. Further inspections revealed that the wiring installation performed by both HIB and Jones were not completed to design specifications and in some instances violated the country’s building code. However, Mr Ingraham said the work passed inspection by both the design consultants and the Ministry of Works.

Responding to Tribune inquiries yesterday, Mr Grant said: “I think it’s just unthinkable and unacceptable that they would have awarded a contract to that contractor after having failed to perform on the building next to the Ministry of Works. And on top of that I understand that the contract is supposed to be a replica.

“I would be interested to know who were the other bidders because it wasn’t a public tender. It was select tender, which they have a right to do; we did it. But why would a person whose work is so questionable be selected to build a building he failed to complete? There are many unanswered questions and the public deserves an answer.”

Comments

newcitizen 10 years ago

Is this government serious? Was there an open and transparent bidding process for this contract? Seems like they just gave it to the company that would give the most kickbacks. This points directly to outright corruption.

We have to demand accountability from our elected representatives. They are taking this country for all it's worth and with no care for the people. What a sad state of affairs when dealings like this go on and no ones cares or questions it. It's time we do something about it.

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proudloudandfnm 10 years ago

My bet is the Rev Lloyd Smith is a Perry appointed stalwart....

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proudloudandfnm 10 years ago

We truly need impeachment procedures in this country.

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realfreethinker 10 years ago

When will it end. God help us all we in in deep shit

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EasternGate 10 years ago

The only thing transparent about this PLP government, is that they are thieves!

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ohdrap4 10 years ago

this contractor is know for the poor quality of his work.

he needs a second chance.

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B_I_D___ 10 years ago

So the original project was started under the PLP with the contract being awarded to HIB...FNM come in and have to shut them down after faulty workmanship and delays and other tomfoolery almost triple the building cost. PLP back in power again, and on the sly, with the public only finding out after the fact, HIB is awarded another contract...ummm...yeah...HIB is a PLP favourite...must be some well greased palms there...sad thing is, we are going to end up with another crap building that going to cost us a fortune in repairs over it's lifetime. Man I love this govt!!

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John 10 years ago

HIB has a history of unfinished projects, shoddy work, cost overruns, name changing, worker abuse and job mismanagement. They should not have even been given the opportunity to bid on any government project at this juncture. The reason to say "NO' to VAT..stop abusing the public's purse.

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Alltoomuch 10 years ago

And we all sit back and take it - for all the talk. Talk is cheap. 32 elected members of our government and not one word of outrage from any of them!!

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BahamianAway 10 years ago

I said it once and I'll say it again ANIMAL FARM.... they are all pigs and therefore are of the same agenda regardless of what political party they affiliate with.

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Alltoomuch 10 years ago

Unbelievable, unthinkable!

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birdiestrachan 10 years ago

I do not know all of the facts concerning this contract. But I can assure you this is a case of the pot calling the kettle black. It may not be right But Mr. Grant and his party do not come with clean hands.

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Emac 10 years ago

Blinded with PLPism much???

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asiseeit 10 years ago

Wake up lady, the politrickans are stealing YOUR money. All of them. Is that just cool with you?

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Alltoomuch 10 years ago

and birdiestrachan - does this make it right? This foolishness of ruining our country has got to stop!! Seems to me that the fact of this contract speak for themselves. So this time we watch and see if they get it right first time! without going way over budget.....

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The_Oracle 10 years ago

Wonder if his N.I.B. is paid up and current? with 80% of the population living the 5 year cycle of prosperity or famine it is really no surprise. We get the Government we deserve, not the government we want.

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asiseeit 10 years ago

I am starting my own personal revolt. I will not pay for anything I do not need at any establishment in the Bahamas nor will I pay one red cent to the government directly in taxes until the FREEDOM of INFORMATION act is ENACTED! I am sick and tired of getting ripped of by successive governments of this country. I am dead serious, they are stealing our money and NO ONE seems to care, well I do and I will do my part, anybody else? I am so mad right now i am ready to spit. This is our money people and they want more of what you work hard for to continue this crap? Get real, I am done!

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wearedone 10 years ago

We need to go out in masses, not 10 or 20 like typical protest. Why can it be done in third world countries and not here. We Bahamians need to stand up against these corrupt governments and stop being stepped on. Let's go and block the access to the cruise ship port, block the roads to and from the airport. We need to draw international attention to these matters because they are not getting fixed "in house". Let's stop being afraid of these people for they are the root of the problems. Show the world how stupid and pathetic our government is. It will be hard people but we must stop these crooked politicians. Imagine how this country of ours will be in 5 - 10 more years of this. We will be getting on makeshift rafts going to Cuba or Haiti to find a better place to live.

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BahamianAway 10 years ago

I agree that if Bahamians stand together they can effect change; however, blocking cruise ship ports and airport only will serve to hurt Bahamians in the future. While you may want to get your point across and make international headlines, that is not a good way to go about it.

Keep in mind that The Bahamas still relies mainly on money generated from tourism, and if that industry is hurt or disabled in any way it will directly impact all Bahamians in a way that we may never recover from. While international press regarding the situation sounds nice, honestly this isn't an international situation. This is a case of Bahamians needing to band together and demand transparency from the government that THEY (the majority) elected.

This isn't like Rwanda or Haiti or even Cuba for that matter where people are being murdered and living in squalor. For all intents and purposes Bahamians are living good compared to other countries.

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newcitizen 10 years ago

You're right, this is not an international issue. Shutting down the airport and cruise port will do nothing. We need run politicians who do not promote freedom of information and transparent financials out of the government. We need to make sure they do not win the next election. Not just their party, but the actual politicians. There needs to be accountability, that if they don't do their job, they will not have one. We need to make our fellow Bahamians aware of how their money is being wasted.

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banker 10 years ago

Actually, shutting down the cruise port and the banks may be the best plan for the future. We need a real change in the monolithic economy. Saying that Bahamians are living good compared to other countries is like saying "Hey, I'm okay, my cancer is smaller than the other guy's cancer". It is still cancer. We need a robust economy based on other things, like trade, knowledge industries, brokerage, agriculture (yes lets get the Eleuthera pineapple crops growing again instead of Costa Rica eating our lunch), and many other things. We have more resources than we believe, and yet we still use the most over-worn tool of our economy -- tourism. It is time to think outside of the box.

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Publius 10 years ago

Once again, this group is using NIB funds like their personal piggy bank and is funneling those funds into their pockets and the pockets of their associates

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digimagination 10 years ago

We’re taught growing up that ‘We the People’ have the power to affect radical change in the voting booth. But this is another fairy tale. Voting only changes the players. It doesn’t change the game. The Cubans must be leisurely sitting back just waiting for us to collapse and then they will warmly welcome the tourists we have thrown away.

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BahamianAway 10 years ago

It only changes the players because that's what Bahamians want. They don't ask for a game change so all they will continue to get is the same players over and over again. It's up to Bahamians to change the game...

maybe next election not vote at all...force a change.

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