When contractors finish late, they are supposed to pay penalties for every day of delay. DPWH did not charge these penalties in many cases, and when it did, the amounts were far less than what they should have been, costing the government over P153 million.

Why It Matters

Recommended Actions

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Original Audit Finding Excerpt

"x We recommended and Management of DPWH RO and 13 DEOs in CAR, RO and 6 DEOs in Region I, RO and 3 DEOs in Region II, RO and 12 DEOs in Region III, RO and 7 DEOs in Region IV-B, RO and 13 DEOs in Region V, RO and 9 DEOs in Region VI, RO and 6 DEOs in Region VIII, RO and 9 DEOs in Region IX, RO and 8 DEOs in Region X, 4 DEOs in Region XI, RO and 7 DEOs in Region XII, and 6 DEOs in Region XIII agreed to: a. ensure full coordination with other government agencies, among others, the local government units and Department of Environment and Natural Resources, including the community and private utilities, to achieve effective and more synchronized planning and implementation of programs and projects; b. consider the disqualification and/or blacklisting of contractors involved, and initiate the immediate take -over process of terminated projects and projects with negative slippages of 15 percent and above to facilitate completion of the projects within the project timeframe"

Source Document