PAHW collected KD 104 million in fines from defaulting contractors

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30 projects allegedly not completed on time

KUWAIT CITY, March 28: The Public Authority for Housing Welfare (PAHW) has tightened legal procedures against defaulting contractors and those responsible for project delays, reports Al-Qabas daily. Reliable sources said a total 104 million dinars fines have been initiated against contractors after finding them guilty of not completing 30 projects on time. According to the sources, the fines included the liquidation of bank guarantees, delays and the costs of the supervisory body. The institution also took legal measures against one of the consulting offices for failing to implement the work of the contract for consulting services in a vital housing project.

In a letter addressed to the Central Tenders Committee, the PAHW stated that the imposition of penalties against the violating office took place in accordance with the applicable regulations and controls. The source pointed out that the PAHW does not hesitate to punish companies which fail to complete work on time as per the terms and conditions of the contracts concluded between the two parties, noting many of the procedures followed, including preventing such companies that are late in completing the contract by more than 10% for local companies and 12% for foreign companies from participating in the tenders bidding until the completion percentage is adjusted, in accordance with the regulations approved by the institution.

The source added, “All contractual fines are also applied in accordance with the terms of the contract as soon as there is a delay in completing the work beyond the contractual date and the costs of the supervisory body throughout the delay period.” The source indicated that, in implementation of the Public Tenders Law, the Central Agency for Public Tenders is being notified of the position of the defaulting companies that have been penalized in accordance with the regulations and controls in force.

The source confirmed that if the contractor fails to implement the works, the project will be withdrawn from him due to his inability to complete the contract work. The five actions taken against defaulters include preventing the defaulting company from participating in future PAHW tenders; notifying CAPT of the position of the troubled companies; imposing penalties in accordance with the regulations and controls; withdrawal of the project if the contractor has failed and is unable to complete the contract work and liquidation of bank guarantees and deduction of the costs of the supervisory body.

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