Naru queries contractor liability in Lae port defect

By MATTHEW VARI

Sunday, March 27, 2016 (Sunday Chronicle, PNG)

MOROBE Governor Kelly Naru has called on the State to ensure defects reported by independent engineers of the Lae Tidal Basin Wharf are fully liable.

Naru said the project contractor, China Harbour Engineering Company’s (CHEC), construction of the new wharf has a major structural defect when recently investigated by a professional independent engineer.

“That report has shown that the new Lae wharf port facility has got a major structural defect that needs to be rectified.”

“In terms of the contract that the state has with the contractor who constructed that port facility. Is there a clause on the defects liability of that wharf infrastructure that the government can use to get the contractor to fix the structural defect?”

“If yes. When can it do so and if not how does the government intend to get that structural defect identified by an independent professional engineering firm to be rectified.”

Public Enterprise and State Investments Minister, William Duma, said the issue was raised in the press through statements from both IPBC and CHEC.

“Like any other contracts there is always a defect liability period. In this case one has to understand the arrangements included at that time.”

“It is a project undertaken with international finances. The management was left to management teams by those financers and all of us relied upon those project managers and after the construction completed it was found that some defects had to be rectified and of course the contract already provides for that.”

He said the contractors recognized that and have agreed to the work needed to be done, adding that the State itself went out its way to engage an internationally known Dutch Company to undertake studies.

“We expect the report to be available in the next two week. Once that is available then of course we will request the contractor to remedy those defects and the contractor has already agreed that will be done.”

“We will immediately act on this.”