City might declare failure of bidding in board piling works
City Mayor Jerry Treñas said there is a possibility of a failure of bidding in the P59 million board piling works for the construction of the multi-million seven-storey city hall building after the International Builders Corporation (IBC) signified their intention to back out.
Treñas said he has referred IBC's intention before the members of the legislative body, Bids and Awards Committee (BAC) and the City Legal Office (CLO). He said the declaration will depend on the outcome of the decision of the council and the BAC.
The city council was provided with copies of the IBC's letter. It will be deliberated in today's regular session of the Sangguniang Panlungsod. This is also confirmed by Vice Mayor Jed Mabilog.
The contracted price of the board piling works increased from P59 million to P74 million or a projected increase of P15 million. The contractor will pursue the board piling works if the city government will effect a cost adjustment. IBC attributed the increase in the high cost of cement and rebars. Under the contract, the IBC will do a 28-meters deep board piling works.
The BAC was also instructed to seek the opinion of the Commission on Audit (CoA) and the Government Procurement Policy Board (GPBB) over the matter.
The GPBB was established by virtue of RA 9184 as an independent inter-agency body that is impartial, transparent and effective, with private sector representation. The GPPB was created for the purpose of protecting national interest in all matters affecting public procurement, having due regard to the country's regional and international obligations.