APCA's Rs 17 billion outstanding amount: contractors threaten to stop work on projects if dues not paid by February 28

All Pakistan Contractors Association (APCA) on Wednesday warned to stop working on all the on-going projects if the outstanding amount of Rs 17 billion against National Highway Authority (NHA) was not paid by February 28.
Speaking at a news conference here, Vice Chairman APCA Asadullah Khan, former chairman APCA Engr Ahmed Ghazal Usmani along with other office-bearers of the APCA said that an amount of Rs 11 billion was outstanding against the NHA of the new projects and Rs 6 billion of the road maintenances.
They expressed serious concern and anxiety on the non-payment of dues of the work done by the contractors working with NHA, Islamabad. They said that majority of contractors working with NHA have not been paid their legitimate dues due to which the contractors are facing serious difficulties of clearing their corresponding liabilities of the staff, labour and material suppliers.
They were of the view that the contractors earned the contracts after due competition on the basis of the tenders floated in national press and it is unfair, unjust and breach of contract on the part of the NHA, not to pay the dues of work done so far.
They urged President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani and Federal Minister for Communications Dr Arbab Alamgir Khan to take serious notice of the non-payment of the dues and non-acceptance of bid security and performance security offered by the bidders in the form of insurance bond as laid down in PEC Standard Form of Bidding Documents approved by the Executive Committee National Economic Council (ECNEC).
They further said that Chairman NHA should be asked to clear the dues of work done by the contractors immediately and implement PEC Standard Form of Bidding Documents including bid security and performance security in the form of insurance bond from bidders in the interest of promotion of construction industry and capacity building of contractors of Pakistan. Asadullah Khan said that contractors borrow money from banks and other financial institutions on high interest for execution of the projects, adding that the NHA should have to release fund to the contractors immediately.
However, here the situation is quite different as the authority has not paid their dues of the work done so far. He further said that Executive Committee of National Economic Council (ECNEC) in its meeting held on November 12, 2007 had approved Standard Form of Bidding Documents (Civil Works) dated June 11, 2007, which has been notified by the Planning and Development Division, Planning Commission in February 12, 2008.
He added that under the document the bidders have been given the option of tendering bid security and performance security from an insurance company having at least AA rating from PACRA/JCR. He said that NHA has been accepting bid security and performance security from the bidders in the form of insurance bond.
Engr Ahmed Ghazal Usmani strongly condemned the action of NHA to refuse bid security and performance security in the form of insurance bond, adding that it was a deliberate attempt on the part of the NHA to stop the capacity building of contractors, which is dangerous for the country. He further said that the facility of furnishing bid security in the form of insurance bond has been provided for the capacity building of the contractors because the contractors do not have unlimited resource and property to offer as a collateral to the financial institutions.