Faisal Avenue Flyover: Irregularities, delays cost CDA Rs60m, says audit report
Changes in original design, failure to recover differential cost added to the bill.
ISLAMABAD:
Irregularities worth Rs60 million have been detected in the construction of the Faisal Avenue Flyover and underpass. The mega project that was opened for traffic in 2008 caused millions in losses to the national exchequer due to faulty design, mismanagement and inordinate delay in work, according to a report prepared by the Auditor General of Pakistan Revenue for the years 2009-10.
The Capital Development Authority (CDA) had approved the project’s PC-I at a cost of Rs992.5 million which was to be completed in 12 months. The contract for construction of the project was awarded in March, 2007. But the project was delayed for 18 months due to ill-planning, feasibility study and faulty designing, the report said. The project ran overtime by 175 per cent, which escalated the cost of the project by 16.9 per cent over and above the original estimate.
The report reveals that the project was undertaken without carrying out proper feasibility study. Moreover, an additional Rs166.267 million on account of steel reinforcement was paid to the contractor over and above the contract. It was also mentioned that post-bid amendments were made and millions were paid through variation orders without any provision for them in the original estimate.
The total expenditure paid on June 30, 2009 was Rs1,160.221 million, including mature liabilities of Rs100.965 million. The original design was changed to pre-cast, pre-stressed concrete girders without penalising the consultants. One of the main reasons for a change in the design was the contractor’s failure to arrange for shuttering equipment, said the report. According to official documents, the work was being conducted by Matracon, who had been paid Rs815.283 million for the job.
Furthermore, the contractor was granted five variation orders amounting to payment of an extra Rs375.38 million which amounts to a 46 per cent deviation from the approved estimate. According to the audit report, the contract was awarded on National Highway Authority’s schedule of rates, 2006, but items like bridge piling concrete in box girder were not included in it.
Meanwhile, additional work for Rs76 million was awarded to another contractor Ghulam Rasool and Company at higher rates without adjustment or recovery of the differential cost of Rs41.197 million from the original contractor. Carpeting of the road was executed by the department without affecting recovery from the original contractor. Extra expenditure of Rs23.527 million was incurred on account of an unjustified deviation, filling the site with granular material instead of earth.
The audit report stated that the project involved unauthorised deviation of items like imported expansion joints and 12 metre-long, conical single and double arm electric poles. The contractor failed to complete the project within the stipulated period of 12 months. The first extension in time limit granted by the member engineering instead of the competent authority, i.e chairman CDA, was irregular. As a result, damages amounting to Rs81.528 million were not recovered from the defaulting contractor, highlighted the report.
Published In The Express Tribune, June 26th, 2012.
Irregularities worth Rs60 million have been detected in the construction of the Faisal Avenue Flyover and underpass. The mega project that was opened for traffic in 2008 caused millions in losses to the national exchequer due to faulty design, mismanagement and inordinate delay in work, according to a report prepared by the Auditor General of Pakistan Revenue for the years 2009-10.
The Capital Development Authority (CDA) had approved the project’s PC-I at a cost of Rs992.5 million which was to be completed in 12 months. The contract for construction of the project was awarded in March, 2007. But the project was delayed for 18 months due to ill-planning, feasibility study and faulty designing, the report said. The project ran overtime by 175 per cent, which escalated the cost of the project by 16.9 per cent over and above the original estimate.
The report reveals that the project was undertaken without carrying out proper feasibility study. Moreover, an additional Rs166.267 million on account of steel reinforcement was paid to the contractor over and above the contract. It was also mentioned that post-bid amendments were made and millions were paid through variation orders without any provision for them in the original estimate.
The total expenditure paid on June 30, 2009 was Rs1,160.221 million, including mature liabilities of Rs100.965 million. The original design was changed to pre-cast, pre-stressed concrete girders without penalising the consultants. One of the main reasons for a change in the design was the contractor’s failure to arrange for shuttering equipment, said the report. According to official documents, the work was being conducted by Matracon, who had been paid Rs815.283 million for the job.
Furthermore, the contractor was granted five variation orders amounting to payment of an extra Rs375.38 million which amounts to a 46 per cent deviation from the approved estimate. According to the audit report, the contract was awarded on National Highway Authority’s schedule of rates, 2006, but items like bridge piling concrete in box girder were not included in it.
Meanwhile, additional work for Rs76 million was awarded to another contractor Ghulam Rasool and Company at higher rates without adjustment or recovery of the differential cost of Rs41.197 million from the original contractor. Carpeting of the road was executed by the department without affecting recovery from the original contractor. Extra expenditure of Rs23.527 million was incurred on account of an unjustified deviation, filling the site with granular material instead of earth.
The audit report stated that the project involved unauthorised deviation of items like imported expansion joints and 12 metre-long, conical single and double arm electric poles. The contractor failed to complete the project within the stipulated period of 12 months. The first extension in time limit granted by the member engineering instead of the competent authority, i.e chairman CDA, was irregular. As a result, damages amounting to Rs81.528 million were not recovered from the defaulting contractor, highlighted the report.
Published In The Express Tribune, June 26th, 2012.