In a letter dated last Monday, the Department of Contracts informed Assets Investments Ltd that it had officially terminated, with immediate effect, the contract awarded to the company in November 2002 for the construction and finishing of 33 flats, five shops and 29 garages at Lion/Argotti Street, Floriana. This development is part of Government’s ongoing programme for the provision of social accommodation.
When scientific tests carried out as a matter of routine in April revealed that the material used for the construction of some of the ceilings was of an inferior quality and below the standards acceptable to the Housing Authority and the Department of Construction and Maintenance, the contractor was immediately requested to suspend all work pending further investigations.
The Authority made its presentations to the Department of Contracts, wherein it asked the Department to terminate the contract on the grounds that it had serious concerns about the quality of the material being used by the contractor. Furthermore, the contractor had also infringed other contract conditions in that he had failed to deliver according to timeframes established in the contract.
Asset Investments Ltd expressed doubts regarding the methodology used in the taking of samples, the qualifications of the technicians and the accreditation of the laboratories involved in these tests. Given the sensitivity of the matter, the Contracts Committee commissioned two university experts to scrutinise the methodology used. Arrangements were also made to have other samples taken by a qualified expatriate technician to an accredited UK laboratory.
The results of these tests were received by the Contracts Committee at the end of May and confirmed the previous results. After due deliberation by the Committee, the contract for the work has been terminated and the Government has reserved the right to seek compensation for bad workmanship and for the late completion of the work.
The Housing Authority is in the process of receiving a report on the structural condition of the building with a view to rectifying defective work as necessary. Should demolition and reconstruction of parts of the development be indicated, these will be carried out under the strict supervision of structural experts.