Contractor Abandons $1.5 Million Project, Leaving Hue’s Tech Hub in Limbo
Construction on Hue’s Information Technology Center, a 3,650m² facility with 5 floors, a rooftop, and a basement located in Zone E of the An Van Duong New Urban Area (Thuy Thanh Ward, Hue City), has been stalled for months after the contractor for Package 12 abruptly abandoned the project mid-construction.
Previously, the joint venture between Cong Thanh Construction and Development Investment JSC and Hoang Nhat Phat Trading LLC outbid three other contractors to win the tender with a bid of nearly $1.5 million, a reduction of $320,000 from the initial $1.7 million tender. Cong Thanh, the primary contractor, was responsible for the main construction, while Hoang Nhat Phat handled the fire prevention systems. On December 29, 2023, the Hue City Project Management Board signed a contract with the joint venture, stipulating a 600-day completion period and a $43,000 bid security deposit.
Following the tender win, Cong Thanh immediately subcontracted the entire construction work to Quang Quyet Construction and Trading Services LLC in Hue for $200,000. Cong Thanh assigned only a few key personnel to oversee the project.
However, after completing the rough construction phase (approximately 44% of the contract value, including additional work), Cong Thanh requested to halt construction, citing financial difficulties that prevented further progress. Meanwhile, Hoang Nhat Phat lacked the capacity to complete the remaining work.
By July 18, the Hue City Information Technology Center (the project owner) terminated the contract with the joint venture and imposed a $1,300 fine for delays in construction.
Notably, the contractor for Package 12 has yet to submit sufficient documentation for additional work payments, preventing the project owner from recovering the $43,000 contract guarantee and the $200,000 advance paid to Cong Thanh.
This situation has further delayed the re-tendering process and the completion of the project.
The Hue Information Technology Center remains at a standstill following the abandonment of Package 12. The site is currently surrounded by corrugated iron fencing.
Previously, the Hue City People’s Committee directed the project owner to prepare adjusted cost estimates and a contractor selection plan for project continuation. Additionally, the Committee tasked the City Inspectorate with investigating and addressing any potential liabilities of the project owner under administrative penalty regulations for planning, investment, and construction in public projects.
