On December 2, Mr. Văn Đức Tiến Hưng, Chief Accountant of the Hue City Information Technology (IT) Center, announced the recovery of nearly VND 1 billion in contract security deposits from the contractor for Package No. 12 of the Hue City IT Center building project.
This amount has been deposited into the state budget account as guided by the Hue City Finance Department and will not be used for the investment or completion of the aforementioned package.
Package No. 12: Construction of the Hue City IT Center building in Thanh Thủy Ward
In December 2023, the joint venture between Cong Thanh Construction Investment and Development JSC and Hoang Nhat Phat Trading Co., Ltd. won the bid for Package No. 12 with a contract value of nearly VND 34.6 billion after a reduction of VND 6.4 billion. Cong Thanh is the main contractor, responsible for the basic construction, while Hoang Nhat Phat handles the fire prevention and fighting system. The project is scheduled for completion by June 30, 2025.
The joint venture completed approximately 44% of the contract value, including additional work. Due to Cong Thanh’s financial inability to continue the project, the Hue City IT Center terminated the contract with the joint venture on July 18.
The project has been stalled for months after the joint venture abandoned it.
The investor has disbursed 54% of the contract value, equivalent to nearly VND 18.68 billion, including payments for completed work (70.3%) and advance payments.
Mr. Hưng stated that the project management unit, the Hue City Urban Development and Investment Project Management Board, along with the supervision consultant, is reviewing the additional work volume claimed by the contractor, amounting to over VND 1 billion, for settlement and deduction from the advance payments. The delay in settlement, according to Mr. Hưng, is due to the meticulous measurement and verification of the work volume.
Package No. 12: Construction and equipment costs for Phase 1 include the construction of the office building, guardhouse, motorcycle parking area, termite control, electrical system, and all equipment, with a bidding price of nearly VND 41 billion.
Additionally, the investor is taking parallel steps to restart the remaining work on Package No. 12 to complete the project. The Hue City IT Center has met with Hue Construction and Installation JSC, the second-ranked bidder after the joint venture. However, due to its involvement in multiple projects, the company declined to take over the remaining work left by the previous joint venture.
Mr. Hưng explained that, according to regulations, after terminating the contract with Cong Thanh – Hoang Nhat Phat, the remaining work on Package No. 12 will be offered to bidders who previously participated but were not selected.
The construction price based on the signed contract with Cong Thanh – Hoang Nhat Phat is VND 34.6 billion. The next contractor will complete the remaining value after the joint venture’s abandonment.
If the next contractor declines, the remaining work will be publicly tendered. The total construction cost for this package will not exceed the VND 41 billion approved by the Hue City People’s Committee.
Mr. Hưng also mentioned that during a meeting with the Inspectorate, Department of Construction, and Department of Finance, all parties confirmed that there is no basis or authority to hold the investor accountable for the management and implementation of Package No. 12.
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