Gov’t out $400k on MRCU hangar project

The government is out almost $400,000 paid to Hadsphaltic Ltd. as a mobilisation fee to build the Mosquito Research and Control Unit’s new hangar near Owen Roberts International Airport.

Hadsphaltic was put into liquidation last July, only weeks after it abandoned the job site.

The mobilisation fee for the contract represented 10 per cent of the total cost of the contract, which was for $3,998,273.79.

Responding to a Freedom of Information request, Niasha Ross, the Public Works Department project manager for the hangar project, stated the government is seeking to reclaim the mobilisation fee through the liquidator, Johnson Smith and Associates.

In the meantime, construction on the hangar facility remains idle, with no completion date set.

The Cayman Islands Government officially cancelled its contract with Hadsphaltic to build the MRCU hangar on 7 August, 2010.

“Forty per cent of the work has been completed,” Ms Ross said. “Tenders for the completion of construction have been closed at the Central Tender’s Committee; however, there has been no award of contract to date.”

Ms Ross said several other parties have claims against Hadsphaltic and that the government would most likely get its money after creditors of the company were paid.

The 12,403-square-foot hangar is meant to be an all-purpose facility, which would house aircraft, a workshop, paint shop, offices and bonded storage, which is important for aircraft parts, according to Bill Petrie, director of MRCU.

“The plan is for there to be a stand-alone pesticide storage and a mixing plant, a loading area for the plane, as well as a collection pan to stop any contamination from toxic chemicals used in our operations. It will be hurricane rated and protect our aircrafts and generators,” said Mr. Petrie.

The hangar facility was meant to replace the old MRCU hangar, which was condemned after sustaining heavy damage during Hurricane Ivan in September 2004.

Since that time, the MRCU’s operations have been working out of a small trailer and a temporary hangar.

1 COMMENT

  1. Just trying to piece it together: The government is out almost 400,000 paid to Hadsphaltic Ltd. as a mobilisation fee- the mobilisation fee for the contract represented 10 per cent of the total cost of the contract, which was for 3,998,273.79.-Forty per cent of the work has been completed, Ms Ross said. So by the info. in this article I interpret that aprox. 1.6 million is compete (40%) and the Govt. has only paid 400,000. So the Govt. is ahead by 30% …? What am I missing here?

  2. Norman raises a good point. If Hadsphaltic was the firm that completed 40% of the construction then they could be owed an additional 1.2 million for the work they performed. The liquidators will be looking to collect on all of the receivables so get ready to dig into your pockets Cayman.
    Perhaps they abandoned the site because they were not being paid by Government. This is not as outlandish as it sounds. It happened twice at the new schools and Govt is still embroiled in the lawsuits.

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