The construction of the new John Gray and Clifton Hunter campuses cost $75 million between May 2009 and August 2011.
Education Minister Rolston Anglin outlined the figure during a sitting of the Legislative Assembly. He said the contract agreement of Cayman Construction Management Services Ltd, the construction manager, had been extended and now has a revised value of $3,905,000. Originally, he said, the agreement was a value of $2,269,772. But because of numerous delays and procurement of new subcontractors, the original targeted completion date of July 15, 2011, had been moved to February 2012.
“The construction manager’s contract relates to the completion of the Clifton Hunter project and the completion of buildings 1, 3, 4C and 6 at the John Gray project, with options for additional services should they be required.
“This work was designed, and publicly tendered accordingly, in order to provide the government with maximum flexibility as to how best proceed with the projects, particularly in light of the uncertainty caused by the termination of the former general contractor,” Mr. Anglin said.
The construction manager, he said, was supervising all of the construction work performed by the multiple prime contractors and in so doing was required to manage quality control, schedule and safety.
“The construction manager is paid on a monthly basis for services rendered, primarily by position on the site, in accordance with the proposal submission and the durations noted. If the schedule is extended through no fault of the construction manager then additional services would be due through the time extension for the positions provided,” the minister said.
Opposition leader Alden McLaughlin asked why there had been necessity for such an extension. Mr. Anglin replied the government needed to re-engage the services of subcontractors previously engaged by former contractor Tom Jones International. Because these subcontractors already had knowledge of the job and had been paid by Tom Jones for equipment, to look for another contractor would have ‘lost the dollar value’ in these areas. Further delays could have ensued through any additional tendering process, he said.
Mr. McLaughlin enquired as to the status of legal proceedings involving Tom Jones International and the government.
Mr. Anglin said the proceedings commenced by Tom Jones International were not for breach of contract, but rather in regard to non-payment of two pay certificates pursuant to the AIA contract.
“[Tom Jones International]’s claim that a payment it says is outstanding under the contracts are ongoing. The government is actively defending this action and is currently pursuing an application for orders that [the company] provides security for its costs before the matter proceeds further,” Mr. Anglin said.
While a date for the substantive hearing of these claims in Grand Court had not been allocated, it was expected it would take place in early 2012.
Related proceedings in which the company sought declarations regarding the validity of two performance bonds provided by Tom Jones International were also before the court and it was anticipated that this application would be listed for hearing at around the same time.
“In addition, in September 2010, Tom Jones International issued a Notice to Arbitrate certain other claims under the contracts.
The arbitration, which will be conducted privately and will also involve the hearing of various counterclaims by the government, has not yet been progressed by Tom Jones International but is welcomed by the government as a forum in which the claims held by both parties can be resolved fully and finally,” the education minister said.
He said due to the matter being before the courts it was sub judice and therefore it was not prudent to go any further into the matter than the answer provided, which had been guided by the government’s legal team.
The two schools will have their own facilities to cater for meals, snacks and home economics lessons following a redesign. The production kitchen will be added to the side of the Design and Technology building to accommodate this.
Mr. Anglin said the total cost for modifications would be $156,000 and an additional $73,000 for design work.
However, he said a previous decision to remove commercial kitchens from the projects had saved the government $750,000, so there was a net cost of zero.