A total of EUR 1000 a day to the Finish for delay – Agreed deadlines for PKC hall construction questionable

Source: Novosti Thursday, 17.07.2014. 08:02
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The construction of the production hall for Finish PKC has not started as it was announced because the tender for the selection of bidder is on halt due to bidders’ complaints. While the state commission should decide on irregularities, the fear that, due to delay, the city could pay the Finish penalties of EUR 1000 daily for every day of deadline extension!

Belgrade-based Meta Balkan won the tender with the lowest offer of RSD 627 mil for design and construction of the hall on 19.000 square meters. However, the second-ranked consortium submitted a complaint, claiming that tender was not carried out in line with the law.

- The group of contractors whose leading member is the company which does not deal with construction and has only one employee won the tender. In addition, they did not deliver auditor’s report although it was defined in tender requests so we claim that this kind of facility cannot be built at this price - Vladislav Dinic, owner of VIG says.

Dinic says that business profit of the selected bidder of at least one billion dinars – as it was required in the technical documentation is questionable as well as the proof of technical capacity, because the fixed assets inventory list is incomplete.

While the Agency for the protection of bidders’ rights does not make a decision on complaint – everything is on standby. Deadline for the construction start defined in tender is December 8 and these days preparation works should start.

In addition, the president of the Commission for public tender implementation and the head of the City Administration in Smederevo, Milijana Novakovic, did not have time to answer to the questions of Novisti.

However, the contract on hall rent which the City of Smederevo and PKC signed March 3, has not been published anywhere. Unofficially, Novosti found out that the document contains a line which states that the Finish can terminate it any moment and they would pay 13 monthly rents as a penalty. The contract, allegedly, also governs “penalties” for delays in the hall construction: for a delay longer than 30 days, a penalty of EUR 1.000 per day up to the total amount of EUR 180.000. If a deadline is extended for more than two months, a lease can terminate the contract.

At the end, let us remind that the town will set aside EUR 8,5-9 mil for the hall and the monthly loan installment will total some eight million dinars.

Memorandum of understanding does not define the headcount number at PKC but the state is obliged to subsidize every new vacancy with EUR 5000 – in three installments by the end of 2016, if the Finish employ 1.500 workers. The state promised customs benefits for import and export of material and machinery and in the next six months, PKC will be freed from paying income tax.
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