The Commission on Audit asked the Housing and Land Use Regulatory Board to impose appropriate sanctions against a building designer, consultant or agency official concerned in recommending an erroneous estimate of the building cost.
COA, in its 2018 annual audit report for the HLURB, noted that as a result of the designer’s “deficient bill of quantities”, variation orders were sought by contractors, thus, resulting in the increase of the construction contract cost from P1,056,067,935.83 to P1,167,288,079.07, representing a 10.53 percent difference.
RA 9184 or the Government Procurement Act provides that appropriate sanctions should be imposed for variation orders whose cumulative value will “go beyond 10 percent but not more than 20 percent of the original price.” IN 2016, the HLURB entered into two contracts with the Joint Venture Tokwing Construction Corporation and Metro Stonerich Corporation for the civil works for P1,017,563,875.83.
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