DPWH seeks to collect 30% of contractors' performance bond

The Department of Public Works and Highways (DPWH) has signed a partnership with the Insurance Commission (IC) for the speedy processing of insurance claims of the government from erring contractors who have been implicated in substandard and nonexistent or ghost flood control projects.

- RAINIER ALLAN RONDA

"The government took out insurance contracts to make sure that contractors will perform the projects properly for the DPWH. This way, if they have deficiencies in their project, the government has a way to get back even just a portion of the contract it signed with the contractor," Public Works Secretary Vince Dizon explained.

"If there is a case with evidence that it is a ghost, or substandard or anomalous (project), immediately we will file an accompanying claim (on the performance bond) under this agreement with the Insurance Commission," he added.

Dizon said the government can claim as much as 30 percent of the contract value.

Insurance Commissioner Reynaldo Regalado said the IC was giving top priority in helping the DPWH make the claims on the erring contractors.