Monrovia – A Liberian construction firm says it is being strangulated by the National Housing Authority (NHA) due to that government agency’s refusal to complete payment it owes the company.
Report by Alpha Daffae Senkpeni, [email protected]
CJ Construction Incorporated says this has constrained them to sue NHA at the Monrovia debt court for the agency refusal to pay US$22,565.01 retention fee.
The Liberian construction company was one of several construction companies contracted by NHA to build 35 housing units at the NASSCORP Village in Brewerville. CJ Construction was hired to construct eight of the housing units in 2005.
“We worked very hard to make sure we uphold the integrity of our company especially as a Liberian firm,” explains James Johnson, Senior Managing Partners, CJ Construction Incorporated. “And when we completed those units, the NHA is failing to pay our retention fee after we wrote them on several occasions asking them to evaluate the project.”
The retention fee, according to contract papers obtained by FrontPageAfrica, was to be held for ninety (90) days upon acceptance of the project by the NHA to cover the ‘defect liability period’.
The contract further mentioned that the defect liability period allows for the NHA to determine if there are faults on the project after and when no issues are found, the retention shall be released to the Contractor. Up to now, NHA has not informed the contract if there are existing issues but has remained tightlipped over the payments.
“On 29th February 2016 we sent a letter to the National Housing Authority (NHA) addressed to the Deputy Managing Director, Prince Wreh informing him that the construction of the eight housing units for the National Housing Authority at Brewerville are completed and requested for the Final Completion Certificate,” a letter in possession of FPA, written by the firm to NHA states. “Since our initial notification followed by several correspondences to the NHA for the Final Completion Certificate, we have not heard from the NHA.”
In accordance with the contract provision, the housing authority was to pay the 10% percent which is US$22,565.01 to the firm on May 29, 2016, something the NHA has failed to do and has prompted the construction company to seek litigation.
Communications exchange between the construction firm and NHA, obtained by FPA show that the keys for the eight units were turned over to NHA on February 26, 2016 and when CJ construction officially requested its balance payments on June 16, 2016, the housing authority said it needed to review and issue a certificate before the payment.
“The National Housing Authority notes your request for the above mentioned payments and wish to inform you of its standing obligation to your company, which shall be met after review and approval by both NHA Technical/legal departments,” writes Prince A. Wreh, Deputy Managing Director, NHA.
But the contractor disagrees, terming the NHA’s decision as a ploy to strangulate their company through delays in making the balance payments.
And on June 24, 2016, the company replied to Mr. Wreh’s letter decrying the challenges they are enduring due to the payment delays.
“We have subcontractors that have mortgaged their properties to finance the project and ask that this matter be treated with urgency as they need to meet up with their own obligations.”
Despite completion and signing off by the NHA’s Field Inspector, Mr. Steve Mewh on 26 February 2016 and frequent requests by the company for NHA to inspect and issue of the final completion certificate, NHA failed to act, according to CJ Construction.
Already, the NHA has begun selling the units for US$11,000.00 as part of government efforts to provide affordable homes for its citizens, and when President Ellen Johnson-Sirleaf recently toured the projects she heaped praises on the NHA.
NHA has commenced the construction work on phase III of NASSCORP Village Housing Estate in Brewerville, outside Monrovia. There will be additional 70 housing units in fulfillment of government’s mandate to provide housing for citizens.
Although the defective liability period expired on 29 May 2016, the CJ Construction says Liberia’s housing authority is ignoring several requests to make the payments.
“We have written many letters to the housing authority for our money, one of those letters requesting that the total amount of US$28,307.88 be paid to us which includes US$22,565.01 held for the contract retention and US$5,805.87 for change order #02 and 03.”
Now that the construction company has taken the case to the Montserrado County debt court, it says such action by the NHA is detrimental to the existence and survivability of Liberian construction firms that are sometimes criticized for underperforming.
At a Public Procurement and Concession Commission’s (PPCC) forum held in June this year, many Liberian vendors expressed dissatisfaction over delays in payments by government procuring entities. Representatives of Liberian firms who attended the forum complained that these delays impede the operation of these firms.
Sources at the debt court in Monrovia say Judge James Jones has summoned both parties in the case but it is not clear when the court will rule into the matter.