Udecott makes about-turn on hospital contract – Shanghai long gone

THE contractor on a new central block at Port of Spain General Hospital (PoSGH) withdrew from the project in November, Udecott, the project manager, said on Wednesday. But Udecott chairman Noel Garcia later sought to downplay this crucial development in talking to Newsday by saying disputes were not unusual in big contracts and he still hoped Shanghai Construction Group (SCG) would return to the project.

Last Monday, Oropouche East MP Dr Roodal Moonilal, at a UNC meeting, said construction had ended, risking over $300 million in taxpayers money paid to SCG, but at a news briefing on Tuesday Garcia accused him of mischief and on Wednesday accused him of trying to create an unjustified firestorm, speaking to Newsday.

The Udecott statement used terms with an air of finality – "termination" and "withdrawal" – and spoke of them "taking possession of the site," but Garcia still expressed hope for the contract.

The statement said, "By letter dated November 5 2021, SCG issued a notice of termination to Udecott withdrawal of SCG (Caribbean) Group Ltd from the contract with Udecott followed by a period of lengthy discussions and exchanges of correspondence over several months and Udecott continues to dialogue with SCG in an effort to resolve some of the issues which arose.

"The impact of the covid19 pandemic has presented challenges to several entities and Udecott is not exempt in this regard."

Udecott denied $300 million-plus was lost on the project, saying all sums it had paid to SCG had been certified by an independent engineer, directly related to specific milestones, and were for works already completed.

"As such, Udecott cannot support any claims that the monies dispersed to date are a loss to the project."

The statement denied any attempt to force a new local sub-contractor into the project, saying the contract was guided by the FIDIC Yellow Book which gave SCG as contractor the sole responsibility to select and manage sub-contractor.

"At no time during the contract did Udecott engage any sub-contractor for the project or assert control over the sub-contractor engaged by the contractor."

Udecott again denied forcing a sub-contractor on the project.

"Udecott further denies that the project has collapsed.

"As a result of the contractor withdrawing its services on November 19 2021, Udecott took possession of the site shortly after midnight on November 20, 2021 and has ensured that elements of the project remain ongoing. The foundation is complete, the erection of the structural steel previously commenced and we expect a shipment of additional steel for the project by March 2022."

Since taking possession of the site, Udecott has awarded a contract for the removal of asbestos and demolition of the Central Block.

"Udecott reaffirms itself as a successful project management company that has completed projects in every sphere and this will be demonstrated with the completion of the project to redevelop the PoSGH Central Block and the eventual handover to the Government and citizens of Trinidad and Tobago."

Garcia told Newsday Udecott was continuing the demolition work and ordering medical equipment and more steel for construction.

"We are negotiating with Shanghai to see if we can resolve the issues that led to the dispute."

He said SCG was still in TT and still working with Udecott on other projects.

"I think what has happened is Dr Moonilal has taken what I'd term a normal dispute – most contracts of that size have disputes and those disputes are resolved through negotiation and discussion – and has put it into the public domain."

He accused Moonilal of creating a firestorm, when none existed.

"The project has not collapsed. The $350 million has not gone down the drain. There is work ongoing . It's just much ado about nothing. As I said, work will continue on the project."

Garcia said all sub-contractors had been hired by SCG and remain SCG's responsibility, although other aspects of the work have nothing to do with the SCG.

He reiterated that the $350 million was paid for work done, not work to be done, and was based on an engineer's assessment and certification.

Newsday asked why it was only on Wednesday that  Udecott announced SCG had quit since November. He said November was just a few weeks ago, but people make it seem like a year ago.

"Udecott has been talking with them for the last two months. We've been trying to resolve the issue. We met with them as late as Monday. In projects of that size it is not unusual to have disputes."

Newsday asked how Udecott could engage the asbestos/demolition firm in the absence of SCG as main contractor.

"Shanghai was the main contractor through a competitive bidding process, but there are certain elements of the hospital work that are not in their contract."

He confirmed this referred to the asbestos/demolition firm but did not name them.

"That contractor too was confirmed through a bidding process, and asbestos is a specialist job that not everybody could do."

Asked who was monitoring works in the absence of SGC, Garcia replied, "Shanghai are not project managers. Udecott is the project manager. Udecott is responsible for monitoring all the works."

Speaking earlier on I95.5's Morning Show, Garcia also admitted that 70 of SCG's local employees were terminated after the firm walked away from the hospital project last November.

Moonilal told Newsday he and Caroni East MP Dr Rishad Seecheran last week Wednesday in the House of Representatives had got the Prime Minister to state that the SCG contract had collapsed.

"Only today I believe Mr Garcia confirmed the contract was terminated, only after exposed by the UNC."

Saying SCG was a reputable global firm which had built the Couva Hospital within time, he said their recent quit letter exposed concerns that he said now merit a commission of inquiry.

"We understand the Government is still owing Shanghai significant sums of money. This has absolutely nothing to do with covid, with the arrival of workers, as the letter states workers were in the country doing nothing because of the Government's failure to act promptly on several contractual issues."

Moonilal wanted to know who was the other contractor hired by Udecott, saying SCG had complained of unfair treatment.