Contractor blamed for oversight

 KUMUL Consolidated Holdings (KCH) says it is disappointed with the performance of a contractor which was engaged to review and approve all designs and construction works in Phase 1 of the Lae Tidal Basin project.

KCH said the contractor, Korea Engineering Consultants Corporation (KECC), was not able to identify major defects in the Phase 1 design and construction.

“KECC’s performance has been disappointing. It is only through KCH’s intervention that defects were identified and consequently brought to the contractor’s attention,” the State-owned entity said in an advertorial in The National today. 

It is in response to revelation of major structural defects in Phase 1 of the landmark project, which was completed by China Harbour Engineering Company (CHEC) in 2014.

The National reported last Friday that Phase 2 of the project had been delayed following the discovery of the defects by Australian engineering firm AECOM.

“At the time of appointment, KCH, represented through its Project Management Unit in Lae, had no reason to question the professional qualities of KECC as the supervising consultant and the adequacy of the inspections carried out on site,” KCH said.

“It must be noted that KECC was selected through an international tender process and appointed using professional evaluation guidelines.

“KECC signed off on all works carried out and consequently issued the Certificate of Substantial Completion (CosC).

“The CosC includes a defects liability period of one year starting from the date of issuance of the CosC. Within this period, the contractor has to make good at its own cost any identified defects, indemnifying the client of carrying any costs involved.

“KECC was not able to identify major defects when important design specifications were not adhered to.”