The Legislative Assembly (AL) held a plenary debate yesterday on whether clauses on liquidated damages should be included in future public work contracts or not.
Legislator-cum-unionist Ella Lei Cheng I, who proposed the debate, said last month that liquidated damages should be paid by contractors working on public construction projects who breach the terms and conditions of their contracts resulting in delays and cost overruns.
Speaking during the debate, Secretary for Transport and Public Works Raimundo do Rosario said that according to a decree-law on the legal framework of public work contracts, promulgated in November 1999, the government can fine contractors based on the duration of the delays in their public work projects. The policy secretary cautioned that public work contractors might “run away after paying liquidated damages” if there were such clauses in place.
