Cebu City Medical Center Contractor Cries Foul Over Terminated Contract

Cepci's contract for the Cebu City Medical Center was terminated in 2023, with the company claiming non-payment of obligations. The project remains delayed, with disputes between the contractor and city government hindering its completion.

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Cebu City Medical Center Contractor Cries Foul Over Terminated Contract

Cebu City Medical Center Contractor Cries Foul Over Terminated Contract

C.E. Padilla Construction Inc. (Cepci), one of the contractors of the unfinished Cebu City Medical Center (CCMC), has cried foul after being informed by the Cebu City Government that its contract was terminated in 2023. Cepci President and Chairman Catalino Padilla claims that the company has not received any of the obligations due to them.

Why this matters: The delayed completion of the Cebu City Medical Center has significant implications for the healthcare system in the region, potentially affecting the quality of care and access to medical services for thousands of people. Moreover, the controversy surrounding the contract termination and non-payment of obligations raises concerns about the transparency and accountability of government contracts and their impact on the local economy.

Cepci's original contract with the City was suspended in September 2021. In March 2023, the City Government invited Cepci to discuss the status of the CCMC project and address concerns that had hampered the completion of the construction. Cepci was directed to resume construction without an approved supplemental contract, with conditions including the reconciliation of all additional works and full payment for all works accomplished prior to the suspension order.

However, the agreements did not materialize. "Unfortunately, none of the foregoing agreements materialized," said Catalino Padilla. The City Government found defects on the fourth to the sixth floor of the new CCMC building during an investigation in April 2023. Cepci started repair works and review in April 2023.

Mayor Michael Rama promised to complete the 10th floor of the CCMC by February 2024 at no cost to the City Government, stating, "We already have the money, money that did not come from City Hall." However, this deadline was not met. CCMC medical director Peter Mancao said in January 2024 that the construction of the remaining three floors would not start in February.

On March 19, 2024, the City Government informed Cepci that its contract was terminated in 2023. The second construction agreement for the CCMC expired on June 12, 2023. Cepci submitted its eighth billing progress in August 2023, which is still being processed.

The unfinished Cebu City Medical Center remains mired in delays and disputes between the contractor and the city government. With the termination of Cepci's contract and unfulfilled promises, the completion of the hospital's construction hangs in the balance, leaving the contractor crying foul over non-payment of obligations.

Key Takeaways

  • C.E. Padilla Construction Inc.'s contract for Cebu City Medical Center terminated in 2023.
  • Contractor claims non-payment of obligations, despite submitting billing progress.
  • City Government cited defects in the building, but agreements to resolve issues didn't materialize.
  • Mayor promised to complete 10th floor by Feb 2024, but deadline not met.
  • Completion of hospital construction hangs in balance due to disputes and terminated contract.