The National Council for Construction (NCC) has with immediate effect suspended Yangts Jiang Enterprises Limited, a Chinese construction firm, for non performance.
Yangts Jiang Enterprises Limited is reported to have allegedly failed to meet contractual obligations towards the construction of Energy Regulation Board (ERB) headquarter offices in Lusaka.
NCC Public Relations Officer (PRO) Chama Mwansa confirmed the development in a press statement released to ZANIS in Lusaka today.
Ms. Mwansa said the council has on many occasions engaged the contractor to resolve all outstanding defects in the building but have not been done within the stipulated period.
“NCC has with immediate effect suspended Yangts Jiang Enterprises Limited for non performance. The council has on many occasions engaged the contractor to resolve all outstanding defects in the building but that has not been done within the stipulated period and all registration certificates for 2014 will not be renewed until further notice,” Ms. Mwansa explained.
She said Yangts Jiang Enterprises Limited is therefore prohibited from carrying out any construction works in the country until the suspension is lifted.
She added that the council’s mandate was to regulate public infrastructure to ensure value for money on all infrastructure development projects.
“As a regulatory agency, NCC remains committed to improving the quality of infrastructure in support of national development and would not hesitate to revoke licences of contractors found wanting,” she said.
ZANIS
NCC should we also suspend you for not following up on the 20 % contract going to local contractors. who is sleeping on this move. only the political favored seems to get it. where are you???
The only effective way to punish such contractors is to sensitize future clients about the past performance of the contractor. Clearly, highlight those that didn’t perform well on previous projects and warn the clients, whether the erring conmen have changed names or are operating under the shadows of any Zambian company. Just like the credit check systems.
I think they have not been paid their money for the contract. So this is damage control on the part of the government.
Wrong move! You cant de-register a company because of defects. If this company takes you to the court of Arbitration(assuming there is one), you will lose spectacularly coz the contractor simply repudiated the contract by refusing to comply with proper instructions to rectify defective works. The building contract has express remedies for this type of breach, one of which is to bring in another contractor to rectify and pay him from the retention money owed to Yangts. Alternative deduct liquidated damages. I pray that NCC looked at the prev certs and they deducted retention, otherwise shauri yako. The truth is, Yangts refused to rework, coz it will cost them more than the outstanding retention. Check the contract again, again and again!!!
I agree with you brother, that is the way to go
@Twende, My partner personally went to see Ms. Mwansa and complained about ignoring Zambian contractor and not forcing foreign contractor to give 20% of contract value to local contractors. Why has not Ms. Mwansa invoked Performance Bond issued by the financial institution ( a Bank or most probably Goldman Insurance Company, a company known to provide cheap bond and insurance facility to the Chinese while insist on collateral and high charges from Zambian Contractors)?
Recover the money from the Bank/Goldman Insurance company and get the defects repaired.
This is a wrong move for you cant de-register a company because of defects. If this company takes you to the court of Arbitration(assuming there is one), you will lose spectacularly coz the contractor simply repudiated the contract by refusing to comply with proper instructions to rectify defective works. Check your building contract for express remedies for this type of breach, one of which is to bring in another contractor to rectify and pay him from the retention money owed to Yangts. Alternative deduct liquidated damages. I pray that NCC looked at the previous certs and they deducted retention, otherwise shauri yako. The truth is, Yangts refused to rework, coz it will cost them more than the outstanding retention. Check the contract again, again and again!!!
NCC has incompetent people, it is full of Cadres who have never been to school! In the Contract, there is always a provision for such (LADs). Just engage another Contractor using their 10% retention that was withheld. Suspension not the way to go and is not in order.
Its so sad to hear that..when would we start having that sympathy for our fellow citizens?N.C.C yes you are the body but how many employees do you have? YANGTS JIANG is one of the leading foreign employers to suspend the License for over defects like you are putting it…if is really defects then personal issues should also come in.Honestly speaking you are have suspended the locals employed by this contractor not the license.Re-discuss this suspension of the license is not the solution to fixing the defects on that ultra modern building N.C.C should have called the owner of the company and question him why the problem is not rectified than what has been done….Deport him and N.C.C take over the company if you will manage….what politics can do…TWAPAPATA SANA SAVE THE LOCALS…
That is the problem when client engage contractors direct without the services of a consultant engineer. It would ve been alright in ERB had a consultantant engineer coz the guys read and read the contract document. The client is headed to lose at Arbitration
NCC are operating within their mandate and have done the right thing.
Mind you it is tax payers money that they are safeguarding.
If the client complains to NCC to intervene then it means the consultants on the Project have been compromised by the contractor as such can not take any action therefore client had to apeal to NCC to intervene.
Actualy ,NCC should report the consultans to their respective proffessional bodies for appropriate sanction to be meted out.
The consultants simply failed to dicharge the contract together with the contractor and both parties must be punished accordingly.
It is not the job of NCC to administer RETENTION MONIES but the consultants who in this case must have been corrupted as such cant take action even when things are wrong.
Thank you NCC