Disaster Building Remains Unfinished After $6.3M Spending
Premier Dr Natalio Wheatley The government spent nearly $6.3 million on the unfinished disaster management building by the end of June, Premier Dr Natalio Wheatley told the House of Assembly, as officials evaluated bids for a replacement contractor.
Premier Dr Natalio Wheatley The government spent nearly $6.3 million on the unfinished disaster management building by the end of June, Premier Dr Natalio Wheatley told the House of Assembly, as officials evaluated bids for a replacement contractor. In response to questions from Second District Representative Melvin Turnbull last week, Premier Wheatley said spending totalled $6,293,580.62.
This comprised $5,687,325.06 for construction and $606,255.66 for project management. The building, which will house the Department of Disaster Management and National Emergency Operations Centre, originally had a contractual completion date of January 28, 2023. The government signed the $9,803,215.53 construction contract with a joint venture of Tandem Development Limited and D&B Heavy Equipment Services Limited in January 2021.
It subsequently approved variations that increased the contract sum to $10,185,488.19 and extended the completion deadline to November 18, 2023. However, the government terminated the contract on November 4, 2024, Dr Wheatley said. “I think based on the fact that the contract was terminated, you would say it would have failed,” Dr Wheatley stated.
Cash flow issues He identified the contractor’s difficulty maintaining steady cash flow as one of the principal reasons for the failure. He also cited material shortages, higher construction and shipping costs, and disruptions associated with the Russia-Ukraine war and the COVID-19 pandemic.
Plans included a three-level reinforced concrete building with mechanical, electrical and plumbing systems. Premier Wheatley said the Caribbean Development Bank gave its no-objection to a fresh procurement process on June 17, 2026. Officials published tender documents on June 29 and later extended the submission deadline to September 8.
Three bids were received and remained under evaluation. The project manager estimated that completing the building would require another 14 months. However, Premier Wheatley said a firmer timetable depended on selecting a contractor and agreeing an implementation schedule. He could not provide the cost of the remaining work. “I think we’ll know the cost of it once that particular tenderer has been approved by the Cabinet,” Dr Wheatley said.
For the replacement contract, officials would strengthen checks on bidders’ ability to maintain three months’ cash flow. A lump sum contract would replace the original remeasurement arrangement, with payments linked to completed work components. “I think we just learn from the experiences of the past and see if we can get this project wrapped up in the shortest amount of time possible,” Dr Wheatley added.
Primary source: BVI News