Contract with INTRAKAT for the Paphos-Polis Highway Terminated

Contract with INTRAKAT for the Paphos-Polis Highway Terminated

Highway Project Set for Re-Tender Following Delays.

The Ministry of Transport has decided to terminate its agreement with the contractor for the Paphos - Polis highway. According to a statement, the Department of Public Works will expedite the re-tendering process to ensure the project's completion.  

Official Announcement of the Department of Public Works Regarding the Contract for the "Design and Construction of the Paphos–Polis Chrysochous Highway, Section 1 – Phase (A)," Contract No.: PS/DB/16

The Department of Public Works of the Ministry of Transport, Communications, and Works announces the following:  

Today, Monday, November 11, 2024, the contractor’s representative of the contracting company "INTRAKOM CONSTRUCTIONS SOCIETE ANONYME OF TECHNICAL AND METAL CONSTRUCTIONS," trading as "INTRAKAT," was served with a 14-day termination notice under Clause 15.2 of the contract terms. This letter officially terminates the contractor's employment and grants a 14-day notice period, within which the contractor must vacate the construction site.  

Despite repeated warnings from the employer during regular meetings and via correspondence regarding the contractor's significant and unjustified delays, no efforts were made to address the issue. Moreover, activities that commenced over the past eight months have shown insufficient progress, contrary to expectations and despite favorable conditions for uninterrupted work.  

During the contract's execution, the contractor submitted numerous time and financial claims, which were duly reviewed through established procedures and subsequently rejected. Following a notice of dispute from the contractor, the Central Committee on Changes and Claims (CCCC) examined the detailed report by the Ad-Hoc Committee and, in its letter dated November 8, 2024, informed the Department of Public Works of its decision to reject all the contractor's claims after considering all critical factors.  

The CCCC noted that, had the contractor adhered to the contract’s mitigation measures and maintained the proper pace of work, the project could have proceeded without delays, ensuring that the critical path of the schedule was not affected.  

The Department of Public Works, in collaboration with the Legal Service, is taking all necessary measures to safeguard the State's interests.  

Simultaneously with the contractor's termination, the Department of Public Works will promptly advance the re-tendering process to ensure the project’s swift completion.

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