The government has announced the termination of the contract with INTRAKAT for the Paphos-Polis Chrysochous road, as the contractor reportedly failed to meet its obligations, according to a statement by the Department of Public Works.
On Monday, 11 November 2024, the Department of Public Works delivered a 14-day termination notice to the representative of the contractor company, INTRAKOM Construction S.A. (INTRAKAT). The notice, in accordance with Clause 15.2 of the contract terms, instructs the contractor to vacate the site within 14 days of receiving the notice.
The statement mentions that despite repeated warnings from the employer during regular meetings and through letters, the contractor did not address the significant and unjustified delays. Even activities that began execution in the past eight months had not progressed as anticipated and could have been carried out without hindrance.
During the project, the contractor made numerous time and financial demands, which were examined through the established procedures and subsequently rejected. Following a notice from the contractor regarding a dispute, the Central Committee for Changes and Claims (CCCC) reviewed a comprehensive report by an ad-hoc committee. In a letter dated 8 November 2024, the CCCC informed the Department of Public Works of its decision to reject all of the contractor’s claims.
The CCCC noted that if the contractor had taken mitigation measures as provided in the contract and executed the project at the appropriate speed without delays, the project could have proceeded without impacting the critical path of the schedule.
The Department of Public Works is taking all necessary steps, in cooperation with the Legal Service, to secure all of the State’s rights.
In parallel with terminating the contractor, the Department of Public Works will swiftly initiate the process to re-tender and complete the project.
Statement by the Department of Public Works:
“On Monday, 11 November 2024, a 14-day termination notice was delivered to the contractor’s representative of INTRAKOM Construction S.A. (INTRAKAT), in line with Clause 15.2 of the contract terms. This notice terminates the contractor’s employment under the contract, giving a 14-day notice period as per Clause 15.2, during which the contractor must vacate the site.
Despite repeated warnings from the employer at regular meetings and in letters regarding the major and unjustified delay attributed to the contractor, no efforts were made to address this issue. Even activities initiated in recent months did not progress as expected.
The contractor presented multiple time and financial claims during the project, which were examined and dismissed through the formal procedures. After being notified by the contractor of a dispute, the Central Committee for Changes and Claims reviewed the comprehensive report of the Ad-Hoc Committee and decided to reject all the contractor’s demands.
The CCCC indicated that by implementing mitigation measures, as outlined in the contract, and executing the project promptly without the contractor’s delays, the project could have been carried out smoothly without any disruption to the critical path.
The Department of Public Works is working closely with the Legal Service to ensure the State’s rights are safeguarded.
Simultaneously, the Department of Public Works will expedite the re-tendering and completion of the project.”
Mayor of Polis: Contract Should Have Been Terminated “Months Ago”
Polis Chrysochous Mayor Giotis Papachristofi was informed of the contract termination by Transport Minister Alexis Vafeades, who, according to the Mayor, has announced an upcoming visit to the Municipality of Polis Chrysochous in the next few days.
In statements to CNA, Mr Papachristofi commented that the termination of the contract for the Paphos-Polis Chrysochous road “should have been done months ago,” noting that it was evident the project was meant to be completed this year, yet “unfortunately, INTRAKAT only finished about 30% of the project.”
Mayor Papachristofi stated, “the contract should have ended long ago.”
Following a phone call with the Transport Minister, Mr Vafeades is expected to visit the Polis Chrysochous area in the coming days to discuss timelines and provide information to the Local Authority on how the tender process will be relaunched, aiming to complete both Phases A and B of the project.
