Lead Editor Investigations
asha.javeed@guardian.co.tt
The Housing Development Corporation (HDC) has fired contractor Ricky Raghunanan from the controversial Trestrail Development.
Raghunanan was allowed by the HDC to start and almost complete the project without posting a performance bond, which was a criteria for the design-build-finance contract. Trestrail was the first project of its kind done by Raghunanan for the HDC.
On March 22, the HDC wrote to Raghunanan, indicating their intention to terminate the contract after a 14-day notice period.
That period ended yesterday, April 6.
In addition, Raghunanan has been expelled from the site.
The Sunday Guardian understands that the decision was taken at the last HDC Board meeting following extensive meetings with Raghunanan to address the shortcomings in the project and his inability to meet the HDC’s requirement to post the performance bond.
The contract, valued at $72,043,871.90 (VAT exclusive) for the construction of 103 homes, was awarded to Raghunanan on January 29, 2020.
According to the contract, the housing units should have been completed within 240 days from the day of commencement, which was November 20, 2020.
On January 18, after the HDC issued their first notice of termination, Raghunanan wrote to the corporation, indicating that he was not in agreement with the HDC’s position in relation to the termination of the contract and indicating that he would meet the performance bond requirement subject to certain conditions and his satisfaction of certain conditions.
The HDC engaged CEP Limited, which had done a structural audit of Trestrail, to deal with Raghunanan.
In the HDC’s view, 1,151 days have passed since the contract was issued, and attempts to get Raghunanan to comply with corrective action in the housing units have been futile, adding further delays to adding the houses to the HDC system. In addition, the HDC stated that it failed, despite repeated letters to the company, to get Raghunanan to post the performance bond.
An informed source told the Sunday Guardian, that the HDC sought advice from senior counsel before it took the decision and that it was in the company’s best interest to terminate.
The Sunday Guardian was told that the HDC, in collaboration with CEP Limited, would now take over the project and would probably have to re-tender for some parts of it.
The Sunday Guardian understands that all additional work at Trestrail will be deducted from the contract price.
Furthermore, no sums will be paid to Raghunanan until the project is completed.
The project, which began at $72 million VAT exclusive, is now estimated to be $112 million.
Contractor says he is unaware of being terminated
When contacted yesterday, Raghunanan said he was not aware of being terminated from the project.Opposition MP Roodal Moonilal had called for a probe into the stalled project, alleging that millions of state funds could be wasted. He also accused the HDC of failing to exercise its “fiduciary duty” concerning the condition of about 100 units at the housing project.
For her part, Housing Minister Camille Robinson-Regis said the contractor had to fund all remedial works.
In a press statement on the matter, the HDC said its board of management had concerns about certain structural issues on the project and, as a result, commissioned CEP Limited to conduct a study on the structural issues affecting the project.
The study identified several defects, including with the foundation, the concrete first-floor slab, and the inability to support loads.
A Geotechnical Investigative Report by EISL Limited in 2022 found that ‘the failures observed on-site have been known to be associated with non-conformance to basic construction methods and quality control requirements as it relates to building foundations.’
Despite the concerns raised by the HDC about the quality of work done on the project, Guardian Media reported that Ricky Raghunanan Limited was awarded at least four more state contracts by the Ministry of Works and Transport worth more than $7.4 million.