P.W.D. contractors. In a number of cases, when inspections have shown contractors to be under-capitalized and this has been brought to their notice, steps have been taken by the contractors concerned to increase their company's capital. The system has also thrown light on the wide gap in the amount of capital which contractors employ to carry on building construction work. With the introduction into the General Conditions of Contract of price fluctuation Clauses covering wages and materials, the danger of smaller contractors not being able to absorb such increases has been minimized. Nevertheless, when contractors are operating on a very small profit margin, the risk of running into financial difficulties is always present and the need to request contractors to submit accounts for inspection remains essential.
Contracts
2.43. There were 178 contracts in force as at 1st April, 1970. A further 374 new contracts were awarded during 1970-71 with an accumulative value of $824.980M. Liquidated damages were imposed on nine contracts amounting to $243,305. The department also called in surety bonds covering a further nine contracts previously re-entered. The value of these bonds amounted to $279,214.25 leaving a balance of $552,816.67 owing to Government under these contracts.
2.44. A total of five contracts were re-entered during 1970-71 and in three cases this action was taken because the contractors were in financial difficulties. However, when considering the total number of contracts awarded by this department the incidence of re-entry is extremely small.
TECHNICAL AUDIT
Chief Technical Examiner:
D. M. HARDING, F.R.I.C.S., F.I.Q.S., A.I.Arb.
2.45 The primary aim of the Technical Audit Unit is to ensure that, under the control, and responsibility of the respective sub-department or consultant, all work and materials are properly tendered for, contract agreements properly entered into, work carried out and materials supplied in accordance with the contract documents and bills properly finalized. The Chief Technical Examiner and his professional staff are available to give advice to heads of sub-departments
P.W.D. contractors. In a number of cases, when inspections have shown contractors to be under-capitalized and this has been brought to their notice, steps have been taken by the contractors concerned to increase their company's capital. The system has also thrown light on the wide gap in the amount of capital which contractors employ to carry on building construction work. With the introduction into the General Conditions of Contract of price fluctuation Clauses covering wages and materials, the danger of smaller contractors not being able to absorb such increases has been minimized. Nevertheless, when contractors are operating on a very small profit margin, the risk of running into financial difficulties is always present and the need to request contractors to submit accounts for inspection remains essential.
Contracts
2.43. There were 178 contracts in force as at 1st April, 1970. A further 374 new contracts were awarded during 1970-71 with an accumulative value of $824.980M. Liquidated damages were imposed on nine contracts amounting to $243,305. The department also called in surety bonds covering a further nine contracts previously re- entered. The value of these bonds amounted to $279,214.25 leaving a balance of $552,816.67 owing to Government under these contracts.
2.44. A total of five contracts were re-entered during 1970-71 and in three cases this action was taken because the contractors were in financial difficulties. However, when considering the total number of contracts awarded by this department the incidence of re-entry is extremely small.
TECHNICAL AUDIT
Chief Technical Examiner:
D. M. HARDING, F.R.I.C.S., F.I.Q.S., A.I.Arb.
2.45 The primary aim of the Technical Audit Unit is to ensure that, under the control, and responsibility of the respective sub- department or consultant, all work and materials are properly tendered for, contract agreements properly entered into, work carried out and materials supplied in accordance with the contract documents and bills properly finalized. The Chief Technical Examiner and his profes- sional staff are available to give advice to heads of sub-departments
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