The government will move swiftly to impose liquidated damages and, where necessary, terminate contracts when contractors fail to deliver projects on time.
This warning was issued by Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh, during a meeting with permanent secretaries on Monday.
The engagement focused specifically on tighter contract management, timely implementation of government contracts, and the quality delivery of contracted goods and services.
“PSs in this regard were instructed to ensure compliance with contractual timelines and, by extension, where contractual timelines are exceeded, PSs were instructed to ensure the imposition of liquidated damages, which is a standard penalty term included in almost all government contracts to ensure that providers incur a financial penalty where they fail to deliver the goods and services that they are contracted to deliver within the timeline in which they were contracted to deliver those goods and services,” he said.
He also noted that contractors who continue to default beyond the liquidated damages period will face stiffer penalties.
“We further emphasised the Cabinet’s expectation that beyond the imposition of liquidated damages, where they still fail to deliver the goods and services during the liquidated damages period, immediate steps be taken to terminate contracts for those contractors who go beyond the specified length of time after which liquidated damages start to be introduced,” he noted.
The minister also stressed the importance of performance bonds, warning that accounting officers will be held responsible if such safeguards are not in place or are allowed to lapse before contractual obligations are completed.
Additionally, the government has moved to tighten controls on contract variations and contingencies.
He said the measures are part of a broader push by the administration to improve the quality and timeliness of services delivered to citizens across Guyana.
Minister Singh emphasised that the government is strengthening accountability and tightening oversight of public contracts to ensure citizens receive value for money.
The meeting with permanent secretaries follows a recent high-level meeting called by President Dr Irfaan Ali and Vice President Dr Bharrat Jagdeo, during which they both conveyed high expectations regarding accountability and instructed permanent secretaries to ensure compliance with the strictest standards of public accountability.
