The National Company of Road Infrastructure Management (CNAIR) announced in a press release that it has received from the constructor of the Suplacu de Barcau – Bors section, part of Transylvania highway, a notice of termination of contract.
“Since the issuance of the Start Order (June 2015) for the execution works of Suplacu de Barcau – Bors highway section, CNAIR asked the entrepreneur to fulfill its contractual obligations, while pursuing the works carried out on the site. During this period, the contractor has demonstrated its inability to fulfill the obligations by the lack of mobilization in order to complete the works,” CNAIR release reads.
Given the delays in the execution works for Suplacu de Barcau – Bors highway section, CNAIR issued penalties worth RON 75 million. Also in this context, “the company has showed its intention to terminate the contract, taking into account project’s re-bidding so that this objective can be completed.” Consequently, “the construction company, showing that it is in financial and organizational incapacity, has sent a notice requesting the contract’s termination,” CNAIR points out.
For this project to be completed, “the only option that a company can take is to terminate the current contract and re-bidding the project,” in the current situation, the manager of road infrastructure says.
The contract value for the 60-km length of the section was set for RON 701 million, excluding VAT, with an estimated duration of 24 months, plus an additional warranty period of 30 months.