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Program Implementation Offices Should Change Current Policy OfChoosi

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  • Program Implementation Offices Should Change Current Policy OfChoosi

    PROGRAM IMPLEMENTATION OFFICES SHOULD CHANGE CURRENT POLICY OF CHOOSING A CONTRACTOR, HONORARY CHAIRMAN OF UNION OF BUILDERS SAYS

    Noyan Tapan
    Mar 29 2006

    YEREVAN, MARCH 29, NOYAN TAPAN. The program implementation offices
    (PIO) of the international organizations - customers of construction
    work on a tender basis, particularly the Lincy Foundation, should
    get rid of the current policy of choosing a contractor based on the
    offer of the lowest price, Vazgen Poghosian, Honorary Chairman of the
    Union of Builders of Armenia, Chairman of Yerevanshin OJSC, told NT
    correspondent. According to him, during tenders it is not taken into
    consideration whether the organization that has offered the lowest
    price has the proper financial and human resources and the necessary
    technical and transport base. He noted that in many cases the last
    remaining resources of some Armenian construction organizations were
    used for the fulfilement of the obligations assumed under the Lincy
    program. In the opinion of V.

    Poghosian, such a situation was caused by the PIOs rather than by
    the strict requirements set by the US office of the Lincy Foundation
    programs management. He said that the PIOs did not inform the Lincy
    Foundation that the tender terms cannot be fulfiled in case of approval
    of a low price offer: if the price offered for the construction work is
    lower then the real market one, the implementation of construction work
    is possible in this case with the use, for example, out-of-date steel
    frameworks or unuseful cement. It was noted that taking into account
    the real market prices during construction contract tenders becomes an
    urgent problem, since as a result of a possible increase in the prices
    of gas and electricity, the prices of building materials, particularly
    stone (which is considered a monopoly product), road-metal, framework
    and cement may rise as well.
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