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Collapse of Haymills: Who assumes liability for defective workmanship etc?
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The news that Haymills [Gibraltar] has now collapsed has come as little surprise. It is incumbent on Government to reassure prospective purchasers that action is to be taken to ensure continuity.
The PDP says that while it notes that a temporary 8 week arrangement has been put in place more secure and permanent arrangements must be introduced to deliver completion of these projects. "Equally the tax-payer will want to know the financial implications of all this including how much Haymills owe in tax or social insurance and why if substantial monies are due they were awarded further projects by Government," they say.
SERIOUS ISSUES
And add: If the Government are now to take over the work-force and become not only the developer but also the contractor it raises serious issues of cost, long-term liability and workmanship. Who, for example, will be liable for defective workmanship? Clearly if the contractor is to be wholly owned by Government that liability will again fall on the shoulders of the tax-payer. Prospective purchasers will be dismayed that this is yet another failure and delay in these projects that Government had announced with such fanfare four years ago.
As highlighted earlier this week Haymills had been awarded a number of projects including the works at the Trafalgar interchange. Those works need to be finished if there is not to be prolonged traffic chaos especially when schools re-open in a few weeks time.
That is a priority.
REPEATED ERRORS
The PDP adds: "The Government must map out a clear and decisive strategy to deliver these projects and minimise the financial exposure to the tax-payer. Silence and half-measures are not good enough. It is completely unacceptable that the financial liabilities are increasing because of the repeated errors of Government in not carrying out proper supervision or due diligence on the developers and contractors."
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