The building of the Cyprus Theater Organization (THOK) may have been completed years ago and has been inaugurated since October 29, 2012, but the Project Contractor and the Organization itself seem to be claiming money from one side to the other. The matter is expected to be addressed by the Parliamentary Audit Committee and the Audit Office.
The contractor is claiming € 2.796.146, while the THOK seems to have thought of "seizing" the guarantee that the contractor paid as part of the procedures followed when constructing projects. THOK is also said to be claiming money from the difference that resulted from the replacement of materials by others, which, according to THOK, are of lower value than expected.
The position of THOK is that some materials were replaced without its approval. For example, according to THOK, carpet instead of wooden parquet, plasterboard instead of walnut was placed in various parts of the stage, while problems are presented in the protective glazing, in the railings on the stairs (which have been crushed), in the ceiling waterproofing, in the reduced number useful positions etc.
For his part, the contractor (Miltiadis Neophytou) in a letter from his lawyer, dated August 8, to the president and the members of the board of directors of THOK, states the following:
- The amount remaining to be certified by our customers (€ 2.796.146,90), exceeds the amount of the corresponding guarantee which is € 2.092.689,00.
- As it appears from the above and as you will be able to be informed by your Consultants in the Project, the certification of very significant amounts for work performed by the contractor and for which he has suffered the relevant expenses is pending, and which amounts in total exceed the amount of the guarantee in advance.
- THOK is fully secured, since the relevant guarantee has already been renewed until 30/9/2014, and will be further renewed if the need arises, ie if the final account is not agreed by 30/9/2014.
- We consider that under the circumstances any disbursement of the Bank Guarantee is completely unjustified and would be tantamount to unfair punishment of our customers for the delay in the preparation of the final account for reasons that are clearly beyond their own responsibility.
Miltiadis Neophytou's lawyer also claims that "it would not be right for (the contractor) to suffer the painful consequences of any arbitrary disbursement of the Bank Guarantee, (including the disbursement and irreparable damage to Cyprus) of the damage to its customer relations." reasons for which he is not responsible, especially in the current tragic conditions of the Cypriot economy, which are known to all of us. "
"With full respect for the interests of THOK, every person involved in the Project should consider the consequences of any actions and omissions, especially in today's extremely difficult conditions that the place, the construction industry and the financial system of Cyprus in general are going through," adds the contractor's lawyer.
Finally, the legal advisor of the contractor indicates that the proposal submitted for the disbursement of the guarantee and the subsequent refund, leaves the company Miltiadis Neophytou completely exposed, especially if we take into account the fact that the final account is largely agreed. and there is no question that the contractor has been paid money other than what he is entitled to be paid.
"Therefore, any claim for disbursement of the guarantee will contain evidence of fraudulent misappropriation of money that rightfully belongs to our customers," concludes the legal advisor to the contractor.
Since 2008 the competition
The project, which concerned the construction of a new building of the Theatrical Organization of Cyprus, was announced on 3/3/2008 with a budget of € 20.500.000 plus VAT. Five bids were submitted for the tender on 9/6/2008 as follows:
1. MILTIADES NEOPHYTOU CEC & D. LTD - € 20.532.000,00
2. LOIS BUILDERS LTD - € 21.341.534,60
3. LOIZOS IORDANOUS LTD - € 21.922.000,00
4. GCC & ATLAS PANTOU JV Consortium - € 22.690.000,00
5. CYBARCO-IACOVOU JV Consortium - € 23.162.000,00
The offer of the company Miltiadis Neophytou was cheaper by € 809.534,60 from the second lowest bidder, by € 2.630.000,00 from the highest, and by € 1.746.883,65 from the average of the remaining bids.
The play includes two modern theaters (550 and 150 seats), offices, an exhibition space, a foyer, a bookstore, a restaurant and a cafeteria.
€ 240.000 the difference according to the meters
It is noted that the meters of the project submitted the final account, based on which the company of Miltiadis Neophytou has to receive € 240.000. In order for the pending case to be closed, both sides must accept the opinion of the meters. Negotiations are likely to take place to resolve the issue, otherwise the party, which considers itself wronged, may seek redress.
Source: FILELEFTHEROS