Municipality of Tivat terminated contracts with four contractors

The municipality of Tivat terminated the contract with the contractor on the MR2 road due to non-compliance with the contractual obligations, the president of the municipality Željko Komnenović said today, adding that after a meeting with the company "Civil engineer" it was concluded that the contract will be unilaterally terminated and the penalty collection procedure initiated. "What is very bad and what was highlighted at the meeting is the attitude of the contractor towards the Municipality of Tivat. Ten days ago, this company announced the problems they were facing, and asked for a 24% increase in the price of the works, which was unacceptable for us on several grounds," said Komnenović.He added that the contractor completely bypassed the items from the contracted work schedule. It is bad, says Komnenović, that this road welcomed the first guests like that."From tomorrow, the deadline for bank guarantees in the amount of 57,000 euros runs, according to the contract, it is determined that it will be charged every day that the agreed deadline is exceeded. It is completely unacceptable that the road to the most popular beach is impassable in the season. We will do everything to protect the public interest, but citizens must understand that our hands are tied when it comes to bond relations," he said.Komnenović clarifies that the deadline for the completion of the works, which began on June 21, 2021, was 300 days, the total value of which was around 1.1 million euros including VAT. Due to unforeseen works, the deadline was extended, the degree of currently performed works is about 50% of the total contracted works, and about 430,000 euros have been paid according to the contract.

"We are completely taken aback by the contractor's request to change the prices in the contract, although it is defined that the prices are fixed and cannot be changed during the existing offer and valid contract. The contractor is very exclusive in this, which is unacceptable to us. On Sunday, the management of the Municipality will hold a meeting with the residents of Krtol in order to inform them of this situation". He said that the situation is exactly the same with the contractor T construction, which is carrying out work on the Cacovo road and the children's playground in Donja Lastva. "Those procedures have already been initiated." About 80% of the work has been completed at both locations. Despite the contract annexes and various extensions, the contractor did not finish the work and comply with the Municipality of Tivat. It is not easy to terminate contracts, and to assess the quantity and value of the works performed and to obtain approval from the supervisor. The municipality will as soon as possible start the procedure for the selection of new contractors for the construction sites on the road MR2, Cacovo, the playground in Donja Lastva and the Belane promenade. Komnenović points out that these are legacy contractors who have been operating in the territory of the municipality of Tivat for many years. "We are very dissatisfied with their relationship, and this is far from the interest of the citizens of Tivat, and the contractor's position is that they could do what they wanted. We will find contractors who can meet any challenge and do the job honestly. I emphasize that the Municipality does not owe a cent to these contractors. In certain situations, we even stimulated the Civil engineer company and their subcontractors to complete situations on the construction site of higher value, but that did not bear fruit," he pointed out. Komnenović also said that the Municipality will raise the issue of responsibility.

"We had maximum patience for the benefit of the city, the prices did increase, but if the work had been done on time, it would not have come to this." It is not the fault of the Municipality. We have a public interest at stake, and we must behave in a formal and legal manner. The rights of Luštice Bay are also threatened by this and we will have to see how to get out of this situation with them. These are situations that are beyond the capabilities of the municipality, because the Law on Public Procurement is very bad and we have to change it if we want to do something". He recalled that the project underwent certain changes and that there were justified, but also many more unjustified reasons for the delay. Komnenović also points out that by terminating the contract, the lack of seriousness of the contractor will be pointed out in some future public invitations. "We can achieve this only by respecting the Law on Obligations and contractual obligations. And the Municipality has shown that it does not want to terminate contracts by agreement, that is our position. We want contractors who will correspond to the interests of the city" - concluded Komnenović. He reminded that on July 1, the decision to ban construction works will come into force and emphasized that the Municipality will be restrictive in terms of requests, and that it will only listen to a few strategic projects and possible emergency rehabilitation. Video clip from today's press: https://youtu.be/_Yrz81dE9CY