DAG Breached Contract Terms to Implement the Activities

Manon Bokuchava, Kvemo Kartli 

Kostava Avenue is being renovated in Rustavi. The project is implemented by the Ltd DAG, and they plan to rehabilitate the façades of 19 buildings, arrange over-ground and underground communications in the avenue and pave cobble stone. Part of the work is finished by now. However, the rehabilitation activities are still underway. Consequently the traffic movement is not resumed in that part of the Kostava Avenue. In accordance to the tender agreement, the DAG had to finish the rehabilitation of the avenue by November 30.

The company claims the Rustavi City Hall added tasks to them which were not envisaged in the contract initially. Also, as the representative of the DAG Dimitri Mujiri told the local TV-company, the bad weather also hindered their activities. 

Representatives of the Rustavi City Hall said the DAG was already fined with 25 000 GEL for having breached the contract terms. Deputy mayor Nodar Sherozia said the company will be fined for every day after the deadline expires.

“The company had the deadline extended for the work, which was added to them for unpredictable reasons. DAG was not fined for that reason. They were fined for the breached deadline for the obligations they took under the contract. The company will pay fine for every day after the deadline expired. As for the extra work, we do not have to pay them more money. The total cost of the additional work is 140 000 GEL and this money can be spent from the overhead sums of the project. Consequently the total cost of the project was not increased,” Nodar Sherozia said and added that the work will presumably finish in a month time. 

Rehabilitation of the part of Kostava Avenue in Rustav cost 4 449 998 GEL.