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Regrets! No insurance for wiped out new building at ESHS
At the time of the storm there were just little work left to be completed to two new two-story steel frame buildings at the school’s campus the territory heard from Minister for Education and Culture Honourable Myron V. Walwyn (AL). “The vast majority of works were done to both buildings,” the territory heard.
The Education Minister was at the time responding to questions put to him by Member of the Opposition Honourable Julian Fraser, RA (R3) during the Fourth Sitting of the Third Session of the House of Assembly on September 13, 2018.
“The government of the Virgin Islands was not compensated for any monies paid to this project due to the hurricane because these buildings, like most government assets, were not insured,” said the Education Minister.
TWO INSURANCE POLICIES OBTAINED
He further stated that two insurance policies were obtained by Authland Heavy Equipment Company Limited, from NAGICO Insurances in the amount of eight hundred and sixty-three thousand thirty-five dollars and eighty six cents which represented the value of their work.
Hon Walwyn related that the cost for the two buildings upon construction would have been Two Million Three hundred and eighty-five thousand nine hundred and fifty-eight dollars and twenty-four cents (2,3085,985.24). the works done prior to the hurricane was two million, one hundred thousand dollars and thirty-six cents.
Of this the government of the Virgin Islands paid a total of seven hundred and thirty-five thousand eight hundred and twenty-three dollars and eighty-one cents to the main contractor Authland Heavy Equipment.
INDEPENDENT CONTRACTORS
Hon Walwyn said that various independent contractors were used for the construction of the concrete slabs for the buildings and Authland Heavy Equipment, the main contractor, was awarded a labour only contract.
“It is important to note that in order to execute this project at the lowest cost possible to the government, the Ministry of Education sought and was granted permission by the cabinet of the Virgin Islands to purchase the steel frame buildings directly from the manufacturer in the United States.”
“This approach Madame Speaker along with the approach taken where almost all materials on this project were purchased directly by the government accrued significant savings to the government and by extension the tax payers of the country.” Hon Walwyn said.
However, while the Opposition Member, Hon Fraser defined the situation as a “Clean loss” the Hon Walwyn was keen on noting that, “If we did not have the hurricane government would have made significant savings on the matter…”
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10 Responses to “Regrets! No insurance for wiped out new building at ESHS”
The failure of this "pancake high school building" cannot be solely attributed to hurricane Irma. Other, older steel frame and even wooden buildings stood up.
This is either poor design, workmanship or both.
I have many other opinions but I will keep them to myself
In no way those buildings could’ve cost so much
I have many other opinions but I will keep them to myself
In no way those buildings could’ve cost so much
Cant we at least clean up the school compound/
It seems as if the project was piecemealed with various pieces going to different contractors. The project entailed government furnishing material (GFM). Further, Authland Heavy Equipment provided the labour, ie, in essence it was a labour broker. Since GFM was used on this project, subcontractors were only responsible for labour and workmanship; government assumed the responsibility for material and equipment. Requiring the prime contractor to procure performance bonds on the project would have provided cover for taxpayers. Confused. Since Authland was just a labor broker, what was it purchasing insurance on, ie, construction, labour, liability.......etc. Further, since government made payment(s) to Authland, should the insurance payment go to government? Confused. At the end of the day, government should have protected the taxpayers assets by transferring the risk to an insurance company. Everything fly away..........
Thus, the current ESHS campus should be razed, resited, redesigned, and reconstructed to withstand at least a Cat 4 hurricane(maximum sustained winds of 130-156 mph) and to optimize land use. The new, redesigned and constructed campus should include a cafeteria, gym and other sport facilities. Further, the campus should be redesigned and constructed with a dual purpose, ie, 1) high school/junior high facility and 2) rideout shelter during a major hurricane. True, it will require $$M to raze, resite, redesign and reconstruct ESHS. Nevertheless, the government should take advantage of the opportunity to improve the ESHS campus, along with enhancing the land use of this prime real estate. Undoubtedly, there is an opportunity cost to letting this opportunity slip away.