Go TO Content

Government cannot owe money to contractors; Public Construction Commission has a supervision mechanism in place

The Public Construction Commission (PCC) activated a reporting system on Nov 1, 2012 to allow contractors to report online or by fax or letter in case of delayed public construction project payments due to government agency administration process, as to allow the government to make payment on time and contractors to facilitate their cash flows for better economy.  The system was recognized by these contractors and the number of reporting reached 90. So far 42 projects were paid for and closed thanks to the efforts of government agencies under the watch of PCC.  In total contractors received NT$ 306 million for the jobs they performed.  It is believed that the implementation of this system will eliminate the inappropriate conducts of a handful of agencies or individuals and improve the delayed payments without justification.
Dr. Jenn-Chuan Chern, Minister of PCC, points out that PCC always keeps an eye on the issue of delayed payments as on-time payments as a requirement for contract performance not only helps contractors with their cash flows but also facilitates a construction industry environment that is fair and reasonable.  In light of this, PCC activated the “reporting for inappropriate delayed payments for public construction projects system” in the “Convenient Service for Citizens” on PCC’s website (www.pcc.gov.tw), on Nov. 1, 2012, allowing contractors for quick and convenient access to report.  Also, contractors are welcomed to report by fax (02-87897714) or mail.  The reporting system will alert the responsible agency by email and respond to reporting contractors. 
So far reports have been received for 65 construction projects and 25 technical service projects, including 25 for central government level agencies (10 related to projects of Ministry of Transportation and Communications, accounting for the most) and 65 local government level agencies (10 related to Taichung City Government, accounting for the most).  Most of the delayed payments were due to unsettled disputes regarding contract performance and ongoing payment requesting processes.  For projects, those payments which have not been made yet, PCC will continue the tracking efforts until the payments are made.  Also, PCC is working to improve the calculation capability of the “Public construction project management system.” Cases of unusual delayed payments not reported through the reporting system will be relayed to the agencies responsible for the projects in question in order to allow them to track down the payments, and PCC will gather and publish the data collected in this regard for early warning and peer competition.  It is believed that the double efforts of contractor reporting and the active screening of agencies will continue to improve the delayed payments and create a win-win of stable business for contractors and economic boosting. (E)