National auditor finds inadequate documentation in road contracts

The National Audit Office (NAO) has conducted a study to determine the efficiency, effectiveness and economical underpinnings of the Roads and Infrastructure Directorate (RID) with respect to road surface repair works carried out on the Arterial and Distributor road network.

The NAO said that 37 out of the 43 contracts reviewed were contested by a single bidder. Having the vast majority of the tenders issued by RID feature a sole bidder poses considerable risk of reduced competitiveness and could expose dubious bidding patterns, the NAO said.

The office also noted a number of shortcomings with regards to the inspection system used in identifying road surface defects.

“NAO considers the maintenance of an updated and reliable database of the defects in this road network as a strategic priority for RID. In view of this, NAO urges RID to consolidate and standardise the inspection and documentation process as a means of planning its work interventions in a more ordered manner.”

Throughout the review, the NAO noted that documentation that was to be submitted by tendering contractors relating to performance guarantees, insurance policies and other areas was found to be generally inadequate.

“This shortcoming presented the obvious risk of RID not being able to comprehensively enforce contract conditions.

“NAO recommends that RID should ensure that all the awarded contracts are covered by the necessary performance guarantees and that contracted works are provided with sufficient insurance coverage.”

NAO noted an inconsistency between the standards and specifications concerning skid resistance in local legislation as opposed to the established requirements in tender documents relating to road surface repairs.

“It is NAO’s opinion that all government entities responsible for commissioning road surface repair works should engage in efforts at coordinating, standardising and formalising a uniform approach in the procurement of such works.”