Dear Editor,

Going over the update on the progress of the investigations and actions being taken to address the corruption issue in flood control projects, I find it hard to understand and I think many who are familiar with construction will agree with me as to why it appears the contractor is the party being prosecuted and could turn out to be the party to be jailed.

The contractor is more likely not the perpetrator of corruption but the victim of corruption. Under normal procedure, the contractor passes through strict examination and is prequalified by the DPWH as a bidder.

If he submits the lowest bid, and if his bid meets all requirements, the contractor is awarded the contract and proceeds with the execution of the project. The money the contractor receives is based on the amount of accomplishment and completed work. He is expected to complete the work within the contract amount and time. It is also expected that the contractor will make a reasonable profit.

Corruption comes in when government officials demand a share of the payment made to the contractor for completed work — through threats of not releasing or delaying payment unless he came across with the graft.

This is no different from protection money being demanded by cartel thugs from private legitimate businesses. The graft payments reduce the contractor’s operating funds and whatever is left of the contract amount will be the only funds available to complete the project.

So the contractor is left to manage with a reduced fund to complete the contract. In that respect, we can say that he is more a victim than a perpetrator of corruption.

When does the contractor become the perpetrator of corruption? Is it when he submits a very high bid? No, because then if his bid exceeds a certain percentage of the DPWH estimate, his bid is disqualified and the contract will not be awarded.

Does he become a perpetrator of corruption when he does not complete the project? No, because payments to contractors are based on accomplishment. If he fails to implement portions of the contract, he will not get paid. And no, because that is non-compliance with the contract requirements and his contract will get cancelled by the DPWH and the performance bond is confiscated.

Thereafter the contractor is blacklisted by DPWH and becomes ineligible to participate in succeeding projects. Here again, he becomes a victim of corruption because he will be unable to continue in the practice of his trade.

There, however, is a slight but crucial twist in the perspective of the investigation. The issue is theft (stealing of government money). The contractor then ceases to be a victim but is linked as an accomplice. There you are, guys.

Engr. Dennis Abcede

Founder of D. Abcede Construction Management