Construction company Húsheild/Hyrna ehf. says that the Framkvæmdasýslan – Ríkiseignir (Construction Agency – Government Property Agency) has run the project for the construction of a nursing home in Höfn in Hornafjörður aground.
The construction company Húsheild/Hyrna ehf., which was responsible for building the nursing home in Höfn in Hornafjörður, criticises the management of the project by the government agency Framkvæmdasýslan (Construction Agency), and says that the institution has run the project aground.
That agency terminated its contract with the company earlier yesterday, and in response the contractor now intends to seek legal remedy.
In a statement signed by Guðlaugur Arnarsson, managing director of Húsheild/Hyrna ehf., it is said that a contract was signed with the Framkvæmdasýslan – Ríkiseignir (Construction Agency – Government Property Agency) on 12 October 2022. Construction had been underway since 2023.
The statement reads,
The management of the project by the Framkvæmdasýslan has from the beginning been highly unusual. The design documents were incomplete and unfinished when the project was put out to tender, and this has hindered the progress of the work from the start. Now, three years later, the design documents are still inadequate.
In the statement, Húsheild/Hyrna says that the institution responded by deducting large delay penalties from payments and by threatening termination.
By doing so, it has thrown the project into disarray and caused even greater damage and delays.
It is the client’s fundamental duty to provide adequate documentation. The work has been greatly delayed because of all this, says the contractor.
The conduct of the institution and its staff towards the employees of Húsheild/Hyrna was claimed to be unacceptable and had deteriorated as the contract period went on.
The Framkvæmdasýslan and its staff have, through their behaviour and conduct, run the project aground and are now trying to cover up their own mistakes by terminating the contract. Húsheild will seek legal remedy, and the case will be brought before the courts if necessary.
In the statement, the construction company also calls for the project, its background, and its progress to be thoroughly reviewed by the ministries responsible for FRSE.
To prevent similar waste of public funds from happening again.
The disputes and delays have meant that residents and staff have had to endure cramped conditions and disruptions for much longer than planned. Completion of the home had been scheduled for the end of April next year – around one and a half years behind schedule – but it is unclear what impact the latest developments will have.
Source: Ruv.is