Audit of Jamaican highway contract

The works contract for the improvement of the 97km section of the Northern Coastal Highway from Montego Bay to Ocho Rios is being funded by Inter-American Development Bank (IDB). In late 2005, the contract was running substantially behind schedule and over budget and, as a result of contract amendments, the IDB had suspended disbursement of funding. A review of the project commissioned by IDB in April 2005 had been critical of the performance of the executing agency, the supervising consultants and the contractor.

Requiring a balanced independent assessment, the IDB contracted Crown Agents to undertake an independent review covering the project, cost, schedule and quality management and contract administration to determine an action plan for satisfactory contract completion. Crown Agents liaised with the construction company, supervising consultants, the National Works Agency representing the Government of Jamaica, and the IDB. The review thoroughly analyzed the status of work-in-progress, including resources employed, quality assurance procedures, contract variations and financial management of project funds, determined a likely completion date, estimated final costs and recommended action for successful conclusion of the contract. Within tight deadlines, we delivered interim and final reports with findings and recommendations which were favourably received by the IDB. IDB requested further input to assist it to formulate strategy for resumption of disbursement of funds and construction completion.