SC rejects contractor’s demand for additional payment

THE SUPREME Court (SC) has dismissed a lawsuit from a contractor that sought payment for additional construction work for the PNOC Shipping and Transport Corp.

In a 16-page decision published last month, the full court affirmed the Commission on Audit’s (CoA) denial of E.L. Saniel Construction’s monetary claim.

The tribunal said the contractor lacked a clear basis for demanding reasonable payment for services rendered outside the contract.

It noted in the cases cited by the contractor, the additional work had received either express approval or implied authorization from the procurer. Neither was present in E.L. Saniel’s case.

The contractor failed to provide evidence of an implied contract with PNOC Shipping for the additional work or tangible benefit from its claimed services, the high court said.

“Evidently, E.L. Saniel unilaterally decided to proceed with the additional works, let alone at 179% more than the original contract price of the riprap project, without notifying [PNOC Shipping],” it added.

E.L. Saniel was awarded a P4.98-million contract in 2010 to rehabilitate its office in Limay, Bataan in northern Philippines and a P1.35-million contract to design and build slope protection. Both had been fully paid.

But it later sought an additional payment of P2.96 million, claiming that the office site’s terrain needed additional work.

PNOC Shipping was dissolved in 2013 after serving as the transport arm of Petron Corp. for three decades. — Chloe Mari A. Hufana