Downtime generates higher costs to the Federal Government

Downtime generates higher costs to the Federal Government

Buildings are stalled for lack of government payment or construction companies' financial problems

Works await resources to complete constructionPeople's Mail - CitiesThousands of stoppages in Brazil limit economic growth and also impose extra costs on the government, which needs to maintain the integrity of the facilities started.In June last year, for example, state-owned Valec, which manages rail projects, was forced to hire two security companies to safeguard investments made in two lots of Fiol (West-East Integration Railway) in Bahia.At the time the passages were stopped.Contracts for 20 on-site armed security personnel cost the company nearly $ 2 million for 12 months.Both lots were paralyzed because of the termination with the contractors involved for breach of contract.In one of them, the state has already redid the bidding and the expectation is that the works will resume in July.In the other lot, there is no forecast for the resumption of works.Brazil outAcross Brazil, there are numerous projects stalled for breach of contract, whether due to lack of governme...


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