August 4, 2025

DUE TO UNSAFE WORKING CONDITION Sub-contractors stop work on Kagman school project

The Department of Public Works has issued another warning to the contractor of the $6 million Kagman school project, citing this time the company's violations of the Occupational Safety and Health Act or OSHA.

The Department of Public Works has issued another warning to the contractor of the $6 million Kagman school project, citing this time the company’s violations of the Occupational Safety and Health Act or OSHA.

The department has ordered Pac United Corp. to improve safety in the job site, or else its contract with the government would be discontinued.

It was learned that the two subcontractors have suspended the construction work following the walkout by some workers, who complained about unsafe working conditions at the job site.

The Tribune tried but failed to reach Pac United for comment.

Andrew Smith, technical director for the DPW, said Pac United has been informed of complaints from Pac United’s sub-contractors, Sablan Construction and Guam Concrete Builders.

“We don’t deal directly with sub-contractors so we’ve brought this matter to the attention of the contractor,” Smith said.

This was the second warning issued by the government to Pac United.

In a draft letter dated Aug. 2, Public Works Secretary Juan B. Cepeda reminded the company’s president, Deng Junhua, about an earlier safety notice issued by PSS and DPW to Pac United.

The notice was “unheeded,” Cepeda said.

“Requests by sub-contractors for safety measures and equipment were not granted. Sub-contractors stop work citing unsafe working conditions,” Cepeda stated in the draft letter.

Cepeda mentioned an incident when a wall panel dropped while being lifted by a crane. He also cited steel bars that are protruding.

Cepeda instructed Pac United to hire an independent consultant to conduct an on-site inspection.

“Resume work notice is subject to the recommendations and compliance with those recommendations of the consultant,” Cepeda said.

Early last month, DPW and the Public School System indicated their intention to terminate Pac United’s contract for the construction of Kagman Elementary School.

Public works and education officials said they were frustrated with the pace and performance of the company.

A partial suspension of work was issued by the department on July 1 due to “failure of Pac United to [execute] properly the work in accordance with the contract.”

Cepeda also urged the contractor to:

• Improve the quality of materials being used for construction;

• Expedite work by increasing its manpower to a minimum of 35 workers per day and work seven days a week; and

• Negotiate an agreement with the two sub-contractors which have complained of Pac United’s alleged nonpayment for work performed.

The Kagman school, PSS’ major capital infrastructure project, is 80 percent funded by the federal government through the Office of Insular Affairs (OIA). The remaining 20 percent of the project cost comes from the local matching fund. (MCM)

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