The National Housing Authority (NHA) has issued a notice to terminate and a show cause order against contractor JC Tayag Builders following its failure to meet the timetable for the construction of resettlement houses for victims of Typhoon Yolanda in Eastern Samar.

Engineer Grace Guevarra, officer-in-charge of Visayas Management of the National Housing Authority, revealed Tuesday that the agency has terminated its contract after the construction company missed its timetable.

"We have already issued a notice to terminate and show cause order," Guevarra said at the hearing of the House Committee on Good Government and Public Accountability.

Guevarra said JC Tayag had a negative slippage in its construction by 82 percent, therefore missing its construction timetable.

"Negative slippage it varies from -11 from the highest of 82," she said.

Committee chair and Surigao del Sur Rep. Johnny Pimentel said NHA should have rescinded its contract.

"Dapat nirescind na ninyo yan. Once a project reaches 15% or more than, that's already a basis for the agency to rescind the contract and blacklist the contractor," Committee chair Surigao del Sur Rep. Johnny Pimentel said.

"Why didn't you take moves to rescind the contract? We cannot use terminate. Terminate that's a mutual termination. When a contract is rescinded the contractor is banned or blacklisted for one year," he added.

The investigation is a joint probe of the House Committees on Good Government and Public Accountability and Housing and Urban Development regarding House Resolution 599 authored by Eastern Samar Rep. Ben Evardone.

Last month, the House Committee on Housing claimed to have found substandard housing projects in relocation areas for the victims of super typhoon "Yolanda" in 2013.

ABS-CBN News has reached out to JC Tayag Builder's lawyer for comment.