1 June 2013
Checks show that KUB Malaysia, WCT and UEM Group are the three contractors yet to complete their portions of the construction work.
Three main contractors for the klia2 project said yesterday they are not to be blamed for the delay in the completion of the new low-cost airline terminal.
Checks by Business Times showed that KUB Malaysia Bhd, WCT Bhd and UEM Group Bhd are the three contractors yet to complete their portions of the construction work.
“Do not worry about our performance. The job is 80 per cent completed and on track,” KUB group managing director Datuk Wan Mohd Nor Wan Ahmad told Business Times.
He denied that KUB is causing the delay but declined to provide a completion date.
KUB was awarded a RM268.79 million contract to build Runway 3 and parallel connecting taxiways. Malaysia Airports Holdings Bhd (MAHB) said on Tuesday that it may impose liquidated and ascertained damages (LAD) on those contractors yet to complete their portion of work on time.
Business Times understands that MAHB can impose a LAD of as much as RM200,000 a day on the contractors if they are late in handingover their portion of job to the airport operator.
MAHB’s plan to claim LAD from the contractors comes just weeks after research firm CIMB Research said the cost of building klia2 may rise to above RM4 billion.
“Furthermore, as contractors are putting up variation orders to MAHB, there is a risk that the capital expenditure cost will rise above the RM4 billion in our model,” CIMB Research analyst Calvin Yew wrote in a report in April.
Meanwhile, UEM was tight-lipped as to whether it will be asking for additional money in the form of variation order to complete the job.
“We can’t comment on this now. We are trying to complete our work and hand over the job,” said a company official.
UEM Construction Sdn Bhd, a unit of UEM Group, and joint venture partner Bina Puri Holdings Bhd were given a RM977.22 million job to build the main buildings at klia2 in early 2011.
Business Times understands that WCT has also yet to complete the mall portion of klia2.
The company, via its 70 per cent-owned special purpose vehicle (SPV), was awarded the buildoperate-transfer concession for the development of an integrated complex at the terminal.
The SPV is building a complex comprising a transport hub and a mall for RM530 million.
The balance 30 per cent in the SPV is owned by MAHB.
The mall portion, which consists of 225 retail outlets, may only be completed in the fourth quarter of the year.
Checks with Gadang Holdings Bhd, the other contractor involved in the klia2 project, showed that it has completed its portion of the work.
The company was awarded the RM291.2 million Runway 3 contract in 2010 and had handed it over to MAHB on August 28 last year.
Source: www.btimes.com.my
Site Search
Did you find what you are looking for? Try out the enhanced Google Search: