19 June 2013
The main contractor for the terminal building, UEMC-BP JV has confirmed that the completion date will be April 30 2014.
It said in a statement that the main contractor for the terminal building, UEMC-BP JV – a joint venture between UEM Construction (UEMC) and Bina Puri Holdings – has confirmed that the completion date will be April 30 2014.
MAHB said the completion date will be inclusive of all parties securing the Certificate of Completion and Compliance (CCC) and Operational Readiness & Airport Transfer (ORAT). “Based on the revised completion date by the contractors, we are targeting to open klia2 on May 2 2014,” it said.
MAHB added that it will continue to monitor the progress of work being done by all contractors and liquidated ascertained damages (LAD) will be enforced according to the contractual obligation of respective contractors.
On Monday, the airport operator informed Bursa Malaysia that it is imposing daily damages of RM199,445.40 on UEMC-BP JV for its delay in completing the terminal, beginning Sunday.
Assuming 30 days in a month, the April 30 2014 completion date could incur the terminal contractors some RM62.82 million in compensation.
In a separate statement, Bina Puri group executive director Matthew Tee said the joint venture will revisit the LAD matter separately and in due course upon handing over the project
He said UEMC-BP JV reserves its rights under the contract and agreement it had signed with MAHB.
UEMC parent company UEM Builders Bhd managing director Mohd Razin Ghazali said UEMC-BP JV will continue to fulfil its obligation.
The company, he said, is committed to the physical completion and undertaking the testing as well as commissioning of its work package that makes up klia2? main terminal building, satellite building, sky bridge and piers.
He added that the partners aim to complete the remainder seven per cent of the physical construction. "Upon achieving physical completion, we, together with MAHB, will immediately work towards obtaining CCC from the authorities, which typically takes up to eight weeks," he said.
After that, MAHB will undertake ORAT, a process that takes up an estimated three months to complete, with a full handover to MAHB targeted on April 30 2014, he said.
Mohd Razin said although rigorous work will take place to meet the new date, the contractors will not compromise on the safety, quality and operational efficiency of the new airport.
Meanwhile, Tee said the delay in completing the work was because the time extensions approved by MAHB were insufficient.
The UEMC-BP JV had asked for extensions a few times.
This, Tee said, was due to the various design changes, including variation works on the baggage handling system and the unexpected ground condition that required additional piling and temporary sheet pile.
klia2 to open on May 2, 2014
klia2, the new low-cost carrier terminal in Sepang, is now targeted for completion on April 30 next year and is to open for commercial operations on May 2, almost one year behind the latest target date set and exceeding analysts’ assumptions of a six-month delay.
The opening of klia2, which was expected to start operations on June 28 this year, was delayed for a fifth time after contractors working on the new terminal requested more time to come up with a revised date for the completion of the project.
In a statement yesterday, Malaysia Airports Holdings Bhd (MAHB) said the UEMC-Bina Puri Joint Venture, the contractors for the main terminal building, has confirmed that the completion date will be April 30, 2014 inclusive of securing the Certificate of Completion and Compliance and Operational Readiness & Airport Transfer as obligated under the contracts.
"Based on the revised completion date by the contractors, we are targeting to open klia2 for operations on May 2, 2014," said the airport operator.
MAHB said it will continue to monitor the progress of work being done by all contractors and that liquidated ascertained damages (LAD) will be enforced according to the contractual obligations of the respective contractors.
On Monday, MAHB slapped its first LAD of RM199,445.40 per day on the UEMC-Bina Puri JV, the contractor of the main terminal building of klia2.
"Safety and quality is of utmost priority to MAHB and, as such, the contractors are required to ensure that the completion of the klia2 terminal building complies with all safety standards as required by regulators and MAHB itself," it said.