29 June 2013
MALAYSIA Airports Holdings Bhd (MAHB) is adamant on its decision to slap the main contractor of klia2 – UEM-Bina Puri JV – with the liquidated and ascertained damages (LAD) fine.
MAHB operations senior general manager Datuk Azmi Murad tells StarBiz that the LAD has already been imposed and that the airport operator is just following the terms and conditions stated in the contract.
The airport operator has also issued a Certificate of Non-Completion to UEM-Bina Puri JV for its inability to complete its RM1.15bil worth of work by the approved deadline of June 15.
“There have been numerous extensions of time (EOT) for the company, and the delay is not justifiable. We will have a discussion with the parties involved and they will have to apply for another EOT to justify the slow work progress,” he says.
He adds that thus far, the company had not yet submitted any explanations over the delay.
It was reported that the delay was mainly due to the various design changes, including variation works on the baggage-handling system and unexpected ground conditions which required additional piling and temporary sheet piles.
MAHB’s klia2 project manager Mohd Zaifuddin Idris says MAHB had highlighted in October 2012 that UEM-Bina Puri JV was not utilising enough workers for the fast-tracked project, and that productivity was low.
“We have advanced monies, inclusive of RM89mil in variance orders, to the joint venture to complete the construction in November last year. But unfortunately, it couldn’t stay on course. The board has capped the cost of klia2 at RM4bil, and so far, we have not reached that ceiling yet,” he says.
He adds that at present, the total cost of klia2 stands at about RM3.75bil, with a little bit of headroom left for additional scope of work to be done.
Source: www.thestar.com.my
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