19 June 2013

Joint venture (JV) partners UEM Construction Sdn Bhd and Bina Puri Holdings Bhd, the sole contractor for klia2 to be slapped with liquidated ascertained damages (LAD), is not saying whether it will pay up, insisting that it will revisit the matter separately upon handing over the project to Malaysia Airports Holdings Bhd (MAHB).

The JV partners played “good cop/bad cop”, with Bina Puri absolving the JV company of blame, while UEM Construction’s parent UEM Builders Bhd committed to completing the remainder physical construction of its work package, made up of klia2’s main terminal building, satellite building, sky bridge and piers, of about 7%.

In a statement issued last night, Bina Puri executive director Matthew Tee blamed the previous delays on insufficient time provided by MAHB to undertake the construction work.

He said while the JV partners had requested for several extensions, the approved extended period granted by MAHB was not sufficient.

“Request for extension was mainly due to the various design changes including variation works on baggage handling system and unexpected ground condition which required additional piling and temporary sheet pile,” Tee said.

On the issuance of certificate of non-completion by MAHB to the JV company which invoked the financial penalty, Tee said the JV company will revisit the matter separately and in due course upon handing over the project to MAHB and that they reserve their rights under the contract and agreement they had signed with MAHB.

UEM Builders managing director Mohd Razin Ghazali said while the JV partners are working rigorously to meet the new target opening date of klia2, it will do so without compromising the safety, quality and operational efficiency of the new terminal.

Source: www.thesundaily.my

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