Bina Puri: LAD on klia2 is presumptive

PETALING JAYA: Bina Puri Sdn Bhd, one of the main contractors of klia2, said that the liquidated and ascertained damages (LAD) imposed by Malaysia Airports Holdings Bhd (MAHB) is "presumptive" and does not consider other issues such as change in job requirements.
"On the issue of LAD, our stance is the LAD has been presumptive without taking all issues into account, both technical and contractual. We are in continuous dialogue with MAHB and (while) the issue is not resolved (yet), (we) hope that both sides can come to a 'common' understanding," its executive director Matthew Tee told SunBiz via email yesterday.
On Tuesday, MAHB said it intends to continue to impose LAD on the joint venture company in charge of the development of the klia2 terminal.
To date, the main contractor, UEM Construction Sdn Bhd-Bina Puri joint venture (UEMC-Bina Puri JV), has incurred LAD of almost RM100 million since June last year, with no end in sight as a new deadline for the issuance of the Certificate of Practical Completion (CPC) has not been given.
The LAD was imposed when UEMC-Bina Puri JV did not meet the June 15, 2013 deadline. The LAD is at RM199,445.40 per day.
MAHB said it has yet to issue the CPC due to material contractual obligations on the part of the contractor which have not been satisfied, but did not elaborate on the specific obligations.