AG's Report 2015: Third Klang Bridge project implementation less than satisfactory due to poor planning

PETALING JAYA: The implementation of the Third Klang Bridge Construction Project Phase I (Phase I) is less than satisfactory due to cost increase partly due to poor planning, the 2015 Auditor-General's Report (Series 2) revealed.
According to Auditor-General Tan Sri Ambrin Buang, the bridge could not be completed by July 2016 in accordance with the original plan and an extension of time had to be granted to the main contractor until December 2016.
"Delay in completing the project and the increase in cost could have been avoided if value management was carried out and the land acquisition issue had been resolved before the project implementation," he said.
He noted that the standard operating procedures for the procurement of transportation services and amenities, including procurement authority limits at the state level, were not detailed out.
He recommended that the Selangor Public Works Department introduce value management to ensure that detailed planning is done on all aspects and with the parties involved.
"This can reduce variation order after the contract has been awarded. Value Management Guide for Government Projects issued by the Economic Planning Unit, Prime Minister's Office, can be used as a guide.
"Ensure land acquisition has been completed before implementing the project to avoid delay in its completion. Draw up management procedures for projects funded by the state government on contract work procurement," he said.
However, he noted that the audit done from June to August 2016 showed the appointment of consultant and main contractor was done properly and the contract was well managed.
The Third Klang Bridge Construction Project Phase I (Phase I) started in 2014 with a state development budget ceiling of RM300 million and its purpose is to solve the traffic congestion in two main bridges, Klang's Town Bridge and Musaedin Bridge.
Selangor PWD appointed a private company, through open tender (conventional), as the main contractor for the Phase I Project.
According to the contract signed on Aug 25, 2014, the project should begin on July 17, 2014, and be completed by July 13, 2016, with a contract value of RM199.16million.
The main contractor then submitted an alternative design with a new contract value of RM195.39 million, resulting in a cost saving of RM3.77 million. As of June, 2016, the current contract value was RM236.71 million.