Bina Puri squeezed by tight margins

THE construction sector is undeniably challenging, especially when one is not always the main contractor of a project. Margins for sub-contractors are never as fat, and this is due to the intense bidding competition which has rendered many construction players with slim bottomlines although order books are in the billions.

Bina Puri Holdings Bhd has not been spared from this fierce price war, and this is especially obvious in the last few years. Margins were almost famished, at the 1% level. Partially contributing to this was Bina Puri participating in mega projects such as the KLIA2 and Ampang LRT line extension which saw competitive bidding from many of the big boys.