MAHB lodges 212 reports against the contractors of KLIA2

Pressing issue: There seems to be lack of coordination between the lead and subcontractors that has

PETALING JAYA: A total of 212 non-compliance reports (NCR) has been lodged by Malaysia Airports Holdings Bhd (MAHB) against the contractors of KLIA2 for unsatisfactory works that must to be rectified before the airport is handed over by April 30 next year or further penalties will be imposed against them.

For now the main contractor, UEM-Bina Puri JV, has been slapped with a RM6mil monthly fine since MAHB had invoked the liquidated ascertained damages (LAD) clause. Assuming the JV company only hands over the airport on April 30, 2014 and not earlier, the total LAD it has to pay MAHB is RM63.42mil. That amount is for 318 days, beginning June 16 and the charge per day is RM199,445.40.