If your new property isn’t handed over by an agreed date as stated in sale and purchase agreement, the developer has to pay liquidated ascertained damages (LAD) to buyers. LAD also exists in government infrastructure projects, and the compensation is RM2.73 million per delayed day for the LRT3 Shah Alam Line.
This was revealed by transport minister Anthony Loke in Dewan Negara today. The LAD rate, equivalent to 0.024% of the total contract value, is to ensure contractors bear full responsibility for delays in the project, Loke said, adding that the total compensation will only be known once the project is completed. Setia Utama LRT3, a unit of Malaysian Resources Corp Berhad (MRCB), is the main contractor for the LRT3 project.
Loke reiterated that LRT3 is expected to begin operations before June this year, after all testing processes, commissioning and the resolution of technical issues are completed within the next one to two months. To date, two train sets have completed fault-free run (FFR) testing, while another set is still undergoing the 22-day FFR testing process.
“As of yesterday, there are still several technical issues which need to be resolved, and after all FFR tests are conducted on all these trains, the next process will be testing and commissioning by the Land Public Transport Agency (APAD). All of this is expected to be completed within the next one to two months. Therefore, the new schedule set as the target is March this year,” he said, reported by Bernama.
The Seremban MP denied that the delays are due to cost-cutting issues. “What is happening now involves technical issues, not cost-cutting issues. The earlier cost-reduction measures had already taken into account various factors, including the project implementation mechanism.
“At that time, some stations were reduced to save costs. However, what is happening now has no direct connection to the cost rationalisation decisions or the project implementation method made in 2018,” he said.
The LRT3 Shah Alam had originally been slated to start operations on September 30 last year, but in August it was announced that the project had been delayed. In November, the government was said to be keeping to its target of December 31 for the launch of the line, but it was then announced in December that operations would not begin in 2025. The delay was put down to outstanding system stability and software issues identified during the testing and commissioning phase.
The 37.8 km LRT line has 25 stations from Bandar Utama to Johan Setia, with interchanges at Bandar Utama (MRT Kajang Line) and Glenmarie (LRT Kelana Jaya Line). We toured the LRT3 train and its Pasar Jawa station in Klang back in July 2024 – full gallery here.
GALLERY: LRT3 Shah Alam Line Pasar Jawa station, and the train
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Of course, there are always these individual critics who complain a lot about the delays, but they most likely may not understand that these APAD requested FFR tests are so important for LRT3’s safe operation, especially when the safety of the public who ride as passengers, are concerned. Probably, these very same individual critics have also forgotten about the May 2021 Kelana Jaya line LRT train collision which injured 200+ passengers, and this is the kind of incident which the transport ministry, APAD, Prasarana & its contractor MRCB want to avoid. So, do these individual critics expect the ministry, APAD, Prasarana & MRCB take a ‘short cut’ with the FFR tests to avoid these delays & just hope for the best?
And then, when an incident later occurs & it was linked to the above-mentioned ‘short cut’, will these very same individual critics then cry ‘Scandal!’ & blame the ministry, APAD, Prasarana & MRCB for not properly completing these important FFR tests despite the delays?
There’s a time frame & schedule to fulfill. It’s nothing 2 do with the test.These test & commissioning should have included in the schedule.
Of course, the project time frame & schedule would include testing & commissioning, with the assumption that the tests will smoothly proceed successfully without any problem. Unfortunately, as reported, technical issues did arise during the FFR tests, resulting in the delay, which is why there is this LAD clause that penalises the main contractor for such a situation.
Anthony Loke mentri transport of Klang Valley kah? Why all the money & upgrades go to there, other states no need ke?
On February 14th, you asked whether Loke is east coast transport minister in response to a news article about ECRL. And now you ask whether he is the Klang Valley transport minister, like a small kid again. Obviously, you still need to grow up.
Lets see if you are more powerful or the land of cronies and protection of these are more powerful for syok.
Antara beberapa darjat
Needs a new quotation
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