JKR & Project Management Rants

MRR2: The forgotten Heroes!

2008-08-12T00:40:00.001+08:00

S.O.S. Letter to Ministry of Works in 2004

Cadangan Projek Jalan Lingkaran Tengah II – Pakej 11 (MRR2)
Conclusion and Recommendation, concerning the Cracks in Crossheads

The longitudinal cracks are not a negligible problem of torsion during construction.

The lack of transverse reinforcement is a safety risk for the final stage.

The calculated safety factor is far below 1.0.

Internal redistributions of forces and alternative load paths due to yielding of the reinforcement, intensively cracking and plastification of compression zones of the concrete prevented a collapse so far.

The structure is not stable.

Emergency and safety measures should urgently be undertaken. deformation measurement and installation of strain gages at transverse reinforcement is recommended.

Please inform your client about our serious concerns.

best regards

Markus Maier
Leonhardt, Andra & Partner

The above is the letter from the German Consultant to our Malaysian authority.

Did you all know how serious it was at that time in 2004? This letter was written to our govt in August 2004.

The Government did not treat it as a matter of crisis. It took the govt until February 2006 to decide to take action. They didn't care about preventing the possibility of catastrophic failure as reported by Dr Robert L. Vollum of Halcrow. They don't care about thousands of people that will be dead of this catastrophic failure occurs.

Only after Dr Wahid was appointed as the Director-General of PWD did he pushed for the repair and remedial work to be completed within 3 months.

The group of JKR engineers together with the workers worked 24 hours each day for more than 90 days. They work in 2 shifts - 12 hours each shift to meet the target set by PWD.

They did complete the repair works, all within 3 months. Samy Vellu was surprised how they managed to do it. But he never said a word of appreciation until today.

Look at the pictures below:

These pictures were taken at 3am in the middle of the night.

Each night the German senior engineer from Leonhardt, Andra & Partner (LAP) together with the JKR senior management and JKR engineers would meet at the project site to discuss the works schedule, the details and the problems encountered. More than 90 litres of grout was pump into the concrete beams to grout the understrength porous concrete.

Where were you at 3am? Were was Samy at 3am? You may be surprised that the D-G of JKR was there almost every night around 3am with the workers at MRR2 site.

These are the people who work 24 hours a day for 90 days to repair the MRR2. They completed the works in 90 days.

What were the recognition for these people?

Why was the govt not thankful and appreciative of their commitment, contribution and sacrifices.

They were living for 3 months without spending time with their family members. They had to abandoned their wife, children and parents so as to ensure that the MRR2 repair works are completed within the 3 months.

And at the end, there was not even a word of thanks from the Works Minister Samy Vellu nor from the Prime Minister and Deputy Prime Minister. Today, all of them lives in obscurity after serving the nation.

The PM and DPM showed tremendous concerned for Saiful; but they didn't even cared for the a group of people who had sacrificed for the nation - these were the heroes who work hard to prevent a catastrophe from occurring.

Note:

The flyover is safe. Only Pier 28 has some problem with the plastic straps which are used to encased the grouts used to seal the pre-stressed wire-ropes which provides the necessary reinforcements to strengthen the crossbeams which had failed. The repair for the defective works are in progress and the consulting engineers from LAP have inspected the defects and recommended the necessary repair.

Incidentally, Pier 28 was the first Pier that was repaired in 2006. As such, there may had been some initial problem due to the learning process as the repair contractor is not experienced in this methodology of structural strengthening works. Immediately after observing the contractor's weakness, JKR utilized a team of senior engineers to closely monitor the quality of works and ensured that the remaining works meets the strict specified requirements.

MRR2 FAILURES: Would the TRUTH be told?

2008-08-07T01:40:00.001+08:00

Yesterday, sun2surf columnist Citizen-Nades in his article "Former minister wins uncivil war" wrote:

[quote]

The asking price by the new firm – Leonard Andre and Partners (LAP) was a mere RM18 million – just RM6 million more and they were providing space-age technology – carbon-fibre to save the cracking pillars.

Can we anticipate someone standing up and saying: "Yes, I take responsibility. It was me who approved the use of carbon-fibre technology which had never been tested or used in Malaysia previously."

[unquote]

I would like to tell Nadeswaran that Carbon-Fibre Technology (CFRP) is not space-technology and the proposed methodology for strengthening the reinforced concrete structure using CFRP is not something new and surely is not a space-technology, neither is it used for the first time in Malaysia.

The peeling of the plastic strap do not mean the strengthening works had failed. It is neither about taking responsibility for a failed technology or methodology. If ever we are to discuss failure, we should be discussing about the structural failures which was occasioned by the design failure during the construction stage.

How many of us gets to know the truth of the failure? To make matter worse, we have non-engineers who were fed with surreal knowledge of engineering design and construction technology. Equally we are puzzled by the statement made by Halcrow senior consultant (bridge engineering) Roger Bucky who said he had in 2005 advised PWD not to use carbon fibre straps because the plastic straps used to strengthen the pillars have limited ductility; but JKR proceeded with the use of the carbon fibre straps.

3 of the 18 carbon fibre straps on Pillar 18 had since peeled off.

Roger Bucky in his diagnosis attributed delayed ettringite formation (DEF) as the cause of the peeling of the straps.

For non-structural engineers they may think that DEF is some kind of a cancerous virus in structural concrete. So what is DEF?

Generally, DEF is seen as a form of internal sulphate attack. A number of factors such as concrete composition, curing conditions and exposure conditions influence the potential for DEF. DEF is believed to be a result of improper heat curing of the concrete where the normal ettringite formation is suppressed. The sulfate concentration in the pore liquid is high for an unusually long period of time in the hardened concrete. Eventually, the sulfate reacts with calcium and aluminium containing phases of the cement paste and the cement paste expands. Due to this expansion empty cracks (gaps) are formed around aggregates. The cracks may remain empty or later be partly or even completely filled with ettringite.

(Source: www.concrete-experts.com)

Self-desiccation of normal density (ND) high strength concrete may prevent delayed ettringite formation (DEF).

Was DEF as espoused by Halcrow the reason of the structural failures? It wasn't!

So what cause the failure? What caused the cracks in the crossbeams?

The investigation carried out by the experts into the cracking has comprised of both field investigations and design assessment. The field investigations included site inspections; data gathering; crack mapping; cover-meter tests, concrete strength sampling; chemical tests and crack width monitoring.

The design assessment comprised of both load assessment and structural analysis by a number of methods including Code Assessment, 2D Strut and Tie Modelling, and Non-Linear Finite Element Modelling. The analysis covered both construction phase loading (from temporary overhead erection loading used to erect the precast superstructure segments) and in–Service Phase loading from permanent loads and traffic.

Based on Site Investigations and Design Assessment, the primary causes of the cracking at the critical sections for the Typical Piers and Abutment B are a result of temporary gantry erection loading and early thermal and shrinkage cracking which occurred during the Construction Phase. These load conditions were far more onerous for the structure than any In-Service load conditions.

For the In-Service Phase, calculations by both traditional Bernoulli methods and by Strut and Tie methods have demonstrated that the Pier structure has more than the required capacity to carry the factored In-Service loads in-accordance with BS 5400 Code requirements.

In the analysis the development of bond stresses in the reinforcing bars has been checked and found to comply with Code requirements.

The FE Model predicts that the Ultimate Capacity of the pier cantilever is in the order of 2.6 times the applied Nominal Loads, which far exceeds the Code required factor of safety. Ultimate failure at this level of overload is ductile as required by the Code. Sudden failure would not occur even at this extreme overload condition.

This was the structural analysis reported. However, the recommended solution was not acceptable and was considered as superficial. The engineers wanted a comprehensive rectification methodology, which would ensure that the structural integrity would comply with the Need Statement and in accordance with the Government's Requirement as postulated in the Contract Document. JKR holds the contractor fully responsible for the default which constituted a breach of contract and wanted the contractor to make good the defective works in full compliance of the agreed design integrity.

Under the PWD From DB/T Contract Terms and Conditions, it was stipulated that the Contractor shall check the design and accept responsibility (Read Clause 2.3.2).

As stipulated under Clause 2.2 of the Conditions of Contract: "The Contractor shall be fully responsible for the design, execution and maintenance of the Work/portion of the Works for which the design have been accepted by the Government, and shall absolutely guarantee the Government independent of fault that the design, materials and workmanship for the Works or portion of the works is suitable for the known requirement of the Government."

Under Clause 2.6, The Contractor shall take full and unequivocal responsibility for the safety of the design and for the adequacy, stability and safety of all site operations and methods of construction.

And in Clause 2.7.1, the Contractor shall be liable for any damage to the Works occasioned by him in the course of any operations carried out by him.

Clause 2.8.4 states that, if there is any failure, either during the execution of the Works or during the Defect Liability Period, any remedial or repair works shall, in the opinion of the Project Director (Ketua Pengarah JKR) be urgently necessary for the safety of the Works or the public, the Government may employ and pay other persons to carry out such work or repair as the PD may consider necessary; and the costs and charges properly incurred by the Government in so doing shall be recoverable from the Contractor by the Government.

Nadeswaran posed the question: "Who is going to be held accountable for this monumental man-made disaster?"

Mr. Nades, who else? There is a contract and the contract had spelt out the terms and conditions. The German structural engineers had confirm it was design error. The British Halcrow had confirmed it was design fault. The Australian Consultant had reported that the causes of cracking were due to negligence in their design work which have resulted in the design failure. The primary causes of the cracks at the critical sections for the Typical Piers and Abutment B are a result of temporary gantry erection loading and early thermal and shrinkage cracking which occurred during the Construction Phase. Both of these design effects were in the scope of design works provided under the terms and conditions of contract.

So, who else should be responsible? Who is going to be accountable?

I'm sorry; it would have to be the contractor.

I hope Samy Vellu do not come up with another different version of explanation. Let's wait for him to tell us.

MRR2: Halcrow said the cracks was due to DEF

2008-08-06T18:56:00.003+08:00

Halcrow's senior consultant (bridge engineering) Roger Buckby said the primary cause of the cracks was the delayed ettringite formation (DEF)

Collepardi said: in the absence of any of these elements (as shown in the diagram above), DEF-related deterioration cannot occur.

Below is the DEF crack pattern:

Below is the crack pattern on Pier 28:

How can this be due to DEF?

MRR2: Wrong Material used for repair

2008-08-06T10:33:00.001+08:00

Halcrow senior consultant (bridge engineering) Roger Bucky said he had in 2005 advised PWD not to use carbon fibre straps because the plastic straps used to strengthen the pillars have limited ductility; but JKR proceeded with the use of the carbon fibre straps.

3 of the 18 carbon fibre straps on Pillar 18 had peeled off.

The primary cause of the peeling was due to delayed ettringite formation (DEF). DEF is believed to be a result of improper heat curing of the concrete to strengthen a structure.

Halcrow was engaged to conduct a study on cracks on MRR2 in 2004.

MRR2: 3rd repair job to start on 5th Aug 2008

2008-08-04T22:39:00.000+08:00

Good News! MRR2 has been re-paired!

The concrete will not fall anymore and the road is safe for traffic.

See - the traffic is flowing down-under! It's safe!

We do not know how much it has cost the government this time for the re-pair undertaken. I hope it is not $70m again.

Anyway, the Crossbeam looks nice and environmental friendly.

Deputy Director-General of Public Works I Datuk Mohamad Husin said in a statement today that preliminary works are to begin tomorrow on the cracks which have appeared on Pier 28. The decision was reached at a meeting of Public Works Department (JKR) experts, representatives of the consultant and the contractor here today.

BTW, Datuk Mohamad Husin was the Ketua Pengarah Cawangan Jalan when the repair work was implemented, and he was the Superintendent Officer in-charge of the repair works carried out by Bridgex Sdn Bhd and supervised by German Leonhardt Andra & Partner, the expert structural repair consultant. He should have a better understanding of the current problem as well as the historical database of the repair and strengthening works done at that time. He is the best person to know why it is failing.

MRR2 cracks again - Third Time closure of Flyover!

2008-08-03T22:33:00.004+08:00

Middle Ring Road II Cracks Again!

This is the 3rd time!

After repairing it for RM70 million and engaging the German experts on the strengthening job, the fear of this concrete structural failures is back!

Today the police have to closed the flyover in Kepong to all traffic and the road below it after cracks appeared on a pillar.

City Deputy Traffic Chief DSP Ng Fook Long said today that police closed that section of the MRR2 at 10.30am following a directive from the Public Works Department (JKR) and Kuala Lumpur City Hall (DBKL), adding that the cracks had appeared on Pillar 28.

A driver of the RapidKL bus service, Zainuddin Mohamad Taib, 37, said he was informed by another driver that he saw small stones falling from the flyover as he passed under it at 3.30 am. He said the police were informed.

This is the third time the 1.7-km MRR2 Kepong flyover has been closed because of cracks.

It was first closed in August 2004 and then for the second time in February 2006 for repairs.

(Source: NST and TheStar)

Halcrow Group Ltd, the British consultant appointed by the government to investigate the defects reported that it was a design flaw and improper anchorage of crossbeams on the concrete columns that caused cracks in 31 pillars of the MRR2.

This report was disclosed by the then Works Minister Samy Vellu at a press conference in Parliament on the 30th Sept. 2004.

Halcrow’s report was prepared by its bridge engineering director Roger J. Buckby and submitted to the Work’s Minister.

Samy Vellu had in August 2004 shot down questions of a design fault.

After receiving the Halcrow’s report, Samy finally admitted that it was the contractor’s fault as this is a Design and Built Contract awarded under the DB/T (2002) Contract Form.

The Halcrow report states that:

“The main cause of excessive cracking in the crosshead to the T-shaped pier is a deficiency in the design and the anchorage of the columns reinforced into the crosshead. There is also a deficiency in the design of the transverse reinforcement in the top of the crossheads to resist splitting forces between bearings. The horizontal cracking in the crosshead directly above the columns is a direct result of the inadequate anchorage of the column bars into the crosshead.”

Tan Sri Zaini Omar was the then Director-General of JKR who was in-charged of this project. He had since then retired and is now involved in the UEM-Penang 2nd Bridge Project and the Water Commission.

The Cabinet then decided to appoint a German consultant to spearhead repair work on the Middle Ring Road 2 in Kepong.

As reported on NST Feb. 22nd 2006, Works Minister Datuk Seri S. Samy Vellu said the decision was reached at the Cabinet meeting and the ministry’s secretary-general is discussing with the consultants on the conceptual layout of the work plan, which will be ready by the end of March 2006.

"They have assured us that the repair work on 31 pillars would be completed in 4 1/2 months," Samy said.

The cost is expected to be more than RM40 million. Samy Vellu said the cost was initially estimated to be around RM18 million but it has more than doubled after it was decided that all the 31 pillars need to be repaired simultaneously.

The flyover was finally re-opened on December 8th 2006 to traffic.

Samy Vellu said the remedial work, which began in March was completed on schedule, that is, December 2006. Samy may have forgotten that he had earlier stated that it will take 4 1/2 months from march, which should have been August, to be exact. Nevertheless, December wasn't that late.

On the February 1st, 2007, It was reported in TheStar that total repair cost was more than RM70 million, and not RM40 million.

THE Public Accounts Committee (PAC) has revealed that repairs to the MRR2 flyover in Kepong cost more than RM70mil.

The then PAC chairman Datuk Shahrir Abdul Samad said the figure was high compared with its construction cost – RM120mil.

He was quoted as saying that this reflected “shoddy design and construction concepts” that were approved by the Government when projects were given to contractors.

“There is no point in spending more and not being able to use it,” he said, adding that it was difficult to pinpoint who was responsible for the mistakes in such a project.

“As an example, the MRR2 project has the contractor and concessionaire constantly pointing fingers at each other. The problems were with the design and construction.”

Till today we do not understand why Shahrir Samad said it was difficult to point who was responsible for the mistakes in this project. This project is a Design-Built Contract under DB/T Standard Forms of Contract.

As stated in Clause 2.2 of the Contract: "The Contractor shall be fully responsible for the design, execution and maintenance of the Work/portion of the Works for which the design have been accepted by the Government, and shall absolutely guarantee the Government independent of fault that the design, materials and workmanship for the Works or portion of the works is suitable for the known requirement of the Government."

Under Clause 2.3.2, it is stated that the Contractor shall check the design and accept responsibility.

In Clause 2.6, it is stated that: "The Contractor shall take full and unequivocal responsibility for the safety of the design and for the adequacy, stability and safety of all site operations and methods of construction.

And in Clause 2.7.1, the Contractor shall be liable for any damage to the Works occassioned by him in the course of any operations carried out by him.

Under Clause 2.8.4, if there is any failure or event occurring in connection with the Works, or any part thereof, either during the execution of the Works or during the Defect Liability Period, any remedial or other work or repair shall, in the opinion of the Project Director (JKR D-G) be urgently necessary for the safety of the Works or the public and the Contractor fails to immediately do such work or repair, the Government may employ and pay other persons to carry out such work or repair as the PD may consider necessary; and the costs and charges properly incurred by the Government in so doing shall be recoverable from the Contractor by the Government.

The Government paid for the RM70 million from taxpayers' money and had never recovered any.

Now, we don't know how much more it will cost; and there may be possibility that the structure will have to be further strengthened by another RM70 million; Oops! the costs has now increased sharply since then. Ask JKR and you will know.

By the way, we now have a new Works Minister (Dato' Ir Mohd Zin Bin Mohamed) and a new PWD Director-General (Datuk Seri Professor Ir Dr Judin bin Abdul Karim). Both are certified Chartered Engineers. Let's hope they will come up with an effective solution. Who is going to pay? Contractors or Government again?

Note:

Package 11 of the MRR2 which covers a 4km stretch and cost RM238.8mil to build.

MRR2 was built by Sukmin Sdn Bhd, Bumihiway (M) Sdn Bhd and Konsortium Kontraktor Melayu (Wilayah).

Picture Source: The Star Gallery

Kajang-Seremban Bridge Beam Collapse

2007-10-03T12:34:00.001+08:00

The project is Kajang-Seremban Highway (KASEH). The main contractor is IJM Construction Sdn Bhd, a wholly owned subsidiary of IJM Corp Bhd and the sub-contractor is WCT Engineering Bhd.

During construction of the bridge, the reinforced concrete beams collapse.

Works Minister, Datuk Seri Samy Vellu had this to say as reported by NST on October 3, 2007:

Negligence likely cause of beams' collapse

Negligence is the most likely cause of the collapse of eight concrete beams of an uncompleted flyover along the Kajang-Seremban Highway (Kaseh), near Pajam, last Thursday.

Works Minister Datuk Seri S. Samy Vellu said this was the finding of the investigations by the Malaysian Highway Authority and several other agencies.

“We understand there was general negligence on the part of the project contractor, IJM, when the accident took place at night.

“They also failed to put up sufficient lighting and warning signs for motorists when carrying out the works,” he said yesterday.

IJM Construction Sdn Bhd is the main contractor, while WCT Engineering Bhd is the sub-contractor for the flyover, which is scheduled for completion by December 2009.
The contractor had detected a fault when laying the 40-tonne beams, one of which failed to settle onto a rubber cushion, in the incident at 11.40pm.

“As the contractor was attempting to rectify the fault, the eighth beam being laid slipped and fell, dragging down the remaining beams,” he said at the launch of the road safety campaign, in conjunction with the Hari Raya holidays, at the Sungai Buloh overhead rest area along the North-South Expressway (NSE).

Three family members, travelling in a car from Felda Pasoh to Kota Damansara in Selangor, escaped death when the beams fell, blocking the Seremban-Nilai trunk road near Pajam, close to Nilai.

He said IJM had sent a letter of apology, giving an assurance that such an accident would not recur.

JKR New Line-up.

2007-05-10T23:40:00.000+08:00

Bernama.com
Malaysian National News Agency

Five Senior Officers Promoted At Two Works Ministry Agencies
General
May 09, 2007 22:02 PM

KUALA LUMPUR, May 9 (Bernama) -- Five senior officers at two agencies of the Works Ministry have been promoted, Minister Datuk Seri S. Samy Vellu announced Wednesday.

He said Datuk Dr Judin Abdul Karim has been made director-general of the Public Works Department (JKR) and Datuk Ir Mohamad Razali Othman as director-general of the Malaysian Highway Authority (LLM).

"The appointments are effective from May 3," he told reporters after a post-Cabinet meeting at the ministry, here.

Judin was the former JKR deputy director-general II and Mohamad Razali the JKR deputy director-general III during the reign of Datuk Seri Wahid Omar.

Samy Vellu also announced the appointment of three JKR deputy directors-general.

Datuk Ir Mohammad Husin was made deputy director-general I, Datuk Ir Mohd Noor Yaakob deputy director-general II and Ir Selvanayagam P. Nagalingam deputy director-general III.

-- BERNAMA

Putrajaya & Maintenance Management

2007-04-30T21:00:00.000+08:00

Entrepreneurial Development and Cooperative Minister Mohd Khaled Nordin said: "The standard of maintenance of Putrajaya buildings may have to be further enhanced.

According to Khaled Nordin government buildings in Putrajaya should be more sophisticated than elsewhere in the country and it is reasonable for JKR to re-look into the maintenance contract to see if all steps are taken to detect any defects or wear and tear in the building.

Does the government understand what is maintenance and what is maintenance management?

Maintenance of public buildings would have to deal with preservation and restoration of the facilities and infrastructures.

Maintenance management is basically concerned with the establishment of a framework for the maintenance of facilities, and it’s role is to set a standard of best practices on the management of building facilities, utilities and the upkeep of the building conditions.

It is a principle of conservation that work on a significant building should be based on a proper understanding of the building & its problems.

JKR and those responsible for maintenance management must have a Maintenance Management Framework (MMF) which consist of processes that assists them in establishing a framework for the maintenance of buildings. The primary objective of MMF is to achieve consistency in the planning, implementation & reporting of building maintenance and upkeep.

The establishment of condition standards for building is fundamental to the maintenance management process. It provides a statement of the desired condition to which assets should be maintained to enable a department’s service delivery requirements to be achieved effectively. The standards must be adequate to reflect the asset performance required to meet service delivery demand.

The application of condition standards to building involves a systematic process of reviewing all assets & nominating condition ratings that can be related to each element of each asset within the department’s asset portfolio.

Building condition standards must be articulated to the maintenance service provider & documented in procurement arrangements such as a SERVICE LEVEL AGREEMENT (SLA). Top level management must endorsed it. The standards will be used as referenced by the service provider within the day-to-day maintenance delivery process.

Dear Khaled and Samy Vellu, do you think JKR and Putrajaya maintenance department understand all this? Did they have the knowledge of maintenance management or are they supervisors of defects, ie wait till those plants, equipments and fittings fails or fails to work and then get the workers to repair them? This is repair management and it is damage control system, not maintenance management fundamentals.

Apart from this, do you all know how the government outsource their maintenance management and what was the criteria in the selection of contractors processes?

I once talk to a contractor who was awarded a contract for maintenance and he told me that he had sub-contracted it to another with a "nett" profit of 30%.

Dear Khaled and Samy, please go and check all your contractors and you will know almost all of them are "Ali-Babas" with 30% mark-up in their contract sum.

Paying a heavy price for lack of maintenance or the lack of a competent maintenance contractor?

The cost of maintaining Ijok is nothing!!!

Gerbang Perdana smiles to the Bank with $257mil

2007-04-21T10:46:00.000+08:00

RM257mil compensation and claim from Gerbang Perdana for the wrongful termination of the Crooked Bridge project.

Works Minister Samy Vellu officially announced that the government has compensated Gerbang Perdana a sum of RM257.4million.

You believe it? Did I hear wrongly?

Many months ago when JKR contract department were assessing the claims, they boasted to me that the claim will not exceed RM10mil. I told them no way as they will be pressured by their political masters to give a golden "alimony".

Can any JKR auditors and assessors come forward to explain why their conviction and belief in their truthful assessment had gone so damn wrong, that the RM10mil is now RM257mil?

If you are good engineers and God-fearing, why did you fear the political master? Datuk Seri Wahid and Tan Sri Omar were never afraid to speak the truth and to stand firm based on their principles. Both of them only feared God. Did the engineers now fear man more than Allah? Abdul Rahim has proven he didn't fear man; did you other engineers have now feared man over Allah?

There are many who loves to claim their love and devotion but ultimately the evidence runs on the contrary.

Samy gags JKR Rahim

2007-04-21T10:43:00.000+08:00

Ministers are responsible and accountable for their ministries and should provide directions and decisions pertaining to the political decisions made by the cabinet.

Minister is not suppose to interfere with the technical and design aspects of the administration of the department which should be left to the experts, i.e. the civil servants who are skilled in their field of works.

But Samy asked the Director of JKR Putrajaya, Abdul Rahim Ahmad to shut up and not make any statements pertaining to the quality of materials and workmanship which was the cause of the defects and leakages to the Immigration office in Putrajaya.

Samy told Rahim to keep his mouth shut and do his work. But Rahim was just doing his work by telling the reason why and what was the cause of the defective works. Isn't Rahim doing his work? If it is, then why asked him to shut up? You fucking ministers should not interfere with the experts, and you should be the one to shut up. Just because the responsible civil servants tell the truth which probably would hurt the contractor, how is it that the minister was the one that was upset? Was it because the contractor was given the job/project through the personal help by the minister? No wonder all the good engineers had to rot away in silence and force to retire prematurely and some who had still good years to serve even at 56 were not given the opportunity to continue to serve the nation. However, we have those corrupt officers who gets extension of their services a few times. Tan Sri Omar did not get an extension to his service when he reached 55, Datuk Seri Wahid though reluctant, was not even recommended to get an extension. Both of them are former D-G of JKR. But Tan Sri Zaini got his service extended. Zulkipli had his service extended 3 times.

Do you believe this?

Samy said the pipe problem at Putrajaya Immigration office Putrajaya was due to the unsuitability of the pipe material used by the contractor and approved by Syabas.

The pipes were manufactured in America approved by the authority here.

According to Samy, cast iron pipe was specified and the contractor proposed the alternative pipe used.

What a nut...Cast Iron pipe is history and obsolete. Nobody used it now particularly for internal plumbing pipe system. It was supposed to be steel pipe or G.I. pipe. Cast iron pipes were used previously for sewerage downpipes, not water pipe because of the porosity.

Samy, if you don't know, please shut your mouth up and asked the JKR engineer to make the statement or explanation. You screw up everything and blame the civil servants for making truthful and correct statements when you had been making stupid statements without any technical basis.

Sinking Funds or Social Action Funds?

2007-02-25T18:41:00.000+08:00

Before any investors were to consider investing in the Iskandar Development Region in Southern Johor (IDR), they are slapped with contribution funds.

Any investors or companies who intend to participate in the IDR must first pay contributions to a social fund that would be set up by the government.

The fund would be called Social Action Fund and would be managed by the co-ruptors and the rationale is that the fund would be utilised for community development programmes. What community development programmes, it has yet to be identified and any programmed the co-ruptors would eventually design and implement is esoteric and mystified.

Take for example where contractors had to contribute 0.25% of their project value to Construction Industry Development Board (CIDB). The board was originally set up to develop the contruction industry, in particular, the main problem was the standard practices and quality of the skills and products. The CIDB was supposed to set up best practices and standards for the industry players and to progressively developed the industry players (that is, the contractors) to become world-class contractors, comparable with the multi-national corporations in terms of technology, skills, product quality, innovation and magnitude. That way, over a reasonable period of time, Malaysian contractors would be as good and competitive as the Japanese and Koreans, or to a higher level, the Americans and British or European contractors.

It is now more than 30 years since CIDB had existed and the only result they had paraded is the fact that a few Malaysian contractors had secured some projects in India and Sri Lanka, both Indian states of which Samy Vellu had played an influential role. But is that what CIDB is suppose to achieve?

Observed who are the workers in the industry? The Indonesians! 90% of the workers are Indonesians in our Malaysian construction industry? What happen to the vocational schools, Institute Kemahiran and all those skill training centres? Didn't they generate out skill workers and skillful supervisors? Take a survey and find out the skills of the supervisors and what had they gain or benefited from CIDB's role?

Over the decades, billions had been collected by CIDB and as the accounts of CIDB is not published for public knowledge, one could only guess what happened to the monies and where it was spent.

More unfortunately is the fact that the top management of CIDB are great leaders from the construction industry - ex-JKR Director-Generals and ex-Construction CEO. Did they ever considered the results, performance and achievements? What was and is their KPI? It's a far greater shame than the concessionaire agreements.

Wouldn't the Social Action Fund (SAF) be any different?

Why don't NST and The Star made some surveys at the various construction project sites and conduct some interviews with contractors or their managers and find out what the public had benefited?

Further, there are also more other funds such as development funds/sinking funds (ISF) collected by the authorities from property developers...what had they done with the monies?

In Selangor, property developers had to contribute to various other funds set up by the state government in the name of Social Action Funds or Infrastructure Funds, or whatever name they called it. Can the government let us know how they deal with the money? Would The Star and NST investigate and tell us?

It must be sinking funds...it sunk deep, deep down there!

NWSC Chairman: Zaini? Why not Omar?

2007-02-20T10:22:00.000+08:00

Shocking News!

The government decided to appoint Tan Sri Zaini Omar to be the first chairman of the new National Water Service Commission (SPAN) from March 1, 2007.

Zaini had just retired as the Director-general of JKR.

But Zaini is a electrical engineer with a law degree. How much does he knows about water management? This poser isn't intended to be contemptuous to a former leader.

Tan Sri Omar, also a retired PWD Director-general and who was the former boss to Tan Sri Zaini is the former Water Board Chairman and a civil engineering specialist, specialising infrastructure and hydraulic engineering management. Tan Sri Omar had personally been involved in designing many water & hydrology projects and the most recent is the STORM drainage tunnel in KL, of which the engineering consultant is SMHB (former Binnie & Partners). Tan Sri Omar is the executive director of SMHB (Syed Mohamad, Hui & Binnie).

Without disrespect to Zaini, Tan Sri Omar should be far more appropriate person to manage the water commission based on his competency and expertise in water management. Omar has design capabilities and his civil engineering design knowledge is appropriate to set the system management of NWSC. This is not a commercial entity nor a legal soliciting institution. Electrical engineering and law has little to do with water engineering and project management.

Declaring Ali Baba Contractors

2007-02-16T13:46:00.000+08:00

The Finance Ministry has now made it compulsory for Bumiputra contractors awarded government contracts to sign an official declaration not to sell the project or subcontract the works to others.

Treasury secretary-general Tan Sri Izzuddin Dali said their contracts and registration would be terminated if they flout the rule.

Why don't the treasury and ministry start the process now? They can begin the survey from all the DB/T contracts awarded by JKR and the Ministry of Defence. Every DB/T contractors are registered Bumiputera PKK class A contractors and each and every project, so far in the history of JKR, has been subcontracted to others. Even my good friend Pak Adib did subcontract some of the works to Others (non-Bumi). Abu Sahid of Maju Holding subcontracted the Dedicated Highway to Leighton of Australia who in turn subcontracted the works to Chinese subcontractors. Ahmad Zaki Resources subcontracted their projects along Jalan Kuching-Kepong-Jln Segambut to non-Bumis. MMC subcontracted most, if not all their works to Others (mostly non-Bumis). Perangsang, a state-govt incorporated subcontracted the Matrade project to Lee Fook Sang, Ranhill subcontracted all their works to non-Bumis, in fact, all Bumiputera contrators and suppliers subcontract their works to Others. The Secretary-general used the word: "to Others". That's interesting. The project to procure the Sukhois was awarded to a Bumiputera contractor and was subcontracted to others too. That's how the undertable was paid. If not, the Muslim contractor will have to undertake the undertable transaction which is sinful and against Islam.

It will be interesting to see how the ministry is going to monitor this instruction and declaration. The fact remains that it is impossible for Bumiputera contrators not to subcontract the Works to Others. Even for a Chinese or Mat Salleh organization, they too had to subcontract to others because it is about risk transfer, and it is about ensuring that the right expertise is procured to do a competent job and to ensure the success of the project. No organization is able to do all the works themselves or to engage all the experts and skill workers and professionals as employees. This is the business philosophy called Outsourcing - acquiring skills and expertise from outside the organization to mitigate or transfer the risks and to ensure profitability and growth.

In the world of competitive trade and commerce, no one single race or creed can survive on its own without the service of the others. Even the Saudis, the UAE, Iran, Indonesia, and all other Muslim countries awarded contracts to Others or subcontract projects to Others. Pak Lah should visit the projects at Dubai and Qatar which are all Bumiputera projects and all of which are subcontracted to Others.

I will be excited to see how the ministry will monitor and control the implementation of this instruction and when and what chaos will erupt and destroy the nation's economy. It's tsunamic and it's against the rule of law including Islamic law to issue such an instruction and "Surat Sumpah" as it goes against the principles of justice and good government.

Stupid government and stupid servants!

Samy said: Go Fly Kite

2007-02-12T13:48:00.000+08:00

Samy: "You fellas think I am a bad boy as if I decide on the tolls, as if I put you fellas in trouble, that I suck your blood and all that. I didn't! I am a minister and I implement the cabinet's decision; it's not and had never been my decision and it's surely not my own."

"Privatisation was purely EPU's decision - they made all those decisions such that I am blamed - and EPU is controlled by the PM's department; not me; go and check. That decision was then approved by the cabinet and then my ministry only carry out instruction. My ministry then is forced to make the announcement to increase the toll... it was a burden for me, and you all just scold me; not fair, not fair! Where is justice? You fellas are not mature enough to understand what is happening."

"You want the toll rates to come down, if you don't travel on those roads and the user capacity comes down, then the government will look into alternatives."

[emphasis added]

Source: NSTP, Monday, Feb 12, 2007, page 14, Prime News.

Samy Vellu Shocking Revelation

2007-02-11T13:50:00.000+08:00

Samy Vellu revealed that the government will need the consent from the toll-road concessionaires before the agreement can be made public.

It's the greatest shock anyone can apprehend.

I thought the parliament is the highest authority in any country and that parliament is always supreme and no one can, not even the past legislators can bind the future legislators, that is to say, no law can bind the parliament - Parliament can make any law or change any law as they so wished. That's the doctrine of parliamentary supremacy.

What Samy is saying is that, a term in the contract betwen the parties to an agreement, governed by the Act of Parliament, ie Contracts Act 1950, can be binding absolutely, could even bind the parliament, ie the legislations. Parliament have the power even to change the constitution, what more a term in a contract between a private entity and the ministry of work.

If we Malaysians are asked to accept this statement, then we are either so stupid or incapable to understand the rule or law, or that the country is now ruled under a new set of laws reflecting the feudal system or tartan system.

Dear Samy, no one and no law can bind the parliament. So long as the parliament decides on what they wanted to make as law or to unmake a law, it can be done. Please don't treat us as oxymoron illiterate asses.

Designed to Fail!

2007-02-05T14:01:00.000+08:00

Costly blunders? Blundering the nation's coffers?

Some shocking facts about contractors who were awarded government projects:

They lack expertise. Incompetent.
Too ready to make a quick buck.

Projects in the spotlight recently:

Middle Ring Road 2: Cost - RM120m (it actually cost RM238.8mil); an extra RM70m to pay for repair work paid by the govt even though it was contractor's fault.
Navy Recruit Training Centre (Pularek): Cost - RM198m; extra RM13m needed, 7,032 defects and paid by govt even though it was contractor's fault.
Matrade Building: Cost - RM287m; the cost kept rising until it reached that amount. Original contract value is RM167m. The extra RM120 mil is paid by govt.

It may sound astonishing; even ridiculous. But it is true.

Reasons for these blunders was revealed by Second Finance Minister:

(1) Projects were awarded to contractors who do not have the expertise whatsoever.

(2) Projects given to those who do not have the financial means to complete the projects.

(3) Bumi contractors sold the project for quick bucks.

(4) Consultants' grossly incompetent.

(5) The actual builder is ultimately the sub-sub-sub-sub-sui contractor. (A $200m award to the maincon becomes $80mil when it was passed down to the ultimate builder.)

Incompetent contractors, delays, cost overruns, failed projects: Lessons learnt?

The government has put in place mechanisms to avoid delays in project completion and ensure cost effectiveness. Referring to the New Sunday Times report yesterday on cost overruns in projects due to the incompetence of contractors and consultants, Minister in the Prime Minister’s Department Datuk Seri Mohd Effendi Norwawi said the mechanisms
would ensure only competent contractors were given government jobs.

He said the government had drawn valuable lessons from case studies of failed projects, as well as the successful ones.

“We have put in place new initiatives to streamline our procurement processes and to ensure projects are delivered efficiently and cost effectively.”

These, he said, included:
• Ensuring projects are awarded to competent contractors; and,
• Installing systems to monitor projects on near real-time basis to spot any delivery problems early and resolve problems immediately.

MRR2 Repair: RM70 mil

2007-02-01T14:03:00.000+08:00

Repairs to MRR2 flyover cost RM70m

Compiled by ROYCE CHEAH, BEH YUEN HUI AND A. RAMAN
1st February 2007, The Star

THE Public Accounts Committee (PAC) has revealed that repairs to the MRR2 flyover in Kepong cost more than RM70mil, Utusan Malaysia reported.

PAC chairman Datuk Shahrir Abdul Samad said the figure was high compared with its construction cost – RM120mil.

He was quoted as saying that this reflected “shoddy design and construction concepts” that were approved by the Government when projects were given to contractors.

“There is no point in spending more and not being able to use it,” he said, adding that it was difficult to pinpoint who was responsible for the mistakes in such a project.

“As an example, the MRR2 project has the contractor and concessionaire constantly pointing fingers at each other. The problems were with the design and construction.”

Shocking? It was originally estimated to be RM20 million.

More shocks? The government is paying the bills. The MRR2 is a Design-Built-Turnkey contract and the contractor has to give an absolute guarantee to the government for the design and construction.

Much more shocks? Wait!!!!

Construction Safety Case: Pavilion KL Project

2007-01-11T12:53:00.000+08:00

Liew Wei Lun, son of Liew Wan Chew (died on the spot), said: "My father had complained many times of the defects and there were several near misses."

The gondola was carrying workers and marble tiles which probably was overloaded,beyond it’s design capacity and the safety features either did not work or was also beyond it’s capacity to restrain.

Gondolas were never meant to carry building materials except for some light materials and tools.

How is it that the cable quality had not been regularly check?

Safety is so lax and workers are so insecure.

Who's Who in Maya Maju

2006-11-23T12:35:00.000+08:00

Ahirudin Attan of Rocky'Bru's blogged: Not Khairy's Maya?

Thanks to Rocky, he mentioned CTSB in his article and that sends hundreds of his fans visiting CTSB.

Rocky posed some questions pertaining to the New Istana Negara Project as announced by Datuk Seri Samy Vellu. In The Star reported on 14th November, the headline says:
New, bigger Istana Negara

Works Minister Datuk Seri S. Samy Vellu said work on the new Istana Negara, to be built on a 96.52ha site atop a hill, will start next June and was slated for completion in 2009 which would cost the government RM400mil. However, no one heard of any tender being published and it had to be presumed that it was a negotiated turnkey-design-and-built project.

Kumpulan Seni Reka Sdn Bhd has was mentioned as the appointed project architect and Maya Maju Sdn Bhd was named as the building contractor.

Many people, including Rocky wanted to know who the hell is Maya Maju Sdn Bhd. Names like Syed Mokhtar's MMC & IJM, UEM, Peremba, Tan Sri Talha's and Lin Yung Lin's Gamuda, Roadbuilders (now SM's IJM owned), Ahmad Zaki's AZRB, Tan Sri Abu Sahid's Maju Holding Bhd, Salleh Sulong's DRB (now belongs to SM), Ranhill's Hamdan, YTL, Pak Adib's Arena Engineering, Tan Sri's SNA, and so on, they are familiar to most of us - they are the King-pin of the Malaysian construction industry. But Maya Maju? Who's that? Who owns it and what's it's track record?

Some time ago, we heard of Bank Negara awarding a RM320 million contract to buid a resource centre to a little known privately-held company, H & I Niaga Sdn Bhd. The award surprised major construction companies which had been bidding for the large project, like Ahmad Zaki Resources Bhd, PECD Bhd, Ranhill Bhd and UEM Builders Bhd.

H & I Niaga was involved in the problematic project involving the construction of the Royal Malaysian Navy Recruit Training Centre in Kota Tinggi Johor. They are also the contractor for Cheras Velodrome Project and some projects awarded by UiTM. NST BizTimes reported that the company had failed to pay levy owed to CIDB. The company had also failed to submit its profit and loss accounts for the past 3 years to Companies Commission Malaysia and had failed to file its accounts for the financial years ending December 31, 2002 to 2004.

H & I Niaga later issued a two-page statement to answer point-by-point all the issues raised by the Press and the Federation of Malaysian Consumer Associations. The company said while it was involved in building the Royal Malaysian Navy Recruit Training Centre in Johor, it was not involved in the construction of the defective roof structure of the hall complex.

H & I Niaga went on to say reports of it being reprimanded by government ministers over the Cheras Velodrome project were also untrue as it had completed its job to upgrade and renovate the facility within the stipulated time and had even been given letters of appreciation for the job. The company also answered Fomca’s query on its failure to file its accounts for the years 2002, 2003 and 2004 with the Companies Commission of Malaysia (CCM).

H & I Niaga said it had run into technical difficulties in 2003 causing a two-year delay in the of filing its profit and loss accounts. H & I Niaga clarified that they had since resolved the problem and has submitted the company’s audited accounts for the years 2002 and 2003 to CCM, while the final accounts for the financial year ended December 31 2004 have been audited and are pending submission. With regard to the payment of levy to the Construction Industry Development Board (CIDB), H & I Niaga said they will resolve the issue before October 25 as allowed for by CIDB.

Coming back to Maya Maju, the market had been abuzz with talk that Maya Karin, the pontianak actress who was recently rumoured to be romantically linked to Khairy Jamaluddin, the PM's son-in-law, and also rumoured to be using Hishamuddin's supplementary platinum card (this is another rumours). It was insinuated that Maya was behind the project to build a new national palace (some kind of payment in kind for service rendered). Some said that a top official from Khazanah Nasional, the government's investment arm, is advising this little-known company. I repeat: this is pure rumours and don't believed it.

UPDATES:

Checks with the ROC revealed that Maya Maju Sdn Bhd registered shareholders are Mr Ko Chin Teck (RM15,000 shares), Mr Lo Sin Li (RM85,000 shares). The directors are Ko and En Mohamad Muslim Hamzah (Mohamad Muslim do not owned any shares). Maya Maju Sdn Bhd Company No: 252091-T. The financial statement as at 31st Dec 1993 (as shown in RoC records) indicates Fixed Assets valued at RM82,655.00 and Current Assets at RM415,169.00 and Current Liabilities at RM456,501.00.

I believed that the company may have changed it's name to Maya Maju (Malaysia) Sdn Bhd as the published accounts at RoC is recorded up to 1993 (I can be wrong).

There is another company, Maya Maju (Malaysia) Sdn Bhd, registered with the RoC (Co Reg No: 254750-T). Here, there are 2 shareholders and 5 directors. The 5 Director are: Datuk Haji Man Bin Mat (rings your ear?), Md Nizam B. Md Sharif (rings your ear?), Rasidah Bt. Salleh, Lim Hooi Mooi (secretary), and Tan Enk Purn (secretary). The shareholders are: Maryna Keh Abdullah @ Miss Keh Kim Lan (RM1,450,000 shares) and Man B. Mat (RM3,550,000 shares).

Did it sounds interesting to you? Analyze the Shareholders, the Directors and secretaries???

So, Maya isn't Maya Karin; it's Maryna, the wife of ...

The company financial statement as at 31st Dec 2005: Current Asset RM4,899,225 (must be made up of the paid up capital injection) and Current Liabilities is RM48,794.00 (operating liability). Operating Revenue is RM0.00, profit before taxation is -$2,154.00 (negative) and losses is RM60,686.00. It is observed that the business is dormant or non-operational up till Dec 2005.

But why have 5 Directors, two Chinese company secretary, when the shareholders are 100% Bumis? Don't guess! It's against UMNO Malay Agenda. However, without the king-paymasters behind, the Bumis can get the project but can't pay and financed the implementation of the project; even the performance bond of 5% contract sum would amount to RM20 million. The rule of the thumb is that contractors will need at least 20% working capital and at least another 30% cash flow as this is a design-and-built project (that is approx RM100 mil). I was even told that the proposed project was a some kind of payment-in-kind, that is, contractor to built the Istana and in return will not receive money but a substantial piece of prime land worth a lot. I can't confirm it.

But the directors' names rings your ear and you can continue from here to do the research.

No insinuation please, and it could be seditious. Read what the DPM said today:

Maya wins New Istana Negara Project

2006-11-14T12:59:00.000+08:00

The Star had decided that Dr Amer Hamzah Mohd Yunus is now the New Director-General of Public Works Department (JKR).

In today's new, The Star wrote:

[Quote] Public Works Department director-general Dr Amer Hamzah Mohd Yunus said only 28ha would be developed into the new Istana Negara complex while the rest would be a garden area. [Unquote]

But the current D-G of JKR is Datuk Seri Professor Dr Wahid Omar!

Is it a mistake or was it intentional?

Prof Dr Wahid Omar is overseas. Dr Amer can only be an Acting D-G unless Samy Vellu had unilaterally decided to appoint a new D-G without the need to follow the General Orders and procedures and directed The Star to make the announcement.

Coming back to the news, the new, bigger Istana Negara will cost RM400mil and will replace the current Istana which was built in 1928.

The new Istana Negara to be built on a 96.52ha site atop a hill is expected to start work in June 2007 and slated for completion in 2009.

Upon completion of the new Istana, the present building may become a royal museum.

Kumpulan Seni Reka Sdn Bhd has been appointed the architect for the new palace and Maya Maju Sdn Bhd as the building contractor.

Maya Maju? Who's Maya Maju?

Maya? Sounds familiar?

Wait for further information. Doing research now.

Johor Sultan backs Mahathir's Cynic Bridge Project

2006-11-05T13:01:00.000+08:00

What? What did he say?

Tear down Causeway!!!

Sultan’s Causeway remark causes a stir, proclaim The Star.

To the shock of the 2,000 people present and hundreds of thousands of viewers at home of the live telecast over RTM 1 and TV3, the Ruler said it was built by colonialists who had used dirty tactics to deceive his ancestors.

He said the building of the Causeway was to deliberately prevent ships from passing local waters, resulting in the development of Keppel Port in Singapore instead.

“The Causeway has to be removed to allow ships to pass,” the Sultan said before launching the multi-billion SJER.

"Causeway tu, bukakan...baru negeri Johor ni maju (the causeway has to be demolished, only then Johor will develop," the Sultan said before launching the project which was televised live.

At this juncture, the audience broke into laughter and applauded.

The Sultan said he would not “give face” (bagi muka) to the foreigners (Mat Sallehs) and urged the people not to hold them in high regard.

He also reminded locals and their children to be wary of them as they were “vultures”.

NO NEED TO GIVE FACE, SULTAN DECLARED!

Whose face is most hurt?

Didn't they said the Sultan Johor ask Mahathir to stop maing noise?

It doesn't looks like it. It is obvious from the latest evidence that the Sultan was upset over the scrapping of the crooked bridge.

I believe the Sultan used this occasion, an occasion that is to parade the Federal govt's effort in supporting Johor's development.

Since the State and Federal govt is planning RM382 billion worth of projects, wouldn't it had delighted the Sultan? Instead, the Sultan wanted the causeway to be demolished. It's like saying: "I don't care the RM382 billion shit; get the causeway out of my way, and I'll be happy."

Is it a slap in the face for Ghani and Pak Lah? They were there to hear him out, face to face.

The Singapore Foreign Ministry described the Sultan's remark as "curious".

A ministry spokesman said in a Channel NewsAsia (CNA) report that Singapore did not believe the call represented the Malaysian government's position.

Foreign Minister Datuk Seri Syed Hamid Albar said:

"I think the most important thing is for us to put the speech and comment in its proper context. I think what is most important is that we must always learn from the lessons of the past and make sure whatever development we are going to undertake will bring benefit to our well-being, for the good of our people."

What is Hamid Albar saying? Don't bother about the remarks? But the remarks is made is such a big occasion; it was intentional!

JKR Unable to carry out project?

2006-10-28T10:22:00.000+08:00

Pak Lah said:

"We, in the Cabinet have decided that if JKR (Public Works Department) is unable to carry out a project, we will let other contractors help out. There are many other possible methods. Interested parties should submit their proposals. We will select the best in terms of quality and pricing."

JKR unable to carry out a project? OMG, JKR, how is it that such a big institution with thousands of engineers and hundreds of Pengarah, with 100 years of background experience, you are not capable or unable to carry out a project? I don't see the reason unless it's JANGAN KERJA RAJIN or JAGA KAKI ROMPAK!

JKR, and all the engineers, do you have other reasons?

Was it JKR's fault?

Was it JKR's fault too?

2 weeks have passed, yet many still waiting!!!!

Computer Lab fiasco & Matrade Building; Was it JKT's fault?

Cynic Bridge Compensation

2006-10-22T13:02:00.000+08:00

Bridge claim worked out

Samy Vellu said the PWD had studied the claims by Gerbang Perdana and had decided on an appropriate quantum. Asked whether the quantum sought was reasonable, he said the PWD was always stringent with claims for compensation and required justification from contractors.

Gerbang Perdana had submitted claims totalling RM360mil for the cancellation of the project.

“We don’t give in easily as it is the people’s money. We must be careful in making our evaluation and only when we feel that their (contractors’) request is fair do we decide on their claims,” he said.

He said the Finance Ministry would have the final say as to how much the Government would pay Gerbang Perdana.

From my information, the PWD's claim experts had recommended less than RM10 million compensation. I just wonder how the treasury would award the compensatory damages. The question arise:

Has the PWD officers been reasonable in their assessment and would the Treasury and the minister Tan Sri Nor Mohamed Yakcop be far gracious to the "special ones"?

We will wait ... I just smell rats? Is it in PWD office or Treasury's office? em!!!!

PM: Pay as Contracted

2006-10-02T14:08:00.000+08:00

PM wants government to make prompt payment for services and goods

Monday October 2, 2006

The Star Online

Prime Minister Datuk Seri Abdullah Ahmad Badawi wants Ministries, departments and agencies to make payment for services and goods provided to them without delay.

The Prime Minister has also ordered the Economic Planning Unit (EPU) and the Implementation and Co-ordination Unit (ICU) to issue reminders to the ministries and departments to make the payment as soon as possible.

“I want payments for goods and services provided to the Government be paid expeditiously. Do not wait any longer.

"If the goods had already been supplied and services has been provided to us, then there is no reason to delay payment.

“A contract is a form of promise and if the other party has carried out their part of the deal, then we should carry out ours, which is to pay them for their services,” he told staff of the Prime Minister’s Department at its monthly gathering here on Monday.

The Prime Minister said in Islam, it was important that responsibility be carried out and promises be kept, adding that fulfilling one’s part of the contract was viewed seriously by the religion.

He said delay in payments would not benefit the Government which did not want unpaid bills to pile up, making payment a problem.

“If we do not pay, a lot of people will suffer.

"Workers will not get paid, banks will not be paid for the loans issued and suppliers could not supply construction materials because of they get paid late.

“This will cause anger and dissatisfaction against the Government.

"Therefore, I want to remind ministries, department and agencies to expedite payments and I want the central agencies to remind them on this,” he said.

Cakap boleh serupa bikin kah?

Samy wants Blow-job on Contractors

2006-08-22T10:29:00.000+08:00

Samy Vellu is frustrated with the increasing number of abandoned projects and shoddy work by contractors, and he has decided to put people power into service.

The public will be invited to become the eyes and ears of the Works Ministry to prevent hanky-panky and reduce costs arising from the need to revive abandoned projects and repair slipshod work.

Works Minister Datuk Seri S. Samy Vellu said this would be part of a code of ethics and a performance-appraisal system for contractors likely to be implemented next year.

He said it was aimed at preventing abuse of government projects.

The public could contact the Construction Industry Development Board Malaysia (CIDB) if they felt things were amiss with any government construction project.

Contractors will also have to sit for integrity courses design and conducted by CIDB.

"These are drastic measures. Once implemented, the code of ethics and appraisal system will have to be adhered to by contractors and CIDB will be the monitoring them.

Can we trust CIDB?

So far, since the inception, CIDB had done nothing tangible to help the contractors who had paid billions of dollars of contributions to them.

What they had done is to collect the 0.25% taxes from the contractors, organise some seminars for contractors of which the contractors who attended had to pay for it again, register workers and label them which cost the contractor another $360 per worker (tho' CIDB said they only charge $150 per pax, but I asked all the contractors, they said there is associated type of fees to be paid to runners).

Tan Sri Wan Rahman, since retiring from JKR as the D-G, and appointed as chairman of CIDB for more than a decade, he should have retired and exited and not cause us more pain and cost. The new CEO, Datuk Hamzah, he seems to be doing something ... but not visible till today. There is a lot of talk, no action (NATO). I observed, that he may be surrounded by what Zam called: Crony system propagators who had no certified credentials to prove but are good talkers and commercialmen. These talkers had done some jobs for CIDB, like (cut-and-paste) research papers on project management, which was dump into the dustbin and of which had cost CIDB some $150,000. There were some seminars orgainised by CIDB on the use of Microsoft Project Scheduling, and Bar Charts (Gantt Charts) were produced without the Critical Path Network (CPM).

Is Hamzah facing problem with his chairman or others, or being crowded with false prophets of project management? Only he can answer.

But CIDB till today, has nobody within, who can claim they had the project management knowledge competency ... CIDB had lobbied to the govt and was thus mandated to certify project managers but they themselves are not even certified by international project management bodies. Would they be brave enough to get themselves certified by PMI, AIPM, APM, or any reputable project management institutions worldwide?

Could CIDB make themselves relevant?

Datuk Hamzah, can you do it?

or do we wait for the next generation of Mat Rempit to do it?

JKR Sarawak to be Revamped

2006-08-17T10:31:00.000+08:00

16th August 2006, Eastern Times

Chief Minister, Pehin Sri Haji Abdul Taib Mahmud said three state government departments including JKR (PWD) will be revamped soon for greater efficiency and accountability.

According to the chief minister, previously every piece of government work was done by JKR and the work done was according to specifications and the estimated cost. But with more of the projects given out to the private sector, JKR supervision becomes superficial and it is crucial that the government’s interest is protected through contract management.

Taib stressed that the government must have an effective machinery to protect its interest while ensuring all the proposed development projects were well planned and evaluated in terms of costs.

Taib suggested that JKR have its own team of legal officers who were experienced enough to access and ensure work supervision and specification were rigidly adhered to. He said the interest of the government must be protected. He added that fewer junior engineers would be required after JKR was revamped. Instead more experienced senior engineers would be needed for certain specific works.

Engineers in JKR must be able to understand contractual terms and conditions and the risks involved such as loss and expense claims, Extension of Time (EOT) evaluation and the consequences of failure to grant a fair and reasonable EOT. Apart from this, engineers must also understand their fiduciary duries and implications of certification of payment, Liquidated Ascertained Damages (How and when to issue Certificate of Non-Completion and what condition precedent before deduction of LAD), How and when to issue Certificate of Practical Completion, Defects Liability Management and when to issuance of CMGD ( and consequences of failure to issue defect list within the period stipulated), Legal implications relating to Final Accounts, disputes and valuations of Variation Orders (differences between lump sum contract, Unit-rates contract and Design-built contracts), Remeasurements, Lump Sum Contract applications and legal aspects relating to variation omissions, duties and responsibilities of engineers and consulting engineers, how and when to issue engineers' instruction and the implications arising thereof, in particular, loss and expense claims, delay in possession of site and damage claims, acts of prevention to completion, breach of contract and breach of reciprocal promise, the application of Contracts Act 1950 and the Common Law of UK, Standard Forms of Contract, exclusion clauses, etc.

Do they already know? Do general legal advisors know? Will they be able to advice competently? There's a saying: Lawyers are those who pass the law exam; not necessarily adequately competent in the knowledge of construction contracts and dispute management.

What about JKR Semenanjung, Malaysia???

Will the tide comes? En Adib, what do you think?

P/S Thanks James!

MRR2 Re-Open to Light Traffic

2006-08-02T14:07:00.000+08:00

MRR2 reopens to light traffic

Light vehicles can now use the Kepong stretch of the Middle Ring Road II (MRR2), closed in March for repairs to structural defects.

Two lanes opened on both sides at 2pm yesterday but the third – the fast lane – would remain close for structural reinforcement works.

Works Minister Datuk Seri S. Samy Vellu, who visited the site yesterday, said these lanes, however, would be closed every weekend from 10pm on Saturday to 6am on Sunday.

He said the Public Works Department was also repairing a stretch on the MRR2 between the bus stop near the Manjalara junction and the access road to the Forest Research Institute of Malaysia near Taman Indah Perdana.

Samy Vellu said repair works on the MRR2 was 70% complete and “progressing smoothly without any delay.”

“Preliminary pier crosshead reinforcement work on all the pillars has been completed. This is to allow light vehicles (below 2.1m in height) to ply the MRR2,” he said.

“Further structural reinforcement work is being done on all pier crossheads and is expected to be completed by the end of November.”

Samy Vellu assured motorists that the MRR2 was now safe and “above the international standard safety benchmark.”

On the RM52.85mil interchange linking the new Sungai Buloh Hospital to the North-South Expressway, he said he expected it to be opened to traffic from Aug 14.

Samy Vellu also said repairs to the Sierra Mas bridge in Sungai Buloh, damaged by floods recently, were set to be completed by the end of this month, and the bridge would be opened on Sept 1.

He also said the Government has approved RM110mil for the repair and upgrading of more than 300 bridges nationwide.

“Some bridges need major repairs while some minor ones.”

NST Report: MRR2 reopens and it's 'safer than ever'

Samy Vellu said the cost of repairs was still being calculated although earlier estimates had pegged it at RM40 million. Contractor Bumihighway, which built the initial stretch, is paying for the repairs.

Structural reinforcement is being done on all pier crossheads and is expected to be completed by the end of November.

The MRR2 was closed for the first time for three months from Aug 8, 2004, and reopened in November last year.

The decision to close the stretch for a second time came after cracks were discovered and a study by independent consultant, Halcrow Group Limited of Britain, found cracks on 31 of the 33 pillars of the flyover.

The company said a design flaw and improper anchorage of the crossbeams on the concrete columns were to blame.

Repairs to the 1.7km stretch included water-proofing and installing metal braces as recommended by Halcrow.

Cynic $360 Million Claim

2006-07-03T13:04:00.000+08:00

Gerbang Perdana’s claim balloons to RM360mil

The controversial RM100mil compensation sought by Gerbang Perdana Selatan Bersepadu Sdn Bhd for the cancellation of the Johor half-bridge project has shot up to RM360mil.

Samy Vellu said the contractor “has asked for all sorts of compensations” which the ministry could not entertain. “I have directed Public Works Department director-general Datuk Dr Wahid Omar to conduct an investigation into the claims,” Samy Vellu said.

“Everything will be done like an Anti-Corruption Agency probe. I have instructed Dr Wahid not to be afraid of anybody and do what he thinks is right, and to report only to me.”

He said Gerbang Perdana had been given until July 11 to provide all the documents to justify their claims. Gerbang Perdana had been given a RM470mil highway project in return.

Samy Vellu said it was “much less than what they asked for”. “I can't tell the amount. What we have seen from documents, payments made, cheques and personalities (involved), everything has been checked and that’s how we know the quantum. It is not RM360mil.”

Samy Vellu said that if Gerbang Perdana failed to produce all the documents by the deadline, the ministry would submit its proposed quantum to the Prime Minister and Cabinet for approval. “If they fail to submit all the documents, we will decide that they will not get any compensation or just a little.”

$360 million dollar claim for loss and expense? Original contract value is $740 million? Wow, about 50% of contract sum? Kaya lah!

Interestingly, Samy said: It is not so much! What does that mean? Is he saying: It should be slightly less than that, maybe, $340 or $300 million?

One for you and one for me.

Kautim Management. BTW, is Khairy and ECM Libra engaged to negotiate on behalf of Gerbang?

Govt says no more Design-Built. True or False?

2006-06-21T13:05:00.000+08:00

The Pak Lah govt had promise that new projects would be by open tender.

But we are seeing that most of the projects are still Design-Built Turnkey contracts being awarded and many under negotiations.

Isn't it Cakap Tak Boleh Serupa Bikin?

Works Minister Samy Vellu announced yesterday that Realis Sdn Bhd had been appointed to build the single-carriageway road spanning 6.9km from Senawang-Putus in Negri Sembilan.

There are currently many projects under negotiation on Design-Built.

Pay to Contractors, Got Money ah?

2006-06-11T10:27:00.000+08:00

Pak Lah tells all government bodies to pay up to all contractors.

Got money ah? Pay, pay, where's the money...

The contractors are still waiting until now...

UM V-C Rafiah Salim asked: When is the money coming?

She is not the only one asking. Go to JKR, DID, District Offices, City Hall, Health Ministry, Education Ministry and find out whether the contractors had been paid. Ask the engineers.

See, this is an abandoned ward project at University Hospital, Selangor. The project lies between University Malaya Medical Centre’s (UMMC) Menara Timur and the surau. The Obstetric Paediatric Ward project, which started in 2002, has been abandoned since 2003. The project was supposed to provide the paediatric department with a block containing nine floors and three basement floors while the obstetric department was to get a block with four floors and three basement floors (according to the notice board for the project). The new ward was aimed at providing enough beds for patients, as there is presently an insufficient number of beds to meet demand.

Yet the project has been left alone after the base structure was completed. Datuk Rafiah Salim said the project was tendered with officials from both the Finance Ministry and the Works Ministry present with all the proper paperwork done.

“We started the project in good faith and expected the rest of the money to come because approval had been given under the 8th Malaysia Plan,” said Rafiah.

Rafiah said the funds were under the Finance Ministry's control and money had been allocated for the project to continue. But where is the money?

“It’s a lot of money, that’s why there’s a lot of interest in this project.

Independent engineer E.F. Lee said the practice of building the first part of a project was both foolish and unheard of in the construction industry. “In the industry, when you start a project, you want to finish it because a few years later, the technologies and needs may have changed and the base structure would have been outdated,” said Lee.

“Starting a project when you only have partial funds, while not illegal, is very bad planning.”

Lee said although he had not inspected the site up close, from his observation the construction looked abandoned without any mitigation or protection to the completed structures.

“By leaving it unprotected, corrosion will set in and the bars will lose strength that is critical to reinforce the concrete structure,” Lee said.

UMMC director Prof Dr Ikram Shah Ismail and UMMC associate professor and consultant obstetrician and gynaecologist Prof Dr Jamiyah Hassan further clarified the situation. “The building was initiated under the 7th Malaysia Plan, with the building designed to be done in two phases because there was not enough funds in the 7th Malaysia Plan. Thus, funding for the project had to be spilled over to the 8th Malaysia Plan,” said Dr Jamiyah.

“Tender for the base structure was closed on Aug 7, 2002, and the project was undertaken and completed by the first construction company while we waited for the next part of the funding from the Finance Ministry.”

On April 22, 2004, the Finance Ministry officially told UMMC that there were not enough funds to finance the project due to the economic downturn and asked UMMC to resubmit applications for funds in the 9th Malaysia Plan instead.

Pak Lah, got money to complete this project ah?

Cakap boleh serupa bikin kah???

DRB wins $425 million settlement

2006-05-30T13:06:00.000+08:00

All the time, whenever there is a claim which the government disputed, the superintendent officer and the project team representing the government, stood on hard ground.

The government represented by the superintendent officer were prepared to go to court or arbitration to remedy.

But each time, when it was to be up for hearing, the government, advised by the attorney general office, would back off and sought out of court settlement; they call it compromise. In reality, they knew they would lose, because they didn't have enough supporting documents and evidence to back up their contention; impliedly, it was an admission of wrong and admission of a breach of contract.

It's no different this time.

DRB claimed variation order works for a balooned up sum of $900 million. They got $425 million bonus; courtesy of the government.

At first the S.O. stood firm to deny the claims as frivolous and vexatious. When the time to be present at the court of arbitration, they back out and sought refuge behind a compromised solution.

Why were they prepared to pay now, and such a hefty sum?

Is it the Syed Mokhtar factor?

DRB-HICOM is now in further talks with the Government on liquidated ascertained damages and the release of performance bond. It said is hopeful and positive that this matter will also be resolved soon.

DRB-HICOM Bhd, announced yesterday that the Government has finally agreed to pay RM425 million for additional works done on the Rawang-Ipoh electrified double-tracking rail project. The settlement is for the payment of variation order and loss and expense claims for the extra works, it told Bursa Malaysia Bhd yesterday.

The Rawang-Ipoh track forms part of the national railway firm Keretapi Tanah Melayu Bhd's RM14 billion project to lay parallel lines from Padang Besar to Johor Baru. DRB-HICOM, which is now controlled by tycoon Tan Sri Syed Mokhtar Al-Bukhary, began work on the RM2.6 billion rail project in mid-2000 and was at first given until the end of 2002 to complete the stretch. The deadline was later extended to December 2004. The group was reported to have completed about 88 per cent of the 179km stretch. In June, the Government terminated the contract with DRB and appointed UEM Builders Bhd, one of the sub-contractors of the project, to complete the unfinished portion of the project.

Matrade Fiasco

2006-05-29T13:08:00.000+08:00

Samy Vellu finally relented; he confirmed that the government can't sue the directors of PISB as it is now insolvent.

To this, Brendan Periera had to say: Welcome to the world of Perangsang International Sdn Bhd (PISB), the contractors who clinched the deal to build the Matrade building.

Brendan recalls the History of the Fiasco

In 1993, the PWD called for a limited tender to build the Matrade building and estimated that it would cost RM175 million and take 125 weeks to complete.

After studying the 14 bids, PWD recommended that Ireka Construction be given the job. The company promised to complete the job in 138 weeks for RM157 million. The recommendation was forwarded to the Finance Ministry and was promptly dumped.

The ministry wanted the 14 companies to re-submit their bids. But two days after it issued that directive, the Finance Ministry surprisingly ordered PWD to negotiate directly with PISB.

Why this company was given the contract still stumps the people at PWD.

From the start, there were problems. PISB obtained the development order late and it needed three extensions, delaying the completion by 686 days. When it completed 98 per cent of the project in 1999, the PWD discovered cracks in the structure and ordered PISB to carry out repairs. The contractor refused, saying that it had carried out the project according to specifications.

PWD and the Finance Ministry — now under a new minister — obtained the services of Arup Consultants. Even after the consultants concurred with PWD’s findings on the structure of the Matrade building, PISB refused to carry out remedial work.

At this point, you have to sit back, digest what has happened and ask some elementary questions.

Question number 1: Why wasn’t PISB or its directors sued in 1999 for not doing their job competently? Why wait until now to visit the possibility of taking action?

Question number 2: Were the terms of the contract so generous that the contractor could walk away without agreeing to do remedial work?

Brendan posed this question to ask: Can the money be recovered?

According to Brendan: There is a better chance of Malaysia qualifying for the 2010 World Cup than PISB paying any compensation.

And here is why: PISB was sold off to Tajuk Modal on July 19, 2004, for RM2. PISB was renamed Tajuk Construction Sdn Bhd and the latter was wound up on Jan 18 this year. In short, PISB doesn’t exist anymore. In any case, it would have been tough to go after the directors of PISB. The contract was signed with the company and unless the directors gave any personal guarantees, they would not be liable in a personal capacity.

Some options appear available to the authorities.

One: Lodge a police report, find out if the decision by the Finance Ministry was above board and pursue any wrongdoing — no matter where it leads.

Two: Urge the Selangor Government to make good the RM95 million owed to the Federal Government. After all, before it tanked, PISB was a subsidiary of the State’s investment arm. Surely, the people at Shah Alam have a moral obligation to right this obvious wrong.

Would the government learn a lesson or two from this fiasco?

Or, will history repeat itself, ...sooner rather than later?

Matrade Finally Complete?

2006-05-25T14:11:00.000+08:00

After 9 years, and after overspending more than $120 million over and above the original budget, the project was finally completed.

A handover ceremony was held in the building in the presence of International Trade and Industry Minister Datuk Seri Rafidah Aziz and Works Minister Datuk Seri S. Samy Vellu.

Rotol-AMS-Bumi Technologies Sdn Bhd, the contractor appointed to carry out the balance works had completed 39 days ahead of schedule. The appointment of new contractors to rectify the defects saw costs balloon from an initial RM167 million to RM287.51 million, with about RM64.8 million spent on repairs.

The building was finally completed by RotolAMSBumi Technologies Sdn Bhd and Syarikat Pembinaan Anggerik Sdn Bhd together with NSC Mekanikal Fastcoll Corporation Sdn Bhd.

Believe it? The repair works costs $64 million and the outstanding works cost $56 million? The contractor must have made a fortune! Anyway, it was better than the previous contractor who had wallop $200 million and abandoned the project. The hardest to swallow is that the previous contractor, Perangsang International Sdn Bhd (PISB), is owned by the Selangor Govt.

PISB was a subsidiary company of Kumpulan Hartanah Selangor Bhd (KHSB), an investment company of the Selangor government.

The Works Ministry plans to bring former board members of Perangsang International Sdn Bhd (PISB) to court for the nine-year delay in completing the Matrade building.

Samy Vellu said he had personally investigated the company and its directors and all evidence gathered would be produced in the event of a court hearing.

Works Minister Datuk Seri S. Samy Vellu said although the company was now defunct, the ministry would not remain silent. “Although the company no longer exists, we will go to the court and take action against the directors,” Samy Vellu said. “They cannot just run away and not take responsibility,” he said, adding that construction costs went up by 70% due to the delay.

Work on the building in Jalan Duta began in 1994 and was targeted for completion in 1997. Due to several delays and the appointment of a new contractor, the original cost of RM167mil ballooned to RM287.5mil, with RM64.8mil spent on repairs.

The original contract to PISB was terminated last March and the company ordered to pay late delivery charges of RM41,750 a day for 2,276 days.

In 2004, the shares of PISB were sold to Tajuk Modal Sdn Bhd. In July, K. Hartanah announced that the group was selling Perangsang to a company called Tajuk Modal Sdn Bhd for RM2. Perangsang had net liabilities of RM7.6mil at the end of last year.

The directors of Tajuk Modal are Chong Sang and Yap Fook Sang.

K. Hartanah said it was selling Perangsang as it was in line with the group's scheme of reconstruction, which is to divest non-core businesses, and to streamline, regroup and concentrate on its property development activities.

International Trade and Industry Minister Datuk Seri Rafidah Aziz expressed regret that her ministry had to bear heavy losses as a result of the delay.

"Matrade, apart from having to rent elsewhere, also lost out in terms of opportunity cost. Total rental earnings forgone from the building’s exhibition space was an estimated RM120mil, the equivalent of building another 24-storey building," she added.

As a client, Rafidah said, she was disappointed and wanted the Works Ministry to not only take action against the former PISB directors but also look into the probability of any irregularities during the tender process. While waiting for its new building, Matrade rented premises at Wisma Sime Darby and also a small exhibition hall at Wisma PKNS in Jalan Raja Laut, Kuala Lumpur.

Matrade staff members are expected to move into the new office beginning in July.

Read the earlier article: Matrade RM167 Million Damages

Matrade Finally Completed?

2006-05-24T13:09:00.000+08:00

After 9 years, and after overspending more than $120 million over and above the original budget, the project was finally completed.

Rotol-AMS-Bumi Technologies Sdn Bhd, the contractor appointed to carry out the balance works had completed 39 days ahead of schedule. The appointment of new contractors to rectify the defects saw costs balloon from an initial RM167 million to RM287.51 million, with about RM64.8 million spent on repairs.

The building was finally completed by RotolAMSBumi Technologies Sdn Bhd and Syarikat Pembinaan Anggerik Sdn Bhd together with NSC Mekanikal Fastcoll Corporation Sdn Bhd.

Believe it? The repair works costs $64 million and the outstanding works cost $56 million? The contractor must have made a fortune! Anyway, it was better than the previous contractor who had wallop $200 million and abandoned the project. The hardest to swallow is that the previous contractor, Perangsang International Sdn Bhd (PISB), is owned by the Selangor Govt.

PISB was a subsidiary company of Kumpulan Hartanah Selangor Bhd (KHSB), an investment company of the Selangor government.

The Works Ministry plans to bring former board members of Perangsang International Sdn Bhd (PISB) to court.

Samy Vellu said he had personally investigated the company and its directors and all evidence gathered would be produced in the event of a court hearing.

“They cannot just run away and not take responsibility,” Samy said.

Are they running away? No! They are still around and those "culprits" are still managing Selangor Incorporated under the leadership of MB Khir Toyo.

Samy, will you take Khir Toyo to court? He's the chairman of Kumpulan Hartanah Selangor Bhd (KHSB), an investment company of the Selangor government of which PISB was a subsidiary company.

Even then, PISB may still win the case in court, maybe, by technicalities. The formalities of termination of the contract may be the key.

Samy & MPPJ at War

2006-05-24T10:33:00.000+08:00

Samy: We don’t need your approval

Is it true?

Permission from the Petaling Jaya Municipal Council (MPPJ) is not needed, Works Minister Samy Vellu said.

“The construction of a pedestrian bridge in Petaling Jaya is among the projects approved by the Cabinet. The Cabinet decides, not the local council,” Samy said this when asked to comment on Thursday's tiff between the MPPJ, the advertising company, Poly Dimensions Sdn Bhd, over the building of a pedestrian bridge at Section 10 in Petaling Jaya.

Poly Dimensions Sdn Bhd was given approval by the ministry to build five pedestrian bridges along the Federal Highway and federal roads in Petaling Jaya in return for advertising rights on these structures.

Samy Vellu said: “Historically, when the PWD wants to put up a building or any structure, we don't ask permission from anybody, since the PWD is the prime department and the government agency to do it.”

He said that if the PWD needed to get permission from the MPPJ for constructing the pedestrian bridge, it would take a long time.

Are we seeing a conflict between the executives and the civil servants? Or, the executives vs the local council?

Something is glaringly not right ... we are surely opening up the pandora boxes in the Paklahism era.

Mahathir must be observing attentively, watching the new LahSamy Code of Malaysia.

The newspaper called it a tiff between PWD and MPPJ.

I think it is not PWD per se. It is Samy Vellu and the Works Ministry vs MPPJ.

PWD had no part to play in this fiasco and tiff between the nutheads, and JKR may, by default, be construed as an overseer of a "private-privatised project" initiated by the Works Ministry of which JKR wasn't the authority, neither the superintendent officer of the project.

Isn't this a nice way to throw the fiasco to JKR and hold them responsible for things which they had no power to decide and of which they were never part of the decision-making and appointment process; neither is there project management, for if there is, the first and foremost requirement will be STAKEHOLDER MANAGEMENT, that is, to conduct a Stakeholder Analysis before the project begins.

Skill Certification is about Paying $360

2006-05-08T12:39:00.000+08:00

Skilled workers who do not seek certification in their relevant fields risk losing out to their competitors.

Deputy Higher Education Minister Datuk Ong Tee Keat said without proper certification, workers would find themselves handicapped and sidelined by their competitors.

“Times are changing and consumers are going for those whose skills were certified. This is a global trend," TK Ong said.

I don't know whether he knows what he is talking about; or, whether he is talking about some other thing.

In Malaysia, we have CIDB who certify and registers all workers' skills and competency. Each worker certified are given a "Greencard" that pronounce their skill competency.

So, why the need to have another certification?

However, I wonder how many of you Malaysian knows that, in actual fact, what CIDB does, is basically selling these "Greencard". I have thousands of construction workers who had work under me over the decade. I am clear and can confirm that each of them got the green card after paying the levy ($360) to agents of CIDB and none of them (workers) ever need to be present to demonstrate or being tested for their skills or competencies.

This is Malaysian authorities ... and this is how competencies are certified.

If you don't believe me, please go and interview all the sub-contractors who had to register their workers. Or, alternatively, ask New Straits Time to interview them. Datuk Hamzah, Tan Sri Omar, and Tan Sri Wan Abdul Rahman, please go interview sub-contractors and the workers.

Habis Scenic Bridge

2006-04-13T10:25:00.000+08:00

Oleh/By :DATO' SERI ABDULLAH BIN HAJI AHMAD BADAWI

Tarikh/Date : 12/04/2006
Tajuk/Title : KENYATAAN MEDIA

Kerajaan Malaysia telah memutuskan untuk tidak meneruskan pembinaan jambatan bagi menggantikan Tambak Johor. Keputusan Kerajaan ini dibuat setelah mengambil kira suara dan sentimen rakyat Malaysia keseluruhannya terutama berkenaan bekalan pasir dan ruang udara. Kerajaan juga membuat keputusan untuk memberhentikan semua rundingan bersabit dengan jambatan tScenic ersebut.

THE Works Ministry has ordered Gerbang Perdana Sdn Bhd, the contractor of the “scenic bridge” meant to replace the Malaysian half of the 80-year-old Johor Causeway, to stop work immediately.

Minister Datuk Seri S. Samy Vellu said the Public Works Department’s director-general Datuk Dr Wahid Omar would officially inform the contractor of the government’s decision to scrap the project.

Why?

On 27th Jan 2006, DPM Najib and Samy Vellu confirmed that the bridge will be built. Samy Vellu even said work had started on a RM30 million road to link the Johor Causeway with the Customs, Immigration and Quarantine (CIQ) complex, where the proposed bridge will begin.

Najib said that work on the "scenic bridge" across half of the Johor Strait would proceed even though Singapore had yet to give an affirmative reply. However, he said, negotiations with the republic would continue.

Asked what would happen if negotiations with Singapore were not successful, Najib said: "If it is not successful, then it will become a half-bridge or scenic bridge."

Samy Vellu, meanwhile, said the bridge would be built across Malaysia’s half of the Johor Strait, within the country’s boundaries. He said he had instructed Public Works Department director-general Datuk Wahid Omar last week to issue a letter of intent to the contractor, Gerbang Perdana Sdn Bhd, on the Government’s plan to go ahead with construction of the bridge.

The Foreign Minister (Datuk Seri Syed Hamid Albar) had written a letter Samy indicating the directive from the Prime Minister (Datuk Seri Abdullah Ahmad Badawi) to commence the construction of the bridge. "We will start negotiating with them on the cost of building the bridge as soon as possible. "I have asked the Prime Minister, who is also the Finance Minister, for a lump sum payment for the project. We will pay the contractor once and will not be burdened with the possibility of increasing costs. I believe I will get the approval from the Finance Ministry, and then we will start work," Samy said.

Samy Vellu said that everything was in place and work was expected to start as soon as possible.

Why the about-turn? Cakap Tak Serupa Bikin. If the reason to scrap the project is due to Singapore, then the govt shouldn't have announce the go-ahead. You can't say something yesterday and do another thing today. The contractor was told that they would receive the letter of intent and to proceed the works. They had mobilise their plants and equipments and manpower. How much do the govt had to compensate them? Isn't this a waste of public funds? That's why taxes had to increase to plug the leakages in the system administration.

Is there no competencies in decision-making? Aren't there suppose to be leadership?

MRR2 - Work Minister v JKR

2006-03-29T11:49:00.000+08:00

That's a BULL-SHIT, Samy!

The PWD never suggested Halcrow; the former Director-General suggested.

In the first place, PWD had suggested Leonhardt Andra. When the problem of MRR 2 surfaced, the PWD Cawangan Jalan (Roadworks Department) Director was Datuk Razali and by convention, Cawangan Jalan reports directly to the Timbalan Ketua Pengarah I which was at that time under the leadership of Deputy Director-General Datuk Prof Dr Wahid. Datuk Wahid who had been consistent in his judgment and actions when interviewed by the PAC. By some political maneuver, Dr. Wahid was removed from his power-base and substituted by his junior colleague in order to fulfil the conspiracy of the power that is, and power that had been.

By God's grace, this honest engineer survived the political trauma and turmoil and by the grace of the Almighty, was blessed and promoted to the top post of D-G this year. Being the honest man that he had been, and will continue to be, irrespective of the fact that he had put his head on the chopping block for the political master to slay at his convenience, the new D-G stayed consistent to his profound knowledge and insist that 33 beams must be repaired instead of the 13 nos as suggested by Halcrow which was seen as some kind of compromise. Leonhardt Andra, one of the world reknown structural engineers will not compromise on the structural integrity; Halcrow had been seen as much accomodating to the wills of man.

Bridgex Sdn Bhd was appointed to carry out the repairs and the cost is anticipated to be approx RM40 million. The government is paying for it, as announced by Samy Vellu. The repair is in progress but the political trauma hasn't stopped. The political master wants blood; and the honest engineer may have to pay because the prime minister cannot and hasn't the power to protect honest civil servant.

Maunsell, Sharma & Zakaria sues Utusan

2006-03-18T14:12:00.000+08:00

Civil Engineering Design Consultant, Maunsell Sharma & Zakaria, the consulting firm for the design of Ampang-KL Elevated Highway (KLT) has sued Utusan Melayu (M) Bhd for RM50mil for libel.

Maunsell Sharma & Zakaria Sdn Bhd, filed the suit at the Civil Division High Court registry at Wisma Denmark in Jalan Ampang here yesterday through their lawyer D.P. Vijandran.

In the suit, the firm claimed that the Utusan Malaysia daily had published defamatory words in two page-one articles on Feb 9 and 10.

It said the articles alleged that there were many cracks in the highway and that these were caused by flaws in the engineering design of the highway.

Apart from damages, the company is seeking an injunction, an apology, interest and costs.

Maunsell Sharma & Zakaria is also the design consultant for Middle-ring Road Two (MRR2).

Yesterday, Works Minister Samy Vellu admitted in Parliament that defective design was one of the reasons for the cracks in the Middle Ring Road 2 (MRR2).

"The steel placement did not follow specifications," Samy said in reply to a question from Speaker Tan Sri Ramli Ngah Talib.

Ramli had interrupted Samy Vellu when the minister was giving a technical explanation for the cracks on the MRR2 highway in reply to questions from Datuk Ismail Sabri Yaakob (BN-Bera) and other MPs.

Samy Vellu said his ministry monitored bridges and flyovers but only the MRR2 was found to have "serious defects".

MRR2- Samy said Govt will pay for repair

2006-03-03T14:17:00.000+08:00

Samy Vellu said the repairs to the cracks on the Kepong flyover of the Middle Ring Road Two (MRR2) are expected to be completed on June 30.

He said the German consultant firm, Leonhardt Andra and Partners, would complete the repairs in four months.

Samy Vellu said the repairs involved "structural strengthening". "It involved fabrication of the tie frames, better known as steel frames, in Kapar beginning March 1." Samy Vellu said the steel frames would temporarily replace all the crossheads at the flyover during the repair work. "The installation of the steel frames will begin at pillar No. 31 on March 15." Samy Vellu said the Public Works Department (JKR) had submitted the plans to the contractor for work to begin on Feb 27. "Crack mapping is being undertaken in 35 locations, that is 31 piers and two abutments," he said, adding that the procedure had been completed on 14 piers and one abutment.

Samy Vellu said crack mapping would be completed on March 12. Asked whether the flyover would be opened to traffic after June 30, he said the JKR would conduct an investigation and monitoring to determine whether it would be safe for use.

The minister had said earlier that the government would foot the RM40 million cost of repairs and claim the cost from the contractors of the flyover.

The repair was largely due to design problem. The project is a Turnkey-Design & Built Contract costing $238.8 million. Contractually, the contractor is fully responsible for the defects and at such shall be held liable for the damages incurred.

Sukmim, Bumi Hiway and KKM (Wilayah)was the main contractor.

How is it that the government would pay for the repairs? Is the minister nuts?

Matrade RM167 Million Damages

2006-02-27T13:11:00.000+08:00

"Even if it has been reduced to a one-sen company, we will go after them. We will go after the parent body and even its subsidiaries. They cannot just run away by reducing the paid-up Capital."

"We will show them what we can do."

- Samy Vellu

Samy Vellu said the government will go all out to pinned-down Perangsang International Sdn Bhd, a subsidiary company of Selangor government Incorporated, and the turnkey contractor for the Matrade Building.

Samy wants to make Perangsang pay RM167 million compensatory damages comprising $97.02 million for non-performance and $72.9 million for remedial works.

Boleh ka? How?

It's a $2 paid-up company! Didn't Samy understand what is $2?

They never reduced their paid-up capital, Samy! It was and had been a $2 company since the day the government decided to award Perangsang International the project.

How is it that the government could award a $167 million contract to a $2 company? Samy should answer!

The legal advisors in PWD should perform their duties by advising their boss about contract law and damage claims.

MRR2 - Cabinet Decides

2006-02-22T12:02:00.000+08:00

New twist of events! The Board of Engineers (BEM) on instruction from the Prime Minister Pak Lah had arbitrated on the MRR2 issues and had made the final recommendations to the cabinet.

The events that lead to the Prime Minister's call to BEM to arbitrate arises because of internal disagreement between the boss - Works Minister, Samy Vellu, and his department, JKR on the structural repair reports. Samy wants to follow Halcrow's recommendation for rectification which was purportedly a face-saving (for himself) and will cost less for the contractor Bumi Hiway. Public Works Department (PWD) are convinced that the contract terms stipulate that the Turnkey Contractor is fully responsible and liable to make good the Work in full complaince of the terms of conditions of contract pertaining to design quality specified. PWD thus wants to Contractor to fulfil its obligations and ensure that the flyover meets the qualified quality specified. (read more here)

Based on the contractor's view, the repair works is basically patching and grouting the cracks. Based on Halcrow, it will be slightly more - it include some strengthening works. But based on Kohler & Seitz (the structural engineering consultant from Germany), the repair should be comprehensive to ensure the structural integrity will not be affected over a long term. However, it is estimated to cost RM40 million.

Update: I was informed that Leonard Andra & Partner is the consultant. The repair specialist contractor is yet to be appointed by tender or negotiation. Leonard Andra is not a repair specialist but a world-known structural engineering consultant. So, how the hell did Samy Vellu said today the decision was reached at the last Cabinet meeting and the ministry’s secretary-general is discussing with the consultants on the conceptual layout of the work plan, which will be ready by the end of this month and that it would cost $40 million?

Samy said: "They have assured us that the repair work on 31 pillars would be completed in four- and-a-half months."

The contractor rejected Kohler & Seitz's recommendation. Samy was sympathetic towards the contractor and got in Halcrow to conduct another study. However, JKR was of the opinion that Halcrow seemed to suggest limited repair works, sufficient (tho' inadequate) to meet the minimum requirement and compliance. JKR was of the opinion that the contract stipulates that it is design and built to the specified and agreed quality and standards and will not accept second best, just because the cost of repair will be mammoth - that's the contractor's problem and if the contractor can convince the government to pay for them using taxpayers money, and if the government agreed, then JKR had to take instruction. Samy seemed to suggest that the government had to step-in to pay for it as it would be too much for the contractor to pay. The cabinet disagreed.

The final decision:

The Cabinet has decided to appoint a German consultant to spearhead repair work on the Middle Ring Road 2 in Kepong.

Works Minister Datuk Seri S. Samy Vellu said today the decision was reached at the last Cabinet meeting and the ministry’s secretary-general is discussing with the consultants on the conceptual layout of the work plan, which will be ready by the end of this month.

"They have assured us that the repair work on 31 pillars would be completed in four- and-a-half months," he said. The cost is expected to be more than RM40 million.

Samy Vellu said the cost was initially estimated to be around RM18 million but it has more than doubled after it was decided that all the 31 pillars need to be repaired simultaneously.

So now, who is going to pay for the repair? Bumi Hiway of Government?

Maybe, Khairy can mediate and settle in the Malaysia Boleh spirit! Good luck to Bumi Hiway if they can Kau Tim this toy guy.

Read more here:

MRR 2

Samy vs JKR

MRR2 Repair to Begin

Design & Build Debacle

2006-02-14T14:18:00.000+08:00

Problematic Projects Involve "Design-and-build" Concept - Shahrir

Public Accounts Committee Chairman Datuk Shahrir states that all projects implemented under the "design-and-build" concept had been problematic.

According to Shahrir that approach was conceivably chosen to overcome perceived inefficiencies of the check-and-balance, accountability and good governance approach in project implementation. He said that the wisdom then was that private initiative was far more efficient and giving the private contractor total control without any government oversight would see the projects completed much faster.

"Unfortunately, when things go wrong, there was no recourse to accountability," he said. Shahrir said his observation showed that what beset problem-hit projects like the privatisation of the Lumut naval dockyard and the construction of offshore patrol vessels for the Malaysian Navy, the MRR2 elevated highway, Matrade building and a hospital in Pandan, Johor, which appeared before PAC, was the belief that self-supervision would see speedier completion and delivery.

Was that the real objective when the government under Mahathir and Daim adopted the Turnkey concept, or was it a surreal reason?

The observed facts remain that Turnkey Design and Built concept was adopted to simplify and speed-up project awards which are mega in size.

First is the Vision 2020. Mahathir's dream is to make Malaysia, the new Japan in South East Asia. In order to push Malaysia to achieve a develop status by 2020, we needed a consistent minimum economic growth of 8% GDP for the next 25 years till 2020. From the government's collection of revenues from taxes and excise duties, it was be impossible to fund all those projects mega billion which will require the government to pump in hundreds of billions to generate domestic growth and development. To overcome that, the government had to get the private sector to raise the fundings for the projects and this way, it will reduce government borrowings.

Secondly, there was a fresh breed of corporate executives called the "New Entrepreneurs" groomed by Daim within Paremba and who had matured commercially to undertake bigger task to spearhead the UMNO-Daim-Mahathir Agenda. These new breed of professionals had enjoyed the political patronages and had the power and influence to get decisions made. They had the "godfather" on their side. In the name of NEP and Bumiputraship, it was a sure win situation and they sure had a fast-track generator of wealth and individual prosperity.

Thirdly, the worldwide entrepreneurs (particularly burgeoning in USA and Europe) are beginning ride the trend of the new "Billionaire Fashion parade". The rise of Bill Gates, Warren Buffet, Michael Milken and Jack Welch, Goldman Sach, Travellers & Citycorp,and the internet boom lead the pack of individuals and organization to a new era of economic explosion. The economy in USA beginning 1991 was riding an economic boom that lasted for more than a decade. This economic boom lead to the growth of massive billion dollar private sector borrowing and created readily availability of financial resources for private fundings, particularly from Junk Bonds. The merchant bankers had been successful in ballooning the US economy by way of mergers, acquisitions and "global acquisitions". These monies ultimately arrived at South East Asia with the rise of the Asian Tiger economies such as Korea, Taiwan, HongKong and Singapore. The second group of fast rising economies are Thailand, Malaysia, Phillipines and Indonesia. There were vast potential growth areas and with weak and kleptocratic governments who are prepared to "Kau Tim", the giant financiers with vast financial resources sees the opportunities to penetrate the system and "prostitute" them. Greed was the fundamental; craving was the decisive factors.

Mahathir was assisted by a coterie of jaggernauts who were more than persuasive. Thus gave rise to the "Billionaire Syndrome" in Malaysia and this in turn generated/created those mega billion projects. It was easy to get off-shore loans and bond fundings. Almost every public listed companies, big and small, jump into the bandwagon and ride the storm of economic activities. Mahathir was care-free as what he wanted was monies for development and to turn Malaysia into a new Japan in Asia. Mahathir had a Japanese economic advisor too.

What was envisage by Mahathir was pragmatic and possible. Malaysia, thus tango along the tide of globalization and liberalization. The problem was, during the fast growing phase, there was no monitoring and control system to tell the government the predictive negative outcome of decisions and actions. There wasn't enough "wisemen" who are honest to speak the bare truth and to highlight danger points. There were advisors who are "players within the same game", enjoying the milking and womenising.

Then, a new tidal wave came - the currency traders and hedge funds who saw another form of opportunites! The overheated economies of the Asian Tigers and Cubs are destined to be swallowed and trashed. It was known!

The end result - 1998 East Asian Economic Crisis and the collapse of the currencies against the USD. Malaysia was unprepared to face the hedge fund gamblers and risk-takers. The Pride and Ego of the system was too much for the body to digest. The governments were prepared to sign cheques that their body couldn't pay. It was like a cat that look himself in the mirror and saw himself a picture of a lion king. The cat believes he is a lion and fought the Manhattan leopards. The outcome: the cats were badly bruised, broken bones and broken teeth. Reality then prevailed and integrative and defensive actions within the economic zones save the situation from a total collapse.

It is now 8 years since the crisis. We are still licking our economic wounds and recuperating slowly. What next? Nothing, at this stage of hybernation and consolidation. It will take another 4 years of system adjustment and the rise of another maverick PM to see Malaysia driving another economic growth path. Pak Lah isn't good enough to play this game. He is a conservative and he lacks the muscles.

Who then can resuscitate the economic game-play? It's a million dollar guess. Another Mahathir and Daim will come along soon....

MRR2 - Damned Vinci Code

2006-02-09T12:05:00.001+08:00

What? JKR not allowed to make an engineering design-decision regarding the methods of rectifications for MRR2 which was attributed to design shortcomings? The Prime Minister decides to mediate and calls on the Board of Engineers to be the court of final resort on the MRR2 Debacle? Isn't JKR under the Ministry?

The dispute - Works Minister wants to follow Halcrow's recommendation for rectification which was purportedly a face-saving (for himself) and will cost less for the contractor. Public Works Department (PWD) are convinced that the contract terms stipulate that the Turnkey Contractor is fully responsible and liable to make good the Work in full complaince of the terms of conditions of contract pertaining to design quality specified. PWD thus wants to Contractor to fulfil its obligations and ensure that the flyover meets the qualified quality specified.

However, Works Minister Samy Vellu admitted that some weakness in the design and climatic factors had contributed to the cracks in the Middle Ring Road 2 (MRR2) viaduct in Kepong.

"There's some problem with the design but it's the weather in this country that contributed mainly to the structural problem," Samy said.

He gave an assurance that the MRR2 would be safe for use after it was repaired in four months at a cost of RM18 million and that the viaduct could be used for 95 more years because viaducts were normally built to last 100 years.

He explained that the cracks were not on the road but on the pillars and truss of the viaduct.

What kind of bullshit explanation is this?

As a civil and structural engineering design consultant employed by the contractor, it is their professional and fiduciary duty to ensure that the structural design do take into consideration of all aspects, be they environmental, social, and operational into the design.

Samy Vellu said that although the local climate had been taken into account at the initial stage, the hot and wet weather conditions contributed to the cracks, compounded by the pipe leakage at the viaduct.

What crabs are they? This is oxymoronic reason. How can he say that although the local climate had been taken into account, the hot and wet weather conditions contributed to the cracks? The weather conditions in Malaysia has remain the same -Tropical Climate with temperature ranging between 20-36 degree and rainfalls throughout the last 35 years have been consistent; often wet and dry with intermittent rainfall. Is there a reason why the design engineers had not considered the hot and wet climate consistent conditions in existence over the last 35 years? In Law, this can amount to reckless negligence and the design engineers may be liable in an action for tort, should JKR seeks legal redress.

Samy admitted that the design factors had contributed to the cracks. Doesn't this constitute a breach of contract by the contractor? Again, this breach would also amount to reckless negligence and actionable in Contract and Tort.

The disagreement between the Works Minister and PWD seem to stem from the question of which report to follow - Halcrow or Kohler & Seitz? Both are reputable civil engineering design engineers internationally. Applying the legal principles, unless both report is factually contrary, the rights of PWD is reserved and that PWD can elect to apply the recommendations from either. It is the burden of the contractor to rebut the presumptions in the Kohler & Seitz's report if they are disagreeable with the presumptions and findings of Kohler.

However, it is observed that the Works Ministry is sympathetic towards the contractors possible hugh financial liability should the German consultant's recommendation is followed.

Isn't it absurd? Works Ministry is siding the contractor and fighting against their own department?

JKR has hundreds of PhD design engineers who are fully competent and highly skillfull in engineering design and the department is headed by the nation's best structural design engineer who happens to hold a doctorate in structural design.

By convention and the rule of law, the Works Ministry is not suppose to interfere with the engineering design aspects and decision-making. The Minister is suppose to administer the system and process and listen to their experts. If the department lacks the competency and ability, and are unable to provide a justifiable engineering solution, then only can the Minister step in to provide guidance and assistance by seeking external expertise.

However, it can be seen that non-engineers are making engineering design decisions and expert engineers are mouth-strapped and put under duress.

More puzzling is that the Prime Minister had to step in to mediate the differences and being a "Good-Guy", decided to call in the Board of Engineers to be the Court of last resort. What is happening to Malaysia? Are we having leadership crisis or a clash of civilisation?

MRR2 - Damned Vinci Code

2006-02-09T12:05:00.000+08:00

However, Works Minister Samy Vellu admitted that some weakness in the design and climatic factors had contributed to the cracks in the Middle Ring Road 2 (MRR2) viaduct in Kepong.

What kind of bullshit explanation is this?

However, it can be seen that non-engineers are making engineering design decisions and expert engineers are mouth-strapped and put under duress.

Levy, Levy, More Levy

2006-02-03T12:41:00.000+08:00

RM100 for every vehicle sold. That is how much car manufacturers and importers are going to be asked to put into a road safety fund under a Transport Ministry proposal.

Vehicle manufacturers and importers said they were peeved that the authorities appear to be moving faster on this proposal than on adding meat to the national automotive plan.

Based on the sales of 400,835 cars last year, this scheme of contributing RM100 per vehicle sold would net the road safety fund a tidy sum of RM40 million. The proposal may also require insurance companies and other organisations to contribute to the fund which would further increase the coffers.

When the proposal comes into force, the money collected will be channelled towards a fund called the "Road Safety Trust". Money from the fund will be used to conduct road safety campaigns, and good news for Lim Kok Wing as he should be one of the beneficiaries.

Universiti Putra Malaysia Engineering Department head Prof Radin Umar Radin Sohadi said contribution schemes had been successfully implemented in developed countries. "In Australia, for instance, there is a body called the Transport Traffic Commission where insurance companies and other firms plough back money to educate motorists on road safety," he said. He said the additional funding had helped the Australian Government to launch several programmes that had significantly helped to reduce accidents and save lives. "For instance, they have structured programmes and equipment to teach schoolchildren road safety and the dangers of reckless driving. Their programmes have been very successful," added Radin.

Wow, Malaysia Boleh again!!!

When the Construction Industry and Development Board (CIDB) was set up to enhance the quality and skills of the construction industry, the same philosophy and ideology was preached. CIDB had collected billions of dollars of levy from contractors (0.25% of contract sum for each contract exceeding $500,000), and $250 from each worker who are required to be registered with CIDB.

However, over the two decades, what had been achieved is that CIDB has become a joint venture partner of some construction entities and are procuring projects in India and Sri Lanka. They are now scoping into Vietnam and Cambodia. But the industry is still plagued by poor quality, poor workmanship, poor safety and health environment and practices and project failures.

SAMY: Only I can Approve Project!

2006-01-28T13:12:00.000+08:00

Which PWD project is not approved by the Work Minister?

MRRII, Cameron Highland roads (where the slope collapsed), Simpang Pulai-Lojing-Ayer Raja Road (slope failures), East-West Highway (slope failures), North-South Highway (rockfalls & mudslides), and include all those projects that had been terminated, abandoned, or failed, such as the Hospital Tun Aminah, Cameron Highland Hospital, School projects, etc. Of course we can exclude projects such as Matrade Building, Computer Labs, and Army Camp Gemas which are awarded to PMC by the relevant Ministries.

Now, Samy said he wants all road projects that involve cutting into hillslopes to get the approval of the Works Minister. The new directive covered the construction of reserve areas for road-widening projects along hilly and coastal areas. All Public Works Department (PWD) heads have also been directed to get his personal approval for every road development project close to hillsides.

“We want to ensure there is no indiscriminate cutting of hillslopes,” Samy said.

Commenting on the on-going road-widening project on the hilly Tanjung Tokong-Batu Ferringhi road in Penang, Samy Vellu said the ministry had decided to relax width requirements on the road reserve along the stretch to protect the hills. “If we were to follow the PWD’s standard requirement, the project would result in the cutting of hills in Batu Feringghi. “We don’t want this to happen and have decided to reduce the required road-reserve width from 19.8m to only 15m to save the hills along the 15km stretch,” he said.

So, with the new directives, the Work Minister is empowered to twist and bend the code of practice, rules and regulations to suit. What is needed now is to Kau Tim him and you can have road reserve at 15m or even less, maybe, no need to have road reserve at all.

I thought if any land is inadequate to meet the requirements of road reserve, for reasons such as safety of hill-slopes, then the road should not be allowed to be built or approved. Instead, an innovative solution is provided so as to facilitate approval. If that's the case, the code of practice and regulations should be amended; not by way of unfetted discretion which will lead to abuse of power. A soultion to a problem will breed new and far potent problems (Murphy's Law).

Maju Holding sues Lawyer

2006-01-27T12:46:00.000+08:00

Maju Holding Sues Lawyer

Lawyer Rosmaniza Osman of Roz and Associate and Rozalind Sakunthala Rajan were jointly charged in the Court today with criminal breach of trust involving RM3 million belonging to Maju Holdings Sdn Bhd.

The funds were believed to have been part of a bid by the construction and steel conglomerate for a major government construction project worth more than RM320 million. Rosmaniza and Rozalind, who were handcuffed together, claimed trial. The complainant was Mohd Fuad Yon, a director of Maju Holdings.

Deputy public prosecutor Awang Armadajaya Awang Mahmud applied for bail at RM3 million in two sureties each. Judge Rosenani Abd Rahman set bail at RM250,000 each and fixed July 24 to 26 for hearing.

What is the story behind the suit?

It was learnt that the lawyer had convinced Tan Sri Abu Sahid that she has the "Right Connection" to assist Maju Holding to secure the RM320 million Resource Center project from Bank Negara and the Kau Tim Fees is RM3 million.

The project was ultimately awarded to a minnow company H & L Niaga Sdn Bhd.

The award surprised major construction companies which had been bidding for the large project, like Ahmad Zaki Resources Bhd, PECD Bhd, Ranhill Bhd and UEM Builders Bhd.

You believe it? A small time lawyer have the ability to influence the award of a mega project from Bank Negara? And even giant and influencial and well-connected Tan Sri Abu Sahid also need to Kau Tim someone to secure a project?

H & I Niaga is owned by Amerudin Ismail (2mil shares) and Ismail Mohd Hashim (3mil shares). H & I Niaga was involved in the problematic project involving the construction of the Royal Malaysian Navy Recruit Training Centre in Kota Tinggi Johor. They are also the contractor for Cheras Velodrome Project and some projects awarded by UiTM.

On 11th October 2005, NST BizTimes reported that H & I Niaga had failed to pay levy owed to CIDB. The company had also failed to submit its profit and loss accounts for the past 3 years to Companies Commission Malaysia and had failed to file its accounts for the financial years ending December 31, 2002 to 2004.

On 18th October (NST report), H & I Niaga issued a two-page statement to explain the issues raised. The company said while it was involved in building the Royal Malaysian Navy Recruit Training Centre in Johor, it was not involved in the construction of the defective roof structure of the hall complex. H & I Niaga went on to say reports of it being reprimanded by government ministers over the Cheras Velodrome project were also untrue as it had completed its job to upgrade and renovate the facility within the stipulated time and had even been given letters of appreciation for the job. The company also answered Fomca’s query on its failure to file its accounts for the years 2002, 2003 and 2004 with the Companies Commission of Malaysia (CCM).

H & I Niaga said it had run into technical difficulties in 2003 when it upgraded its integrated accounts and contracting software from the old DOS standard to the latest Windows version, causing a two-year delay in the filing of its profit and loss accounts.

“The security limitations of the software package only allowed us to input two months of transactions monthly. “As a result, we faced a massive backlog of transactions that need to be input into our new accounting system,” H & I managing director Ismail Mohd Hashim said in the statement. He went on to say that the matter had been highlighted in each of its project tender interviews. H & I Niaga is said to have since resolved the problem and has submitted the company’s audited accounts for the years 2002 and 2003 to CCM, while the final accounts for the financial year ended December 31 2004 have been audited and are pending submission. With regard to the payment of levy to the Construction Industry Development Board (CIDB), H & I Niaga clarified that the levy was for its UiTM Engineering Complex project in Shah Alam which the company and CIDB had agreed upon for H & I Niaga to pay via instalments. “H & I Niaga has paid the instalments until certain disputes with the client arose. H & I Niaga will resolve this issue before October 25 as allowed for by CIDB,” Ismail said.

BANK Negara Malaysia on the same day (18th October 2005, NST) came out to defend its award of a multi-million ringgit contract to construction firm H & I Niaga Sdn Bhd, saying the company was qualified to do the job. The central bank issued a statement yesterday, saying H & I Niaga won the RM320 million contract to build Bank Negara’s resource centre based on merit. “All tenders were reviewed to determine the most competitive bid and the company selected, H & I Niaga Sdn Bhd, is qualified with the ability to complete the project within Bank Negara Malaysia’s specifications,” Bank Negara said. Among the criteria Bank Negara said it had looked into were tender price, track record, financial capability, quality, technical and commercial capabilities of the team that were put together to complete the project.

Plaza Damas Probe Committee

2006-01-09T12:11:00.000+08:00

Former Public Works Department (PWD) Director-General Tan Sri Omar Ibrahim was appointed by the Works Minister Datuk Seri Samy Vellu to be the chairman of the committee that will probe into the accident that killed management consultant Dr Liew Boon Horng.

This committee was set up within the Malaysian Construction Industry Development Board (CIDB) as the Investigations Committee and will include current PWD Deputy Director-General II Dr Judin Abdul Karim and PWD Director of Expert and Civil Engineering Branch P.N. Selvanayagam. Other members of the committee would be selected by Tan Sri Omar in consultation with the Works Minister and the CIDB.

I am sure Tan Sri Omar, a person who commands high respect, will do his job thoroughly and efficiently. Tan Sri Omar is recognised as a NO-Nonsense guy and he doesn't curry flavour or compromise his integrity.

But what suprised me is two key elements:

First, why is CIDB involved in such investigation? In the first place, CIDB had never shown to be involved actively in monitoring or controlling the construction projects in whatever role that can tangibly be said to have proactively, nor productively, being a partner of the industry other than to spent time in India trying to secure some projects and selling it to the few high profile Malaysian contractors for a percentage of commissions.

Since the setup of CIDB decades ago, what had been seen of CIDB in the eyes of contractors and property developers is that they exist to collect 0.25% of the project contract sum from the contractors for each and every construction project exceeding $500,000. Thereafter, nothing beneficial had been done to assist the contractors other than to ensure that the contractors register themselves with them, buy the green cards issued by CIDB, and apart of this, is the great Indian mission of projects.

Each year, more than RM20 billion worth of government project had been executed and awarded and out of which, 0.25% will be worth RM50 million. Should we include private projects, the collections by CIDB would be worth around RM100 million. After collecting these contributions from the contractors, what had the contractors benefitted? Absolutely nothing; asked any contractors!!!

As the industry regulators and promoters, CIDB should had never played a beneficial role to contribute positively the development of the construction industry standards, in particular, the standards of construction methodology and quality of the works. Somehow, it's role is somewhat like a tax and debt collector, licence operator, and now, the new role is investigator and policemen of the contractors.

Is it the way that Malaysian government set up regulatory institutions?

Take an anology: If parents duty to their children is to police them of their activities and punish them if they are naughty; cane them when they don't study or fail in their exam; scold them if they don't behave; and slap them if they are delinquent; would you think the children will become a better person when they grow up? Would you think the children will learn to behave better or improve themselves from such enforcement?

Governmental institutions such as CIDB, DOSH, City Hall, etc, should be playing active and proactive role in development and progression. It is not about enforcement and policing that can contribute to national development and improvement. It is being involved with the industry, understanding their weakness and needs, promoting quality, safety, and competence that we can see improvements and maturity.

The Human Resources Ministry wants answers from the Construction Industry Development Board (CIDB) on the 700 cases of negligence at project sites reported since 2003. Datuk Seri Dr Fong Chan Onn said his ministry would meet with the board this week to ascertain what was wrong in the industry. “We want to know the outcome of their investigations as CIDB has the power to issue stop-work orders and take action against errant contractors. We are serious as we do not want a repeat of the tragedy which happened in Sri Hartamas (Kuala Lumpur) last week,” he said. Dr Fong statement was in response to media reports about the 700 cases, which included 150 high-profile incidents.

I am not sure if Dr Fong understands the role and responsibility of CIDB and also whether CIDB understand their purpose of existence.

Secondly, I am puzzled at the committee that is set up to investigate the incidence at Plaza Damas. It seemed to consist of structural engineering design engineers. But the key problem that is involved in the incident involves the operation management of the construction activities, the mechanical engineering operation of hoisting steel moulds, clamping and locking of the craning and hoisting system, how the workers and supervisors control and monitor the craning, hoisting, fixing, removing and stacking the steel moulds. This concerns, project management, construction site operation management, tower-cranage management, safety and risk operation management of work activities and tasks. Nothing, absolutely nothing, is involved with structural engineering design.

It puzzles me - are they going to investigate the steel mould design? Are they looking into the reinforced concrete design? Are they going to check and analyse the scaffolding design and installation? What for? What the F**k for?

Primarily as I see it, the investigation should be centered on how the steel moulding operations are carried out from hoisting, installation, removal and stacking; how the safety of the work's operation were planned, monitored and controlled; and whether there any risk management - identification, quantification, response planning, risk monitoring, risk control, and workaround management? The analysis should include the methods of operation and resource competence such as the competence and control of tower-crane operation, how contractor execute and supervise their work and task operations, how they manage safety and risk, and whether the consulting engineers and architects of the project had played their professional roles of project management.

The committee should therefore include those who understand tower-crane operation, steel formwork system operation management (not design), construction management safety and health experts, mechanical engineers to analyse the hoisting and installation process for the steel moulding formwork system, project management experts in high-rise building construction, and construction-risk system managers.

At such, if the investigation committee is crowded with structural design experts, and government servants, including CIDB staffs, the presumption is that they understand nothing of contractors' operation management and process. Even those purported associated consultants of CIDB are good talkers, and none have been experienced as contractor's operation managers or had been construction site managers who had been involved in high-rise building construction management process in the role of the contractor's operation.

Unless you are been involved with the contractors in construction process and management role, it is hard for government servants irrespective whether they are ex-JKR or ex-consulting engineers, to be able to have insights to the real emphirical problem that caused such incident.

Fantasy and fallacy always prevail... I hope Tan Sri Omar truly understand and discover the profound knowledge of the contractor's operation.

Who the hell is H & I Niaga?

2005-10-11T12:12:00.000+08:00

Questions looms loudly in the construction industry as most people are perplexed over the award of a RM320 million Bank Negara Resource Centre Project to a little unknown company who is currently facing problem of paying some levy owed to Construction Industry Development Board (CIDB). An investigation conducted by NST on this company also found that they had not submitted audited accounts for 3 consecutive years from 2002 to 2004. The Company had also failed to submit its profit and loss accounts to Companies Commission of Malaysia.

The award surprised major construction companies which had been bidding for the large project, like Maju Holdings Bhd, Ahmad Zaki Resources Bhd, PECD Bhd, Ranhill Bhd and UEM Builders Bhd.

Attempts to ascertain the company’s capabilities and track record have been hampered by a lack of current information.

H & I Niaga is owned by Amerudin Ismail (2mil shares) and Ismail Mohd Hashim (3mil shares).

H & I Niaga made headlines years back when their project involving the construction of the Royal Malaysian Navy Recruit Training Centre in Kota Tinggi Johor was reported to have been defective and the building was found to have so many cracks and leakages problem. JKR and the Ministry of Defence had investigated the shoddy works and massive rectification works were carried out respectively. Nothing was further reported on this project thereafter.

H&I Niaga was also the contractor for Cheras Velodrome Project and some projects awarded by UiTM.

Bank Negara said they had evaluated the selection process and the award was based primarily on competitive pricing. How is it that Bank Negara would select a contractor who are currently facing financial problem and could not even pay CIDB levy - that's amusing! The selection process must be tainted with cronyisma and nepotisma. How could an award fo such a large project not have taken into consideration the weak financial positions of a company when the size of the project is so mammoth? Surely, if a company had not submitted its profit and loss accounts for the last three years, something must be grossly wrong? Or, alternatively, NST investigation and report was defective and grossly wrong; I doubt.

We will have to hear some explanation from H&I Niaga and most of all, Governor Zeti of Bank Negara.

H&I Niaga Hangs

Construction Contract Act - Another Fallacious Control mechanism

2005-09-13T12:49:00.000+08:00

The Works Ministry is proposing to the Parliament to enact the Construction Contracts Act aimed at regulating the country's construction industry. The Act is targeted to ensure that those that have undertaken Government contracts do not put their private interests ahead of the nation (presumably). Samy Vellu, the minister, said he expects to deal with the matter speedily to enable the Bill to be tabled in Parliament soon.

The Act is expected to play a crucial role in laying down the basic principles of the construction contracts and is expected to address the all important issues of payment.

Apparently, this initiative originated from the Construction Industry Development Board (CIDB), mooted at a move towards zero-payment default through the statutory provisions. CIDB is expected to convene a separate forum to further discuss issues related to the Construction Industry Payment and Adjudication Act.

The initiative is full of idealism and you can observed that it lack pragmatism.

Why is it so? Well, if the government is determine to ensure prompt and efficient payment system, they can do so without the need of statutory control. It is all about administrative control and system integration of the works ministry, relevant project-sponsors and financial authorities (EPU and Treasury).

If the government is looking into ways to control and monitor the private sectors payment system, then the Act will be fallacious and absurd. Private sector payment system is mulled with complexities as the payment system is inter-twained with the financial resource availability and viability, lender's support system and behaviors, investment and economic policies and barriers, and are equally subjected to market supply and demand situations and the forces that drives the economy.

On the contention by Samy Vellu and CIDB that this Act will ensure that those contractors undertaking government contracts do not put their private interests ahead of the nation, I just cannot see how the Act could provide such mechanism of control. It sounds like a chimera in the brain of the proposers. I wonder they understand what is a chimera!

The first absurdity of the proposal is that it is mooted by an institution which has over the decades failed to serve it's primary objective and mission. CIDB is by virtue, an institution that is supposed to built the system to promote and inculcate competency and capability of the contractors such that they will become competent and be able to compete and benchmark themselves with the international competitors.

What's the similarity between CIDB and Socso?

Both institution are being run using public and corporate contributions and their efficiency are second to none - none accountability, none transparency, none of them are responsible as when things go wrong, they always have someone to blame except themselves.

Both have history of abuses and incompetencies.

Over the decades, CIDB had collected billions of dollar in contributions from the contractors and so far, the records showed that their only achievement is to negotiate projects in India that had benefitted a few Class A contractors. Other than this, they had conducted several seminars and workshops for the contractors but of which these contributing contractors will still required to pay to attend those seminars.

Yet today, we are hearing of another set of initiatives that presumably is mooted to provide construction system efficiency and improvement. Would this initiative work and achieve the objectives it has set out to do? I am suffering from paranoia. If the institution had failed in its original setup, could anyone feel confident that it had the capability to turnaround others?

The key words to describe it - fallacy, preposterous, farcical, glibness, frivolous, hogwash, ignoramus, imbecile, inane, inept, klutz, ludicrous, vaxatious, pedantic and most of all, they are schleps.

New Retirement Age - Is it good news?

2005-09-03T12:16:00.000+08:00

850,000 civil servants may have to serve an extra 3-years if the proposal is approved by the Cabinet next month.

This move was made in order to reduce the burgeoning pension bills as the government mulls over the financial implications of a pension bill that has tripled over the last decade. The pension bill had cost the government RM4.96 billion last year, a RM3.36 billion increase over the allocation in 1994. The number of pensioners are now 513,689.

Is this a good news for civil servant? Each one has to mull over it.

For me? My God, Alhamdullilah! Why? But I am not a civil servant? Oh, it doesn't matter. It was my aspiration. It was my hope. I had always been exploring into the civil service system, musing over their level of competencies, and inparticular, the recent change of hands in JKR. There was one man who, by the grace of God, was allowed to helm this giant institution after a long "waiting" and "shadow-politiking" by the oligarch. Finally, in July, the man did arrive; he is none other than, the most highly respected, but often scorned (by politicians and his past head-master) Professor Datuk Dr. Wahid bin Omar who was made the new Director-general of PWD.

Read my earlier posting (August 5, 2005).

I have been praying to the Almighty that something must happen; this new D-G is 54, and will retire in slightly more than one year time. He will not have sufficient time in this position to make the necessary changes, and have it effectively implemented, because the system will take ake him away via the compulsory retirement at 55. One year is far too short to get change effectively implemented. It will not be possible unless his term is extended. But there is no way to extend because we had a bureaucratic system.

My prayer - "May the hands of Allah and His blessings be showered on our new leader of change."

To my delight, the first thing that caught my eyes this morning is the frontpage news in NST - RETIRE AT 58! Now it is going to happen; Alhamdullilah, praise be to God!

I would like to repeat what I had already said in my earlier article:

"This man will USHER in a NEW ERA, an era of RADICAL CHANGE for the better; a change badly needed; the change that should wake up the sleeping gaint of construction industry and cause the industry to tremble. It may be a lesser range tsunami!

Many will celebrate, but some may despair, for this man will not accept mediocrity and officers with desultory character. Those flippant and insouciant, and those with purile mindset, they now have a wake-up call - this man will trumatise you!!!!

The system needs a radical change and only a visionary leader can lead this change. There is none who I believe can do better, and have such behemoth passion in his work. This man is damn honest and straight; that's the reason many had dislike him; sorry not dislike him, but dislike his courage and persistence. He has little patience for lack of competency; he loath cronyism and he doesn't know how to carry balls of the political masters. That's the reason why he can only afford to own a terrace house for the last 30 years or so. He will remain poor till he retires; tho' not poverty per se.

But I believe, he is a man satisfied and contented for what he has and what he has acieved. May God shower him with his wisdom and love, and most of all GOOD HEALTH. May the nation benefit from the service of this man's contribution and that in the next few years, we shall see a dynamic, competent and effective administration of government projects, whereby this one and only institution of construction, this JKR, will lead the nation and pave the way to achieve tangibly, the vision 2020, bringing in the structures and framework of an effective and efficient system administration, fully manned by a new breed of highly competent engineers and scientists, and setting the benchmark for all the other institutions to follow.

Hopefully, a much needed (to be) revamped CIDB will strive to emulate the feat of JKR, if not, at least perish; what we called "Die a Natural Death" so as to relieve all the contractors of the burden to contribute to the cost of the disease administration, and the contributions thus far, are sufficient to pay for the cost of an expensive coffins.

Lets observe and do some measurement; let's greet the arrival of the performance measurement system - now you can measure and track, and we can now use the six-sigma!!!!

Samy Toll: Pre-emptive Strikes

2005-08-15T14:23:00.000+08:00

Samy Toll

SAMY CALCULATED PREEMPTIVE STRIKE

Samy: Be prepared for rise in toll charges

Works Minister Datuk Seri S. Samy Vellu said the Government had to stop the payout as it could no longer burden itself with increasing costs. “After taking many things into consideration, the Government wants to put a stop to this practice,” he said. As such, he said, the people should be prepared for an increase in toll charges.

Samy Vellu said the Government had to pay out hundreds of millions of ringgit in compensation to the concessionaires when they asked for an increase in toll charges, as provided for in their agreements. “Based on the concessionaire agreements, a toll increase cannot be avoided when the time comes,” he added.

FIRST, he agreed to terms that was North-bound; such one-sided lucrative contracts that would create instant billionaires of which investment bankers would be willing to be bed-partners to fund these projects.

NOW, we are suffocated by the toll-haze; and the directorate is coquetting empathy.

This is the best Ventriloquism you can ever watch!!!! Let dance to the tune .....

JKR has a New DG

2005-08-05T12:18:00.000+08:00

JKR New DG

SILENT; Unassuming & Where are all the journalist? All are hibernating, or pretend don't know?

GOOOOOOOd New! JKR has a new Director-General!!!

He is none other than the inspirational leader, Dato' Prof Ir. Dr. Wahid Bin Omar, the former deputy D-G. He was promoted, but there's no official public announcement! I happen to visit the website of JKR and to my awe, I saw a new picture as above.

We have waited for so looooong! Now it has happen! The government has finally brought in a humble, unpretentious but a visionary leader to shakeup the system - the system that manages our roads, public assets, and government development projects. This man will bring in a new era, an era of radical change for the better; a change badly needed - the change that should wake up the sleeping gaint of construction industry and cause the industry to tremble. Many will celebrate, but some may despair, for this man will not accept mediocrity and officers with desultory character. Those flippant and insouciant, and those with purile mindset, they will have a wake-up call - this man will trumatise you!!!!

The system needs a radical change and only a visionary leader can lead this change. Over the decades, we have too much political patronages and those ex-generals had a hard time making the necessary change - it's not that in the past we have weak leaders, but we have "Hand of god" at the legislative apex and middle-heaven, making directives and dictating policies and actions and these leaders seemed obedient. There was one DG who was brave but they quickly retire him the moment he touch 55.

Today, some of the higher hands had vanished while there may still be some around, but this new man is a straight and resolute person. He feared God and he will not budge for he has no fear of men. He knows his job and his competency in project management is second to none. He is a dedicated and devoted muslim - a muslim who lead by example. He is humble and he is brunt; he is often nice but he wield swords when necessary.

I can only pray to God that this new DG be blessed with longlife to serve the nation and the rakyat. I do pray that he will have sufficient time in this position to make the changes, effectively implemented, before they take him away due to compulsory retirement.

May the hands of Allah and His blessings be showered on our new leader of change

Alhamdullilah!

Johor MB: Let Us Build The Crooked Bridge

2005-06-08T14:19:00.000+08:00

CROOKED BRIDGE

Johor has made a strong pitch to the Federal Government to go ahead and build the "crooked bridge" to replace the Causeway. State officials said that any further delay in the construction of the project would seriously retard growth in Johor Baru. This message was given to PM Datuk Seri Abdullah Ahmad Badawi during a briefing yesterday.

The Johor government believed that the proposed bridge was an integral part of the re-development of the city centre, and that it was crucial that a decision on the project be made soonest possible.

"Everything hinges on whether the bridge will materialise or not," said a senior state official. "We cannot wait forever for Singapore to join hands to build a straight bridge."

Singapore has not indicated if it is in favour of a straight bridge to replace the whole Causeway, despite two rounds of talks between Abdullah and Senior Minister Goh Chok Tong. This uncertainty is of concern to Johor state officials, who feel the Federal Government should go ahead and build a half-bridge.

MAYBE, A CROOKED BRIDGE IS A GOOD REPRESENTATION OF OUR SYSTEM. That bridge may serve as a mirror for us, to remind us always of our cultured artistic impression!!!!

The Wisdom From CIDB

2005-04-09T12:49:00.000+08:00

CIDB Clarion

April 9, 2005, NST Business Times, page 1

CIDB Call to Builders - Go Abroad Now!

It is a necessity and the time is now - GO ABROAD,” says CIDB CEO Datuk Hamzah Hasan. According to Hamzah, going abroad is the effective way of countering job losses locally and competition posed by foreign players in the name of globalization.

It was reported that CIDB’s Construction Business Development division senior manager Ahmad Asri Abdul Hamid who had just returned from India armed with a basketful of job opportunities, adequate for big and small construction players to diversify their earning base.

Ahmad Asri felt that apart from the need to build capacity, Malaysian contractors must change their mindset and strategise when going abroad. “Overseas is the way … but it is not easy.

The CIDB is at the same time concerned with the quality and ability of Malaysian companies to perform without tarnishing their image abroad. CIDB is currently looking at putting in place a process and mechanism to accredit contractors especially those involved in the overseas market.”

Ask the contractors why they are not going abroad?

The answer is simple. "Kalau tak boleh cari makan di sini, mana ada kemampuan untuk melabur seberang laut?

The first criteria of investment abroad is .....CAPITAL...MONEY... A LOT OF MONEY!!!!! To many of the local contractors, making ends meet is the current problem. Everyone will want to invest overseas, if they had the capacity and SEED CAPITAL. Those who are currently investing abroad, they are either Public Listed Companies (PLCs) or Extremely Rich Businessmen. PLCs can do it as they can seek financial fundings from banks or investment Bankers. Private Limited Companies... you need to come up with million dollars of collateral to get bank to approve any loans. And to tender a foreign project, just to pay for the Tender Bond, put tak Larat-lah!!!!

So, thank you for your kind wisdom, Mr CIDB!

For CIDB's information, almost all contractors knows (including any stupid ones) that going abroad is a right move which will expand the boundaries of business opportunities, but, can you go abroad with your underpants and singlets and tell the foreign client, "PLEASE TRUST ME, I CAN DO A GOOD JOB; I JUST HAVE NO MONEY; JUST GIVE ME A CHANCE PLUS 15% ADVANCE PAYMENT & I WILL PROVE TO YOU SAYA BOLEH DAN MALAYSIA SEMUA BOLEH?"

Why is it that the Koreans and Japanese are successful in investing abroad in the last 30 years? Firstly, it is their Government's policy and effort with strong encouragement and proactive actions from the authorities such as Works Ministry, Construction Development Board, Govt-owned Industrial Banks, etc. Their government had initiated and directed the Industrial Development Banks & Export-Import (EXIM) Banks to fund all contractors who could secure overseas Federal Government-funded projects. Those who could show a letter of award from government-sponsored project overseas, they would be given total fundings. All they do is assigned their payment certificate as collaterals to the EXIM Banks or Industrial Development Banks, and they will receive the cash flows to pay for the project expenses.

Can CIDB do the same for the local contractors, particularly, Bumiputra Contractors and would CIDB KINDLY arrange with the Govt to provide the fundings to Bumiputra Contractors? AND, PLEASE ....Is there any under-table fees?

JKR Slope Monitoring System

2005-03-20T11:13:00.000+08:00

The New Straits Times report, page 6, Prime News

According to the report, more than 100 hillslopes had been identified by PWD as risky for possible landslides. The hillslopes are found predominantly in Fraser's Hill, Cameron Highlands, Genting Highlands (all in Pahang), Gunung Raya (Langkawi), Paya Terubung Valley (Penang), the mountain ranges in Ulu Kelang, Selangor, and several limestone hills in Ipoh.

This followed a recent survey by the department's slope engineering division following a series of landslides in recent years.

PWD deputy director-general 1 Prof Datuk Dr. Wahid Omar said today JKR Cawangan Jalan utilised the Slope Management and Risk Tracking (Smart) system developed from a comprehensive study of the landslide at the Tamparuli-Sandakan trunk road in Sabah last year.

"The identified areas are being monitored and remedial measures are being taken," Wahid said. "The affected slopes are a result of improper development around the areas which affected the stability of the soil."

The Government, he added, had approved a RM7 million budget to carry out a year-long study to collect data and formulate the National Slope Masterplan, which is expected to be ready by the year's end.

The study involves other agencies such as the Malaysian Centre for Remote Sensing, the departments of Geology, Drainage and Irrigation, Meteorology and Environment and the Public Works Institute.

"The study constitutes aerial photography and photogrammetry (used in topographical map preparation), geology, drainage, site history and engineering," he said during a one-day seminar on "Landslide Monitoring and Disaster Early Warning Systems".

The study, Dr. Wahid added, was in addition to the RM160 million budget allocated to the PWD to install the hillslope early warning system, which will monitor earth movements on hillslopes along federal roads and highways. The Government, he said, had taken a serious view of the threats and consequences of landslides.

Among the incidents that hogged newspaper headlines were the mudslides at Km303 of the North-South Expressway at Gua Tempurung near Gopeng, Perak, on Oct 12 last year, the Bukit Lanjan rockfall at the North Klang Valley Expressway on Nov 24, 2002 and the landslide in Taman Hillview, Ampang, Selangor on Nov 20, 2002.

Cheers to JKR for their dedication in performing their services to the public. If only all the other departments such as, State authorities and other public service authorities are doing what JKR were doing, we would not have the Bukit Cahaya fiasco.

Yesterday, in the NST, it was reported that there was zero monitoring of the development around Bukit Cahaya Seri Alam agricultural park by the Shah Alam City Council. That explains why seven developers were prepared to go-ahead with land clearing work even without approval from the local authority. That also explains why two developers did not follow a pre-approved schedule.

The Federal and State Ministers should take the blame if it was true that there is absolutely no monitoring of the development projects, particularly, on the environmental factors. How could the Mentri Besar of Selangor puts the entire blame on the statutory bodies when they are the Leaders who are fully responsible for all the actions and rules.

Pak Lah certainly needs more leaders in the like of Datuk Dr. Wahid, who is the key driver of knowledge management and competency building within JKR. He resembles the evangelist of "CHANGE MANAGEMENT", a leader who have no fear of politicians and one who will not give favor to curry politicians. But, I am afraid, our national system do not encourage people of this category to exist, and will not allow such talent to lead the change in the civil service system. These capable and maverick leaders will be punished and stepped-on to such low morals, because the politicians hate them and despise them. Politicians only wanted "YES-MEN" and "BODEK-MEN". So, with power in their hand, they will only select kleptocratic leaders and cronyist servants, who will offer to curry-flavor from them and will do what had or will be told, not what is right to do.

The Prime Minister talks loud and all too often of the need for a clean and efficient system, a good delivery system and a people-oriented administration. So far, after more than one year in power, we only hear what he says he will do, but nothing had been done or seen done. The corrupt officers and poiliticians are still holding powers (extremely powerful, infact more powerful than in Mahathir's era), the inefficient and incompetent civil servants continues to bully those who can perform, (one of such person who had to suffer is Datuk Dr Wahid), the delivery system is only "CAKAP SAHAJA", and all the ministries such as Works ministry, utilities (water & electricity) and various others are sweeping the rubbish back to their working places.

How long more would we be able to see change? Is it that our system is "CAKAP SELALU TAK SERUPA BIKIN?"

Pak Lah KEEPS REMINDING himself and his officers that the honeymoon is over, and he knows it is; but what can he do? He had a mulfunction system and incompetent officers, but he had no power to remove them or change them. He can only keep telling them, but, that won't produce the goals and objectives he had set out to do as promised. Maybe, the only solution is to consider appointing someone like Datuk Dr. Wahid to higher positions to lead the change.

If the PM is desirous of change, then he needs to put in place the "change masters"! There are a few change masters in the civil services, but they are strapped and silenced by the system administrators. Would PM knows about it? Or, is he sleeping with his enemies, the corruptors?????

Source

Project Failures - Samy Bares All

2004-11-14T12:20:00.000+08:00

PMC puncanya, bukan JKR

"Dari tahun 1979 saya jadi menteri tidak pernah jadi macam ini"

- KATA DATUK SERI SAMY VELLU.

Utusan Online, 14th November 2004.

Datuk Seri Samy Vellu finally had finally the guts to come out in the open to bare all the viruses and worms that had plague the projects and had infected and infiltrated the whole Kitchen Cabinet.

Who was responsible for all the fiascos of project failures?

According to Samy Vellu, it is none other than the KSU, the Secretary general of the Finance Ministry who is the most powerful person in regards to decisions on project award.

This is what Samy says:

Tetapi orang yang bertanggungjawab itu ialah Ketua Setiausaha kementeriannya. Ketua Setiausaha saja yang memberi arahan dan dia selalu tidak boleh menerima pandangan lain. Dalam satu-satu mesyuarat kalau ada para pegawai dari JKR untuk menjaga kepentingan teknikal, dia selalu malukan mereka. Dia kata, kalau tidak tahu tutup mulut."

"Beliau sedar bahawa semua masalah itu hanya muncul setelah perkhidmatan Perunding Pengurusan Projek (PMC) diperkenalkan oleh Kementerian Kewangan pada tahun 1990-an."

WHO DECIDES TO SET UP THE PMC?

This is what Samy says:

"Ia ditubuhkan oleh Kementerian Kewangan pada tahun 1990-an. Peranannya ialah untuk memansuhkan projek-projek JKR. Ada kepercayaan bahawa sekiranya projek-projek itu diberikan kepada PMC ia boleh disiapkan dengan lebih awal, lebih cantik dan macam-macam lagi. Malah projek yang mereka siapkan itu sebenarnya lebih mahal."

According to Samy, In the early 1990s, Mahathir's Govt had decided to engage the service of a Project Management Consultant (PMC) which are a composite cartel with faces and looks that resemble a contractor, may look like consultant and had shown interest as property developers and that entity is registered with the Ministry of Finance. The set up of PMC was meant to hijack all JKR's mega projects. It was claimed by the PMC that they are more efficient, more cost effective and can do a better job than JKR. The results speaks of itself: - Computer lab projects, Matrade Building, Hospital Sultan Ismail di Pandan, Johor, Kangar Hospital, Cameron Hospital, Langkawi School projects, et al; all these projects are now reverted back to JKR for reorganization and restructuring - to mitigate the damages done, and the multi million loses incurred; all tax-payers money.

As revealed by Samy, the PMC is a private entity who had only 2 officers manning the company - a managing director and a deputy managing director, and NO others. The Government, via the Ministry of Finance had entrusted and delegated the power to this PMC to appoint and select any contractors, design engineers, consultants, and nominated sub-contractors for all projects parked within their jurisdiction or those within the jurisdiction of the Ministry of Finance.

Snip from the interview:

Q: "Sebenarnya apabila Kementerian Kewangan sudah memberikan sesuatu projek itu kepada sesebuah kontraktor, tanggungjawab saya sebagai menteri hanyalah mengarahkan JKR supaya melantik kontraktor itu. Saya memberikan kuasa kepada Ketua Pengarah JKR untuk melantik kontraktor itu untuk harga yang telah ditentukan. Itu saja.

Ini bermakna Kementerian Kewangan mempunyai kuasa yang lebih besar walaupun Kementerian Kerja Raya mempunyai pakar yang boleh memberikan nasihat?"

SAMY REPLIED: YA, BETUL.

Q: Siapakah yang memeriksa PMC?

SAMY: TIADA SIAPA. (believe it? NObody manages or control or audit the PMC!!!)

Q: Kerajaan ada JKR tetapi kenapakah kerajaan memilih untuk memberi kepercayaan kepada badan swasta mengendalikan projek yang bernilai berjuta-juta ringgit? Apakah rasionalnya?

SAMY: Ada satu jawapan saja kepada soalan ini. Kata mereka, kerja-kerja itu boleh disiapkan dalam jangka masa yang cepat.

Q: Tanpa mempedulikan soal kos?

SAMY: Ya, tanpa mempedulikan kos. Apabila JKR membuka tawaran bagi setiap bilik darjah dengan harga RM55,000, ada juga pemaju yang bersedia menyiapkannya. Tetapi sebuah bilik darjah yang ditawarkan melalui PMC ada yang berharga RM95,000 dan ada juga yang mencecah sehingga RM120,000.

Kosnya sekarang sudah jadi berganda. Apabila kita tanya kenapa harganya jadi begitu tinggi mereka nanti akan beri berbagai-bagai penjelasan.

Sekolah-sekolah yang dibina dengan harga yang tinggi itu memang cantik-cantik. Tetapi siapa yang hilang wang? Kerajaan.

Q: Adakah pemaju-pemaju itu dapat menyiapkan projek-projek berkenaan dengan cepat seperti yang dijanjikan?

SAMY: Tidak juga. Ada sekali itu JKR telah diminta supaya mengeluarkan satu tawaran untuk pembinaan 500 buah sekolah dan kita sudah memilih lebih daripada 200 pemaju untuk melaksanakannya.

Tetapi apabila sampai masa kita hendak mengeluarkan surat niat, JKR telah diminta supaya menarik balik semua tawaran itu dan menyerahkannya kepada PMC. Semudah itu saja.

Q: Apa yang istimewanya tentang PMC ini?

SAMY: PMC LEBIH KUAT DARIPADA KITA.

Believe what you hear from Samy? PMC is stronger than Ministry of Works?

Is this the Government we had? That even the MINISTRY can be overruled by a PMC?

How is it that this can happen?

How is it that the Government had developed a dinosaur from a lizard within such a short span of a few years that is capable to destroy the Works Ministry and billions of dollars of project?

Who is behind the PMC?

Who's the GODFATHER behind it?

It cannot be the Jews?

Only UNMO can answer it; TRUST me!

PWD: "You can Manage MATRADE Project NOW"

2004-11-11T13:14:00.000+08:00

MATRADEM PROJECT

PWD DIRECTED TO COMPLETE MATRADE BUILDING WITHIN 21 MONTHS.

On problems affecting the Malaysian External Trade and development Authority building in Jalan Duta, Samy Vellu said the contract was not awarded by the PWD. The contract had been given to Syarikat Perangsang International Sdn Bhd and it had been refusing to allow PWD officials into the project since the first day.

Now, the Public Accounts Committee (PAC) has directed PWD to complete and handover the building within 21 months from the date of receiving the funds from the Government. Why? It took 10 years for the Ministry of Finance to get the project to its current state of affairs and PWD is only given 21 months to finished up the mess? I believe, it must had been a promised made by the Director-General of PWD Tan Sri Zaini who had requested RM32 million from the Treasury for PWD to complete the project. Is 21 months & RM32 million sufficient to get the project completed? I hope it does; if not, Zaini will have to burn his ass to answer for it.

During the meeting attended by PAC, the Board of Architects and the PWD represented by Tan Sri Zaini, PWD promised to take legal action against the errant contractor and recover some of the losses. What???? PWD to take legal action? Samy Vellu said the contract is not awarded by PWD; how then can they take legal action against the errant contractor? Is Samy Vellu and Zaini talking about the same subject and same contract? According to Samy, Matrade was not awarded by PWD; then how can PWD take legal contractual action? Are our Ministers and D-G going NUTs? or, are they misleading us??? Please clarify!!!!!! My God, Please sent Tan Sri Zaini back to law school!!!!!

More Regulatory Bodies Formed

2004-11-08T12:51:00.000+08:00

WPISB

ONE ADDITIONAL REGULATORS - THIS TIME, IT'S FOR TELCOS.

In Malaysia, whenever the Government wants to improve it's administrative efficiency, instead of utilising existing collosal of human resources that were available, they always choose the easy way out - set up another regulatory body and get the industry players to pay for it.

CIDB was one of them. It was set up to improve the quality and standards of the construction industry and to provide the necessary integration of industry and governmental information, communication, knowledge, expertise, and statistics that the industry players will be difficult to achieve if they were to act alone. CIDB charges 0.25% of the project value for each and every projects that is valued above $500,000 in contract sum. Each year, the government spends more than $20 billions for projects and the private sectors also spends many billions on projects. Work out the arithmatic, and you will know how much CIDB had pocketed. But what had the industry players benefitted from CIDB? What is the major activity of CIDB? India, Sri Lanka, Vietnam - they are there!!!! What were they doing there? CIDB became just another contractor whose interest is to get turnkey projects in India and Sri Lanka and Vietnam. They collected billions of ringgit to fund their salaries and to invest in India.

Real Estate and Housing Developers Association (REHDA) has submitted a memorandum to the Government proposing the suspension of the 0.25% levy on contract value paid to CIDB as it has failed to fulfill its role in meeting the construction industry needs. In its memorandum, REHDA said suspending the levy would help ease the industry’s financial burden.

Betty Chew, the MP for Melaka and State Assemblywoman for Durian Daun made a public statement as follows:

"Apa gunanya menyumbangkan 0.25% nilai projek kepada CIDB bila pemaju tidak menerima faedah yang dijanjikan? Kerugian RM150 juta sebulan adalah jumlah wang yang besar. Oleh itu, adalah lebih baik wang RM400 juta yang disumbangkan oleh pemaju sendiri kepada CIDB dikembalikan oleh CIDB kepada pemaju sebagai satu bentuk bantuan kewangan. Ini akan membantu menggerakkan balik industri pembinaan dan juga membantu ekonomi negara."

Recently, the Selangor Government imposed new requirement to all developers requiring them to register with Lembaga Perumahan dan Hartanah Selangor (LPHS) and pay a registration fee of 0.1% of their gross development value. Developers are already registered with the Ministry of Housing and Local Govt and an additional layer is unnecessary. The new requirements also include regulations on Bumiputra lots to be predetermine by LPHS on the developer’s layout and building plans while another ruling requires the developers to deposit 40% of the overall development cost of a project in a bank before approval is given for land conversion.

New regulations and requirements slapped by Selangor’s authorities are costly, duplicative and bureaucratic, as builders already face enough Federal legislation, the Real Estate and Housing Developers’ Association (REHDA) said.

“Malaysia’s housing industry is already one of the most regulated in the world,” said Datuk Jeffrey Ng Tiong Lip.

Now, it's Telcos turn!

The Federal territory Ministry has appointed Wilayah Persekutuan Infrastructure Sdn Bhd (WPISB) as a one-stop centre for development of telecommunications infrastructure in KL and Putrajaya.

WPISB has been authorized to coordinate all applications for the setting up of new base transceiver (BTS) and also to legalize existing ones.

WPISB is owned by Yayasan Wilayah Persekutuan and Ingres Software Sdn Bhd (a shareholder of Konsortium Jaringan Selangor Sdn Bhd). WPISB is also expected to have a role in the advancement of the Government’s plan for telecommunication companies to share transmission infrastructure.

WPISB intends to charge a flat fee of $2,500 for processing each application for setting up a New Base Transceiver(BTS). Apart from the $2,500 application fee, telcos will also have to pay $2,000 for the setting up of each BTS and also charges for an annual audit fee of $2,000 per BTS for auditing the structural integrity and safety, mechanical and electrical, & radiation level of each BTS. There are 1,152 telco towers in Kl and Putrajaya.

Base on the fees, the telcos will have to pay WPISB about $2.3 million in audit annual fees, and multi-millions for processing and application fees annually.

The industry players are said to be unhappy with the fees charged since the company was not willing to take responsibility for the structural integrity of the telecommmunication towers.

“We are unhappy with the appointment because the WPISB intends to charge a flat fee of $2,500 for each application, but like all other Government-back intermediaries, they cannot guarantee if the applications will be approved by the authorities, namely KL City Hall and Putrajaya Corp,” a telco executive said. integrity of the towers.

So, the setting up of such a body is to collect money, do some paper works and send those papers to the authorities for approval. Other that these, WPISB do not provide any form of productive service.

Then, why is there a need to add another layer to the existing many layers of red-tape? Why can't the telcos be allowed to communicate and liaise directly with the relevant authorities? Is middleman management a necessity in Malaysian Culture or UMNO culture?

But the telcos prefer to deal directly with the local authorities rather than go through another company!

Whatever it is and what is going to happen, the additional costs incurred by the telcos will be passed on to the consumers, similar to the CIDB fiasco. Is it what the Government prefers? Looks like, that's only thing they know how to do - COMPETENCY in creating cost and expenditure!

That's the price we pay for electing the NUTs into office.

Malaysia Boleh lagi!

"POS SLIM HIGHWAY DANGEROUS," says Samy vellu

2004-11-04T12:22:00.000+08:00

PWD PERAK REFUSED TO ISSUE CF ON SAFETY OF HIGHWAY, BUT......

The Simpang Pulai-Cameron Highlands stretch of the East-West Highway will be closed daily after sunset until further notice. The closure was ordered by the Cabinet today after engineers recently found that the stretch was too dangerous for motorists. It was earlier reported that water had seeped into the slopes along the highway and some movement had been detected, especially between Pos Slim and Kampung Raja. Samy Vellu had also said that there was some movement of between 0.3m and 0.45m.

On the 4th Feb 2004, The Star reported that the 282mil highway from Pos Slim to Kampung Raja in Cameron Highlands is completed but PWD has refused to issue a safety certification for the road. The PWD feels that it’s dangerous for use as km22.5 and 25.5 is too steep and prone to landslides. The slope gradient was not constructed in accordance to the PWD standard. The PWD is of the opinion that the construction has not met its requirement.

On 17th October 2004, The Star again reported a statement from the State Director of Perak PWD, Datuk Dorairaju. “We know the road was not really completed when we opened it in February. It was opened after pressure from the people in Cameron Highlands who were affected by a landslide near Ringlet,” commented Datuk Dorairajoo.

According to Samy Vellu, the Works Ministry was considering closing the highway in order to facilitate the construction of a proposed new tunnel which will be 1.5km long. The tunnel is expected to cost between $30-50million.

QUESTION: Why was the tunnel not designed and built by the earlier Turnkey Contractor? Is it a question of design omission, or a failure of the PMC & design consultants to take into consideration the fundamental requirements during the earlier contract? Is there a Failure of Duty of Care, Professional Negligence and can TORT actions be taken? Or, did the Turnkey contractor failed to comply to the requirements stipulated in the Need Statement of the contract? The project was a Design-Built-Lump Sum contract from point A to point B (as per the need statement from PWD). How could it be that we now say we will need a tunnel when the designers had not deemed necessary at the point of the contract been made? Was the designer over-ruled? Did the contractor short-change the Government? PWD and Works Ministry had to answer it point blank and not hide behind the maxim of Act-of-God again. Infact, ACA should be as pro-active as they had been with the Karak Highway investigation, by investigating this problem. Coincidently, both the problematic highway (Simpang Pulai- Kampung Raja and Karak Highway) were constructed TURNKEYED by MTD Capital.

The problem that have surfaced now and more to come in the future was predictable and known-knowns. It is just that our Ministers choose to side-step the issues that were raised before it happen (before the contract formation), and hope it doesn't happen (after the contract completion). JKR Perak knew of the problem. They couldn't talk out loud as they may lose their job and income.

Well, Murphy's Law again: If you think it can happen, It will happen! & The solution to a problem breeds new and more virulent problems. Problem begets problem. Inefficiency breeds inefficiency.

Datuk Seri Samy should admit his delinquency and work towards an effective solutions, even if it has to be painful to vindicate himself. He should not be shielding incompetencies and the incompetent contractors. He must wake up, and for once, solve those problems he had allowed to happen when he concurred on those decisions with his fello cabinet ministers, of which he shall have to accept responsibility and the consequences for the last 20 years of folly and political patronage.

Sultan Aminah Hospital - Fungi Infection

2004-10-21T12:24:00.000+08:00

THE PARADOX OF FUNGI INFECTION

SAMY VELLU BLAMES HOSPITAL MANAGEMENT
CHUA SOI LEK BLAMES PWD

According to Samy Vellu, the fungus problem at the new $557.8 million Sultan Ismail Hospital in JB was caused by the failure of the hospital management to undertake routine maintenance but Health Minister thinks that the problem was due to structural defects.

The hospital was supposed to be completed on July 29, 2002, but 3-extensions were given due to various problems and was only completed on Nov 14, 2003 and handed over to the PWD on Feb 15, 2004. The Health Ministry took over from the PWD on March 2004 and appointed Pantai Medivest Sdn Bhd to oversee daily maintenance and monitoring of the building supervisory systems, reporting defects and damage to the main contractor. “There was no daily routine checks on the hospital due to lack of staff. The presence of the fungus on the 2nd and 3rd Level of the hospital was due to damage to the air-conditioner valve, which was not reported as there was no building supervisory system,” said Samy Vellu.

However, Dr. Chua said the fungus problem was due to structural defects and not due to delay in routine maintenance. In dismissing Samy Vellu’s report as “Defective” Dr Chua said the fungus was caused by the dampness in the hospital following leakage in its major roof and low human traffic.

“The roof was like a big retention pond,” said Dr Chua. “We (Health Ministry) received the hospital in good faith on March 15 this year but it was full of defects. Besides major leaking problems, there were also problems in the piping system which had affected gas flow and also problem in the sewerage. The problems were made known to the contractor, who had promised to rectify them but did not do so,” Dr Chua said yesterday.

So, who was right and who is wrong????

Actually, both Ministers are right!

Hospital management must make routine inspections and if the air-conditioning valve was damaged and unreported (as claimed by Samy), definitely, it will cause dampness and ultimately leads to fungi growth - SO, SAMY WAS RIGHT! Hurray Uncle Sam.... but.....

Well, at the same time, the roof was a retention pond, there were major leaking problems, piping problems, and sewerage system failures of which the promised restification was not done timely, as claimed by Chua Soi Lek - THEREFORE Dr Chua IS ALSO RIGHT! Yahooooo......but.......

THEN, who is WRONG? Who is the CULPRIT? Is it the CONTRACTOR (MH Project Sdn Bhd) or the HOSPITAL MANAGEMENT SERVICE PROVIDER (Pantai Medivest Sdn Bhd)?

Ironically, both Ministries would not look into the contractual aspects related to the problem. The question arises are:

1) If the health Ministry was not happy with the conditions of the facility of which it was alleged that the works are not conforming to the specifications and standards, then why did they willingly, take over the building? GOOoood FAITHhhhh? Now, it's bad BLOOooooD!

2) If the roof is like a retention pond, (as claimed by Dr Chua), and is leaking badly, it is amusing that PWD had issued a Certificate of Completion (CPC) to the contractor ....... that's professional negligence on the part of PWD engineers.

3) Since taking over the facility by the Health Ministry, how is it contractually managed with regard to Defects Management and the contractual communication related to the Defects Liability Period of the contractor? And how is it that the line of communication seemed to be that the Health Ministry was talking and liaising directly with the main contractor which is not what the contract stipulates - i.e, the contract requires the Superintendent Officer (S.O.) to issue instruction to the main contractor for defects rectification during the defects liability period and failure to respond timely by the contractor, the contract does provide the S.O. to engage others to carry out the work and the cost incurred shall be debited to the contractor. At such, the question that the contractor did not respond to the Health Ministry's Instruction did not arise as the contractor need not take instruction from the Ministry except from the S.O.

In conclusion, the allegation against the contractor is mala fide. The contractor may have done a bad job, but since the employer (i.e. JKR) had accepted the works and issued the CPC, the contractor's responsibility is presumed to have been fulfilled if they did not receive any instructions from the S.O. to make good any defects; and the contractor cannot be held responsible for the damages arising thereof. Morally and socially, the contractor maybe the cause or the contributor to the problem but contractually, he is absolved of the responsibility if the failure on the part of the S.O. to give the necessary instruction did not take place.

Since the Health Ministry had decided to be friendly, and .... have GOOoooD FAITHhhhhh, and had INFACT, contractually accepted to take over the facility, then, they had taken over the contractual responsibility to manage the building and it's associated services; and they must be held fully responsible - for their actions and their decisions. In that sense, when the service management contractor was appointed to manage the building, how could they claimed that it was not their fault that they did nothing except to wait for the main contractor to rectify the defects, which in reality, they should be taking proactive actions to ensure that the building and its services are functioning in accordance with the operation definition. Where is the "Duty of Care" & "Reasonableness" ?????

A Contract is a Contract; Nothing More, Nothing Less!

Every party to the contract must know their role and responsibilities as laid down in the terms and conditions of contract. Every party to a contract must understand their "Rights" and their "Obligations". Each party must also know of the associated risks they will face and the consequences of their decisions and actions that lead to the risk that had happen. Even among the Ministries, there is an unwritten contract of "Duty of Care" and a "Duty to the Rakyat" for spending $558 million on a facility that is malfunctioning and would not serve it's objectives.

The same goes to the Highway problems (MRR2), East-coast Karak Highway shambles, The Langkawi "White Elephants" Schools, and the Matrade Building Debacle. Infact, there are many more systemic failures in Government projects ... computer lab fiascos, PUAS fiascos, Simpang Pulai - Kampung Raja Sloppy slope design (awaiting failures), Gemas Army Barrack project & payment fiascos, Gua Musang- Lojing Highway Slope failing (awaiting failure), Broga landfill project fiascos, et al.

More of these bad news will surface soon and probably, Pak-Lah who had directed the Sports Ministry to form a Cabinet Committee for sports revitalization may also have to form another Cabinet Committee and Advisory Panel to manage the Government Project Management System. The Sports Committee headed by Azalina engaged Hallam Pereira to tell her what our sports officials had already told her predecessors; and so, the Government Project Management committee may also need a foreign consultant to tell them what we local professionals had already known and widely spoken and discussed within the project management community. Is that the Government's way of SOLUTION MANAGEMENT - i.e engage Foreign Consultant, pay through your nose and get a "BLUEPRINT" of our known problems and known solutions and then ARCHIVED the file. IMPLEMENTATION? NAY, NAY, NAY .....oh NO NO NOooooo!!!!!

CAKAP TAK SERUPA BIKIN - MALAYSIA BOLEH LAGI.

No need for PMC & CONSULTANTS

2004-07-16T12:27:00.000+08:00

The Government will do away with rural road project consultants and use the allocation set aside for consultant fees to build more roads, Rural and Regional Development Minister Datuk Aziz Samsuddin said. He said the decision to stop the appointment of consultants was made this year and the RM30mil in consultant fees saved would be used to build 320km of rural roads. “I don’t see the need to have consultants to build rural roads as the project is rather simple and straight forward, not like building highways or multi-tiered roads,” he said.

Aziz said the Public Works Department had taken over the jurisdiction of rural road construction from the district office. He said the ministry had proposed that fresh engineering graduates and diploma holders be appointed as project supervisors. “This will give our graduates the opportunity to be employed and gain experience. It is also more cost effective,” he added.

"Consultant, kena cari makanan lain, cara lain, hidup lain."

Don't worry about this news and don't get upset. You can be sure that politicians said one thing and do another. Remember what Pak Lah said earlier about the open tender for all projects? Well, months later, Second Finance Minister says, there will still be negotiated tenders. A clear sign we received recently is the Kuching airport project was just awarded to Ting Pek King few weeks ago. This is the Malaysia Boleh - the cakap bohong boleh! Cakap sia sia sahaja - untuk syok-syok sahaja.

CIDB MASTERPLAN

2004-06-16T12:52:00.000+08:00

CIDB Masterplan

CIDB NOW HAS A MASTERPLAN TO SUCK MORE FOR A FEW

After 10 years of existence, we now hear something - A Masterplan. They don't have it before (I presumed). It is encouraging news to hear that CIDB is formulating a Masterplan for the development of the construction industry and it's sustainability towards 2020.

CIDB will be inviting the Presidents & CEOs of the companies involved in the industry to help lay down the final groundwork for the Masterplan at the one day meeting on the formulation of the masterplan.

"ONE DAY IS ENOUGH SIR, TO GET THE FEEDBACK AND STRATEGIES TO DRIVE THE MASTER TO PLAN."

“WE are addressing several issues on the development of the construction sector & its sustainability towards 2020,” says Datuk Hamzah Hasan, the CEO of CIDB.

“The Vision of the Masterplan is to make Malaysia among the best construction industry nations of the world,” he said.

Among the areas covered were sustainable flow of domestic projects, foreign markets and human resources.

Based on his statement and the one-day meeting with Industry captains, what do you figure will come good for the industry?

Before I could comment, lets look at CIDB reasons for existence.

CIDB's motto:
CIDB Malaysia-
Understand The Past,
Conquer The Present,
Shape The Future.

The enactment of the ACT 520 [Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994] has paved the way for the empowerment of CIDB Malaysia to:

1) Create a climate for a more vigorous development in the Construction Industry
2) Carry out its functions as the enabling authority to help Construction Industry Players overcome bureaucratic obstacles
3) Play the role of facilitator by addressing the current and future needs of the Construction Industry.

Roles & Responsibility of CIDB:

1)Carrying out all activities in respect of the Construction Industry
2)Awarding certificates of proficiency
3)Establishing, expanding, promoting the establishment or expansion of companies, corporations or other bodies to carry out activities deemed requisite, advantageous or convenient for or in connection with the performance of its functions
4)Providing financial assistance in the form of loans or otherwise, to persons engaged in the Construction Industry for the purpose of promoting the Industry and providing any guarantees on their behalf
5)Imposing fees or any other charges as deemed fit for giving effect to any of its functions or powers
6)Receiving commission or payments in consideration of any services that may be rendered

REASONS FOR ESTABLISHMENT OF CIDB:

Prior to the establishment of CIDB Malaysia, the Construction Industry was a very segmented and fragmented one where various players were implementing and carrying out their own programs and activities without proper direction and guidance.
This situation has resulted in challenging issues that involved the:

1) Significant decline in construction quality
2) Acute shortage of skilled and unskilled labour, leading to an over-dependency on foreign labor
3) Lack of pertinent statistics and information required for planning, monitoring and decision-making

It was at this juncture, that the Federal Government acknowledged the need to fill a ‘vacuum’ in the Industry, which paved the way for the establishment of CIDB Malaysia as a regulated body entrusted with the responsibility of:

1) Coordinating the needs and wants of the Industry
2) Planning the direction of the Industry
3) Addressing the pertinent issues and problems faced by the Industry
4) Making recommendations in the formulation of policies for the Industry

To fulfill our (CIDB) Vision, 3 key areas have been identified:

1) Setting the stage for Industry Players to embrace new technology
2) Undertaking development and accreditation programs designed to improve construction quality delivery as well as competitive edge
3) Functioning as a gateway for Construction Industry Players to get involved in the international construction marketplace, with the aim of enabling them to earn leadership positions in overseas ventures and maintaining an open exchange of information with construction leaders worldwide.

To achieve our (CIDB)Vision, the 3 key areas have been translated to involve 4 main initiatives:

1) The development of quality services in Construction as a basis for maintaining and improving competitive edge
2) The focus on Construction Technology Development along the lines of new opportunities for innovation and cost effectiveness
3) A “Going Global” initiative that serves to promote and encourage the export of services and products
4) Continuing efforts in terms of reviewing and revising existing rules and policies with the aim of facilitating the development of the Industry

With a far-reaching view of facilitating the Construction Industry towards enhancing Construction business growth potential, CIDB believes that, to trigger development, there is a compelling need to change the way things are being done.
To facilitate that ‘change’, it is imperative to formulate CIDB’s Mission in the light of improving the overall climate of the Construction Industry, thus leading to improvement in standards, skills, technology, manpower and the overall Construction market.

CIDB’s Mission Statement states…

”Together we develop the Malaysian Construction Industry towards Global Competitiveness.”

CIDB'S CORE VALUES:

CIDB’s Value Proposition to the Construction Industry involves a 2-prong perspective –

The first revolves around our focus on relentless efforts on “Adding Value Where It Counts” and
The 2nd perspective encompasses the need to assist the Construction Industry to “Understand its Past, Conquer the Present and Shape the Future”.

CIDB’s objective is to

1) Develop the Construction Industry to be one of the major contributing sectors to the National Economy,
2) capable of producing and delivering high quality construction works,
3) value for money and being responsive to the Nation’s needs.

CIDB’s development framework is derived from the 11 functions:

1) to promote and stimulate the development, improvement and expansion of the construction industry
2) to advise and make recommendations to the Federal Government and the State Government on matters affecting or connected with the construction industry
3) to promote, stimulate and undertake research into any matter relating to the construction industry
4) to promote, stimulate and assist in the export of service relating to the construction industry
5) to provide consultancy and advisory services with respect to the construction industry
6) to promote quality assurance in the construction industry
7) to encourage the standardisation and improvement of construction techniques and materials
8) to initiate and maintain a construction industry information system
9) to provide, promote, review and coordinate training programmes organised by public and private construction training centres for skilled construction workers and construction site supervisors
10) to accredit and register contractors and to cancel, suspend or reinstate the registration of any registered contractor, and
11) to accredit and certify skilled construction workers and construction site supervisors.

These functions have been referenced as a basis for CIDB’s formulation of her corporate initiatives that in turn were translated into:

CIDB Helps The Construction Industry To Explore And Harnesss Overseas Opportunities

NOW LETS ANALYZE:

Has CIDB effort so far (for the last 9 years) be any near their Vision, Mission, Goals & Objectives that were spelt out within their system (as published in their web). CIDB’s contribution to the Construction Industry is demonstrated via…………????? other than the India projects for a selected few crony contractors at the expense of tens of thousands of contributing members? AND CIDB IS FOCUSED INTO THIS POINT OF CONTENTION - THAT IS - GO TO INDIA, SRI LANKA, SUDAN, ETC & GET JOBS FOR CONTRACTOR & EXTRACT MORE FEES FROM THEM (PLUS THEIR OWN POCKET)

ACT 520 was established by the government to paved the way for the empowerment of CIDB Malaysia to:

1) Create a climate for a more vigorous development in the Construction Industry

What is this that CIDB can claim that they have created an environment for a vigorous development in the construction industry? What are the deliverables to-date on the subject point and what have been measured so far, i.e. the key Performance Index?

2) Carry out its functions as the enabling authority to help Construction Industry Players overcome bureaucratic obstacles

3) Play the role of facilitator by addressing the current and future needs of the Construction Industry.

Did CIDB offered any helping hands to thousands of contractors who faced problems such as labor shortages, shortage of building materials such as steel bars, and the problems of labor shortage caused by the deportation of foreign workers by the Government in year 2000? What about the abandon projects and failed projects that affects the livelihood of those purchasers? CIDB collected hundreds of millions of ringgits from contractors of these property development projects and if the purchaser suffers, what has CIDB done to help them - did they talk to the bankers to help suspend the loans for a certain period, help cushion off that period of uncertainty, or initiate actions to restore the project and get it to completion? CIDB only collects money from these projects but contribute nothing to the projects and the stakeholders!!!!!

REASONS FOR ESTABLISHMENT OF CIDB:

The challenging issues as stated, and as the very reason of the existence of CIDB are:

1) Significant decline in construction quality
2) Acute shortage of skilled and unskilled labour, leading to an over-dependency on foreign labor
3) Lack of pertinent statistics and information required for planning, monitoring and decision-making

Out of the 3 areas, what have we achieve thus far? Look into the construction projects and see who are the workers today - basically 99% foreigners consisting of mostly Indonesians, Bangladeshis, Thais and Myanmars. Do we hear of any strategic action by CIDB on how to overcome our dependency on foreign labors? NAYs! Have CIDB build up statistics and information required for planning, monitoring and decision-making necessary to help contractors in tendering and estimating? If it is, there must be available database in the website for contractors info, such as:

1) What is the price of plywood in Perak, Selangor, Johor, Trengganu and how many types and standards are available locally? What have CIDB done to help make plywood more competitively priced? Did they set up agencies to help reduce the price of plywood?
2) What about timber? Each state has different timber price and availability?
3) What about steel bars? Did CIDB talk to Datuk Abu Sahid of Perwaja and get him to commit to supply steel bars to contractors who faced difficulties in getting them, which delayed project completion.

In the SMART Tunnel project, Bakun, SMART School, Computer Lab projects, Did CIDB help contractors to have the opportunity to participate in those project and when the computer lab projects was in trouble, what was the contribution of CIDB?

FUNDAMENTALLY, THE PROBLEM WITH CIDB IS NOT WHAT THEY CAN DO BUT WHAT THEY DIDN'T DO!

Confucius says, "Till you admit that you know what don't not know, you will not achieve profound knowledge."

The Eleven functions set by CIDB that give rise to the formulation of her corporate initiatives which in turn were translated into: CIDB Helps The Construction Industry To Explore And Harnesss Overseas Opportunities - THAT WAS THE SOLE REASON WHICH DEFEAT THE VERY PURPOSE OF THE GOVERNMENT'S INTENTION FOR SETTING UP CIDB IN 1994.

The first question CIDB should consider before putting up the Masterplan is:

"How are the contractors which consists of Class A to Class F plus those in the private sectors (all of them contribute 0.25% of the contract value to CIDB) - How is CIDB going to serve them? What are their needs, what are their weaknesses and what are their lack of knowledge and competencies? What about their financial problems caused by late payment, particularly of Government projects; can CIDB provide them with some financial credit or guarantees to help them get construction materials and pay their labor wages?

There are many Class F, E and Class D contractors, particularly those Bumiputera companies that need assistance in terms of technical expertise and technical informations, including Engineering design knowledge - what can CIDB do for them?

The Mission Statement of CIDB - ”Together we develop the Malaysian Construction Industry towards Global Competitiveness.” is too far fetch; it's more a Vicious Statement than a Mission; The Mission will not be achieve as it is made in DREAMLAND. Does CIDB understand what is Global Competitiveness? Can we compete with Koreans, Japanese, Chinese, Thais? What can CIDB do to prepare the Malaysian contractors to have the competitive advantage over the other international players? What are the statistical datas that Malaysian contractors must know of their international counterparts? What is competitiveness - in terms of cost leadership, branding, uniqueness, product quality, service quality, efficiency, networking and relationship building, strategic partnership, etc? Do we have any measurement standards and benchmarks? Do we have CIDB to do research, regular and continuous research that keeps us inform? Does CIDB having collected Billions of ringgit have a full-time research team - what's the money for, what did they spent it on, where the money?

CIDB’s Value Proposition to the Construction Industry involves a 2-prong perspective – the first revolves around our focus on relentless efforts on “Adding Value Where It Counts” and the 2nd perspective encompasses the need to assist the Construction Industry to “Understand its Past, Conquer the Present and Shape the Future”.

IS THAT WHAT WAS CIDB'S CORE VALUES? ADDING VALUE WHERE IT COUNTS - WHAT VALUES? COLLECTING MONEY FROM CONTRACTORS; ISSUING GREEN CARD TO WORKERS FOR $250? WHAT ARE THE VALUES ADDED FOR THE CONTRACTORS, THE STAFFS & THE WORKERS? CONTRACTORS WHO SENT THEIR STAFFS FOR TRAINING WITH CIDB HAD TO PAY EACH TIME THEY ATTEND THOSE TRAINING - WHY, WHY, WHY? AREN'T THE 0.25% COLLECTION TO BE USED TO PROVIDE TRAINING?

UNDERSTAND OUR PAST (yea, we were weak contractors)
CONQUER THE PRESENT (yea, WE WERE CONQUERED BY CIDB'S GREED & PROFANITY! pay CIDB 0.25% and pay for the green card and training fees)
SHAPE THE FUTURE (Oh, no; got to pay for the Directors' trip overseas and their families and their pension; OH SHIT)

CIDB - The INTERNATIONAL Project KINGMAKER

2004-06-07T12:29:00.000+08:00

CIDB FAILED TO SERVE IT'S PAYING CUSTOMERS

Every contractor, big or small has to contribute o.25% of their contract value to CIDB for each and every project they undertake.

Presumably, the contribution required is to finance the DEVELOPMENT & COMPETENCY PROGRAMMES to prepare the Malaysian contractors to achieve quality and efficiency in the field of project management and construction management and to nurture the contractors and the Malaysian construction industry players in general, such that they will be on par to international standards. CIDB was set up by the Mahathir's Government to lead the CHANGE & IMPROVEMENTS. At such, they are held responsible to lead and manage the construction industry in TOTAL.

All the last few years, CIDB had spent it's time and moneys (collected from all the contractors) to set their targets for projects in India, Sri Lanka, etc. This had benefitted some large international corporations such as IJM, Binapuri, Roadbuilders, MMC, Lankhorst, etc, etc. BUT what have all the other contractors benefitted from CIDB's international projects?????? The tens of thousands of paying Class 'F' contractors, Class - E, D, C, B, BX, and many Class 'A' contractors???? Each and everyone of the contractors are contributing to CIDB's coffers, paying for all the expenses incurred and the amount collected is in excess of billions of ringgits. WHAT HAVE CIDB DONE FOR THEM??????

Does Malaysia, particularly the construction sector needs the existence of CIDB? I have asked hundreds of contractors this questions and so far, everyone is affirmative that CIDB has developed into a parasite; a Hirudinea, a "Leech" and a "Pain-in-the ASS".

What has the Government done for the contractors, as far as CIDB is concerned? Why do they collect the hundreds of millions yearly so that they can go to INDIA & SRI LANKA? What has Datuk Hamzah done for CIDB and what has Tan Sri Wan Abdul Rahman (ex-JKR Director General, and now CIDB's Chairman) done to benefit the contractors in the industry, particularly the Class 'B' down to Class 'F' contractors? Some class 'A' contractors did benefit from CIDB (Indian & Sri Lanka projects) but many Class 'A' contractors are not getting anything from CIDB.

WILL PAK-LAH DO SOMETHING ABOUT CIDB & REVAMP THE WHOLE ORGANIZATION? WITH DUE RESPECT TO ALL THOSE IN CIDB, THEY DO NOT DESERVE ANY RESPECT FOR THEY HAVE DONE NOTHING, ABSOLUTELY NOTHING FOR THE INDUSTRY, EXCEPT TO SPENT ALL THE MONIES COLLECTED FOR THEIR TRIPS TO INDIA, SRI LANKA, ETC, ETC.

I HAVE BEEN WITH THE CONTRACTORS FOR MORE THAN 20 YEARS AND I CAN TESTIFY TO WHAT I'VE SAID!!!!! CHALLENGE ME!

TELEKOM caused of Old Klang Road Project Delay

2004-05-26T12:31:00.000+08:00

Jalan Kelang Lama Project Delayed

26th. May 2004, The Star report

The roadwork project in Jalan Kelang Lama was reported to be delayed and the delay reason was attributed to the relocation of existing telecommunication services owned by Telekom Malaysia.

Lately, we have heard and read much about the restructuring of the Government Link Companies (GLCs, and the much talk about introduction of performance measurement tools such as KPI, Balance Scorecard, Six Sigma, etc to enhance efficiency and productivity; and it is well-known fact that Telekom Malaysia had over the years, been applying these "effective tools", (especially KPI) to measure their performance. Yet we wonder how effective the tools are, and how did the management measures performance while we often hear of construction project being delayed primarily due to the relocation of existing services and the culprits are Telekom, TNB, Waterworks Department (JBA), DBKL (for KL projects).

On an unrelated issue, I had a problem with my streamyx (not able to access the service, maybe due to my ADSL modem which is under warranty) and I made a report as usual. I was told by their service department that they will need at least one week to sent a technician to resolve my problem (reason is they are too many such problems to attend and limited resources). I begged for help saying that I'm a researcher and will have problem with my day-to-day activities without the service. Fortunately, the technician came the next day and my problem was resolved (Thanks to the good samaritan). Is it common for telekom to take one week to solve problem like this? Is this efficiency and customer service, customer-oriented, customer satisfaction?

The report today (roadworks delay) is not the only one we have heard all these years. If you have been involved with construction projects and JKR road projects, you will understand that these sort of problems have been plaguing the industry players for umpteen years and no improvement had been made so far (Talk to JKR Project Managers and they will verify this). Yet these GLCs still say they had an effective performance measurement system to monitor efficiency, effectiveness and productivity; and they can & want to be world class. I have been involved in construction projects for the last 20 odd years, and I testify to this inefficiencies by the GLCs.

What is efficiency and effectiveness? What is Performance Measurement?; what is Key Performance Index?; What is Balance Scorecard and Six Sigma? Top Management in GLCS talk a lot about it (often made public statement about it - read the News), but do they understand it and do they have a strategic plan to achieve it? CAKAP TAK SERUPA BIKIN! For many Malaysian Contractors, they have learn to live with such inefficiencies and have adapted to the system of incompetence and it has become part and parcel of their construction life.

Some contractors who have political linkage, use their political connection to influence action.Some other contractors who are not so fortunate to rub shoulders with politician (because it is very expensive to rub them; its the truth) uses more innovative actions to solve this problem by "Paying to get Efficient Services" to ensure affirmative action.

Is all this UNKNOWN, UNCOMMON, UNHEARD TO OUR MINISTERS & THE CEOs OF GLCs? (Some of the CEOs of GLCs were with other organization before joining GLCs - they should understand)

COME ON - BE MALAYSIAN & ADMIT THE TRUTH; AFTERALL THIS IS WHAT WE HAVE ADOPTED - THE MALAYSIA-BOLEH PHILOSOPHY!!!!!!!!!