Nanta: Pan Borneo highway contracts cannot be terminated arbitrarily
KUALA LUMPUR: Contracts of companies involved in the construction of the Pan Borneo Highway cannot be terminated arbitrarily, as delays in individual work packages are not necessarily caused solely by the contractors’ shortcomings.
KUALA LUMPUR: Contracts for companies working on the Pan Borneo Highway cannot be broken without cause, as work delays are not always the contractor's fault, according to Works Minister Datuk Seri Alexander Nanta Linggi. When contractors request an extension of time (EOT), the Ministry of Works (KKR) must evaluate whether the delays stem from government agency restrictions or other factors.
To date, only one contractor has had its contract terminated due to delays in the project, after a thorough assessment. Nanta explained that contractors may face delays if they cannot access the site due to unresolved land acquisition and compensation issues or if utility infrastructure, such as water pipes and underground cables, have not been relocated by the necessary parties.
To mitigate further delays, the KKR has established monitoring committees, a steering committee, and task forces to swiftly address construction site issues. Regular site visits by the ministry's top management and close collaboration with the Sabah and Sarawak Public Works Departments are also being employed to strengthen oversight of the projects.
As of now, only 11.4% of the work packages in Sabah have been completed, nearly a decade after the Pan Borneo Highway project began, while the Sarawak segment is nearing completion.
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