Termination of Main Contractor for HDB's Punggol Point Cove BTO Project
Ministry of National DevelopmentSpeakers
Summary
This question concerns the termination of CKR Contract Services Pte Ltd as the main contractor for Punggol Point Cove (Phase 2) due to repeated failures in meeting construction targets. MP Miss Cheryl Chan Wei Ling inquired about the causes of these delays, the impact on other HDB projects, and the availability of alternative contractors. Minister Desmond Lee explained that despite HDB providing financial and logistics support, the contractor faced persistent manpower and material shortages. A new contractor is being appointed to ensure flats are completed by their delivery possession dates in late 2024 and early 2025. Minister Desmond Lee also noted that other projects under CKR are being closely monitored to ensure they remain on track for completion.
Transcript
83 Miss Cheryl Chan Wei Ling asked the Minister for National Development with regard to the termination of the main contractor for HDB's Punggol Point Cove BTO project in Punggol (a) whether there are any implications to other HDB projects that the current contractor is engaged in; (b) what are the main issues affecting the contractor resulting in repeated failure to meet construction targets; and (c) whether there are alternative contractors available to continue the project.
Mr Desmond Lee: The Housing and Development Board (HDB) terminated its contract with CKR Contract Services Pte Ltd (CKR) for Punggol Point Cove (Phase 2) because of CKR’s unsatisfactory progress and repeated failure to meet critical milestones and targets for the project.
Prior to terminating CKR’s services, HDB had put in extensive efforts to support CKR. For example, HDB facilitated approvals for CKR’s round-the-clock construction works, provided advance payments and helped to secure accommodation for CKR’s workers on-site and at external dormitories. Despite HDB’s efforts, CKR did not make reasonable construction progress. On-site works were often halted as CKR was unable to secure sufficient workers and could not ensure the timely supply of materials to the site.
To safeguard the interests of flat buyers and minimise further delays, HDB terminated its contract with CKR for Punggol Point Cove (Phase 2).
HDB recognises that any delay in the completion of our flats may cause significant inconvenience to flat buyers. A decision to terminate a Build-To-Order (BTO) contract is therefore not taken lightly. HDB closely monitors BTO contractors who may be facing challenges in meeting their project timelines and regularly assesses these contractors’ ability to meet the committed timelines towards project completion. While HDB will make reasonable efforts to lean forward to support these contractors as much as possible, this has to be weighed against the interest of our flat buyers, who remain HDB’s top priority. If there are any changes to their Probable Completion Dates, HDB also strives to give affected flat buyers sufficient notice of at least six months to a year, wherever possible.
HDB is currently in the process of bringing on board a new contractor to complete the remaining works. HDB will work closely with the new contractor as well as suppliers and sub-contractors to expedite the remaining construction works, without compromising quality and safety. HDB expects the flats to be completed by their respective delivery possession dates in the fourth quarter of 2024 and the first quarter of 2025.
CKR is, and remains, the contractor for several other HDB projects, namely, Eunos Court and Toh Guan Grove. To date, all the blocks in Eunos Court have been completed, while Toh Guan Grove is currently on track to be completed by the project completion date committed to flat buyers. HDB will monitor CKR’s progress very closely and will take all necessary measures to ensure timely completion of these projects.