Written answer by Ministry of National Development on termination of main contractor for HDB's Punggol Point Cove BTO project

Aug 2, 2023

Question No: 4975

Question by: Miss Cheryl Chan Wei Ling

To ask 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.

Answer:

          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.

2.       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.

3.       To safeguard the interests of flat buyers and minimise further delays, HDB terminated its contract with CKR for Punggol Point Cove (Phase 2).

4.       HDB recognizes that any delay in the completion of our flats may cause significant inconvenience to flat buyers. A decision to terminate a 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 (PCDs), HDB also strives to give affected flat buyers sufficient notice of at least 6 months to a year, wherever possible. 

5.       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 4Q2024 and 1Q2025.

6.       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.