GDB tender book exceeds RM2b mark
> Construction services firm expects increase in revenue considering the jobs in hand
KUALA LUMPUR: GDB Holdings Bhd, which expects increased revenue this year, saw its tender book rise to RM2.1 billion as at May 31 due to participation in more tenders for high-rise projects in the Klang Valley, from RM1.4 billion as at April 23.
The group’s current tender book comprises six projects, namely high-end high-rise residential and commercial buildings.
Managing director Cheah Ham Cheia said GDB continues to witness robust tender activity for the construction of high-rise buildings in the Klang Valley and strives to participate in more high value projects to drive growth.
“Even for the last few months, we still receive invitations to tender for high-rise projects. We even have to decline a number of tenders because there are too many for us to handle. We’re experiencing increased (invitations), some of the jobs are also even larger,” Cheah said at a press conference after the group’s AGM yesterday, commenting on concerns of oversupply of high-end properties and its impact to the group.
He said it is optimistic of winning several tenders, given its proven technical expertise, track record for completing prominent high-rise projects ahead of schedule, as well as adherence to stringent safety and quality standards. Historically, Cheah said, it has a 15-20% success rate.
GDB’s order book stands at RM808.7 million, which Cheah said will contribute RM400 million for 2018 and over RM400 million for next year.
“RM400 million is more than what we achieved in 2017, hence revenue is expected to increase for 2018. We hope to achieve at least a similar kind of profit margin,” said Cheah.
GDB is a construction services provider in Malaysia, with a focus on high-rise residential, commercial and mixed development buildings. As a main or principal works contractor, the group is involved in the implementation of construction projects, including daily management of all the works required for timely completion of projects and engaging the necessary subcontractors.
Commenting on the government’s stance on adopting an open tender system for construction projects in the public sector, Cheah welcomed the move as a boon for the industry, adding that all GDB’s jobs are secured based on tender and merit basis.
He said it is confident that the open tender system is beneficial to the construction industry in the long run, as it would foster greater transparency and accountability in tender awards as well as the procurement process.
The move would also help ensure that the best proposals that are in the public’s interests are selected, as it takes into account important elements such as the contractors’ experience, financial capabilities, as well as project design and costing.
Additionally, through the encouragement and enforcement of best practices, it looks forward to seeing enhanced competitiveness among domestic construction players in the long run.
GDB plans to enter the growing civil engineering and infrastructure construction space encompassing construction of roads, highways, bridges and transportation infrastructure. This would allow the group to capture opportunities through major government infrastructure projects that are expected to be rolled out over the coming years.
It aims to form a project team for civil engineering projects within a year from its listing in March. It has obtained certification as a Grade G7 contractor, which allows it to participate in tenders for government jobs with a contract value above RM10 million.