Contractor seeks damages over sudden cancellation of project

KUCHING: A local contractor is seeking the Sarawak government’s intervention on the outstanding progress claim payments and compensations that it is owed following the termination of a mega project at Samalaju Industrial Park, Bintulu on sudden notice.

Speaking to The Borneo Post, the local contractor said the mega project involved construction of a foaming agent manufacturing plant with investment worth over US$100 million by a South Korean company, which was first announced in 2018.

“Now we are only hoping that the company would resolve the outstanding matters in professional manner, instead of leaving it like this,” stressed the contractor, pointing out that they still had not received the payments for the progress claim which they had requested during construction.

He said the contractors involved respected the company’s decision to withdraw from the investment project, but lamented that the company’s irresponsible behaviour towards the local contractors in the termination of the project was ‘totally unacceptable’.

The contactor was also seeking compensation for the damage that they incurred due to the sudden announcement of the project’s cancellation.

He said the contractors had been working relentlessly on a daily basis, including during public holidays and Sundays, to meet the schedule set by the client, especially with the delay caused by the Movement Control Order (MCO).

The contractor said if the project had been completed, it was supposed to be able to boost the state’s economy, employment opportunities as well as local manpower resources through value-added skills and technology transfer.

“We are only contractors.

“Without the help from the media and relevant government authorities, they would never listen to us as they know we would soon give up fighting, and do it as they want.

“The elephant does not feel a flea bite.”

A petition signed by the contractors involved, as sighted by The Borneo Post, stated that the foreign company had unexpectedly issued a notice of interim suspension of the project around the middle of last year, citing deteriorating business performances due to Covid-19 pandemic as one of the reasons.

A few months later after the interim suspension notice had been sent, the company announced their decision to completely withdraw from the project with immediate effect, and termination of contract for all the contractors involved.

The contractor said they suffered financial losses due to the costs incurred from the machinery and manpower idling and being placed on standby, as well as additional cost for site maintenance works throughout the suspension period.

“Support is highly required from the local authorities to urge and coerce the company into taking the responsibilities as the project owner; to fully cooperate with all involving local companies; and to take prompt actions in accordance with local rules and regulations, so as to properly conclude the project withdrawal,” stated one of the resolutions listed in the petition.

The petition also sought actions to be taken against the company behind the mega project should it refuse to communicate and negotiate with the local contractors involved, to serve as an example to other corporate giants to not abuse their power and oppress smaller local companies.

Now we are only hoping that the company would resolve the outstanding matters in professional manner, instead of leaving it like this.

Local contractor