Stop denying the undeniable high engineering consultancy fees for 3 Penang roads, says minister



The works minister, Datuk Seri Fadillah Yosof says compared to what the JKR recently paid for pre-construction consulting fees for a project in Johor (RM19mil of pre-construction consulting cost represents 2.67% of RM718,570,500 for roads totalling 30km in length), the Penang government’s consultancy fees for the three roads project is exorbitant to the total RM220mil pre-construction fees that was already fully paid by the Penang government, which represented 11.06% of the RM1.99bil construction cost for the three roads totalling 20km in length and has yet to start construction despite a three-and-a-half-year delay.”

PETALING JAYA: The Penang government has been urged to “stop denying the undeniable” over the exorbitant consultancy fees for the three roads project.

Works Minister Fadillah Yusof said the Public Works Depart­­ment (JKR) recently paid RM19 million in total for pre-construction consulting fees for a paired road highway project in Jo­­hor.

He compared this with the exorbitant consultancy fees for the three roads project in Penang.

“The fees comprise all required services and include the fees for all surveys, soil investigation, preliminary environmental impact assessment and all civil, structural, electrical and mechanical designs,” The Star quoted Fadillah as saying.

He said the RM19 million of pre-construction consulting cost represents 2.67% of RM718,570,500 for roads totalling 30km in length.

He added that in accordance with the Board of Engineers Malaysia’s (BEM) guidelines, not all of the fees for the project were paid before construction began as a quarter of the payment was withheld for the tendering and construction stages.

“Compare this to the total RM220 million pre-construction fees that was already fully paid by the Penang government, which represented 11.06% of the RM1.99 billion construction cost for the three roads totalling 20km in length and has yet to start construction despite a three-and-a-half-year delay,” Fadillah said.

The three paired roads are meant to be the traffic dispersal system of Penang’s proposed undersea tunnel project.

The cost of the consultation fees for the three paired roads has been a point of contention between the state and federal government, whereby the latter says that the Penang government has significantly overpaid the fees.

The Penang government has maintained that the fees paid is not excessive. – FMT news, The Star

Related Links:

Stop denying the undeniable, says Fadillah – Nation

PCM lodges report over Penang undersea tunnel project – Nation …

Party plans to renew MACC report on Penang undersea tunnel project …

BNSC: Firm given Penang Tunnel project ‘undercapitalised’ – Nation …

Penang Undersea Tunnel – Wikipedia

CM: Penang undersea tunnel feasibility study can’t proceed | Free …

Bumpy road ahead for CZBUCG’s RM6.3b project – The Edge Property

Auditors qualify opinion on accounts of firm tasked with Penang tunnel …

Gerakan questions ‘high profits’ of tunnel feasibility study contractor …

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Dismayed over the exorbitant engineering consultancy fees, 4 times higher !

Dismayed over the exorbitant engineering consultancy fees, 4 times higher !


GEORGE TOWN: Barisan Nasional leaders have criticised the Penang Government for allegedly over-paying, by four times, the detailed design fees of three road projects.

“Construction is not a new industry. Many people are puzzled by the exorbitant consultancy fees,” said Penang MCA secretary Tang Heap Seng in a press statement yesterday.

He said the Board of Engineers Malaysia (BEM) devised a standardised gazetted scale of fees for professional engineering consultancy in accordance with Section 4(1)(d) of the Registration of Engineers Act 1967 (Act 138), and it was highly irregular to deviate from it.

Yesterday, it was reported that Barisan’s strategic communication team sought the professional opinion of BEM on the costing of the three paired roads.

The board was said to have replied that the RM177mil in detailed design costs was four times higher than the maximum allowed under the gazetted scale of fees, which the board calculated to be RM41mil.

The three roads are from Teluk Bahang to Tanjung Bungah, Air Itam to Tun Dr Lim Chong Eu Expressway and Gurney Drive to the expressway. They are meant to be a traffic dispersal system for the proposed Penang Undersea Tunnel.

Penang MCA Youth chief Datuk Michael Lee Beng Seng also issued a statement, pointing out that the alleged overpaid amount of RM136mil was more than the reported RM100mil the state spent on flood mitigation in the last eight years.

“We are shocked that the Penang government has put the well-being and safety of the rakyat behind the interests of consultants and contractors.”

Gerakan vice-president Datuk Dr Dominic Lau highlighted that affordable housing, flash floods and landslides were issues that concerned Penangites.

On Tuesday, Barisan strategic communications director Datuk Seri Abdul Rahman Dahlan announced that he was giving the Penang Government a week to explain BEM’s findings, failing which the matter would be referred to the Malaysian Anti-Corruption Commission.

When asked to comment, Penang Chief Minister Lim Guan Eng replied: “Another day.” – The Star

Related Links

MCA division slams state over constant flood woes – Community

 

Barisan team maintains that Penang govt overpaid consultation fees …

 

Penang has one week to explain tunnel consultancy fee: Rahman …

Penang govt overpaid undersea tunnel consultation fees by 400 pct …

‘Did Penang govt overpay tunnel consultants by 400%?’ | Berita Daily

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