Contractor went bust, new tender to be called
Loh Chee Kong, Today Online 13 Mar 08;
THE wait for shower facilities and more carpark spaces at MacRitchie Reservoir — the first phase of which was scheduled for completion by the end of this month — has just gotten longer.
According to the PUB, the construction work for the $5-million makeover would be delayed for at least another nine months after the construction work on the carpark "has virtually stopped in the last two months".
The contractor, Wacon Construction, is understood to be undergoing financial difficulties due to the rising costs of raw materials including sand. It is facing several lawsuits from creditors.
First announced in October 2006 as part of the PUB's Active, Beautiful, Clean Waters programme to spruce up Singapore's waterways, the project would equip MacRitchie with new features, including shower facilities, a designated warm-up area and a two-storey carpark that would double the number of parking lots.
PUB's director for best sourcing Moh Wung Hee said it has terminated the contract with Wacon and would be calling for a new tender by the end of the month. Mr Moh added that the PUB "aims to complete the construction of the carpark by the end of the year and the amenities centre by next October".
In 2003, the tendering system for public projects was tightened after a couple of Housing and Development Board projects — an upgrading project in Marine Terrace and the building of flats in Sengkang — were stalled.
Among the new rules introduced then was the empowerment of the Building and Construction Authority to audit the financial status of contractors more frequently, to act as an early-warning system against contractors in danger of insolvency.
Sprucing up of reservoir park halted
Melissa Kok, Straits Times 14 Mar 08;
MacRitchie makeover project delayed by at least 9 months as contractor goes bust; PUB to call for new tender this month
NATURE lovers and fitness buffs may have to wait at least nine more months before they can enjoy some of the new visitor-friendly facilities at the MacRitchie Reservoir.
A $5 million MacRitchie spruce-up, the first phase of which was slated for completion this month, came to a stop when the contractor - Wacon Construction & Trading - went bust.
The project is the brainchild of the National Parks Board and PUB, the national water agency.
According to PUB's director of best sourcing, Mr Moh Wung Hee, construction work came to a virtual halt two months ago. Mr Moh said the PUB has since terminated its contract with the company for failing 'to make satisfactory progress on the project'.
The upgrade was part of PUB's Active, Beautiful, Clean Waters (ABC) programme to spruce up Singapore's reservoirs and rivers.
It was meant to provide MacRitchie with new features such as shower facilities, a specially designated warm-up area and a two-storey carpark that would double the number of lots.
In the meantime, PUB said it will be calling for a new tender this month to find a replacement contractor. It aims to complete construction of the carpark by the end of this year, while the other new amenities are expected to be up and running by next October.
When contacted by The Straits Times, MrOng Say Kiat, who is managing director of Wacon Construction, declined to talk about the MacRitchie project, but blamed rising operation costs as the main reason for his company's financial troubles.
He said: 'My company had to fold because of the price increase in raw materials, especially sand.'
Sighing, Mr Ong added that it was 'a heartache' to see the company that he had built collapse.
He declined to reveal how much debt his company was in, or if there were other projects that had also been put on hold.
However, The Straits Times understands that several companies have taken legal action against Wacon Construction this year for slightly over $1 million in money that they said was owed to them.
Three other companies are also taking Wacon Construction to court for alleged debts amounting to more than $83,000.
Back at MacRitchie, some regulars were disappointed when told of the delay.
Mr Bernd Nordhausen, 46, who jogs at MacRitchie regularly, said he was annoyed as the delay would mean that the problem of finding a parking lot, especially on weekends, would continue longer than expected.
'A bigger carpark is desperately needed. It has already been about 14 months since the upgrading began. That's just too excessive,' he said.
Another regular jogger, Mr Surinder Singh, 50, said of the delay: 'It has caused a lot of inconvenience because everyone was looking forward to the facilities, especially the showers. Now it's, 'Oh, suddenly stop!''
But Mr Singh conceded that unforeseen circumstances cannot be helped.
'Hopefully we can expect quick action from PUB,' he said.
