SINGAPORE — The completion dates of some 1,000 Build-to-Order (BTO) units in Punggol Point Cove, already delayed by about six to nine months due to the Covid-19 pandemic, will be further pushed back for up to another three months. 

This comes after the Housing and Development Board (HDB) terminated the services of the project's main contractor, CKR Contract Services, due to "unsatisfactory" construction progress and its repeated failure to meet targets. 

Responding to TODAY’s queries on Wednesday (July 19), HDB said that it had previously informed the flat buyers in March last year that the likely completion date for their new flats would be delayed by about six to nine months.

With the latest development, it said that more time will be required for the completion of five of the six residential blocks in the project, with further delays of about three months to between Q4 2024 and Q1 2025. The affected blocks are:

• Block 442A (Revised completion date to Q1 2025)
• Block 442B (Revised completion date to Q1 2025)
• Block 443B (Revised completion date to Q4 2024)
• Block 445A (Revised completion date to Q4 2024)
• Block 445B (Revised completion date to Q4 2024)

The five blocks have a total of 991 units, while Block 443A, whose competition date would not be expected to be affected, has 188 units. 

These are all under Phase 2 of Punggol Point Cove, which was launched for sale in 2019. Phase 1, which started selling in 2018, is constructed by another main contractor.

HDB said that as with majority of BTO projects launched prior to Covid-19, the progress of Punggol Point Cove was impacted by the severe disruption caused by the pandemic, and the tightening of border controls for workers from South Asia which also led to prolonged manpower shortages, in 2020-2021. 

However, with most BTO contractors recovering from the effects of the pandemic, HDB has delivered more than 70 per cent of delayed projects.

HDB said that since its first notice to buyers of Punggol Point Cove in March 2022, it had been working closely with the CKR Contract Services to monitor the progress of the works.

However, the progress of Punggol Point Cove Phase 2 has remained slow, and was put on close monitoring by the agency several months ago.

To facilitate construction progress, HDB said it had worked with CKR Contract Services to bring in more workers and also commenced round-the-clock construction works to catch up on the delays.

HDB said: “We have also rendered various assistance measures, including advanced payments, co-sharing of manpower, materials and operating costs, as well as support for the recruitment and accommodation of construction workers. 

“However, despite frequent engagements and our best efforts to facilitate the progress of construction works, site progress remained unsatisfactory and the main contractor has repeatedly failed to meet the necessary construction targets.”

CKR Contract Services is also the contractor for other BTO projects Eunos Court and Toh Guan Grove. All blocks in Eunos Court have been completed to-date, while Toh Guan Grove is still on track to be completed by the committed project completion date to flat buyers.

HDB said it informed flat buyers of Punggol Point Cove Phase 2 on Wednesday on the latest expected completion dates of their blocks.

TODAY has reached out to CKR Contract Services for comment.

NEW CONTRACTOR APPOINTED IN AUGUST

HDB had previously said it was in the process of procuring the services of a new contractor to come on board in August to complete the remaining works.

It added that the expected delay in completion of the blocks was in view of termination and procurement processes as well as time needed to ensure a smooth transition of the main contractor.

Providing an update on its progress on Aug 23, HDB said that it appointed a new main contractor — Qingjian International (South Pacific) Group Development — on Aug 22 to complete the remaining works for the housing project.

The agency added that work on the site will resume from end-August, and all flat buyers have been informed of the appointment.

"With the appointment of the new main contractor proceeding expeditiously as planned within a month of the contract termination, we still estimate to complete all the blocks of Punggol Point Cove (Phase 2) by their revised probable completion dates between the fourth quarter of 2024 and first quarter of 2025," HDB said in its statement.

The agency said it would render necessary assistance to Qingjian International to ensure a "smooth transition and resumption of works" and will work closely with it to ensure safe and timely completion of the housing project based on the revised timelines.

HDB said that it understands the inconvenience and difficulties that the delays may have caused home buyers.

"We continue to seek their understanding and patience as we work hard to deliver their homes," it added.

NEWS 'DISAPPOINTING', PLANS HAVE TO BE PUSHED BACK

An affected home buyer, Ms Germaine Chee, told TODAY that the news is “disappointing” as many of her plans have to be pushed back, along with the excitement of finally getting her own home with her partner. 

“The delay was expected as we’ve been getting rumours of the termination for quite some time now and seeing how the progress of the construction has been over the past few years," said the 29-year-old sourcer who had applied for a four-room flat in September 2019.

“To be honest, I don’t really believe the delay to only be an additional three months to 4Q 2024. The construction site has barely anything built,” she added.

She said that she had contemplated cancelling her BTO application and get a resale flat instead, but eventually decided against it.

“After all we’ve been anticipating it for almost four years now. We just hope that the new contractor who takes over will really put things up to speed,” Ms Chee said.

TERMINATION 'NOT TAKEN LIGHTLY'

HDB added that it understands the inconvenience and difficulties that any delay in the completion of its flats may cause to buyers.

“A decision to terminate a BTO contract is not taken lightly as this will inevitably entail more project delays.

“HDB closely monitors BTO contractors who may be facing challenges in meeting their projects’ timeline, and regularly assesses these contractors’ ability to catch up and meet the various committed timelines towards project completion,” it said.

Contractors would typically encounter one or more causes of delay such as the inability to carry out works due to financial difficulties, disruption in management team or high turnover of site supervisory personnel, as well as the lack of resources and manpower.

“While we will lean forward to support these contractors as much as possible, we will have to consider the interest of our flat buyers, who remain our key priority, and take timely decisions, including contract termination, to safeguard their interests and minimise any further delays.”

HDB said it strives to provide flat buyers with sufficient notice of at least six months to a year should there be any changes to their expected completion date.

“We will also expedite the process to bring in the new contractor, and will work closely with the new contractor as well as the suppliers and sub-contractors of the project to expedite the remaining construction works, without compromising the quality of the project and safety of workers.

“We seek the understanding and patience of our flat buyers as we work to deliver their homes,” said HDB.

OTHER SIMILAR CASES

This is not the first time that HDB has terminated the services of its contractors.

In August 2020, HDB terminated the contract of a BTO project at Waterway Sunrise II, and a contract for improvement works at multi-storey car parks at HDB towns in December 2020.

More recently in January this year, the construction contract for Harmony Village @ Bukit Batok was terminated, although there was no delay in the expected completion date of the blocks despite a change in the main contractor.  

In these cases, the contractor had difficulties completing the projects, even though HDB had provided several opportunities for them to reschedule and catch up on their works.