If your new property isn’t handed over by an agreed date as stated in the sale and purchase agreement, the developer has to pay liquidated ascertained damages (LAD) to buyers. LAD also exists in government infrastructure projects, and the compensation is RM100,000 per delayed day for the KLIA aerotrain.
As the KLIA aerotrain contractors were 91 days late in handing over the the project, Malaysia Airports (MAHB) is claiming a LAD penalty of RM9.1 million from Alstom IJM Construction and Pestech Technology, which are the two parties in the IJMC-Pestech joint venture. The 91 days are from April 1, 2025 till June 30, 2025, reported by Bernama.
The new KLIA aerotrain had a less-than-smooth start to life, but earlier this month, MAHB said an independent rail assessor confirmed that the system was operating as planned, with service disruptions being typical in the early operational phase of a complex rail system.
The assessor reportedly found that the disruptions did not pose a safety risk as structured engineering controls and ongoing monitoring were in place to effectively manage the issues – full story here.
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You can impose but whether you get paid, that’s another story. Hope MAHB can publicly announce after they successfully get the 9.1m from contractors.
So is the LAD being paid by the actual contractor or tax payers money one wonder?
the only solution to this is to let a type C company run klia aerotrain , for example look at how problem-free KLia Ekspres is because its operated by YTL
can sit down drink a coffee and bincang. 90k plus one new landed unit for mahb boss by ijm. settled.