KUCHING: Sarawak Consolidated Industries Bhd’s (SCIB) wholly owned subsidiary, SCIB Industrialised Building System Sdn Bhd (SIBS), accepted a new revised letter of award and acceptance (RLOA2) for a Malaysia People’s Housing Programme (PR1MA) project in Kota Bahru, Kelantan.
The RLOA2 formalises SIBS’ role as the main contractor for the development of 632 housing units under PR1MA, with a revised contract sum of RM172.4 million – a net addition of RM9.95 million from the previous contract.
SCIB said the original award, worth RM120 million, was issued to another subsidiary, SCIB Properties Sdn Bhd (SCIBP), by AUEI Teras Holdings Sdn Bhd on May 12, 2021.
On April 5, 2024, SCIBP signed a novation agreement with AUEI, transferring the contract to SIBS.
Three days later, SIBS accepted a revised award for sub-contract works valued at RM162.43 million.
“Following a review of the project scope and associated costs, SIBS identified that the price and cost of works stated in the RLOA dated April 8, 2024 were insufficient to cover double handling works and unforeseen circumstances,” said SCIB in a Bursa Malaysia filing.
“Consequently, SIBS submitted an application to PR1MA for additional costs under preliminaries. Upon review, PR1MA agreed to consider a net additional cost of RM9.95 million, to be added to the first revised contract sum,” it added.
Under the updated security terms, SIBS must provide PR1MA with an irrevocable, unconditional, and on-demand performance bond worth about RM8.62 million, equivalent to 5 per cent of the contract sum, within 30 days of accepting the RLOA2.
In a separate statement, SCIB said the revised contract reflects adjustments to the project cost in line with updated scope, preliminary works, and value engineering efforts.
The 36-month project will cover the full spectrum of engineering, procurement, construction, and commissioning (EPCC) services.
SCIB said the partnership highlights its continued contribution to Malaysia’s affordable housing agenda and its commitment to sustainable, community-centric development through proprietary industrialised building system (IBS) technologies.
SCIB’s Executive Chairman, Datuk Chong Loong Men, said the group’s involvement in PR1MA demonstrates its capabilities in delivering large-scale residential projects that support government aspirations for affordable housing.
“As we move forward, SCIB will continue to explore more opportunities and carefully consider all options, always with the aim of choosing what best serves the company and its stakeholders,” he said.
“We are currently seeking professional advice and will be presenting this revised contract for the board’s review and approval.”
