RM2.5 billion Sandakan projects underway
Published on: Tuesday, September 17, 2024
By: Mardinah Jikur
Poul said that during the inspection, CIDB found that the main contractor had failed to comply with Section 33A (6), which is hiring or employing unaccredited construction workers under the CIDB Act 520.
SANDAKAN: The value of construction projects registered in the division, which includes the Sandakan, Kinabatangan, Beluran, Tongod, and Telupid districts, throughout last year is estimated to be RM2.5 billion.
While for the second quarter of 2024, as of September 12, the amount is estimated at around RM888 million.
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The Construction Industry Development Board (CIDB) Sandakan Branch Manager Poul Joannes, who disclosed this also said that last year, 22 investigation papers were prepared against contractors for various offences, and 22 cases resulted in fines.
“For the second quarter of 2024, 13 investigation papers have been opened, nine cases resulted in fines and four reports were prepared for disciplinary proceedings for various offences,” he added.
He said this in a statement after participating in an Integrated Enforcement Operation (OPB) conducted by CIDB Sandakan Branch with several enforcement agencies at a construction site here.
The operation involved CIDB Sandakan Branch, the Sandakan Municipal Council (MPS), the Occupational Safety and Health Department (Dosh), the Sabah Health Department (JKNS), the Labour Department (JTK), the Social Security Organisation (Socso) and the Malaysia Construction Academy (ABM), comprising 52 personnel.
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A total of 17 notices, as well as fines, prosecutions and warnings, were issued during the OPB, where one main contractor, three subcontractors and workers at the construction site were inspected.
Poul said that during the inspection, CIDB found that the main contractor had failed to comply with Section 33A (6), which is hiring or employing unaccredited construction workers under the CIDB Act 520.
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Sixteen workers, consisting of one local and the rest foreigners, were inspected. Three of them were found to be unregistered and 13 had not been accredited.
“This integrated operation was also carried out to foster cooperation between departments or agencies that enforce their respective regulations or laws at construction sites, making enforcement tasks easier and more effective.
“It also raises awareness and educates all players in the construction industry to comply with legal requirements and SOPs at construction sites, especially under Act 520 and other relevant laws.
“The Health Ministry’s involvement in the operation was also to enhance resource capacity in combating dengue,” he said.
During the operation, CIDB issued nine notices and one offence, MPS issued one warning, Dosh issued two notices, JKNS issued two notices, JTK issued three notices and Socso issued one notice.
He added that the focus of the OPB enforcement this time involved enforcement under Act 520 related to Contractor Registration (Section 25), Contractor Obligations (Section 34B(1)), Levy (Section 34), Construction Personnel (Section 33), Accreditation (Section 33A(1)), and Building Materials (Section 33D(1)).
For Contractor Registration enforcement, any contractor who fails to register with CIDB can be fined between RM10,000 and RM100,000 under Section 29 if convicted.
For violations of Contractor Obligations, contractors who fail to comply with this regulation can be fined up to RM500,000.
Poul emphasised that it is the duty and responsibility of contractors to update CIDB with current information, ensure that construction work is carried out in accordance with Act 520 and related acts, and ensure the safety of buildings and construction work, whether during or after the construction work.
Regarding non-compliance with the Levy, contractors who fail to declare and pay the levy within the stipulated time can be fined up to RM50,000 or four times the amount of the levy owed, whichever is higher.
“It is an offence for site supervisors or skilled construction workers to perform work at a construction site without first being accredited and certified by CIDB,” he said.
In addition, he explained that construction and project managers must also obtain certification from CIDB. Anyone found to be carrying out construction work without valid registration may be fined up to RM5,000.
For skilled worker accreditation enforcement, contractors must ensure that every worker performing trades listed in Schedule 3 of Act 520 CIDB is accredited.
“It is an offence if construction workers carry out these trades without accreditation and employers can be fined a maximum of RM5,000 per worker,” he explained.
For building materials enforcement, all building materials listed in Schedule 4 of Act 520 CIDB must have a Certificate of Standard Compliance (PPS).
This is intended to ensure the quality of building materials used in construction work.
Offences under the provisions of Act 520 CIDB can result in fines of up to RM500,000 for those involved.
Poul said CIDB Sandakan hopes industry players will comply with the regulations stipulated under Act 520.
He added that CIDB will not hesitate to take action if they are found to be in violation of Act 520.
Additionally, CIDB hopes that industry players can self-regulate compliance with the act.
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