14-07-2017, 05:32 PM
14-07-2017, 07:18 PM
Seeing how most of OKP's projects are awarded by the government, I sense this will be the start of their demise...
After the collapse of Nicoll Highway, Ministry of Manpower recommended safety track record to be part of the tender evaluation system. I believe this to be the case presently in LTA's tender evaluation process. Obviously, OKP will score very very low on the safety track record criteria. But how much is the weightage? If it is significant, say 25%, OKP will have to rely on reducing price aggressively to get a higher score. And even then, it may not win. Which civil servant will dare to write the recommendation and sign-off on awarding projects to OKP? Not if the said person cherishes his job.
http://www.nas.gov.sg/archivesonline/dat...513987.pdf
During the Nicoll Highway collapse, MOM places the most of the blame on Nishimatsu Construction Company, some of the subcontractors, and the LTA officers in-charge of the project. This is surprising, because the main contractor is a joint venture between Nishimatsu Construction Company and Lum Chang, and Lum Chang was not blamed in the Committee of Inquiry. Since OKP is the main contractor of the Upper Changi Road highway, I don't think it can get away from this like Lum Chang. Unless, its subcontractor Tongda Construction & Engineering takes the rap.
After the collapse of Nicoll Highway, Ministry of Manpower recommended safety track record to be part of the tender evaluation system. I believe this to be the case presently in LTA's tender evaluation process. Obviously, OKP will score very very low on the safety track record criteria. But how much is the weightage? If it is significant, say 25%, OKP will have to rely on reducing price aggressively to get a higher score. And even then, it may not win. Which civil servant will dare to write the recommendation and sign-off on awarding projects to OKP? Not if the said person cherishes his job.
http://www.nas.gov.sg/archivesonline/dat...513987.pdf
During the Nicoll Highway collapse, MOM places the most of the blame on Nishimatsu Construction Company, some of the subcontractors, and the LTA officers in-charge of the project. This is surprising, because the main contractor is a joint venture between Nishimatsu Construction Company and Lum Chang, and Lum Chang was not blamed in the Committee of Inquiry. Since OKP is the main contractor of the Upper Changi Road highway, I don't think it can get away from this like Lum Chang. Unless, its subcontractor Tongda Construction & Engineering takes the rap.
16-07-2017, 01:57 PM
[quote pid='140984' dateline='1500006773']
http://www.straitstimes.com/singapore/tr...tor=CS3-17
[/quote]
Or Kim Peow Contractors fined S$250k after workers fell 6.4 metres - 2015
http://www.humanresourcesonline.net/or-k...-4-metres/
Investigations by MOM revealed negligence of safety measures on both the company’s and site supervisor’s part including:
- DCF
http://www.straitstimes.com/singapore/tr...tor=CS3-17
[/quote]
Or Kim Peow Contractors fined S$250k after workers fell 6.4 metres - 2015
http://www.humanresourcesonline.net/or-k...-4-metres/
Investigations by MOM revealed negligence of safety measures on both the company’s and site supervisor’s part including:
- OKP failed to ensure that all persons involved in the erection of the working platform were trained scaffold erectors.
- OKP failed to erect the working platform according to the professional engineer’s (PE) design.
- The working platform was erected without the immediate supervision of a scaffold supervisor.
- There were no warning sign/label displayed stating the maximum permissible load of the working platform at its access point.
- Tan had assigned workers who were not adequately trained and briefed on the PE design to erect the working platform.
16-07-2017, 04:26 PM
OKP still get awarded with big projects despite bad track records , OKP must be possessing something that their competitors don't .
16-07-2017, 04:51 PM
(16-07-2017, 04:26 PM)cfa Wrote: [ -> ]OKP still get awarded with big projects despite bad track records , OKP must be possessing something that their competitors don't .
Yes, their net construction order book looks good, with $329.9 million of secured contracts, extending till 2019. (AR2016)
Profit is visible next 2 years .... but will have to set aside some money to pay for fine.
OKP has very good 'political' link with G. I think this is their strategic advantage.
16-07-2017, 05:10 PM
OKP started building flyovers since 1992 and have a long term track record with LTA and its predecessor. Construction industry always carries with it accident risk and OKP is not immune to it. Weather, human error, machine fault can happen even if you have checked all the safety precautions. If it can happen to a Japanese contractor (Nicoll Highway), any company too. What may be more of concern is the long term decline of civil engineering talent in this sector.
Their balance sheet is robust with cash and order book of more than $300m till 2019. Management need to urgently review their oversight of subcontractors and restore confidence. Shareholders should also take them to task every year on safety.
Their balance sheet is robust with cash and order book of more than $300m till 2019. Management need to urgently review their oversight of subcontractors and restore confidence. Shareholders should also take them to task every year on safety.
16-07-2017, 06:25 PM
(16-07-2017, 04:51 PM)Ray168 Wrote: [ -> ](16-07-2017, 04:26 PM)cfa Wrote: [ -> ]OKP still get awarded with big projects despite bad track records , OKP must be possessing something that their competitors don't .
Yes, their net construction order book looks good, with $329.9 million of secured contracts, extending till 2019. (AR2016)
Profit is visible next 2 years .... but will have to set aside some money to pay for fine.
OKP has very good 'political' link with G. I think this is their strategic advantage.
Setting aside money to pay for fines is the least of their concerns. Sadly, this is an issue that cannot be solved by throwing money at it.
Given the severity and amount of public attention surrounding this accident, I will be surprised (with LTA's tender evaluation system) if OKP is able to continue winning LTA contracts as it had.
17-07-2017, 10:12 AM
(16-07-2017, 06:25 PM)karlmarx Wrote: [ -> ](16-07-2017, 04:51 PM)Ray168 Wrote: [ -> ](16-07-2017, 04:26 PM)cfa Wrote: [ -> ]OKP still get awarded with big projects despite bad track records , OKP must be possessing something that their competitors don't .
Yes, their net construction order book looks good, with $329.9 million of secured contracts, extending till 2019. (AR2016)
Profit is visible next 2 years .... but will have to set aside some money to pay for fine.
OKP has very good 'political' link with G. I think this is their strategic advantage.
Setting aside money to pay for fines is the least of their concerns. Sadly, this is an issue that cannot be solved by throwing money at it.
Given the severity and amount of public attention surrounding this accident, I will be surprised (with LTA's tender evaluation system) if OKP is able to continue winning LTA contracts as it had.
OKP have had bad track records previously but authority still continue to award them huge projects. This incident is just another additional bad record to its existing track records. Believe nothing will change if they still remain well connected.
17-07-2017, 10:57 AM
OKP tanks another 8.8% this morning with high volume.
OKP looks bad in the social media. This will likely yo affect the investor confident and sentiment.
Muddy water for a while...
Not vested ... but interested when the dust settle down.
OKP looks bad in the social media. This will likely yo affect the investor confident and sentiment.
Muddy water for a while...
Not vested ... but interested when the dust settle down.
17-07-2017, 11:23 AM
Not at a cheap enough level yet, NTA at 38.18 cts.
They would also need to pay for the temporary slip road, reinstate the fallen structure, pay fine when imposed etc etc. How much can be covered by insurance (if any)?
Lots of unknown still..
They would also need to pay for the temporary slip road, reinstate the fallen structure, pay fine when imposed etc etc. How much can be covered by insurance (if any)?
Lots of unknown still..