If your new property isn’t handed over by an agreed date as stated in 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 RM2.73 million per delayed day for the LRT3 Shah Alam Line. This was revealed by transport minister Anthony Loke in Dewan Negara today. The LAD rate, equivalent to 0.024% of the total contract value, is to ensure contractors bear full responsibility for delays in the project, Loke said, adding that the total compensation will only be known once the project is completed. Setia Utama LRT3, a unit of Malaysian Resources Corp Berhad (MRCB), is the main contractor for the LRT3 project. Loke reiterated that LRT3 is expected to begin operations before June this year, after all testing processes, commissioning and the resolution of technical issues are completed within the next one to two months. To date, two train sets have completed fault-free run (FFR) testing, while another set is still undergoing the 22-day FFR testing process. “As of yesterday, there are still several technical issues which need to be resolved, and after all FFR tests are conducted on all these trains, the next process will be testing and commissioning by the Land Public Transport Agency (APAD). All of this is expected to be completed within the next one to two months. Therefore, the new schedule set as the target is March this year,” he said, reported by Bernama. The Seremban MP denied that the delays are due to cost-cutting issues. “What is happening now involves technical issues, not cost-cutting issues. The earlier cost-reduction measures had already taken into account various factors, including the project implementation mechanism. “At that time, some stations were reduced to save costs. However, what is happening now has no direct connection to the cost rationalisation decisions or the project implementation method made in 2018,” he said. The LRT3 Shah Alam had originally been slated to start operations on September 30 last year, but in August it was announced that the project had been delayed. In November, the government was said to be keeping to its target of December 31 for the launch of the line, but it was then announced in December that operations would not begin in 2025. The delay was put down to outstanding system stability and software issues identified during the testing and commissioning phase. The 37.8 km LRT line has 25 stations from Bandar Utama to Johan Setia, with interchanges at Bandar Utama (MRT Kajang Line) and Glenmarie (LRT Kelana Jaya Line). We toured the LRT3 train and its Pasar Jawa station in Klang back in July 2024 – full gallery here. GALLERY: LRT3 Shah Alam Line Pasar Jawa station, and the train Compare prices between different insurer providers to save the most on your car insurance renewal compared to other competing services. Many payment method supported and you can pay with instalment using Atome, Grab PayLater or Shopee SPayLater.