By DMAO/MHO
BANDAR SERI BEGAWAN, JANUARY 2025: In Brunei Darussalam, government-funded construction projects stand as symbols of the nation's ambitious Vision 2035.
However, beneath the veneer of progress lies a troubling reality—inefficiencies, negligence, and a lack of accountability threaten not only the integrity of these projects but also public safety and trust.
These systemic issues demand immediate attention and reform to safeguard the nation’s future.
The Cost of Neglect
In 2020, His Majesty Sultan Haji Hassanal Bolkiah delivered a stern warning, condemning corruption as "a bridge to hell" and highlighting systemic failures in public infrastructure projects.
His remarks highlighted high-profile cases like the H40 apartment building in Lambak Kanan, completed in 2018 but still vacant, alongside other problematic developments such as the abandoned Rimba terrace houses and the delayed Mengkubau housing units.
Raising concerns over the approval of substandard materials, His Majesty questioned, "Why didn’t they ensure safety before construction began?"
These pointed criticisms set the stage for examining deeper systemic inefficiencies and the urgent need for accountability.
The H40 apartment building, built with an allocation of $55 million, faced significant delays and subpar execution—a clear example of how budget constraints and awarding contracts to the lowest bidder resulted in compromised project quality.
These practices force contractors to cut corners, such as using substandard materials or hiring unqualified subcontractors, while tactics like pressuring contractors for invoice discounts further exacerbate the systemic issues in the construction industry by eroding trust and fairness.
Residents reported flooding, structural weaknesses, and unresolved maintenance issues, including blocked drainage and unsafe sports halls.
Such neglect forces residents into unsafe living conditions and highlights broader systemic failures demanding urgent reform.
Another alarming case is the structural collapse during a commercial development project in Brunei-Muara.
Poorly constructed falsework—temporary structures meant to support concrete slabs—gave way, resulting in the collapse of an entire section of the project.
This incident, attributed to negligence by the main contractor and lack of oversight by consulting engineers, underscores the critical gaps in accountability and enforcement.
Investigations into Brunei's construction sector over the past decade reveal systemic failures tied to budget constraints, the awarding of projects to the lowest bidder, the avoidance of project variations, and alleged high-handed negotiation tactics to secure discounts on contractors' invoices.
Such practices have led to systemic inefficiencies, cost-cutting measures, and compromised project quality.
A comprehensive study by Rohaniyati Salleh in 2009, conducted at Universiti Brunei Darussalam (UBD), highlighted that out of 808 projects planned under the Eighth National Development Plan (RKN8), only 35% were implemented.
Delays were largely attributed to bureaucratic inefficiencies and contractor shortcomings.
While it is unclear whether these issues persist today, the lack of significant reforms suggests that the root causes, such as weak enforcement of regulations and inadequate coordination among stakeholders, remain unaddressed.
Collapsed formworks, unsafe housing projects, and delays in government-funded initiatives demonstrate inefficiencies that waste national resources while jeopardising public safety and trust.
These recurring issues underline the need for meaningful reforms to restore integrity and accountability.
Brunei’s construction industry challenges extend to the principles and frameworks governing project execution.
His Majesty’s remarks emphasised systemic complacency, highlighting poor contractor selection and the use of cheap materials that compromise safety and quality.
Officials complicit in fraud further erode governance and public trust, while rigid policies discouraging project variations compound the challenges.
Avoiding necessary changes to project designs, often to prevent additional costs or delays, results in inflexible and inadequate solutions that fail to address unforeseen challenges effectively.
While FIDIC (International Federation of Consulting Engineers) guidelines and PMBOK (Project Management Body of Knowledge) are globally respected for their robust frameworks, their primary objectives include ensuring safety, quality, efficiency, and effectiveness in executing infrastructure projects.
These frameworks provide critical guidance for diligent and well-structured project management, emphasising accountability and best practices throughout the project lifecycle.
However, issues in Brunei’s construction sector often arise from breaches of contract by clients, such as late payments, delayed decisions, or non-compliance, rather than inherent flaws in these standards.
These breaches disrupt the smooth execution of projects, creating ripple effects that undermine quality and accountability.
Such breaches create ripple effects that hinder project execution and quality.
These challenges are particularly evident in modern delivery models like Design and Build, Build-Operate-Transfer (BOT), and Build-Own-Operate (BOO), where a lack of localised adaptations further complicates project delivery.
Stakeholders have emphasised the importance of frameworks that not only align with Brunei’s socio-economic realities but also ensure that all parties, including clients, uphold their contractual obligations to foster trust and accountability in the sector.
A notable case highlighting systemic issues in Brunei's construction sector is the ruling by the Singapore International Arbitration Centre involving the Brunei Economic Development Board (BEDB) and Trans Resources Corp Sdn Bhd (TRC Corp).
BEDB was ordered to pay TRC Corp 18.67 million Brunei dollars (approximately RM60.18 million) over disputes related to the modernisation of the Brunei International Airport Terminal.
This ruling underscores the broader implications of client breaches, such as late payments and delayed decisions, which disrupt project execution and highlight the urgent need for robust frameworks to ensure accountability.
Key legislative frameworks, such as the Architects, Engineers, and Quantity Surveyors Act 2011 and the Building Control Order 2014, aim to establish accountability for Qualified Professionals (QPs).
However, enforcement remains inconsistent, allowing stakeholders to exploit gaps and produce substandard outcomes.
The lack of adaptation of FIDIC provisions to Brunei’s unique needs exacerbates this disconnect between policy and practice, further hindering effective governance.
The need for clearly defined roles and responsibilities among stakeholders is essential to ensure accountability.
A sustainable and evolving Public-Private Partnership and Participation (PPPP) framework has been recognised as a pivotal tool to enhance collaboration among clients, qualified professionals, and contractors.
This framework, through its emphasis on mutual trust, transparency, and meaningful stakeholder engagement, aims to address systemic inefficiencies while aligning construction projects with Brunei's national development goals.
Without such measures, the integrity and sustainability of Public-Private Partnerships (PPPs) and other projects remain at risk.
The Price of Inaction
Failures in Brunei’s construction sector symbolise systemic neglect and mismanagement, driven by cost-cutting measures, inadequate oversight, and the prioritisation of the lowest bid.
These practices waste national resources derived from the country’s oil and gas revenues while threatening public safety and trust.
In Mengkubau, government-built housing units remain unoccupied years after their completion, with structural flaws like sinking foundations and severe water damage rendering many uninhabitable.
Residents faced significant hardships, including recurring damage and instability, forcing some to abandon their homes.
These incidents exemplify the broader decay of poorly executed initiatives, eroding public confidence in government projects.
If systemic issues persist, Brunei’s development goals under Vision 2035 will remain elusive, leaving citizens to bear the brunt of inefficiencies and failures.
A Call for Reform
Against this backdrop, the need for reform in Brunei’s construction sector is undeniable.
The principle of Adil Laila Bahagia—"Justice and fairness are the foundation of happiness"—must guide these changes.
Rooted in universal values, this concept embodies the ethical obligation to ensure equity, transparency, and accountability in all aspects of governance and public service.
It demands that decision-making processes prioritise the welfare of all stakeholders, ensuring that no party is unduly burdened or disadvantaged.
Neglecting this principle fosters systemic inefficiencies, erodes public trust, and ultimately undermines the legitimacy of institutions tasked with advancing national development.
These values address systemic issues of weak accountability, inadequate oversight, and lack of stakeholder engagement.
Rooting reforms in these principles can pave the way for sustainable practices that prioritise fairness, transparency, and quality.
The following actions must be prioritised:
1. Enforce Accountability: Strengthen the implementation of laws like the Architects, Engineers, and Quantity Surveyors Act 2011 and the Building Control Order 2014.
Delineate roles to uphold accountability and adherence to regulations. Learning from Singapore’s robust regulatory mechanisms, Brunei could establish clearer guidelines and enforcement practices to ensure compliance and build trust within the construction sector.
2. Strengthen Oversight: Establish independent quality assurance mechanisms tailored to Brunei’s needs.
These mechanisms should include stringent evaluations to ensure that cost-saving measures, such as awarding contracts to the lowest bidder, do not compromise project quality.
Regular audits and transparent reporting must address the systemic issues tied to cost-cutting and inflexible project management practices to ensure that international standards are applied effectively in local contexts.
Brunei could adopt practices from European countries, where rigorous quality assurance mechanisms have led to higher compliance and better project outcomes, to enhance oversight and improve infrastructure delivery.
3. Promote Fairness in Contracts: Revise contractual frameworks to embed principles of natural justice and equity, safeguarding the interests of all stakeholders involved in government-funded projects.
Drawing from examples in Singapore, where contractual processes emphasise transparency and balanced terms for all parties, and European nations that integrate equity into public-private partnerships, Brunei can adopt practices that ensure fair and just dealings.
From an Islamic perspective, the emphasis on fairness ('Adil') and ethical responsibility ('Amanah') offers guiding principles to develop contracts that align with both national and spiritual values, fostering trust and accountability.
4. Build Local Expertise: Develop training programs for local contractors and consultants to reduce reliance on foreign expertise and cultivate a culture of excellence.
Singapore’s emphasis on continuous professional development for contractors serves as a potential model for Brunei, demonstrating how skill enhancement and certification programs can elevate industry standards and foster local expertise.
5. Enhance Public Engagement: Create accessible channels for residents to report issues and ensure estate management teams address complaints promptly.
Examples from Nordic countries demonstrate how effective public engagement mechanisms can enhance transparency and accountability in infrastructure projects.
By fostering open communication and involving communities in decision-making, Brunei can build trust and improve project outcomes.
Conclusion
Brunei's aspirations for a dynamic and sustainable economy cannot be realised without addressing the cracks in its construction sector.
The H40 apartment project, Mengkubau housing issues, and other flawed initiatives illustrate the urgent need for reform.
These failures reflect broader systemic problems in governance and accountability, undermining public trust and Vision 2035.
By embracing the principles of Adil Laila Bahagia, Brunei has the opportunity to rebuild trust and integrity within its construction sector—turning past failures into lessons for a brighter future. (DMAO/MHO/01/2025)
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