Tropicana Corporation Berhad Annual Report 2019

SOUND CONTRACTOR MANAGEMENT As front-runners in the property development industry, we heavily rely on our main contractors, sub-contractors, consultants and architects to build residential and commercial properties that represent the quality we strive for. Upon the selection of a main contractor, the appointment of additional sub-contractors remain at the discretion of the main contractor while the Group monitors their overall work progress and quality. Prior to the initiation of a project’s construction stage, our contractors were required to conduct a dilapidation survey. This preliminary process is carried out to assess the existing structural condition of the surrounding buildings and structures before the commencement of a demolition, construction or development. To ensure that occupational safety and quality excellence are maintained at the project site at all times, we appoint site personnel that may include project site manager, clerk of work, resident architect or site supervisors depending on the scale and cost of a development. Each project developed by Tropicana will also have a dedicated project team that regularly monitors the site progress and reports to the Management. As a foundation to achieving our vision to becoming a leading developer, the contractors we engage in are required to adhere to the following national laws and regulatory requirements: • Occupational Safety and Health Act 1994 (“ OSHA ”) • Factory and Machinery Act 1967 (“ FMA ”) • CIDB Guidelines which includes the submissions of Project Quality Plan • Environmental Quality Act 1974 In addition to statutory compliance, we have internal evaluation measures to identify the work quality and safety conditions of our contractors. • Contractor and consultants meet with Project PIC in the event of a project construction delay • Project site inspection by Project PIC • Evaluation of contractor performance at project site • Evaluation criteria include work quality, number of man power, management of project, condition of occupational safety, health and environment, and construction timeline • In the event of project delays or any risks has been highlighted Weekly Fortnightly Quarterly As and When Necessary Frequency of Meetings/Reports Detail Project Quality Assessment Guidelines QLASSIC Target Score QLASSIC Score of 75% and above Assessment Methods • Project Quality Assurance (“ PQA ”) team conducts workmanship inspection during the project construction phase • A Pre-Delivery Inspection (“ PDI ”) is conducted prior to applying for CCC Sustainability Statement Tropicana Corporation Berhad Annual Report 2019 About Tropicana Our Strategic Performance Our Leadership pg 74