KUCHING: Several factors have been identified as reasons for contractors delaying projects but a main factor is cost overrun – budget inaccuracies caused by excessively high costs of building materials, a director of a construction company said.
Supriyadi Iman, director of Blue Words Construction Company, said other factors include skilled workers demanding high wages, labour challenges caused by skilled workers being laid off because of their demand for high salaries, and a shortage of resources like materials and equipment.
“The incentives from the state government to help mitigate problems faced by contractors benefit small contractors,” he said.
Supriyadi was commenting on the state government’s six new incentives to help mitigate problems faced by contractors, including shell companies, to prevent projects from being delayed.
Citing an example, Supriyadi said that by reducing the developers’ cash flow, it could help prevent contractors from failing in their projects.
“The initiatives can also help to reduce complications in disbursing skilled workers’ salaries and the company can have proper time management with the timely availability of building materials and equipment, among others,” he said.
Manager Saiful Rizal Ahmad said Blue Words Construction Company’s main projects are housing construction.
“All of our projects are personal, meaning it is between us, the company, dealing directly with our clients.
“We have just handed over a house to its owner in Siburan and the project was completed within four months,” he said.
Saiful said the company also has projects all over Sarawak, including in Miri and Engkilili.
Similarly, the managing director of Chamber Construction, Dickson Chan, said the six incentives are very encouraging and people in the industry are motivated.
When announcing the incentives at the ‘Seminar on New Initiatives to Enhance Sarawak’s Construction Industry on Wednesday (Feb 8), Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the move would safeguard the interest of the construction industry and the economy.
Among the incentives are advance payment for contractors, and lowering the rate of liquidated and ascertained damages on a project.
