KUCHING: Sarawak Master Builders Federation wants the Sarawak government to conduct open tenders for all ‘rescue projects’.
Its President James Ha Tung Ing said according to feedback from the construction industry, many did not have the opportunity to participate as rescue contractors in any of the ‘sick projects’ tender exercises.
“It seems that all the recent newly selected rescue contractors had been appointed via direct award or selected via restricted tender process,” he told New Sarawak Tribune.
The federation, he said, requested that sufficient tendering period of time be allocated from date of advertisement to closing date.
He said this would allow tenderers ample time to study the project requirements and work on the proper costing as well as site visit.
“We recommend at least four weeks to be allocated for bills of quantities (BOQ) tender and six weeks for lump sum tender for all projects exceeding RM10 million,” he said.
Ha said the federation welcomed the state government’s six new incentives or measures to minimise critically delayed projects, including the extension of time (EOT) for projects with the progress of at least 60 per cent based on the works programme.
“We hope the deadline for this initiative can be extended (if not already) to benefit more contractors and the projects in reducing ‘sick’ contracts. The current initiative seems to be truncated by some departments,” he added.
Meanwhile, the advance payment for contracts up to 25 per cent of the value of a builder’s works upon submission of bank guarantee on one to one basis is unlikely to be helpful or worthwhile.
He said this was in view of current high requirements of collateral or cash deposit and charges by the banks. An improvement to a ‘one to three’ basis would be more attractive and viable.
Ha also suggested that the Variation of Price (VOP) process and approval may need to be looked into in order to expedite payment, including re-examination on the documentation proof required thereon as the current requirement is onerous.
“We also urge the government to closely monitor the supply of critical building materials, particularly cement and aggregate to ensure ample supply to the market so as not to allow any such delay to contractors’ work and progress,” he added.
