The Sarawak government has introduced several procurement initiatives to reduce project downtime and ensure the smooth implementation of projects.
Deputy Premier Datuk Amar Douglas Uggah Embas said among the measures was adding a new Sub-Contracting/Sub-Letting Clause in the state contract that allowed the employer to intervene by assigning parts of the works to the sub-contractor to ensure smooth implementation of project in terms of delegation of works by the main-contractor, payment to the sub-contractor, and others.
“Besides that, the measures also include establishing a list of rescue contractors to be considered to take over and rescue critically delayed or abandoned projects to expedite the completion of such problematic projects.
“The measures also included a minimum monthly interim payment of RM1,000 on the actual work done on-site for all works contracts to assist contractors in their projects’ cash flow,” he said.
Uggah, who is also Second Finance and New Economy Minister, said this in his winding-up speech at the State Legislative Assembly (DUN) sitting today (Dec 1).
He added that the Sarawak government had also introduced a new Liquidated and Ascertained Damages (LAD) formula for the state contract in line with federal practice and allowing up to three interim payments during the first four months after issuance of Letter of Acceptance before the contract was signed to facilitate the commencement of project.
“In our effort to improve the contractor registration process, the state government through the State Financial Secretary’s Office in collaboration with Universiti Malaysia Sarawak (UNIMAS) has undertaken a study on ‘Transformation of Contractor and Consultant Registration Unit (UPJK) Towards World-Class Service Delivery’.
“Under this initiative, the improvement of the contractor registration process is being carried out. There will also be the implementation of a business-friendly online registration system for contractors, suppliers and consultants which will speed up the registration process, easing payment via online payment platform, and providing a secure application channel through usage of digital certificate and improvement and simplification of contractors’, consultants’ and suppliers’ registration procedures,” he said.
In strengthening the capability and competency of the Bumiputera contractors and suppliers, Uggah said the Contractor and Supplier Development Unit of the State Financial Secretary’s Office would continue to collaborate with other relevant agencies to implement capacity building programmes.
