Government to help contractors mitigate costs

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Premier Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg. Photo: Ramidi Subari

KUCHING: A new form of assistance will be announced soon to help contractors in the state, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the initiative will be put into action following the rising cost of construction materials which has affected contractors in the state including those appointed to carry out state projects.

Abang Johari noted that this may solve the issue of numerous sick projects where physical works have not kept to planned schedules.

“Actually, the initiative was delayed as we were calculating (the cost) with the State Financial Secretary (SFS) on how to help our contractors,” he said.

“I will announce this soon,” he added.

He said this at a Memorandum of Understanding (MoU) signing ceremony between Sarawak Energy Berhad (Sarawak Energy) and the Construction Industry Development Board (CIDB) Malaysia on capacity and capability building and construction best practices to develop a skilled workforce in Sarawak, here on Tuesday (Aug 16).

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Abang Johari said the initiative is expected to be announced as part of the upcoming Sarawakku Sayang Special Aid (BKSS) 9.0 package.

Previously, the state government launched the BKSS 7.0 package involving an allocation of RM800 million to empower enterprises and business activities in Sarawak.

Included in the package are government procurement policies that will be eased to support businesses in the construction sector.

Projects with scheduled completion dates falling within the movement control order (MCO) period will be granted an automatic Extension of Time (EoT) for up to 60 days.

“In view that EoT has been granted, Liquidated and Ascertained Damages already imposed shall be waived during the gazetted MCO period,” said Abang Johari when announcing the initiative in August, 2021.

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