THE construction industry in Sarawak has been grappling with the consequences of the Covid-19 pandemic, resulting in poor performance by contractors and significant project delays.
Deputy Premier and Minister for Infrastructure and Port Development, Datuk Amar Douglas Uggah Embas addressed the issue of critically delayed projects and outlined measures to rectify the situation at the state legislative assembly, Wednesday.
“In June 2022, a total of 98 projects were classified as critically delayed.
“Such projects are identified based on specific criteria, including a physical progress delay of over 20 per cent, a delay of 60 days for projects with a construction period of below 24 months, and a delay of 100 days for projects with a construction period exceeding 24 months.
“Recognising the urgency of the matter, the Ministry, in collaboration with Public Works Department (PWD), has taken steps to address the post-Covid-19 aftermath in the construction industry,” he said during his ministerial winding up speech.
On Feb 8, he said, a comprehensive engagement session titled “New Initiatives to Enhance Sarawak’s Construction Industry” was organised, involving key stakeholders such as the State Financial Secretary’s Office and CIDB Sarawak.
During the engagement session, the Sarawak government introduced several initiatives aimed at resolving challenges faced by industry players on the ground.
The initiatives include the incorporation of advance payment into Sarawak works contracts, lower minimum payment amounts to enable consistent monthly interim payments to contractors, facilitation of interim payments without contract documents, revised calculation methods for Liquidated and Ascertained Damages (LAD) rates, provisions for Variation of Price (VOP) in government works contracts, granting of Extension of Time (EOT) for pandemic-affected projects, and the option for mutual termination based on specific criteria.
“By implementing these initiatives, the Ministry and PWD aim to ensure the smooth progress of infrastructure development projects in the state.
“The number of critically delayed projects has significantly reduced from 98 to 34 (20 federal projects and 14 state projects) as of April 2023, indicating the positive impact of the government’s efforts,” he added.
“Continuing the proactive approach, the ministry and PWD are actively monitoring the progress of critically delayed projects under their jurisdiction.”
Evaluation and preventive measures will be taken, he added, saying contractors found in violation of project timelines will face consequences of licence suspension for three years, while the board of directors or shareholders may be blacklisted for a minimum of three years up to a maximum of five years depending on the severity of the offence.
