|MOF: Reduce no of Delayed Projects - Contractors to submit Assessment Report|
MBAM SUPPORTS MEASURES BY TREASURY TO CURB UNFINISHED GOVERNMENT PROJECTS
Master Builders Association Malaysia (MBAM) strongly supports the recent announcement made by Treasury Secretary-General, Yang Berbahagia Tan Sri Dr Wan Abdul Aziz Wan Abdullah that the Government wanted to tighten the tendering conditions to ensure only capable contractors were awarded projects. The new measures would help to ensure that projects will be carried out satisfactorily as required under the contracts.
Among the new rulings include:
MBAM supports the above-mentioned 4 new rulings announced by the Ministry of Finance (MOF) to prevent projects being delayed if not abandoned. The new regulations are specific, comprehensive and transparent. The enforcement of these regulations will also help prevent cost overrun and enhance the public delivery system. The new rules would also ensure contracts are only awarded to technically complying companies with proven track records and available resources. The new constructive changes have shown the Government’s fair and transparent policy on project procurement.
MBAM noted that Corporations like Petronas and Putrajaya Holdings have long implemented the above mentioned policy. Contracts are awarded to prequalified tenderers who have submitted the lowest & technically complying tenders. The Government should also adopt the Procurement Policy practiced by bodies World Bank & ADB where proper Pre-qualifications are carried out using transparent criteria when multinational companies are tendering for projects. Contractors who have failed to deliver will be black-listed for future tenders for a certain period.
We hope that with these additional regulations, the Government would also implement the two- bid system. The two- bid system requires companies to submit tender documents in two parts-the first demonstrating their financial soundness and technical capability and the second part their commercial price. Only those tenderers who have passed the technical bid will have their commercial bid opened. With this system the lowest technically complying tenderer will be awarded the contract. This new set of rules is considered timely & will help to overcome the challenges of completing the numerous projects under the 10th Malaysia Plan (10MP) and the Economic Transformation Programme (ETP).
MBAM also appeal that all Government implementation agencies and Government Linked Companies (GLC) will immediately adopt the Variation of Price (VOP) Clause in their Contracts in view of the volatile material and fuel prices. This is to avoid abandonment of projects and we believe that in the long run tender prices will be lower as the financial risks are managed better, ultimately benefitting the Government & nation with a healthy & robust construction industry supporting the 12 NKEAs of the ETP.
KWAN FOH KWAI J.M.N.
|< Prev||Next >|