Malaysia

Road work contractors can no longer complain about compensation, says minister

Datuk Seri Alexander Nanta Linggi says govt has raised schedule of rates.

Updated 2 years ago · Published on 25 May 2024 2:57PM

Road work contractors can no longer complain about compensation, says minister
Works Minister Datuk Seri Alexander Nanta Linggi says the new schedule of rates, which had not been reviewed for 10 years, is significantly higher now. – Pixabay pic, May 25, 2024.

by Stephen Then

THE G1-G4 contractors who were appointed to carry out 457 works worth RM300 million across the country must perform their tasks diligently and complete the work by this year, said Works Minister Datuk Seri Alexander Nanta Linggi.

He said this is because the schedule of rates (SOR) for the work involved has been increased according to the costs of materials and services that have risen over the years.

Speaking at a draw to pick the small contractors for the programme, he said the new SOR, which had not been reviewed for 10 years, is significantly higher now.

“This takes into account the increased costs of materials and services over time,” Nanta explained.

“Because of that, the government expects that all the work will be completed well. It can no longer be said that the price of work is not reasonable or cannot cover the costs involved and so on because we have made an increase in the schedule of rates for related work,” he said.

According to him, the rate of increase for Sarawak, Sabah and Labuan is approximately the same at 30%.

The Finance Ministry (MoF) has allocated RM300mil for the Development Expenditure for Maintenance Works by G1 to G4 Contractors on Federal Roads throughout Malaysia through Budget 2024.

Of this amount, RM200mil is earmarked for 336 projects in Peninsular Malaysia, while RM100mil is allocated for 121 projects in Sarawak, Sabah and Labuan.

On the draw programme, Nanta said the Finance Ministry has approved an allocation of RM50 million, through the Works Ministry, for 64 works in Sarawak.

The draw programme ceremony involved 64 works in Sarawak, namely 41 periodic pavement works totaling RM 42.5 million and 23 non-pavement periodic works totaling RM 7.5 million. – May 25, 2024

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