Sabah Builders want Pan Borneo work packages downsized
KOTA KINABALU: The Sabah Builders Association (SBA) has urged the Works Ministry to downsize the work packages of Pan Borneo Highway project to between RM100 million to RM200 million so that more Sabah G7 local road contractors are qualified to participate in the tender.
Its president, Lou Chi Nam made the proposal when bringing up issues faced by SBA members to Works Minister Baru Bian during a meeting on October 14.
They include some local materials, such as earth and stone having difficulty meeting the contract specification resulting in extra cost to import from a long distance and resident engineers having to refer to consultant engineers in Kuala Lumpur for decision resulting in delay to the work progress.
On project procurement, Lou said an e-procurement would achieve higher transparency in the system. The online prequalification process will provide better transparency and allow more local contractors to qualify to tender government projects.
SBA believes awarding the lowest tendered price will be fairer to the tenderer and more beneficial to the government (cost saving) than the current evaluation procedure of “cut-off method”.
Lou also requested government projects to be placed under the Public Works Department (JKR) which is more qualified to manage the projects than the client departments.
SBA also wishes the government will continue adopting the Construction Industry Transformation Programme (CITP) for the betterment of construction efficiency, quality and workers’ safety.
The association seeks the Works Ministry’s assistance to have an engagement with the Human Resources Ministry and Finance Ministry to look into reducing the RM10,000 levy of foreign workers who have been working in Malaysia for more than 10 years to reduce the financial burden on the construction players, especially during this period of global economic uncertainty.
On the Sales and Service Tax (SST), SBA seeks the help of Works Ministry to collaborate with the relevant ministries or agencies to produce a confirmed list of construction materials which are subject to the tax. Currently it is still vague in the construction industry.
The sand supply shortage is affecting all the projects, such as Pan Borneo Highway.
SBA urges the Works Ministry to collaborate with the State Government to work out a short-term solution to overcome the problem. Sand forms an essential component in concrete, without sand, buildings, bridges, water reservoirs, concrete road pavement etc cannot be constructed.
SBA would be grateful to the government to allow the licensed operators to continue supplying the sand to meet the current shortage until the new licence applications are approved.
The current sand supply shortage had caused project delays and materials price hike.
Other SBA members present at the meeting were deputy president Henry Tsen, vice presidents Johnny Wong, Datuk Gerald Goh and Kung Ping Kun, Assistant Honorary Secretary Ralph Chung, assistant treasurer Elizabeth Chung and committee member Choo Wei Tak.