Providing a cure for ‘sick’ projects

Fadillah: Rescue contractors a faster way to revive, complete delayed projects

They must have a good track record. It is faster for us to restore the project compared with following the normal process to reopen tenders and so on, which takes a long time.

Datuk Seri Fadillah Yusof

KUCHING: Engaging rescue contractors is the way to go in tackling ‘sick’ projects and ensuring that these projects get completed for the benefit of the people, said Works Minister Datuk Seri Fadillah Yusof.

He said his ministry has set up a Rescue Contractor system and will deploy contractors who have been identified as rescue contractors to revive and complete ‘sick’ projects.

“Under this system, contractors can apply to be rescue contractors whereby they will undergo stringent screening to ensure they have the capability to complete the ‘sick’ projects,” he told reporters at an engagement session with the media at a hotel here yesterday.

Fadillah said in Sarawak, 15 projects have been identified as ‘sick’ out of over 1,000 projects, which is less than five per cent.

“Overall, I am satisfied with the project implementation, even though we have ‘sick’ projects.”

He added that rescue contractors need to undergo at least three screenings to identify their financial strength, financial capability, practices, company assets, who is behind the company, good track record and so on.

“They must have a good track record. It is faster for us to restore the project compared with following the normal process to reopen tenders and so on, which takes a long time.”

He revealed that the normal procedure will involve tender and will take longer time, and sometimes new drawings are needed as the previous contractor did not hand over all the drawings for the design and build, thus a new consultant would need to be hired.

With the Rescue Contractor system in place, the ministry does not need to screen companies again, and the projects are open for tender amongst those already in the Rescue Contractor database, he said.

When asked on the number of identified rescue contractors, Fadillah said they are openly invited and are screened in series.

Currently, the ministry is in the fourth series of screening, so they only need to register to apply as rescue contractors, he said.

“There are many that apply, but those who passed the screenings are not many.”

On the costs of the projects when they are taken over by rescue contractors, Fadillah said that the cost may or may not necessarily go up.

As an example, he said a project in 2000 which was stopped and retendered now will cost more as the prices of raw materials have since increased in the past years, so usually the costs will go up, he said.