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Contractors ail from rising building material costs

Special Report: Cost, labour headwinds threaten construction s recovery

AS economic activity continues to pick up pace amid the country’s transition into endemicity, supply chain disruptions and soaring building material costs brought about by Russia’s invasion of Ukraine, and labour shortages threaten to derail the construction sector’s recovery, say analysts.

VOP and EOT should also be applied to projects in private sector: MBAM

29 Jun 2021 / 12:58 H. PETALING JAYA: The RM150 billion Economic Recovery and People’s Protection Package (Pemulih) may benefit some contractors to some extent, the Master Builders Association Malaysia (MBAM) said today. This includes the allowance of price changes or Variation of Price (VOP) for government projects following a significant increase in the cost of building materials until Dec 31, assistance for local G1 – G4 contractors to carry out small-scale government projects by conducing lottery and tendering processes, enabling the use of new civil engineering and building as well as electrical work rate schedules, and the allowance of Extension of Time (EOT) or extension of contract on government projects for supply and service contracts affected by the implementation of the Movement Control Order (MCO) subject to contract clause, it said.

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