By Karen Bong
KUCHING, Dec 1: A new Sub-Contracting and Sub-Letting Clause has been added in the State Contract that allows the employer to intervene by assigning parts of the works to the sub-contractors to ensure smooth implementation of project in terms of delegation of works by the main contractor, payment to the sub-contractors and so on.
Second Minister of Finance and New Economy Datuk Amar Douglas Uggah Embas informed that this is among the procurement initiatives introduced by the Sarawak government to reduce project downtime and ensure smooth implementation of projects.
“Other measures include establishing a list of Rescue Contractors to be considered to take over and rescue critically delayed or abandoned projects to expedite completion of such problematic projects.
“The government has also introduced a minimum monthly interim payment of RM1,000 on the actual work done on-site for all works contracts to assist contractors in their projects’ cash flow,” he said during the State Legislative Assembly (DUN) sitting when delivering his winding-up speech today.
In addition, Uggah who is also Deputy Premier, said that a new Liquidated and Ascertained Damages (LAD) formula for the State contract has also been introduced in line with Federal practices.
“Apart from them, allowing up to three interim payments during the first four months after issuance of Letter of Acceptance before the contract is signed to facilitate commencement of a project,” he added.
In an effort to improve the contractor registration process, Uggah said the State government will implement a business-friendly online registration system for contractors, suppliers and consultants.
“This is to speed up the registration process, ease payment via online payment platform, and provide a secure application channel through usage of digital certificates.
“Other measures to be taken include improvement and simplification of contractors’, consultants’ and suppliers’ registration procedures,” he added.
These initiatives came following a study on ‘Transformation of Contractor and Consultant Registration Unit (UPKJ) Towards World-Class Service Delivery’ undertaken by the Sarawak government through the State Financial Secretary’s Office in collaboration with Universiti Malaysia Sarawak (Unimas). — DayakDaily
