KUCHING, March 8: The government implemented the Variation of Price (VOP) clause to tackle the significant increase in the cost of building materials.
According to a news report from the Sarawak Public Communications Unit (Ukas) today, Senior Minister of Works Dato Sri Fadillah Yusof said the VOP could help ensure government projects are not affected by price hikes and are completed according to schedule.
“The implementation of these price change conditions includes conventional contracts as well as design and build contracts where VOP calculation is allowed until the end of the contract and subject to the rules stated in Treasury Circular 2.4,” he explained.
He added that following the worldwide impact of the Covid-19 pandemic, the Public Works Department (JKR) has conducted a study based on Special Releases 1, 2, and 3 issued by the Department of Statistics Malaysia.
“The results of the study show that there is an increase in the cost index and average unit price for building materials.
“To overcome this problem, the Ministry of Works has conducted a study and made an appeal on the VOP, which is now under consideration by the government,” said Fadillah.
He said this in a written reply to an oral question from Betong MP Datuk Robert Lawson Chuat in the Dewan Rakyat recently on measures to overcome sick projects under the Sarawak JKR, which among others were due to lack of manpower and implementation of the VOP. — DayakDaily
