Monday, May 01, 2006

Contracts Which Fail To Meet Deadline Will Be Terminated

Malaysia's Minister Of Works, Datuk Seri Samy Vellu, warned contractors in the country that they should not delay to commence works once the contracts are awarded to them. They also must meet the deadline as stipulated in the contracts. In the 9MP period, the Works Ministry of Malaysia will monitor all contracts awarded closely. Investigations will be carried out if any project is found to be falling behind schedules, stern warning will be given to the contractors concerned, and they will be given another chance to rectify the problems. If they still fail to meet the deadlines, the delayed contracts will be terminated and be reawarded to new contractors. If the new contract sum is higher than the original contract sum, the difference shall be borne by the original contractors. In the past, such a difference was borne by the government. Will this measure be effective? Yes and no. If the contracting companies only are held responsible for the delay, the owners of these companies will simply disband the companies and form new ones, then the above measures will be useless against them. On the other hand, if the owners of these companies themselves are held responsible, then they got no way to run, these measures will be effective....to certain extent at least. Any way, this post is not meant to criticise the Works Minister, but its main purpose is to record the words spoken by the Works Minister. We shall check back after a few years or months to see how much he has lived up to his words. I will do this more often in future, for all prominent people in Malaysia, so that we have a record to trace how fast and how often they change their faces and tunes.

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