GOVERNMENT INTERVENTION NEEDED ON HIGH BUILDING MATERIAL PRICES
The rising material prices sent skyward by the pandemic and rise of material and energy costs are negatively impacting contractors handling both Government and private projects. Contractors handling Government projects are being forced out of business as price index from the Department of Statistics Malaysia (DOSM) meant to protect contractors handling Government projects from volatile markets is unable to capture the full and true prices of raw materials skyrocketing costs. Rising prices are threatening the viability of construction projects from infrastructure to residential projects. The problem is even more acute in private sector projects, many of which do not include provisions to account for hiked prices of raw materials in terms of a Variation of Price (VOP) term. One of the key difficulties for the DOSM building materials index is keeping pace with rapidly shifting global prices, which is linked to the availability of key commodities. However, public projects contractors rely on the price indexes to protect them from the changing cost of inputs throughout the lifetime of a project. Without changes to contracts, or a way to correct for the lag in the price index, major public projects could struggle to find bidders or face challenges in being completed…
The Prime Mover and Recognized Voice of the Malaysian Construction Industry.
- To provide a synergy of services to members for the betterment of the construction industry.
- To actively initiate, support and participate in programmes and activities that enhance professionalism, productivity and quality in the construction industry.
- To address issues in the construction industry to facilitate members in achieving global competitiveness.
The Main objectives of the Association are:
- To promote and Co-ordinate the development of the construction industry.
- To Promote measures aimed at securing improvements pertaining to techniques, procedures and methods in the construction industry.
- To Organise training programmes, seminars, symposia, conferences, conventions, exhibitions and expositions related to the construction industry.
- To Identify and Study problems arising in the construction industry and to discuss and explore solutions with relevant Government authorities and professional institutions.
- To Seek representation on Committees set up by Government or non-Governmental organisations.
- To Protect the legitimate interest of members.
- To Encourage and Promote the practice of professionalism and harmonious working relationship.