Vop Can Alleviate Financial Burdens Of Contractors - Pkkf

KUANTAN, July 16 (Bernama) --  The implementation of Variation on Price (VOP) can alleviate financial burdens on contractors, ensuring projects are completed with quality within the designated timeframe.

Pahang State Class F Contractors Association (PKKF) president, Ahmad Faiz Zulkifly, stated that this government initiative also provides assurance to contractors to proceed with projects without worrying about unexpected price changes.

"Moreover, VOP allows contractors to adjust contract prices according to fluctuating construction material costs," he said at a media briefing here today.

Previously, media reports indicated that the government had agreed in principle to implement VOP to assist contractors grappling with escalating construction material prices due to adjustments in diesel subsidies, to ensure timely project completion.

Finance Minister II Datuk Seri Amir Hamzah Azizan was reported to have said that the matter is currently being discussed by the Ministry of Finance, Ministry of Works, and the Construction Industry Development Board.

Ahmad Faiz expressed hope that the VOP would be extended to all grades of contractors facing the risk of rising material prices.

"All contractors use the same equipment and construction materials, so it should be fairly allocated from G1 to G7," he added.

Meanwhile, he claimed that G1 contractors in Kuantan have not received any job offers from the East Coast Rail Link (ECRL) project since its inception several years ago.

The 665-kilometre ECRL project is a rail infrastructure connecting the east coast states of Kelantan, Terengganu, and Pahang to Selangor. It is scheduled for completion in December 2026 and is expected to commence operations in 2027.

-- BERNAMA