SHAH ALAM, April 10 (Bernama) -- A proposal to activate the Variation of Price (VOP) clause for construction materials will be submitted to the Finance Ministry and the Economy Ministry soon, following the global energy crisis, says Deputy Works Minister Datuk Seri Dr Ahmad Maslan.
He said the proposal stemmed from discussions with contractors’ associations last week, which reported an increase in construction material costs of between 20 and 30 per cent, although the matter still required further study before any decision could be made.
“We hope for a study to be conducted using data from the Department of Statistics Malaysia (DOSM) so that the increase in construction material prices can be accurately determined.
“I would like to inform that the authority to approve this lies with the Finance Ministry, with reference to the Economy Ministry. We are (only) conveying the request from contractors’ associations to activate the VOP,” he said.
He said this when met after the Universiti Teknologi MARA (UiTM) Sports Awards 2025 at Dewan Agung Tuanku Canselor, UiTM Shah Alam, here today.
Ahmad Maslan also stressed that in facing the impact of the crisis, the government would not allow any ‘stop work’ implementations by industry players.
“In the same meeting, they also requested an extension of time (EOT) for certain projects due to price increases. I’d also like to inform that no stop work will be allowed, as it violates contract conditions.
“However, there have been requests to slow down a little until diesel prices, for example, become more stable. A slight slowdown may be possible, but stop work is not permitted,” he said.
Yesterday, the media reported that Malay Contractors Association of Malaysia (PKMM) president Datuk Mohd Rosdi Ab Aziz had urged the government to take immediate steps, including reactivating the VOP for construction materials, to help contractors facing rising costs due to the global energy crisis.
Mohd Rosdi said the measure, which had been implemented during previous crises, including the COVID-19 pandemic, had proven effective in helping contractors manage rising costs.
-- BERNAMA
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