James Ha
KUCHING (June 15): The Sarawak Building and Civil Engineering Contractors Association (SBCECA) has called on the government to grant extension of time (EOT) to the contractors to enable them to complete their projects that have been delayed due to Covid-19.
Its chairman James Ha said many government or government-linked companies projects are experiencing slow progress or even delayed beyond the contract period, with some even classified as ‘sick projects’ as a result of the pandemic.
“However, except for the 84 days of extension of time (EOT) granted in 2020 for the period from March 2020 to June 2020 to members or contractors in their projects, there have been no further EOT granted despite many applications for them,” he said in a statement.
He added that it was of their understanding that the agencies concerned are waiting for directives relating to the matter like in 2020.
“Meanwhile, where projects are beyond the contract completion dates, our members or contractors suffer from liquidated and ascertained damages being imposed or deducted from payments due.”
Moreover, Ha said the various standard operating procedures (SOP) that were mandated during the Recovery Movement Control Order (RMCO) or Conditional Movement Control Order (CMCO) have resulted in poor productivity with shortage of workers, restrictions in workers or physical distancing in place.
The slow response in the whole supply chain has also affected the progress in works on a global basis, he added.
“We are suggesting the government to award 50 per cent of said time frame (when any CMCO or RMCO is in effect) as extension of time to contractors due to that.
“As most projects are not under the critical category in the MCO or full lockdown period, there can be no works on the projects. Hence, we suggest 100 per cent of the time frame when they are effective to be allowed as extension of time to contractors.”
He also proposed for a waiver of liquidated and ascertained damages for late completion to a maximum of six months, if applicable, to ease the contractors’ financial burden.
Furthermore, Ha said with the Movement Control Order (MCO) being extended to June 28, many civil servants were instructed to work from home and this has resulted in contractors failing to receive payments due from payment certificates within the contractual period of 44 days from the date of receipt of the contractors’ claims.
“We received feedback from members or contractors that some are still waiting for payment due for works carried out December 2020, especially for projects under federal implementing agencies.”
In the case of projects under state implementing agencies, Ha said the association understood that most contractors have received payment for works carried out in January and February this year but somehow beyond the stated contractually obligated period.
“We urge the government to ensure that the agencies concerned follow the contractual requirements so that members and contractors will not suffer from cash flow problem.”
He hoped that the government would consider and approve their proposals and suggestions in order to assist their members recover from the severe effects of the pandemic and catch up with their project.
“It would be unfair for them to be penalised for reasons not due to them, and of course also not due to the government. At the same time, the above (aforementioned) will allow them to tender for new government jobs with confidence that only reasonable risks are allocated to the contractor,” said Ha.