Contractors in Shah Alam City will have to contend with a new point system in securing building projects. This comes as the Shah Alam City Council (MBSA) plans to introduce a tighter criteria in order to prevent delays and to ensure that only the best are selected in the tender process.
According to Shah Alam mayor Datuk Ahmad Zaharin Mohd Saad, the process may be similar to the recently held domestic waste collectors appointment exercise, in which collectors were picked based on a point system instead of the lowest-cost tender system.
Under the new system, contractors will earn points based on various key indicators including equipment, manpower, experience and the number of compactors.
“Although we received numerous complaints due to the tighter criteria in picking waste collectors, we insisted on it because we wanted quality above all,” he said.
To date, four projects under the purview of the MBSA are delayed with two already reissued tenders. Work on the two projects – the bus station in Section 19 and the much-anticipated Section 17 bus hub will start as soon as the award letters are sent out.
Ahmad Zaharin revealed that MBSA had also issued a final warning to the contractor of the new market in Section 5 to speed up work or face termination. Notably, he hopes that the new market will be ready by year end or by 2017 the latest.
In denying that the lowest-cost tender system has been the cause of delays, the mayor said it was the work ethics and attitude of the contractors. Meanwhile, MBSA councillor Fong Saik Hoong noted that the move will be good for the council as it is their reputation which is at stake.
A few weeks ago, he had suggested to the mayor to call for new tender bids for the delayed projects in order to complete the pending public facilities.
Fong noted that the majority of the contractors are lackadaisical on the projects as they earn more through preliminary contract. The preliminary contract allows contractors to claim money for the project’s initial ground work which includes on-site preparation and mobilising machinery.
“They can make a lot of money this way and by scrutinising the upcoming contractors, we can ensure projects are delivered on time,” said Fong, who is also part of the MBSA’s Building Committee.
To avoid “overclaim” by contractors, preliminary contract claims should be limited by the tender board to between 8 and 10 percent only, depending on the total contract sum, he said.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
