Price variation to be revived for govt contracts says minister
Kuala Lumpur: The government has agreed in principle to implement price variation to help contractors faced with rising costs of construction materials to complete projects on time, second finance minister Amir Hamzah Azizan said today.
He said the matter is now under discussion between the finance ministry, the works ministry and the Construction Industry Development Board.
“We understand that when we introduced the targeted diesel subsidy, there might be some increases felt by contractors on existing costs,” he said after opening a convention of group 1 contractors today.
“For government contracts, the finance ministry is discussing where we will fine-tune adjustments for price variation for existing contracts,” he said.