Construction Industry Development Board suggests variation of price clause for govt projects | Malay Mail

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KUALA LUMPUR, May 3 — The Construction Industry Development Board (CIDB), Malaysia is recommending a variation of price (VOP) clause be included for government projects to reduce the burden of contractors being affected by current building material inflation. CIDB chief executive, Datuk Ahmad...

Monday, 03 May 2021 09:37 PM MYT

CIDB chief executive, Datuk Ahmad ‘Asri Abdul Hamid, said including it during the movement control order period would also guarantee projects are finished on time. “This issue will definitely trigger various effects for everyone in the industry during this challenging period due to the pandemic,” he said in a statement today.

A simulation for the price hike showed a 7 per cent increase in construction costs and 15 — 25 per cent decrease in the profit margin for small contractors, particularly.

 

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