Small bumiputera contractors want bid price for govt projects increased

The Class F Bumiputera Contractors Association (Perkobf) has urged the government to increase the bid price for government projects by 30 to 35 percent.

Its president Tukiman Radion said this is to enable the association members to cope with the increase in building material prices following the recent diesel subsidy rationalisation.

"Following the diesel price increase by 55 percent, the prices of almost all building materials, and rental of machinery have also gone up.

"So we ask the government, through the Finance Ministry, to release a circular to up the bid price for government projects by 30 to 35 percent," Tukiman (above) told Malaysiakini yesterday.

Perkobf was established in 2021 to defend the rights of Class F bumiputera contractors.

The Finance Ministry recently announced the diesel price of RM3.35 per litre at all retail stations in Peninsular Malaysia. Sabah and Sarawak are not affected by the move.

Float contract bid prices

Tukiman also urged the government to review the rates of construction materials following the diesel price increase.

According to him, the current rate for construction materials for government projects is set by the Public Works Department.

"We received information from companies selling building materials that (the price of) bricks made out of sand and cement has increased from RM180 to RM210 per pallet, and concrete bricks from RM95 to RM105 per tonne.

“The rental price of a three-tonne truck to transport building materials has also increased from RM450 to RM700.

"Small contractors like us also use roll-on and roll-off bins to transport construction debris, which previously cost RM200, but is now RM250.

"Despite the (diesel price) increase, small contractors are still using old rates used by government departments and agencies, local councils and GLCs (government-linked companies)," he lamented.

Tukiman proposed the Public Works Department "float" the government contract bid prices pending the review of building materials.

"As a result, project bid prices can be matched with current prices of building materials as there are chances of them (prices) always fluctuating.

"It's not that we don't support the government, but this (diesel price) increase is too drastic and has hit small contractors hard."

The increase in “raw” construction material, such as concrete mixture, by up to 30 percent was confirmed by Malaysian Bumiputera Contractors Association president Azman Yusoff, as reported by Sinar Harian.

COMMENT | If economy is doing well, why don’t Malaysians feel it?

J-Kom comes under 'friendly fire' over diesel subsidy poster

'Does it only affect the rich now,' Muhyiddin asks PM following price hikes

COMMENT | Come down hard on price hikes over diesel subsidy changes

Diesel subsidy: Nearly 60,000 companies received SKDS approval - Armizan