Sarawak to Revoke Contracts if Contractors Fail to Start Work Within a Month, Warns Premier

"Sarawak Premier Abang Johari announces contracts will be revoked if work doesn't start within a month, addressing delays and ensuring project completion."

Kuala Lumpur, 15th Aug 2024, 12.11pm - Sarawak Premier Tan Sri Abang Johari Tun Openg announced that the Sarawak government will revoke contracts awarded to contractors if they do not begin work within a month of receiving the projects. He stated that this measure is necessary to tackle the problem of contractors not completing projects on time, which adversely affects the people of Sarawak.

"The government has decided that once a project is awarded, the contractor must start immediately. If they cannot begin within one month, the contract will be revoked," he said.

He addressed the issue after presiding over the State Development Coordination Committee Meeting (SDCCM) Bil 2/2024 on Wednesday. He explained that problematic projects typically stem from contractors who lack the financial capacity to carry out the work and often submit very low bids just to secure the tender.

Three contracts that have already been revoked involve the installation of traffic lights on Jalan Samarahan, the construction of the Marudi Bridge, and the construction of the Rambungan Bridge.

Abang Johari mentioned that the state government will also be keeping track of contractors who use multiple company names to secure project tenders.

“There are contractors who operate under several companies but lack the capability to carry out the projects. We will be vigilant about these practices,” he stated.

He stressed that the government must take decisive action to prevent the public from experiencing the negative impacts of project failures by contractors.

He also noted that his deputy, Datuk Amar Douglas Uggah Embas, who serves as the Minister of Infrastructure and Port Development, has reported that this policy is already yielding positive results.