Thursday, April 17, 2008

Class F Contractors to get A Small Bite of Big Cakes... Agree?

Government creating Class F contractor jobs is to help the Bumiputras in the construction industry. The move by Ministry of Works is to create more job opportunities for Class F contractors and assist them in capacity building through the development of more specialized contractors in the field of construction.

But, we opposed the decision on giving 10% of sub-contractors job to the class F contractor for mega projects that worth more than RM 10 million.

We agree that government should help class F contractors to become more competitive in the industry. Therefore, we proposed the following mechanism:

    1. For contracts worth less than RM200,000 , 70% of the contracts will be reserved for open tender among Bumiputeras and 30% open tender to all Malaysian with 5% of margin of preference be given to Bumiputras.
    2. For contracts worth between RM200,001 to RM500,000 , 70% of the contracts will be reserved for open tender among Bumiputeras and 30% open tender to all Malaysian with 4% of margin of preference be given to Bumiputras.
    3. For contracts worth between RM500,001 to RM2,000,000 , 30% of the contracts will be reserved for open tender among Bumiputeras and 70% open tender to all Malaysian with 3% of margin of preference be given to Bumiputras.
    4. For contracts worth between RM2,000,001 to RM10,000,000 , 30% of the contracts will be reserved for open tender among Bumiputeras and 70% open tender to all Malaysian with 2% of margin of preference be given to Bumiputras.

For contracts worth more than RM10,000,000 , we hope that open tender procedure should be available to all Malaysian without restriction.

Finally, we urge the Ministry of Works to award projects and contracts in a fairer manner and according to the contractor’s merit.

NO MORE AFFIRMATIVE ACTION ! PLEASE !
NO MORE TONGKAT ! PLEASE !

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