Observations on the current contracting scenario in Malaysia

Salam and dear all, On the basis of a presentation by one of the keynote speakers and the subsequent discussions during the recent 8th MiCRA Conference in Penang, the followings are areas considered worthy for further discussions/research:

• The contracting industry has a very large number of contractors. As of June 2008 there are 63,813 contractors registered with CIDB.
• The use of new technologies such as IBS and 'silent' piling system requires high capital investments but most contractors are unable to secure sufficient funding. On IBS for example, in the public sector the government allows contractors to provide 2 tender prices: price based on IBS and price based on conventional construction. Key issues on IBS include that not all projects can use / are using IBS therefore the use is not widespread, it is expensive to use IBS (but the trade-offs are in terms of speed of construction, quality and less dependent on labour), and the monopolistic nature of the supply of IBS technologies, parts and components.
• Contract administration is ineffective and highly inefficient. For example contractors are seldom paid on time [the delays are in months rather than days or weeks], settlement of contract accounts take years rather than months. Contractors face difficulties to finance the construction phases of projects. The requirements of the laws related to the environment are demanding but provisions in the tender/contract documents are not clear. More often than not issues related to the environments are left entirely to the contractors to sort out. Examples: the mosquito menace and dengue fever; poor health, safety and sanitation; pollution, etc on construction sites.
• It is mandatory for contractors to be registered with CIDB. In addition, for public jobs they are also required to register with the PKK. Further, most GLCs and other client organizations maintain their own system of registration. The existence of multiple registration requirements are costly and bureaucratic.
• Complains on the readiness of graduates entering the industry.

Students, especially those in the final year and are looking for topics for the final year project papers, may see me for further discussions. For other possible topics please refer to my research interests as indicated in 'view my complete profile'. Wassalam.