KUALA LUMPUR: The Works Ministry has temporarily suspended the 10% allocation policy for Class F contractors pending a comprehensive guideline which is being drawn up.
A working paper to specify the contractors’ job scope and other details would be drafted within a month, minister Datuk Shaziman Abu Mansor said.
“Until then, projects that are to be tendered out will not be bound by this policy,’’ he said.
Since last year, the ministry has required that 10% of all development projects costing more than RM10mil to be allocated for Class F contractors, who are usually engaged by the main contractors (Class A).
Each Class F contractor, whose job includes laying tiles, fencing and wiring, is only entitled to take up projects of not more than RM200,000.
Speaking to reporters after attending the ministry’s monthly gathering yesterday, Shaziman said the decision to temporarily suspend the policy was made following a meeting with more than 700 Class F contractors.
They complained about fewer jobs, low profit margins due to higher construction costs and their problems with the main contractors, he said.
“We will find a solution that will benefit both parties,’’ he added.
Shaziman said small contractors (Class D, E and F) would be given priority in the RM200mil project to upgrade federal roads in Felda settlements under the second stimulus package, to help them through the economic downturn.
It was reported that as of last month, only 4,373 of the estimated 31,500 Class F contractors in the country had been allocated projects totalling RM860mil.
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