Payment woes for contractors
PETALING JAYA: The weak property market in recent years has resulted in a competitive tendering environment for building construction jobs, with some contractors willing to cut prices in their efforts to secure new jobs, said Master Builders Association Malaysia (MBAM) president Foo Chek Lee.
“It is a very competitive tendering environment now. For some tenders, we see more than 100 contractors bidding and it impacts all levels of contractors.
“Even big contractors are feeling the pinch and are tendering for jobs in lower-volume brackets just to tide over the challenging business environment,” Foo said in an email response to comments from building construction sources that contractors are willing to accept a small loss in order to secure job contracts.
Last month, engineering and construction company Zelan Bhd filed a statement with Bursa Malaysia initiating arbitration proceedings against NRY Architects for RM305.4mil and other contract breaches for the construction of buildings of International Islamic University Malaysia in Kuantan.
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