KULAI, April 13 — Road construction and maintenance projects nationwide are expected to face further delays due to rising construction material prices and diesel costs linked to tensions in West Asia, Deputy Works Minister Datuk Seri Ahmad Maslan said today.
He said the government expects the number of infrastructure projects already behind schedule to increase if current cost pressures continue.
“The actual rate of delays is still awaiting official confirmation from the Department of Statistics Malaysia, but it is estimated to be between 30 and 40 per cent.
“However, the Department of Statistics Malaysia has yet to officially confirm the figure as it uses a specific method to measure price increases, including building materials, food and transportation,” he told reporters after a working visit to the Kulai Public Works Department district office.
On the issue of delays, Ahmad said the ministry has held meetings with four major contractor associations.
He named the Malaysian Bumiputera Contractors Association, the Malaysian Malay Contractors Association, Class F Bumiputera Contractors Association and the Mechanical Contractors Association.
“Among the main demands made by the contractors were the implementation of Variation of Price, Extension of Time and price control of building materials such as cement, sand, stone and steel.
“The demands also involved three other ministries, which is the Finance Ministry, the Economy Ministry and the Domestic Trade and Cost of Living Ministry.
“Currently no decision has been finalised yet and the matter will be brought up at the next Cabinet meeting,” he said.
Ahmad said the increase in diesel prices has had the biggest impact on the roadworks sector nationwide as most operations depend on heavy machinery powered by the fuel.
“A total of 855 projects under the Public Works Department are being implemented nationwide.
“Of that total, 280 projects or almost a third have already experienced delays and the figure is expected to increase to more than 300 projects if the current cost pressure continues,” he said, adding that contractors’ requests for extension of time were reasonable for the government to consider.
Earlier, construction firms had said the ongoing West Asia conflict involving Iran has been pushing up fuel costs, potentially delaying numerous projects if the situation persists.
They said the surge in fuel prices has also driven up key material costs, particularly in road construction and maintenance projects.
