Expand price variation clause to other materials, says builders’ group

MBAM called for clearer implementation timelines for major public infrastructure projects like Johor Bahru's elevated autonomous rapid transit project and the Lebir dam in Kelantan. PETALING JAYA: The Master Builders Association Malaysia has urged the government to expand the variation of price (VOP) clause to other materials, besides diesel and bitumen.

MBAM president Kenneth Liew welcomed the reintroduction of the clause under the 2027 budget, saying it helps address rising diesel and bitumen costs.

The clause is a contractual mechanism that allows contract sums to be adjusted upwards or downwards due to market fluctuations in the cost of labour, materials or fuel.

Liew also called for a review of the RM100 million allocated to curb flash floods in the Klang Valley through the development of more flood retention ponds and maintenance of rivers.

"The Klang Valley flood allocation is modest relative to the size of the problem and MBAM urges that a review be done,” he said in a statement.

He also said public infrastructure projects announced previously, such as Johor Bahru's elevated autonomous rapid transit project and the Lebir dam in Kelantan, were still at the planning or agreement stage.

Liew called for clearer implementation timelines for these major projects, as well as funding commitments and procurement schedules for the sake of industry players.

He also welcomed the implementation of the Government Procurement Act from next year, saying transparent, rule-based procurement will ensure the protection of public funds as well as contractors.

"The 2027 budget provides an important platform to strengthen infrastructure, stimulate economic activity and create opportunities for Malaysian businesses and workers.

"While we welcome the various allocations, the industry emphasises that the budget's success must ultimately be measured by the timely delivery of projects, the quality of infrastructure, the creation of sustainable employment and tangible benefits delivered to the rakyat."