Works Ministry urges faster claims processing, timely payments to sustain construction sector amid rising costs

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By DayakDaily Team

KUCHING, April 15: Agencies under the Ministry of Works have been urged to prioritise the processing of complete claims, speed up work certification, and ensure that interim and final payments are not delayed without reasonable cause, in order to safeguard contractors’ cash flow and sustain the construction industry’s ecosystem.

Works Minister Dato Sri Alexander Nanta Linggi stressed that efficient payment processes are essential to maintaining stability in the construction sector, especially amid rising global uncertainties.

“All agencies under the Ministry must prioritise complete claims, accelerate work certification, and ensure interim and final payments are not delayed without valid reasons,” he said, adding that delays could disrupt contractors’ cash flow and impact the wider supply chain.

He said the government is closely monitoring the impact of geopolitical tensions, which have driven up global oil prices and affected key construction inputs such as fuel, bitumen, steel, cement, and logistics.

“To address this, we are coordinating an immediate action plan with relevant agencies, including the JKR and CIDB, to regularly monitor cost changes and ensure decisions are made faster and based on data,” he said in a post shared on his official communication channel after officiating the Ministry’s monthly assembly in Kuala Lumpur on Wednesday (April 14).

Nanta added that the government is also considering practical adjustments for affected projects, including changes in scope of work, extensions of time (EOT), or rescheduling where supply chain disruptions are proven to have significant impact.

“At the same time, we must ensure that projects continue smoothly while supporting local contractors, especially small and medium-sized contractors, so that they are not left behind due to rising operational costs,” he said.

He also highlighted efforts to reduce reliance on volatile input costs by encouraging the use of Industrialised Building System (IBS), Building Information Modelling (BIM), prefabrication, digital site monitoring, and improved design optimisation.

“Malaysia Madani is clear in its principle whereby people’s projects must continue. Our role is to ensure that external global crises do not become an additional burden on the people,” he said. — DayakDaily

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