Rising costs threaten delays in road projects nationwide - Deputy Works Minister

KULAI - The rising cost of construction materials and operational expenses, particularly diesel, is expected to cause further delays in road construction and maintenance projects across the country.

Deputy Works Minister Datuk Seri Ahmad Maslan said the ministry anticipates an increase in the number of delayed projects, driven largely by cost pressures linked to ongoing conflicts in West Asia.

He noted that of the 855 ongoing projects under the Public Works Department (JKR), involving 28 ministries, the previous distribution saw one-third ahead of schedule, one-third on track, and one-third behind schedule.

Road construction and maintenance projects, he explained, are among the hardest hit due to their heavy reliance on diesel-powered machinery such as lorries and road rollers.

"Virtually all vehicles used in road construction run on diesel, which is priced at market rates. This remains a major concern for contractors," he said.

He added that both road maintenance and new construction projects are directly affected, while building construction projects are somewhat cushioned by existing material stockpiles.

"However, given the current situation, we are concerned that the number of delayed projects will rise," he said during an official working visit to the Kulai District Public Works Department here today.

Despite these challenges, Ahmad stressed that contractors are not permitted to halt work. While some have applied to scale down operations as a cost-control measure, such requests have yet to receive formal approval from the ministry.

He said the ministry is also working to obtain official data from the Department of Statistics Malaysia to determine the extent of price increases in construction materials.

While industry estimates suggest price hikes of between 30 and 40 per cent, Ahmad said the government is cautious about relying on preliminary figures without verified data.

"DOSM uses a scientific and systematic approach in its calculations across sectors, including construction materials, food and transportation. We will rely on their data as the official benchmark," he said.

He added that the ministry has engaged with several contractor associations, including the Malaysian Bumiputera Contractors Association (PKBM), Malaysian Malay Contractors Association (PKMM) and PERKOP, to gather industry feedback.

Among the key requests raised by contractors are the implementation of Variation of Price (VOP), Extension of Time (EOT), and price controls on essential construction materials such as cement, sand, stone and steel. - BERNAMA