What are the consequences for contractors who fail to start projects on time?

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Penalties for Delayed Project Commencement by Contractors

Contractors who fail to commence work on state government projects within one month of being handed over the site will face a termination notice. This policy aims to ensure that projects, particularly those that were previously delayed or "sick projects," are completed according to their scheduled timelines. The Sarawak Deputy Premier, Datuk Amar Douglas Uggah, has initiated a close monitoring system for all state government projects to prevent further delays and ensure accountability.
Issuance of Termination Notices

The Public Works Department (JKR) has established a clear directive that contractors must begin their project works within one month of the site handover. Failure to adhere to this stipulated timeframe will result in the department initiating a termination notice against the contractor. This measure is one of the strategies employed to ensure that infrastructure projects are delivered on schedule.
Close Monitoring of Project Progress

As part of this enhanced oversight, the Deputy Premier, accompanied by his two deputies and the JKR director, will conduct regular monitoring and site visits to all state government projects. This close involvement is intended to identify any potential issues or the need for remedial works early on. The objective is to have a clear understanding of the progress of all ongoing state government projects by April.
Focus on Previously Sick Projects

This intensified monitoring is particularly crucial for approximately 50 projects that were previously classified as "sick projects" and have since been transferred to new or rescue contractors. The aim is to prevent a recurrence of delays, ensuring that these projects, once revived, do not fall behind schedule again. The Jalan Baru Matang Phase 2 project, a RM54.5 million undertaking expected to be completed by May 2025, serves as an example of a project undergoing such improvements, transitioning from a two-lane to a four-lane carriageway over 4.44 kilometres.

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What are the consequences for contractors who fail to start projects on time?

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