We always talk about punishment to contractors - LAD, can we have an incentive scheme for early completion??

Question

Most of the time we are all out to punish defaulters in contract administration , most of the time is delay and LAD implementation. I would like to suggest that we are consistent in our implementation of punishment AND also include an incentive whereby if the contractor completes before time, with the quality and cost stipulated - then maybe we can AWARD the contractor with something - maybe a certain percentage of the contract price .

Even with a small incentive - maybe contractors may push to excell.

Comments

Rujuk CDPK. Insentif yang boleh diberikan kepada kontraktor adalah dengan pemberian anugerah kontraktor cemerlang dan diberi keutamaan semasa penilaian tender.

Answer 1

Saya setuju satu bentuk insentif perlu diberi kepada kontraktor yg siap awal....maybe dengan bayaran sama banyak kadarnya dengan LAD per day. Atau mungkin dengan penyiapan awal ni kontraktor boleh dapat extra points supaya boleh dibawa utk pertimbangan jawatankuasa penilaian tender jika short listed. Apa apa pun yg wajar sijil penghargaan tu wajib bagi le. Saya juga cdgkan...diadakan satu data base utk simpan rekod prestasi kontraktor merangkumi semua kerja yg dilaksanakan supaya semua pihak yg berkaitan boleh rujuk. Di peringkat JKR Besut kami ada adakan satu sistem untuk pantau prestasi kontraktor Gred G1 dan G2....iaitu Sistem S3PK untuk kerja-kerja sebutharga, undi atau pemberian terus bermula tahun ini. Mungkin sistem SKALA sediada boleh ditambahbaik. Adakah database kontraktor pula supaya prestasi mereka boleh dianalisa.

Answer 2

mr harjit singh sir,

when u say punish defaulters, it sounded as though we look like Arnold Swacheneggesyusahnakejer, the terminators, that blank face,  with machine gun and M16 plus grenades, going around town looking for those wanted face or unwanted.

To me its more like we are actually taking appropriate action to those who fail to keep their promises. It sounded more cooL.

 

awarding contractor with a certain percentages of the contract price is good but how to implement it?

 

at the moment nak bagi a bit of bayaran to those yg menang KIK, innovasi pun syusah, sedangkan RM nya hanya may be RM200 atau RM300 sahaja. 

 

but i welkam yer cadangan. It has been said before actually.

maybe somebody has to sit down to focus on the implementation part.

 

اللهمّ يسر و لا تعسر

 

Comments

Ok it is appropriate action  if you think it is a cooler way of putting it - anyway it is in contract administration as mentioned in my statement.

Eventhough this idea has come up before, but nobody took it up - I feel that the QS department & the Legal Advisor (PUU)  should look at  it and how it can be implemented -  if possible.

Thank you

Answer 3

Saya setuju satu mekanisma untuk melaksanakan perkara ni perlu diadakan. Untuk makluman kontraktor yang berwibawa memang ada dan kita perlu pisahkan antara intan dan kaca. In reality most contractors depended so much on their subcontractors. In one project they performed but the next they fail. Why? So CIDB should play a major role in training and educating all the contractors. Currently there are about 80,000 contractors out there according to ICU

Comments

JKR boleh mula tindakan jika CIDB tidak buat untuk 'nilai' prestasi kontraktor yg buat kerja dgn JKR. Dlm Skala prestasi mereka dinilai tapi takde impak. Apa yg kita dah buat dgn penilaian prestasi dlm skala? So far untuk laporan MKSP saja....Apa tindakan kita kepada kontraktor yg prestasinya tidak konsisten?

Answer 4

Pihak PROKOM & CKK sedang merangka pelaksanaan projek perintis dengan mengguna strategi perolehan alternatif- kaedah Relational Contracting ( RC). untuk makluman, RC adalah metodologi perolehan berdasarkan kontrak pertalian yang menyediakan infrastruktur pelaksanaan projek secara kolaborasi, fleksibel, perkongsian " pain & gain" & insentif bedasarkan prestasi.

RC is a partnership approach based on common vision of how the parties will work together to achieve a mutually succesful outcomes....

- Encourage innovation & creativity

- Tying profits to outcome

- Motivation through incentives

Comments

Tuan, menurut akta kontrak 1950, penalti adalah tidak dibenarkan dalam sesebuah kontrak, maka LAD adalah lebih kepada remedi kepada pelanggan dan bukannya punishment.

Saya setuju pendapat tuan bahawa kontraktor perlu diberi insentif sekiranya siap awal dan telah mengikut kehendak pelanggan. Ini dapat dilakukan dengan pelaksanaan Cost-plus-incentive fee kontrak yang telah wujud di industry pembinaan namun pertukaran atau pindaan terhadap sistem perolehan dan kontrak sedia ada perlu dilakukan sekiranya ingin melaksanakan kaedah kontrak ini.

Answer 5

I agree with the idea of giving incentive for early completion in principle but it has to be viewed on a case by case basis provided that the client is willing to accept. Early completion for some projects may not be good for the following reasons:

• The client may not have the fund ready to pay for the advance progress
• The client may not want to move in early because they have programmed to move in at a much later date. They may have to come up with additional budget for operation and maintenance.