KUALA LUMPUR: Existing government contracts will be revised to take into account the rising cost of construction materials, Deputy Prime Minister Datuk Seri Najib Razak said. 

He said details on the revision would be contained in circulars to be issued by the Finance Ministry soon.

"This is another effort by the government to help contractors by reviewing the old prices quoted in the contracts.

"Usually, signed contracts cannot be reviewed. But in the light of the abnormal situation today, the government has agreed to do so," he said after launching the Bumiputera Property Convention and Exhibition 2008 yesterday.

Also present was Federation of Malay Economic Bodies (Gabem) chairman Tan Sri Rahim Tamby Chik 

Another measure in favour of the construction industry was the introduction of a new contract clause for price variations in steel for all government design-and-build projects, said Najib.

The Finance Ministry had said in a statement recently that the clause would minimise the risk for contractors when the ceiling price of steel was abolished.

The present design-and-build contract does not take into consideration changes in the price of steel.

The government, however, could not guarantee there would be no abandoned construction projects.

"It is impractical to give one. What we can do is to review existing contracts," Najib said.

Earlier in his speech, he urged the property sector to monitor and report discrepancies and wrongdoings.

"Some are on an ego trip and forget the agenda to strengthen the Bumiputera players in the sector.

"When you witness any wrongdoing or slacking off tell us so that the government can intervene before things get worse."

Najib also called on Bumiputera developers to think ahead, describing many of their approaches as being for the short-term.

"This is a weakness of the Bumiputeras. We need to have a long-term perspective when doing things.

"Keep in mind that in any adversity, there is always opportunity not far behind."