Contractors to be partially reimbursed
KUALA LUMPUR: The Works Ministry will partially compensate contractors affected by the rising cost of construction materials.
Minister Datuk Mohd Zin Mohamed said the decision to pay them variation of price (VOP) compensation was for projects starting from Jan 1 this year.
Mohd Zin said the materials that came under VOP were steel, cement, bitumen, premix, sand, gravel, guardrail, fabric reinforcement, copper, water and sewerage pipes, diesel and petrol.
Previously, only steel and cement were considered for VOP compensation.