Deputy Works Minister warns contractors against seeking extensions on public projects

The Star

15-07-2025

KOTA KINABALU: The government will no longer entertain requests for extensions of time (EOTs) from contractors involved in public infrastructure projects, as part of stricter efforts to ensure timely delivery.
Issuing the firm warning, Deputy Works Minister Datuk Seri Ahmad Maslan said this directive is especially relevant to Package 1B of the Pan Borneo Highway project, stressing that the delays experienced during Package 1A, which saw multiple EOT approvals, must not be repeated.
'We have learned from Package 1A. We do not want similar delays for Package 1B, which was only awarded at the end of last year.
"Any delay is a loss to the people, the government, and the contractors themselves,' he told reporters during a site visit to the SK Pekan Lahad Datu project on Tuesday (July 15).
Ahmad, who is on a three-day working visit to Sabah, explained that Package 1A consists of 15 work packages (WPs), while Package 1B comprises 19 WPs that were newly awarded in late 2024.
He said previous experiences have shown that when one contractor is granted an EOT, others tend to follow suit, resulting in cascading delays across the entire project.
'Eventually, everyone gets an extension, and the whole project is delayed. We cannot afford for that to happen again,' he said, adding that under his administration and that of Works Minister Datuk Seri Alexander Nanta Linggi, the ministry will not tolerate weak or fabricated excuses for EOTs.
Citing examples from Package 1A, Ahmad said some contractors were given up to four or five EOTs, causing project delays of up to three years.
He also reminded contractors that they are responsible for maintaining the roads under their segments during construction, not the federal road maintenance concessionaires.
'If these roads are not maintained, they will deteriorate and cause prolonged hardship for users. We do not want the public to continue suffering because of project delays,' he added.
Ahmad also urged all stakeholders to focus on completing their projects AOT (ahead of time) not EOT, saying early delivery benefits all parties.
'Contractors save on operational costs, the government avoids unnecessary variation orders, and the public gets access to essential infrastructure sooner,' he said.
As an example, he said if a contractor saves three months on a project with monthly operational costs of RM300,000, they stand to save RM900,000, while the government also avoids excess payments.
Ahmad also reminded all stakeholders: 'Cosider this as an early warning … don't say later that you were not told. Let's avoid EOT for Package 1B and deliver on time, if not earlier.'
Later, Ahmad inspected the progress on the RM29mil SK Pekan Lahad Datu upgrade project, which involves the replacement of 26 classrooms, four teachers' quarters, and various other facilities.
The project, launched in April 2022, is currently 35% complete and is scheduled for completion by July 11, 2026.
To prevent delays, Ahmad instructed the contractor to work overtime and recommended using Deed of Assignment (DOA) arrangements with suppliers, enabling direct government payment to speed up procurement.
He also urged contractors to submit claims more than once a month and called on project officers to expedite material approvals to avoid bureaucratic bottlenecks.
Ahmad also stressed that no EOT will be tolerated for the school project, and that the contractor must follow the timeline to ensure more than 1,900 students, expected to grow to 3,000, benefit from improved learning facilities on time.
Established in 1937, SK Pekan Lahad Datu is one of the oldest schools in the district and currently operates in two sessions.
The project is being implemented by the Public Works Department, through Special Project Team 2, with Bumi Daya Sdn Bhd as the main contractor.