SHAH ALAM, 3 Apr: RM430 million or 18.25 percent was saved by the Selangor government from 2011 to 2014 through 322 projects that were implemented through the lowest tender policy.
The lowest tender policy or the actual name, Lowest Price After Passing Technical Evaluation Policy, was adopted by the state government to achieve the objective of ‘value for money’.
The Chief Minister of Selangor, Mohamed Azmin Ali, said that 3,761 projects have been managed through tender at the local authority level, which adopted the same policy.
“Turnover from local authorities involving the Department Estimate (AJ) amounts to 1.1 billion ringgit and the actual turnover amounting to RM871.8 million.
“This means that at the local authority level, they have reached a price of 290 million or 18 percent,” he said when answering a question from Radziah Ismail (PKR-Batu Tiga).
According to Mohamed Azmin, records throughout this period showed that there were cases where projects had to be re-tendered due to unsatisfactory work performance and there are cases where contractors did not enter development sites because they rejected the tender obtained.
“15 projects worth RM83 million were problematic because of the delay in progress by the contractors, causing the contractors to be terminated.
“Meanwhile, 3 projects with a turnover cost of RM15 million that were problematic due to the withdrawal of contractors before entering the site due to extremely low prices,” he said.
Checks on the local authority data found that 193 projects were categorised as problematic, 18 cases of which had contractors withdraw before entering the site, 83 cases where projects were cancelled and 92 cases where cases had to be re-tendered.
“The appointment of new contractors had to be done to complete the remaining work,” he said.
NS
