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 Should Putrajaya bail out contractors?

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nihility
post Aug 7 2022, 11:42 AM

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It is not a simple as it is appear. If really all the existing contactors are unable to deliver it anymore , they will rather let their performance bond burnt than completing the Contract. By letting the bonds burnt , at most they lost few hundred K & got blacklisted, they can still “limp” around. Had they decided to continue to honour the Contract , they will straight away “gulung tikar” & losses mil figures instead for few hundred K figure. You think government will benefits anything by taking companies already gulung tikar to court? There is nothing to claim back from them anymore as there are list of debtors ok the list.

In the end , the government are still at losing end also. When the government recall the tenders, the price of the new tender will be at the higher price also. The sudden rise of the raw material prices , none of them want it, none of them expect it. This issue is almost identical to the rise of the chicken price when the price of the feed went up drastically. All they want is the stability of the material prices.

 

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