WE refer to the recent statement by Works Minister Datuk Seri S. Samy Vellu on direct payment to sub-contractors in the event the main contractor fails to pay or under-pays the sub-contractor.

The issue of non-payment, delayed payment and reduced payment to sub-contractors has plagued the construction industry for a long time. It is good the government has recognised the problem.

Generally, sub-contractors have few avenues to compel main contractors to pay what is due to them. The most common excuse is the non-preparation of the payment certificate or under-certification.

We have carried out a number of government jobs as a sub-contractor to main contractors, the most recent being a construction job in Penang. In nearly all cases, we have monies outstanding to us.

With reference to the minister’s statement, it would be helpful if he could detail the procedures or processes a sub-contractor has to follow to forward this issue to the authorities.

Is the minister’s statement also relevant to other ministries?

It would also be helpful if safeguards are introduced when jobs are awarded to main contractors to prevent either non-certification or under-certification and subsequent non-payment or under-payment for work carried out by sub-contractors.

Expecting the sub-contractor to finance the works cannot continue and will lead to a disaster for the construction industry.

A.H.M.Y., Petaling Jaya

Source: NST – February 15, 2008