Poor contractor management behind 75 per cent of delayed, sick projects - Ahmad Maslan

Deputy Works Minister Dr Ahmad Maslan has identified poor contractor management as the primary reason for 75% of project delays and sick leave in the construction sector. Technical or construction site issues alone account for only 25% of the problems. Speaking at the Nexgen Builders Contractor 2026 Convention, Maslan emphasized the need for contractors to improve their management capabilities and financial position.

Technical or construction site issues accounted for only 25% of project disruptions, he stated. Contractors must take greater responsibility for completing projects on time, within budget, and to the required standards, Maslan urged. Contractors should have a proven track record and project delivery capability, he added. He also urged contractors, especially lower-grade firms, to upgrade their business capacity instead of remaining comfortable at their current level.

Digital transformation, including the use of Building Information Modelling (BIM), is crucial for improving project delivery and staying competitive, Maslan stressed. Contractors need to modernise their operations through digital technology to improve project delivery and remain competitive, he said. Maslan urged contractors to improve their financial strength, management capabilities, quality and safety compliance, sustainability practices, integrity, and strategic partnerships.

He stressed that stronger governance and professional management were essential to reduce project delays and ensure public development funds were used effectively. The Penang construction sector grew 13.4% while the state's economy expanded 7.3%, according to Maslan.