Special Feature
Types of IBS based on precast concrete technology .
B & I : In Kuching , 30 industry leaders from Sarawak signed a pledge of commitment to CITP last week , witnessed by the Honourable Minister of Works . Is this mooted by CIDB , mandatory or voluntary ? Also , what is the status for the rest of the country ?
AAAH : Actually , there were 33 companies who signed pledges in Kuching and , to date , the overall number is 121 , including the 56 that were signed the other day in Melaka . In the Klang Valley , 26 associations and 6 agencies under the Ministry of Works have given their pledges and our target next is Sabah , Penang and Johor . In their commitment to CITP , the undertaking given by these signatories is that they will use what CIDB promotes , e . g ., QLASSIC . For the record , these pledges are voluntary , not compulsory , and some are detailed as to what exactly they want to do whereas some are general in scope .
B & I : Driven by CIDB , IBS is designed to resolve multiple issues of foreign labour , construction waste , clean and safe work sites , speed of construction , etc . Yet , the industry has not wholeheartedly embraced and absorbed IBS – what compelling reasons is the industry offering ?
AAAH : No . 1 would be the traditional mind-set of building by conventional methods and not wanting to change . No . 2 would be that contractors feel that their ‘ power ’ is being shifted from them to suppliers of IBS , power meaning the profit margin is higher there , with the suppliers , than here , with them . If you are a contractor
doing conventional methods , workers and your sub-cons are actually under you , that means , in terms of profit distribution , you are in control . Now you go to IBS suppliers , you are actually at their mercy - they may not deliver or deliver on time and some may even demand advanced payment .
CIDB proposal ’ s , that has been approved by the Government , for the separation or decoupling of procurement will ease contractors ’ burden but they will still complain because they will not have control anymore and the margin is smaller . The comparison is the same as between a doctor and pharmacy – the doctor charges for medical check-up and dispensing medicine , the same medicine you can buy direct and probably cheaper from the pharmacy .
Most block types permit site casting and require low production cost .
Contractors are no different , they make from materials but the minute they go to IBS manufacturers who control these materials , there goes their margin . So it ’ s about mindset and power , losing its control or having it reduced .
In the perception of high cost , they also talk about transportation charges , that manufacturers are not widespread and that more plants should be encouraged , no economy of scale in IBS and so on . Well , according to CIDB statistics , there are 13 manufacturers in Sabah , 11 in Sarawak and 78 in Selangor and with provisions in Budget 2016 for tax holidays and zero import duty on IBS machinery / equipment , we should see higher IBS absorption in the industry during the tenure of CITP . ■
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