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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