The government has agreed in principle to implement the variation of price (VOP) mechanism to help contractors faced with rising costs of construction materials due to the recent targeted diesel subsidy to ensure projects are completed on time.

Finance Minister II Amir Hamzah Azizan said the decision was made to reduce the burden of contractors and was at the discussion stage between the Finance Ministry, the Public Works Ministry and the Construction Industry Development Board (CIDB).

“Discussions have begun…