Govt wants reliable contractors

Govt wants reliable contractors

TANGERANG: Starting this year, the Tangerang regency office
will require contractors who bid for development projects to have
a bank balance amounting to at least 10 percent of the value of
the project.

"With such a requirement, the contractors can no longer play
hide and seek with us," Regent Ismet Iskandar told The Jakarta
Post on Saturday.

That way, Ismet said, the administration can minimize
additional expenditure for public facilities, which is financed
by taxpayers.

"We had had numerous experiences with bad contractors who
reduced the value of the project by 60 percent," he said, adding
that several contractors had even neglected to complete the
project and still taken their payment.

Deputy chairman of Tangerang chapter of the Indonesian
Construction Companies Association (Gapeksindo), Khaerudin, said
that such a requirement should only be enforced for medium to
large companies.

He also demanded that the administration expedite the issuance
of construction permits "because the slow bureaucracy had
hampered the implementation, raising the cost of the project". -- JP