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PENANG: The Penang government has cancelled the requirement of performance bond for Class F contractors with immediate effect.
Chief Minister Lim Guan Eng, when announcing this on June 2, said this was in line with the state government's decision to adopt the Treasury Circular No. 5/2009.
"Previously, contractors have to give 2.5% of their contract value, but from now on, the performance bond has been exempted in an effort by the government to assist small contractors," he told reporters after a meeting with the state Class F Contractors Association here on June 2.
He said with the cancellation of the requirement on performance bond, the government would have to monitor projects to ensure their smooth implementation.
Lim said the state government had also decided to cease with the practice of contractors being allowed to send their representatives for site visits.
"We want to give more opportunities for other Class F contractors and only the company owners who bring along the original registration certificates be allowed to conduct site visits," he added.
Lim said the decision was made to ensure only the genuine Class F contractors conduct the site visits and be offered jobs.
He also said that the registration fee for "ePerolehan" had been reduced to RM50 from RM100 previously. -- Bernama
