SEBERANG PERAI — An estimated 75 per cent of delayed and sick construction projects nationwide are due to weak management, poor operational oversight and financial shortfalls, said Deputy Works Minister Datuk Seri Ahmad Maslan today.

He said technical issues at project sites made up the remaining 25 per cent which showed the need for contractors to strengthen their financial position, internal management and ability to deliver projects.

“Seventy-five per cent of delayed projects stem directly from poor contractor management, weak operational oversight and financial shortfalls,” he said at the CIDB Northern Region Contractor Convention 2026: NexGen Builders at the PICCA Convention Centre @ Butterworth Arena here.

Ahmad said contractors could no longer rely solely on technical competence, as their long-term survival depended on sound governance, robust cash flow, skilled personnel, technology adoption and proven delivery records.

“To survive, grow and secure government tenders competitively, contractors must have strong financial capability, sound management, good governance and the ability to deliver projects on time, within budget and to standard,” he said.

He said the industry must also reject shell companies, proxy bidding, tender-rigging and the practice commonly described as “Ali Baba” contracting, in which firms win contracts but pass execution entirely to third parties.

“We must eliminate the pervasive ‘Ali Baba’ practice,” he said.“Bumiputera firms should not secure projects only to rent out or pass off the contracts entirely to third parties without building their own expertise and execution capability,”