Malawi Broadcasting Corporation
Local News

DEVALUATION SPARKS CALL FOR PROJECT COST REVISIONS

The Board Chairperson of the Roads Authority (RA) says the Government will address concerns related to contracts, including delayed payments and proposals for revising project costs following a 44 percent devaluation.

During an interface session in Lilongwe to discuss the status of construction works, Rev Dr Matilda Matabwa, the RA Board Chairperson, stated, “We have heard and understood their concerns; we will present them to the entire board to determine the way forward.

“However, some contractors tend to lower project prices during the tender process only to request revisions later, which is not fair,” she added.

Rev Dr. Matilda Matabwa, the RA Board Chairperson

Regarding quality, Matabwa challenged local contractors to ensure their final output represents value for taxpayers’ money.

The assurance follows complaints from local contractors about delayed payments and soaring material prices in the wake of the 44 percent. devaluation.

Engineer Rocky Kaunda, the representative of Dika Construction, emphasised the challenges faced by the construction industry due to increased prices for materials like cement.

“We request the government to review a certain clause in our contracts prohibiting project cost revisions to allow for adjustments, especially during economic shocks like devaluation. They should also expedite payments because currently, it takes too long,” said Kaunda.

Earlier, the Roads Authority had engaged consultants to discuss various issues, including the timely completion of projects.

Reported by Isaac Jali.

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