Why hiring a licensed contractor is crucial

KUALA LUMPUR - Media reports of many owners of homes and premises being scammed by unlicensed contractors, resulting in losses amounting to hundreds of thousands of ringgit due to unfinished construction or renovation work, are raising public awareness on the issue.

A Bernama check with several licensed contractors found that more people are now hiring them to carry out construction or renovation work on their homes or premises, even though their charges are higher than that of illegal contractors.

According to the licensed contractors, the stance of most of their clients is ‘it’s better to be safe than sorry’.

"Indeed, in the past two to three years, most homeowners sought contractors who offered budget or cheap prices, but recently, many have started to become more aware.

"Perhaps this awareness is due to the numerous media reports about cases of people being scammed by (unlicensed) contractors,” a contractor Izanizam Mohd Ihsan told Bernama.

GOOD PROFILE

Izanizam, 39, whose company is registered with the Construction Industry Development Board Malaysia (CIDB) and has six years of experience in the field, said many of his clients are unaware they need to secure a permit from the local authority to carry out construction or renovation work involving building structures.

"If the work is done without a permit, they are committing an offense under the law,” he said, adding such permits are only issued by the local authority concerned to licensed contractors.

He also emphasised the importance of registered contractors having a strong profile which can serve as a benchmark for gaining a foothold in the nation's construction industry.

According to him, registered contractors maintain high-quality work and cannot afford to be lax in executing a project as this could lead to them being blacklisted.

"As registered contractors, we do our best to protect the reputation and image of our companies, which is why we prioritise the quality of our work compared to unlicensed contractors.

"We also ensure our clients are informed about our companies’ background and we provide profiles of previous construction projects we’ve undertaken for clients' reference,” he said.

He added most registered contractors also have good ratings in the industry, which gives them an advantage in attracting more clients.

"A good rating ensures the sustainability of a contractor's company and allows them to compete in the industry,” he said.

Registered contractors, according to Izanizam, are more likely to complete a project within the stipulated timeframe, adding he personally ensures each project he undertakes has a timeline to which he closely adheres.

"At the very least, my clients know the percentage or extent of work we've completed... even though this may seem minor, it instills confidence in our clients,” he said.

He explained that, unlike illegal contractors, registered industry players are recognised for their skills and expertise, which are certified by relevant agencies including CIDB.

"Contractors who wish to register (with CIDB) must ensure they have solid financial backing, which reduces the risk of them not being able to complete projects and causing them to be abandoned,” he said.

CHECK WITH CIDB

He added most clients who wish to use his services also conduct checks to ensure that his company is legitimate and registered with CIDB.

Meanwhile, another contractor, who wished to be known only as Zainuldin, said licensed contractors have the opportunity to secure large-scale projects which in turn can generate significant profits for their companies.

He said contractors in this group are seen as more credible because they meet industry requirements.

"Moreover, when contractors have a license, they adhere to the laws, regulations and safety standards set by CIDB.

"They also ensure the safety of workers and the public at construction sites,” he said.

Zainuldin, 34, added registered contractors also have the advantage of securing new contracts and participating in government tenders.

"In my case, previously my work was limited to private home construction works. However, once I became more experienced and got my company registered (with CIDB), I started getting subcontract work for government projects.

"As an industry player, I also create job opportunities as my company needs more workers to carry out the projects offered to my company,” he added.

IMPROVE SKILLS

Meanwhile, according to CIDB chief executive Datuk Mohd Zaid Zakaria, many contractors are not aware they need to register with the agency to obtain an official licence to carry out building or renovation works for their clients.

He said most of them assume that to be a contractor, they only need to possess knowledge in certain trades without realising they have to register with CIDB.

"They think (a company undertaking) construction work does not need to be registered, but in reality, it does, as it (the construction industry) is regulated by CIDB. To register with CIDB, contractors must have financial capability as well as the necessary technical skills,” he said.

He also said some individuals take on small projects like roof repairs or cabinet making and then hire third parties like Indonesian workers to do the work.

"I find this unprofessional,” he said.

When asked about illegal contractors, many of whom carry out carpentry and small-scale construction projects in small towns and villages, Mohd Zaid said if these projects are valued at less than RM10,000 and involve fewer than three workers, they are given leniency to carry out the work without needing to register with CIDB.

"There are also skilled house builders who can build houses and possess the necessary skills, possibly inherited from family members but they still need to register so that CIDB can certify their skills,” he said.

To register with CIDB, small-time contractors need to have a sum of only RM5,000, either in the form of savings or assets, to qualify for a licence.

"In such cases, we grant them a G1 contractor grade licence (which allows them to take on projects valued at under RM200,000 each). We try to simplify their registration so there’s no excuse for them not to register,” he said.

As part of efforts to strengthen the country’s construction industry, Mohd Zaid said CIDB also offers opportunities to those interested in becoming industry players to undergo training and courses at the Malaysia Construction Academy, which is overseen by the board.

He said they can attend training and courses in areas such as bricklaying, industrialised building systems and electrical work.

"Youths can also take these courses... those who successfully complete the training and pass the assessment will be awarded the CIDB Construction Skills Competency Certificate, recognising them as skilled workers.

"... and the participation of these competent and trained individuals will indirectly increase the number of skilled local workers and further empower the nation's construction industry,” he added. - BERNAMA