Public construction contractors allowed to renegotiate terms

By Shelley Shan  /  Staff reporter

Thu, Mar 09, 2017 - Page 3

Public construction project contractors can request a deadline extension or an increased budget following the introduction of the new labor laws, the Executive Yuan’s Public Constructions Commission (PCC) said yesterday.

Commission Minister Wu Hong-mo (吳宏謀) announced the plans at a Transportation Committee meeting at the legislature in Taipei yesterday, after concerns that public construction projects would be further delayed after the “one fixed day off and one flexible rest day” policy was implemented.

“If the enforcement of the amended Labor Standards Act (勞動基準法) affects government contractors’ ability to meet deadlines and causes construction costs to rise, they can follow due procedure to change the terms of the contract with the government,” Wu said.

Wu said that the commission has provided government agencies with solutions to avoid disputes that could arise because of the labor act.

Amendments to the act were enforced on Dec. 23 last year, Wu said, adding that government contractors would be given a two-day extension for each month remaining on a project if the contract was signed before the amendment took effect.

The measure can be implemented without making amendments to the law, he said.

Government agencies and contractors have to recalculate the costs, he added.

Democratic Progressive Party Legislator Yeh Yi-jin (葉宜津) said that while the act increases construction personnel costs, construction costs should not increase if the deadline is extended.

Wu said that the commission has a mechanism to help government agencies determine if a contractor should be given an extension or be allowed to raise construction costs.