More powers under new construction Act:

Authority to replace ICTAD

Sanjeevi JAYASURIYA

The Construction Industry Development Authority will be the successor to the Institute of Construction Training and Development (ICTAD) under the proposed Construction Industry Development Act.

It will have more independence and will assume the role of a stronger regulatory body.

The industry needs regulation with change

The new Act will incorporate changes necessary for the industry to progress further, Chamber of Construction Industry Sri Lanka Chief Executive Officer/ Secretary General Dakshitha Thalgodapitiya told Daily News Business.

“The construction industry is the forerunner for national development. It is estimated that around 1.4 million people are directly and indirectly employed in the industry and it has recorded a growth rate of 6.4 percent.

“There are over 140 contractors classified as major contractors and most of them are from the Western Province which calls for specific capacity development of regional contractors,” Thalgodapitiya said.

The Government has a specific obligation to facilitate sustainability of the domestic construction industry. The industry stakeholders are concerned about the prominent presence of large number of foreign contractors and construction consultants in the country.

“The rationale of deploying foreign contractors on projects funded by commercial borrowings requires re-consideration, he said.

“With regard to the building material prices, the price of steel has come down and the overall prices have remained static. During the third quarter there has been substantial reduction in the volume of cement and also cement production which is a barometer for the industrial growth,” he said.

Expenditure for infrastructure development for highways and road development, ports and aviation, power and energy and urban development has increased by 50 percent, 36 percent, 61 percent and 44 percent compared to third quarter 2008.

However, most construction consultants, architects and construction engineers have been compelled to retrench staff due to lack of work.

“Difficulties are experienced by construction consultants, vendors of steel, cement and tiles which is a cause for concern and is attributed to large scale deployment of foreign construction consults, he said.

“A statutory provision needs to be introduced for the foreign companies who wish to enter domestic market and to encourage them to collaborate with local contractors.

“This is the only way forward to ensure long-term sustainability of the construction industry. The use of sub quality construction material is also a cause for concern.

“The quality control aspect of the construction material must be seriously addressed without which we may be witness collapse of buildings and other structures,” he said.