Construction industry records 17 % growth in 3Q 2011

Shirajiv SIRIMANE

Due to massive development endevours by the government and private sector in 2012, the construction industry has recorded a phenomenal growth of over 17 % in their third quarter of 2011 versus 11 % in the corresponding period of 2010. “Growth in the construction industry has been second only to the tourism sector, due to spillover effects of mega infrastructure development programmes, housing and post war reconstruction and resettlement processes taking place through-out the country, said Krishan Debaragoda chairman, George steuart Engineering Pvt Ltd.

With a history of over 10 years, George Steuart Engineering will continue to specialize in the power sector development, building construction, the telecommunication sector, road development and water supply and drainage sectors. According to ICTAD (Institute of Construction Training and Development), the apex regulator for the construction industry, there are about 2,500 registered contractors. Only 5 % of them are graded as “major’ or ‘specialist’ contractors. All of them have handled together nearly US $ 3.8 billion work during 2011.

“This is not enough. This situation is mainly due to the fact that most of our construction companies are family based ones and not aggressive enough to take up challenges for innovation and expansion. They are not only reluctant to adopt new technologies but also unwilling to take any financial risks. For an example, their presence in the Colombo Stock Exchange is almost zero.

Lack of vaguer among most of our construction companies and their inward looking attitude to business has restricted majority of them becoming subcontractors to large scale foreign and local contractors. I think that, the time has come to change the rules of the game, not only to enable a strong construction sector, but also to ensure a better Sri Lanka for all of us to live, work and play in an environment where national reconciliation is at its best.

The Sri Lankan contraction sector, particularly contractors are still highly dependent on the conventional natural resource based materials for construction, instead of shifting into ‘green technologies’ and sustainable ways of utilizing the already depleting resources with a view to preserve them for the future.

Application of modern concepts of green building designs and technologies; and energy efficient lighting technologies to meet the challenges of demand side management and adoption modular technology for his density condominium and high rise developments are essential; to increase the efficiency and productivity as well as to maximize sustainable yields or profits.

Also most of our constructions are heavily over designed, thus many clients find it difficult to finance their projects. These were some of the issues to be addressed consciously, as an urgent priority,” he said.

In this background, there is no doubt that Sri Lanka will experience a large scale capacity shortfall in the industry, if not immediately fulfilled will adversely affect the development of the industry, as well as the post war development efforts of the country.

George Steuart Engineering, formally known as Lanka Creative Constructions (Pvt) Ltd was established in 2002. With a history of over 10 years and understanding the need for sustained excellence in the sphere of engineering, GS engineering combines a wealth of experience with cutting edge technology in crafting perfection at the highest level.

The company was also bestowed with the ISO 9001: 2008 Quality Management System Certification for its continued commitment in delivering cutting edge solutions in the constriction of buildings and associated infrastructure development.