Govt considering creation of regulatory authority for construction industry
ISLAMABAD: The government is considering establishing two new bodies — a regulatory authority and a marketing entity — for the construction industry along with a three-year defect liability period for major construction projects in the country. Private sector figures in construction and the government, however, differ over the financial size for the application of a defect liability period, with…
The Pakistani government is contemplating the creation of a regulatory authority and a marketing entity for the construction industry, alongside a three-year defect liability period for major construction projects. Private sector representatives and government officials held an exploratory meeting to discuss these reforms, chaired by Economic Affairs Minister Ahad Cheema.
The Construction Industry Development Authority (CIDA) Bill was the primary focus, with officials debating whether to consolidate the sector under one body or maintain separate entities for regulation and promotion. Concerns were raised over the financial threshold for defect liability, with the industry seeking at least Rs20 billion and the government advocating for a lower amount.
The meeting also considered integrating the Dispute Avoidance and Adjudication Board (DAAB) mechanism for government projects, with a possible threshold set at Rs20 billion, although Cheema suggested lowering this limit. International standards from the International Federation of Consulting Engineers (FIDIC) would inform the framework's development, and the Pakistan Public Procurement Regulatory Authority (PPRA) was tasked with implementing the defect liability period for major projects, with plans to extend it to smaller projects in phases.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
