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…
In an exploratory meeting chaired by Economic Affairs Minister Ahad Cheema, the Pakistani government is considering the creation of a regulatory authority and a marketing entity for the construction industry. The meeting, which included senior officials such as Minister of State for Finance Bilal Azhar Kayani and Secretary Housing retired captain Muhammad Mahmood, also discussed a three-year defect liability period for major construction projects.
Private sector figures and the government have differing views on the financial threshold for applying this liability period, with the industry seeking a minimum of Rs20 billion and the government proposing lower amounts. The meeting also considered applying the Dispute Avoidance and Adjudication Board (DAAB) mechanism to government projects, with a proposed threshold of Rs20 billion that Cheema suggested lowering.
The framework for the construction sector will incorporate international standards, such as those from the International Federation of Consulting Engineers (FIDIC). Additionally, the Pakistan Public Procurement Regulatory Authority (PPRA) has been tasked with implementing a defect liability period for major projects of at least three years, with the measure to be phased in for smaller projects.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
