Global financial crisis will hit construction industry - ICTAD chairman

by Lalin FERNANDOPULLE

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He said with the melt down effect of the crisis on many foreign banks investments on housing and large constructions will decline.

“Despite many challenges the construction sector recorded a nine per cent growth during the past three years. The Institute has submitted its proposals for the forthcoming budget”, he said.

Pathirage said the draft Act to convert the Institute of Construction Training and Development (ICTAD) into a construction industry development authority will be submitted to Parliament early next year.

“With the new institute there will be more powers and responsibilities vested on the new organisation which would help to develop the construction industry of the country”, he said. ICTAD which grades and registers contracting companies will monitor the performance of companies under the Authority. The Construction Development Fund will be used to support the SME construction sector.

Pathirage said ICTAD has sought assistance from the Government to provide concessions in the forthcoming budget for SME sector construction companies to import light equipment. “We have called upon the Government to formalise the equipment hiring and labour contracting sectors and grant incentives to improve the standard of the construction industry”, he said.

Quality certifications will be made mandatory for low levels of contracting companies to enhance professionalism in the industry. Higher grade contractors have to follow the same conditions.

ICTAD has called for additional funding to increase the number of training programs for new contractors.Training courses will help contractors to qualify for higher grades.

The shortage of skilled workers in the construction industry and many other problems faced by the industry were discussed at a meeting held between President Mahinda Rajapaksa and industry stakeholders on Wednesday.

The Ministry of Construction Industry launched the Sisunenapola training program for school-leavers to get jobs in the construction sector.

CEO/Secretary General, Chamber of Construction Industry of Sri Lanka, Dakshitha Thalagodapitiya said the Chamber in its proposals for the 2009 Budget has called upon the Government to restrict deploying foreign consultants and contractors to make the best use of domestic capacities.

CCISL has called for the introduction of statutory provisions to ensure foreign construction and consultancy companies to enter into formal collaborations, arrangements and joint ventures with local counterparts. Thalagodapitiya said incentives should be granted to recognised training providers to develop programs which will help address the shortage of construction craftsmen in the country.

The Chamber has proposed to set up a Construction Industry Human Resource Development Fund that will help to improve the quality of work and confidence in the industry.

“More awareness and image-building campaigns should be carried out to attract youth to the sector. A concessionary funding mechanism is needed for the SMEs in the construction, contracting and manufacture of construction inputs,” he said.