Construction chamber calls for continuous dialogue with Minister

The construction industry over the past 4 years faced tremendous difficulties where consultants, contracting companies, manufacturers and suppliers of building materials connected to the industry suffered heavily due to the internal conflict and the global recession, said President Chamber of Construction Industry, Surath Wickremasinghe addressing the felicitation ceremony of Minister Wimal Weerawansa organised by the Chamber.

The grossly inadequate work opportunities for the private sector was further compounded by the government awarding government funded projects either to the public sector agencies or to foreign contractors.

In addition the non payment of dues to some of the private consultants and contractors by the government made the situation worse.

Therefore, private sector development activity in the construction sector virtually collapsed resulting in the large scale retrenchment of staff, reduction of working hours and the inability of meeting financial commitments to both staff and banks.

However, with all these difficulties the construction industry was patient and did not want to as the Government’s priority was to end the internal conflict. At the same time we were looking forward to better times.

We should now capitalise on this victory, the President’s re-election and that of a new stable government.

We must move forward to implement the Mahinda Chinthana - Idri Dekma.

The implementation strategy should give confidence and direction to the private sector participate in the development effort as a partner to bring results to the economy and the quality of life of our citizens.

Wickremasinghe said that some of the constraints faced by the industry include the prevailing tax structure, lack of opportunities for domestic industry professionals in foreign funded projects and lack of proper procurement procedure when calling for tenders.

There are several taxes imposed by the Government.

Due to this the cost of building materials, bank interest, transport and labour cost are still very high. Review with the Government with a view to promoting more investment in the industry is needed.

Very few private sector consultants and contractors have work in infrastructure projects. Major projects are awarded to foreign consultants and contractors.

consequently, the local consultants and contractors are compelled to under quote to keep their organisations running and work as sub-contractors to foreign counterparts.

There is no transparency and competitiveness when awarding tenders. Most government tenders are awarded to State sector agencies.

The Government must promote urban re-generation projects through public/private/partnerships, by re-housing slums and shanties and by re-locating other undeserved buildings such as warehouses, in alternative sites and liberating prime land for commercial, residential, tourism, recreation, open space and other activities.

We are aware that land for development has been identified in selected locations in the North and the East and in the South.

To promote development this information from the blueprint stage along with the specific land use should be speedily communicated to the private sector.

This will impart confidence for investors/developers to venture on their own or in public private partnerships.

The Government must be ready with its concession agreements, shareholders agreements and public private partnerships formation documentation.

The Construction Industry will welcome the Government to be receptive to awarding the lead role to local consultants and contractors on all Government and government Aided Projects, instead of awarding the work to foreign consultants and contractors.

In this connection, a protocol should be established in bi-lateral and multi-lateral agreements between the government and the foreign counterpart.

This is a long overdue requirement to stabilise and give confidence to the local construction industry.

We solicit your support to safeguard the interest of the Sri Lankan construction professionals.

Our Chamber requests for a continuous dialog with the Minister to resolve construction industry issues on a fast track basis.