Construction Development Act - part vi

Short coming in the Act

The act provides provision to maintain a register of qualified persons. Also professional institution acts like IQSSL act also provide provision to maintain their qualified person register. Because of that there may be discrepancy between the professional institutions register and the Authorities’ register.

 For an example, a member who expel or suspend the membership of IQSSL,  may not listed as a member of IQSSL whereas the Authority’s qualified persons list may listed  as the same person as a qualified person due to communication delay. Therefore it’s important to maintain effective communication link between institutions and the Authority.

Another shortcoming is the both the Authority and professional institution are having authority to investigate complaint against qualified members/members and take actions.

If there is a complaint against a member submitted to respective institution, and therefore or before, the same may submitted to the Authority, what is the situation?

Are both entities going to hear the case and make decision?

What is the situation, if the decision given by two entities is differ?

Therefore there should be provision to hold one enquires by one entity or both shall jointly appoint a one committee to hear the complaint.

Another thing is, currently some countries like china provides funds for construction of road and building and according to the agreement between Sri Lankan government and funder it’s required to award the construction to a contractor from funders country (e.g: Chinese contractor) and   moreover consultant and even a specified percentage of labours and craftsmen also shall from funders country. Accordingly, it is illegal to employee foreign craftsman when those are locally available.

However will foreign funders agree to not to employee foreign craftsman?

If not, this provision may adversely affect to receive loan from such countries.

Conclusion

The act wills exactly a reason for the positive movement of the construction industry. It has addressed all major aspects in the industry. Especially it has addressed the welfare of craft persons in industry. However it will caused to increase the construction cost due to the new levy. Moreover it seems some sections of the act needed to well coordinate with other act related to professional institutions. For an example, disciplinary action procedure against a charted engineer (qualified person) specified in both constructions act and the IESL act independently.

END

Construction Development Act - Part iii

Section iv(CONSTRUCTION INDUSTRY DEVELOPMENT FUND AND FUND OF THE AUTHORITY)

The section iv of the act makes provisions to establish the “Construction industry development fund and “Fund of the Authority”.

Construction industry development fund

Minister to whom the subject of Construction is assigned impose a levy to be called as “Construction Industry Development Levy”. The rate of the levy to be determined and to be approved by the Parliament and it will charges as a percentage of construction cost of projects.

Income

The new levy will be the main source of income for the Construction industry development fund. In additions to that there are some other income sources such as by way of loans, rent, donations, gifts or grants whether from foreign or local sources.

Expenditure

The fund shall be spending for the expenditure incurred by the Development Fund in the exercise of the powers and discharge of the functions, subject to following guidelines.

ü  More than 50% of the fund shall be reserved for the welfare of the small scale contractors and self-employed registered craftsmen.

ü  Not less than 5% of the fund shall be reserved for research and publications

ü  Not less than 5% of the fund shall be reserved for the purpose of rewarding and encouraging the inventions, applications and propagation of environmentally friendly and cost efficient construction technologies

ü  Arrange long term insurance with pension benefits, for craftsmen registered

The management and administration of the affairs of the Development Fund shall be vested with National Advisory Council on Construction, while the Authority shall have its own Fund for its management.

Section v (QUALIFIED PERSONS)

Currently various professional institutions are maintaining their qualified members register. For an example the Council of IQSSL is maintain a Register of Members according to the section 6 of Act, No. 20 of 2007(IQSSL Act).  The Act also vested the power to maintain a register of qualified persons by the Authority.

The qualified persons shall recommended by the Credential Committee as being qualified persons in Engineering, Architecture, Quantity Surveying and etc. in consultation with the respective institutions. All members of professional institutions like IQSL (SL), IESL, SLIA and etc. established by an Act of Parliament are consider as qualified persons.

The Register shall be available for inspection by any person free of charge and this will convenience for the people who are interest to know or verify qualified persons in various trades in a one place.

There may be members in qualified persons register whereas not in the respective institutions member list due to their qualification obtained through another similar institution and approved by the Credential Committee. For an example member of RICS may include in the qualified persons register where as he is not in the IQSSL members list.

Since the Credential Committee may accept the membership of other foreign institutions membership to include such members in qualified persons register, the act recognize such institutions membership within Sri Lanka. It makes equivalent the foreign institutions membership and the local institutions membership recognition. However since the Credential Committee appoint by the Authority and the majority of the board members of Authority to be appointed by professional institutions, such equivalent recognition may only give to high standard foreign institutions.

The Credential Committee shall appoint by the Authority and it shall identify and categorize professional and vocational disciplines, minimum qualifications and experience required for registration of construction manpower including qualified persons under this Act.

Professional institutions have complaint handling and disciplinary action procedures. For an example section 30-33 of Act No. 17 of 1968 (IESL act) has provision to take disciplinary action against its members. However the Construction Act also has provision to handling of any complaint against a qualified person.

The Act also specified that only the qualified persons shall carrying out of, designing, and preparation of required contract documentation and supervision of any identified construction work of any identified construction work.  Regarding foreign consultants who willing to engage as a qualified person, they are also required to register (provisional) with the Authority.

Currently local authorities require approval of charted engineer/architects for the designs of some construction work however no such current requirement for contract documentation and supervision. Therefore this provision will upheld the quality of construction work.

The identified construction works refereed above means all buildings, structures, or any building or structure or landscape which consists of facilities and amenities for public use exceeding in value rupees ten million but any private residential building constructed for the personal use of any private owner shall be excluded.

Next : Section vi to x