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