Government plans minimum three-year defect liability period for major projects

The government is preparing rules that would keep contractors liable for defects in major public construction projects for at least three years, with the requirement phased in for smaller projects later. Business Recorder reported that Federal Minister Ahad Cheema asked the Pakistan Public Procurement Regulatory Authority to start work on the measure during a meeting on construction-sector reforms.

Officials also discussed a proposed Construction Industry Development Authority bill, including whether regulation and industry promotion should sit with one body or separate institutions. The meeting considered placing contractors’ retention money in interest-earning accounts and returning both principal and earnings after the liability period. The Constructors Association of Pakistan also proposed using dispute-avoidance boards on projects worth Rs20 billion or more, while Cheema urged further consultation on a lower threshold.