Govt considering creation of 2 regulatory authorities for construction industry, 3-year liability period for projects

The government is weighing two possible regulators for the construction sector and a minimum three-year defect-liability period for major projects, Dawn reported on October 28. The proposals were discussed at a reform meeting led by Economic Affairs Minister Ahad Cheema, where officials also examined a draft Construction Industry Development Authority bill.

Industry representatives want the defect rules and dispute-resolution process applied to projects worth at least Rs20 billion, while Cheema called for a lower threshold and more consultation. The meeting also considered returning contractors’ retention funds with interest after the liability period, using dispute boards on government projects, and drawing on FIDIC standards; PPRA was asked to begin work on the liability rules, with smaller projects to be included in stages.