Govt considering creation of regulatory authority for construction industry

The government is considering a regulator and a separate promotional body for the construction industry, alongside a defect liability period of at least three years for major projects. Dawn reported that the proposals were discussed at a meeting chaired by Economic Affairs Minister Ahad Cheema on reforms to improve project delivery and address industry concerns. Participants will continue consulting stakeholders before finalising the institutional structure proposed in the Construction Industry Development Authority Bill.

The meeting also considered placing contractors’ retention money in interest-earning accounts, with the principal and return paid after the liability period. The Constructors Association of Pakistan proposed using the Dispute Avoidance and Adjudication Board mechanism on projects worth Rs20 billion or more, but Cheema called for a lower threshold and further discussion. The Pakistan Public Procurement Regulatory Authority was asked to work on introducing the liability period, while the framework is expected to draw on International Federation of Consulting Engineers standards.