Three-year defect liability ordered

Federal Minister Ahad Cheema has asked the Pakistan Public Procurement Regulatory Authority to require a defect liability period of at least three years for major projects, with smaller projects brought under the rule in stages. The direction came during talks on reforms intended to improve construction-sector delivery and address industry concerns. Officials also discussed the proposed Construction Industry Development Authority Bill, including whether regulation and industry promotion should sit in one institution or separate bodies.

The meeting considered placing contractors’ retention money in interest-earning accounts, with the funds and returns released after the liability period; officials were asked to work out a practical arrangement. It also examined using Dispute Avoidance/Adjudication Boards on government projects, which the Constructors Association of Pakistan proposed for projects worth Rs20 billion or more, while Cheema sought a lower threshold for further discussion. The proposed framework is also expected to draw on International Federation of Consulting Engineers rules and standards.