Participants examined the proposed Construction Industry Development Authority (CIDA) Bill during the session. Senator Ahad Cheema stated that the CIDA Bill requires consideration of establishing either a single body or two separate entities for the construction sector.
Minister of State for Finance Bilal Azhar Kayani and representatives of the Constructors Association of Pakistan (CAP) were asked by Cheema to consult on the institutional structure. The meeting also addressed the possibility of placing contractor retention money in accounts that earn a return.
Officials considered applying the Dispute Avoidance/Adjudication Board (DAAB) mechanism to government projects. The Constructors Association of Pakistan (CAP) proposed applying the DAAB mechanism to projects valued at Rs20 billion and above.
Senator Ahad Cheema called for lowering the Rs20 billion threshold for the DAAB mechanism. Senator Ahad Cheema directed the Pakistan Public Procurement Regulatory Authority (PPRA) to work on introducing a defect liability period of at least 3 years for major projects.
This defect liability period measure will be extended to smaller projects in phases. Minister of State for Finance Bilal Azhar Kayani, Secretary Housing Captain (R) Muhammad Mahmood, Member Planning Commission, MD PPRA, and representatives of CAP attended the meeting.
