CONSTRUCTION ASSOCIATION

OF

BHUTAN

Mission & vision

Mission:

To develop and promote the Bhutanese constructionindustry and to represent the Bhutanese constructionindustry at national, regional and international level

Vision

To foster the growth of the member contractors toachieve excellence and become world class providersof all services in the construction sector

Roles & Objectives Role of the Association

To represent as a forum for the construction industry inBhutan and address problems and policy issues at national,regional and international level for the development andpromotion of construction industry

Objectives“Development” through identifying, facilitating andassisting construction industry in business, informationand technology development; and“Promotion” through assessing, monitoring and assistingthe needs, performance and problems of the constructionindustry.

Functions Address specific problems and policy issues related to construction industry

Interact with concerned agencies both within and outside the country fordevelopment and promotion of construction industry;

Promote awareness amongst the construction industry on nationaldevelopmental plans and programs; Initiate and implement developmentaland promotional plans and programs for construction entities;

Represent and Advocate for development and promotion of constructionindustry;

Gear the construction industry towards strengthening of the association as astrong representative forum for construction industry’s benefit

Act as a bridge between the BCCI and the Government for the contractors; Identify high quality and reasonable equipments suppliers from within and

outside the country. Coordinate contributions from the construction sectors as an when our

country face situations like; disasters .

Activities/Mandates Assist. During licensing & registration. Recommend on recruitment of manpower. Develop database for HRD assessed needs. Capacity development through sensitizing government

policies & procurement norms Grievance intervention and extending arbitration services Disseminate construction related information to all

contractors Review policy, plans & programs for the industry Institutionalize intervention measures & mechanism to

accord fairness and transparency in procurement andcontractual disagreement

Issues Discussed with the Govt. HR/ Employment Generated by Construction Industry

I. No significant development in the HRD in the pvt.sector

II. Both in-country/ex-country training could beextended to pvt. engg and managers as well.

III. For the long term purpose, HRD Plan for EconomicSectors is included in the 11th FYP MP

Prime Minister speaking to our contractors during the “meet the contractor” 2014.

Equipments

•The Construction industry is

labor intensive .

Quality:

Avoid awarding the work to extremely low bids

Revisit tendering and bid evaluation system

QAS policy – contractor and government engineersresponsible for ensuring quality.

Improve the rate as per the market rate.

Up-grade the utilization of Materials.

Issues from other Dzongkhags related to Procurement Rules. Uniform implementation of PRR.

Evaluation reports still not being made public

Lack of awareness about govt. rules and regulations

Between RGoB and Corporations

Between Govt. to govt.

Implement more training program with thecontractors and employees, Esp. Engineers andManagers.

Other Related issues Delayed payment for GoI funded projects

Deviation clause for small works missing.

Material Testing Labs at JNP and CST.

Procurement appeal and review committee.

Re-tendering / negotiation.

Direct entry to Large & Medium Class – difficult toqualify since they lose 20 points for credit facility andbid capacity etc

Cont ……. Hindrance such as rainfall, snowfall to be considered

High medical expenses for labor recruitment

Equipment and manpower getting locked in the E-toolsystem

Shortage of engineers.

Under-quoting.

Achievement of CAB since 2012

Appointment of a new General Secretary in oct. 2015

CAB is a registered member of Civil SocietyOrganization (CSO) since April 2012

One contractor engineer can supervise two workssimultaneously pertaining to same contractor only –govt order no. MoWHS/CDB-2/2012-13/2170 dated 11th

April 2013

The payment of advance is increased to 10% instead of7% in the SBD – effective from July 2013 vide letter noMoF/PPPD-08/2012-13/228 dated 25 June 2013

Cont …. Price adjustment duration is reduced to 12months

from 18 months w.e.f 9th Nov 2010 or 12th July 2010 ofGovt Executive Order

Payment of bills within 30 days – Circular.

Evaluation report to be made public

Proposal for introduction of electronic MBs

Biometric system introduced by Immigration

Unconditional/conditional BGs

Cont …… GoI project pending bills reported to MoF and

MoWHS ministers.

Foreign workers recruitment agents: options available

Under quoting.

Establishment of an Independent Review Body forProcurement Grievances w.e.f 1st July 2012:

Mobilization advance is amended as 10% instead of 7%as reflected in the Standard Bidding Document (SBD)– effective from July 2013 vide letter no MoF/PPPD-08/2012-13/228 dated 25 June 2013

Cont …… BKK trip. ( Will continue with the interest of the contractors Free training program in India – more information on CAB web

page CAB is represented as a steering committee for Skills

development project in MoLHR. CAB is representated in the CDB Board, Bhutan Business

Committee, Bhutan Pricing Committee. Up- graded the CAB official website for better information

devilry. Started Bulk SMS for information dissemination. Coordinate and contributed financial contribution from the

construction sector during the 4th king birthday celebration 2015,nov.

Work Plan 2016 Identification, Setting up of regional offices and operation

Construction Diary

Construction Expo

CI Human Resource Mapping

Capacity building (CSO)

SLR collection deadline

Conduct Annual General Meeting

Upgrade stand alone system to Web based SRL system

Development of contractor registration system

Advocacy tour

Arbitration case study

Internal Review Body case

Field verification

Cont ….

Cont …..

Issues to be discussed with Government immediately Point for fresh engineer in the evaluation system

CDB registration & renewal fees

Escalation & deviation clause for Small class

Differential amount (not applicable within +/- 20%margin)

Consumer Price Index (CPI) of Bhutan instead ofWholesale Price Index (WPI) of India

Improvement of E-tool System

CAB to initiate training & recruitment of VTIs

Points from contractors if there is any!. Points from contractors for CAB to take up with the

Government immediately.

Nomination &Election of MembersI. Election of DLC Representatives

1 Chairman

2 Large Class Representative (optional)

2 Medium Class Representative

2 Small Class Representative

II. Nomination for President and Vice President

Tashi Delek