Construction sector denigrated due to low bidding: FCAN president

Published On: March 24, 2019 08:11 AM NPT By: Dhruba Dangal

SINDHUPALCHOWK, March 24: The construction sector has been denigrated because of a rising trend of working at low bidding, according to Rabi Singh, president of Federation of Contractors’ Association Nepal (FCAN).

Singh asked construction entrepreneurs to stop doing business with those contractors who are willing to work at low rates.

“Quality of work is compromised when working for cheap,” Singh said, adding: “Low bidding also affects the project completion timeline.”

Speaking at the sixth district convention of contractors at Chautara, Singh admitted that there were some weaknesses in the construction sector, and asked the public to be cautious of low-bidding contractors.

He asked the concerned authorities not to sign any project at extremely low rates.
Singh claimed that delayed budget finalization by the government hampered project works, causing repeated failures in meeting project deadlines.

“We are compelled to halt work because of delayed budget finalization,” he said, adding: “Thus, deadlines are extended and projects are delayed.”

Singh underlined the need of a construction-friendly public purchase law and the amendment of current laws. He stated that in order to implement laws that are construction entrepreneurs-friendly, it is pivotal that entrepreneurs join hands to make their needs heard.

“Contracts up to Rs 50 million must be handed to local level contractors, while contracts exceeding this amount but less than Rs 150 million must be given to provincial level contractors,” Singh said, adding: “Contracts exceeding this amount must be given to large-scale contractors.”

He suggested that both international and national bodies be given the right to handle contracts over Rs 1 billion.

The convention concluded Saturday.

Many of the local politicians in Sindhupalchowk district are also contractors. Fifteen local level representatives of 12 local units in the district are in the contracting business. One rural municipality chairperson, 12 ward chairmen, and two municipality members are contractors.