KATHMANDU, Aug 16: Arguably for the first time in the history of the country, 'ill-intentioned' contractors were booked by Home Minister Ram Bahadur Thapa in April/May, sending ripples across the construction sector.
Stringent action against contractors at fault is now going to be the norm, thanks to the newly introduced Muluki Criminal (Code) 2075 that comes into implementation from Friday. Contractors may face up to 10 years in jail and fines of Rs 100,000 for any substandard work resulting from ill intentions.
Clause 250 of new Muluki Criminal (Code) Act that was endorsed a year ago states, “The work of any civil contractors or any other contracts should not be different from the specified criteria and qualities in the contract documents. If any work is substandard or was carried out using substandard construction materials, the contractors will face the music.”
Any authorized sub-contractors are also liable to action by the government.
Landmark legal reform bills passed
These new provisions on jail terms for contract violations will bring changes in construction management in the country, according to former bureaucrats. Lack of sound infrastructure is a growth constraint and the government is spending huge amounts for remedying the purpose. But it is dogged by poor contract administration and quality monitoring . Corruption and bribery by project executing officials are common and account for the poor quality work by contractors.
Retired secretary at the Ministry of Physical Infrastructure and Transport Tulsi Situala said severe punishment will be helpful in bringing change in project management and ensuring quality in the work done, something which has eroded badly in recent years.
Sitaula, however, stressed implemention of the law . “Implementation is key. Several laws and provisions for making contractors accountable have existed only on paper, allowing them to walk free,” said Sitaula. He also added that there was no provision for jail terms.
There were fines and blacklisting for up to three years, but contractors were getting off the hook thanks to political protection or bribery.
Home Minister Thapa's crackdown , however, fizzled out amid lobbying and protests by the contractors and without any clear statement by the government over the matter.
FCAN DEMANDS OMISSION OF JAIL TERM PROVISION
Contractors are now fearful of possible arrest for substandard work as the new law comes into effective from Friday. Organizing a press meet, the Federation of Contractors Association Nepal demanded that the jail term provision be amended out.
General Secretary of FCAN Ram Sharan Deuja said this provision will drive them out of business.
“These laws are unnecessary as the Public Procurement Act and other laws already govern the construction sector ,” added Deuja. Seizure of all security deposits, recovering of up to 10 percent of liquidity damage, blacklisting for maximum three years, filing corruption cases at the Special Court and not paying the bills for any substandard work are sufficient for keeping the construction sector in line, according to a press release issued by FCAN.
