Kathmandu, April 26
The Federation of Contractors Association of Nepal (FCAN) has expressed strong reservations against the potential removal of a provision outlined in the 12th amendment of the Public Procurement Regulation 2007 (PPR), which allows a single construction business to be awarded up to five contracts.
This issue was discussed during the 50th meeting of National Development Action Committee (NDAC). In a statement released today, Secretary of FCAN Roshan Dahal said that the provision outlined in the regulations, which is kept up-to-date, serves the dual purpose of preventing delays in construction works and providing equal opportunities for all contractors, including small and medium-sized ones, to participate in the bidding process.
According to the FCAN, the implementation of this provision has resulted in timely completion of projects and has allowed public assessment of the progress made.
The federation has emphasised the importance of implementing the provision more strictly as an essential system for the development of general infrastructure. "Rather than attempting to amend the regulations at the hands of vested interest groups, the provision should be upheld."
The federation has explicitly stated that participation in certain tenders has decreased due to the last-minute preparation of estimates at a lower rate, unnecessary criteria, site unavailability, lack of budget assurance, and payment issues.
The federation has warned that if the provision, which have been highly beneficial for both construction entrepreneurs and the general public, is scrapped, construction entrepreneurs across the country will be compelled to go on strike.
During the recent the 50th NDAC meeting, a proposal was made to amend the 12th amendment of the PPR due to the lack of bids from builders for small construction projects.
The meeting recommended that the Public Procurement Monitoring Office conduct a thorough review of the regulations within two months and revise them accordingly. It was suggested that the limit for builders to accept contracts be determined based on either the tender price or the type of physical structure involved in the project.
A version of this article appears in the print on April 27, 2023, of The Himalayan Times.
