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Construction cost in Sri Lanka is higher than in some of the other Asian Countries and this is a concern among the investors and developers,” said President of Sri Lanka’s Chamber of Construction Industry, (CCI) Surath Wickramasinghe.
Speaking at the Build SL 2015 International Exhibition at BMICH he said some of the major items such as steel bars, ceramic ware, aluminium extrusions, and carpets etc are cheaper in the region.
“If the cess could be removed or reduced, for such materials only, then the building costs can proportionately be reduced, making our industry more competitive. The Chamber is in support of the new policy decision taken by the government to award the building of the Northern Expressway contracts to local contractors, who have proven their capabilities to construct expressways, and for which Letters of Intent and Awards have also been issued by the RDA. “
“Therefore, the new Government in order to “fast track” the urgent Northern Expressway Project should re-constitute the procurement strategy to ensure the contractors’ capabilities to undertake a project of this magnitude”.
“This may be achieved, if the local contractors, who have been selected for individual packages, are requested to form joint ventures (JV) with other local contractors.“It is pertinent to mention that the respective contractors have invested heavily on machinery, equipment and also manpower resources, to undertake the projects.
“This is applicable not only for the road projects, but, also for other contracts. For example, the delay of the Northern Expressway, under Construction is reported to be due to not following proper and appropriate procedure by the relevant agency.”
“The Chamber of Construction Industry (CCI) is in a position to advise the National Procurement Agency regarding an appropriate Procurement Policy, since our membership includes high calibre professionals in all sectors relating to the construction industry.”
Wickremasinghe said the selected contractors should be given the deals again, but the profits could be shared among more local contractors through more joint ventures.
Speaking at the Build SL 2015 International Exhibition at BMICH he said some of the major items such as steel bars, ceramic ware, aluminium extrusions, and carpets etc are cheaper in the region.
“If the cess could be removed or reduced, for such materials only, then the building costs can proportionately be reduced, making our industry more competitive. The Chamber is in support of the new policy decision taken by the government to award the building of the Northern Expressway contracts to local contractors, who have proven their capabilities to construct expressways, and for which Letters of Intent and Awards have also been issued by the RDA. “
“Therefore, the new Government in order to “fast track” the urgent Northern Expressway Project should re-constitute the procurement strategy to ensure the contractors’ capabilities to undertake a project of this magnitude”.
“This may be achieved, if the local contractors, who have been selected for individual packages, are requested to form joint ventures (JV) with other local contractors.“It is pertinent to mention that the respective contractors have invested heavily on machinery, equipment and also manpower resources, to undertake the projects.
“This is applicable not only for the road projects, but, also for other contracts. For example, the delay of the Northern Expressway, under Construction is reported to be due to not following proper and appropriate procedure by the relevant agency.”
“The Chamber of Construction Industry (CCI) is in a position to advise the National Procurement Agency regarding an appropriate Procurement Policy, since our membership includes high calibre professionals in all sectors relating to the construction industry.”
Wickremasinghe said the selected contractors should be given the deals again, but the profits could be shared among more local contractors through more joint ventures.
