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Project allocations available in full prior to commencment
View(s):In future, allocations for construction projects will need to be made available in full, ahead of commencement of the work, the Cabinet has decided.
The proposal aimed at reducing issues in the construction industry and delays in projects, will be put into place as soon as a 5-member Cabinet appointed Committee finalises the mechanism to implement the plan.
Housing Construction Ministry Secretary Bernard Vasantha told the Sunday Times there were issues in completion of projects, as the estimated amounts are not available as the work continues, resulting in difficulties in completing the project. “As a result, the project cannot be completed in time, contractors and workers cannot be paid in time, and there are delays in the public benefiting from the project,” he said.
He said the proposal also aims at resolving issues of contractors by introducing a mechanism to ensure their payments are received in time. The advance payment for contractors is being increased from 20% to 30%. The Cabinet paper to seek approval for the new mechanism was submitted by Housing & Construction Minister Sajith Premadasa, to ensure transparency and fairness in contract payments.