Laxmi Capital News
Most contracts go to limited few

While almost 75percent of contractors are unemployed across the country, there are a few whoreceive contracts for most of the local construction projects. The problem is-- they undertake more than they can do and fail to complete most of theprojects on time. 

Manyof the unemployed construction entrepreneurs claim that a handful ofcontractors are receiving most of the contracts because of their access topeople in power, and that they leave most of the projects in limbo. 

“Around75 percent construction entrepreneurs across the country do not have any workto do,” said Tej Bahadur Chand, former central president of Federation ofContractors’ Association of Nepal. “There is a group of entrepreneurs who gettenders for most of the construction works, which they share among themselvesand keep off other construction companies from the competition.”

“Eachdistrict has such group comprising of 10 to 12 contractors,” Chand said,adding, “And the project contract goes to the company they are close to.”

Mostof the contractors who do not have access to people in power are left high anddry. Although an advisor of the federation, Chand himself is jobless for 10years. “You can imagine how other contractors are working in such scenario.” Hesaid that he has been unable to break this ‘syndicate’ so far. 

Accordingto Chand, there are around 14,000 construction entrepreneurs in the countrywhile only 3,000 contractors get most of the projects. “In Province 7 there areonly 10 to 12 contractors among all districts to get the projects,” hesaid. 

Hesaid that ‘one person one project’ policy should be implemented to break this‘syndicate’. 

Accordingto knowledgeable sources, most construction projects are likely to getcompleted on time if work could be distributed equally among all contractorcompanies. 

PrakashBahadur Sethi, president Contractors’ Association of Nepal Kailali, said thatfunds are often frozen as the work is not completed on time. 

Thereare 450 construction entrepreneurs in Kailali, of which only 25 percent getprojects. As the rest cannot compete with big contractors, they are oftenjobless, he added. 

GajendraChand, president of Contractors’ Association of Nepal Kanchanpur, said thatthere are 313 construction entrepreneurs in Kanchanpur and there also, only 25percent have projects at the moment. He said that the government should revisethe policies regarding the profession of construction. 

MadanKunwar, president of Contractor’s Association of Nepal for Province 7, saidthat the government has a policy that gives full authority of tender to officechief, and there is no limit on any contractor to receiving the number ofcontracts.

“Thegovernment should bring a policy so that a contractor can get a second projectonly if they finish 80 percent works of the existing project.”

“Thresholdsystem should be implemented to distribute work equally,” he added. 

“Thereis a flaw in the Public Procurement Act, which gives full authority of tenderto the office chief,” he said, adding: “If the contractors have good contactwith the office chief, they can get the contract they want,” he told Republica.The act favors big entrepreneurs, which affects small entrepreneurs, accordingto Kunwar.

Source:MyRepublica, 6th June 2018

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