• Chamber’s proposal seeks resolution for disputes affecting recommenced projects
• Secy. Gen. emphasises on urgent need for fair treatment of contractors
• CCI presents 14-point action plan to revive construction sector

The Chamber of Construction Industry of Sri Lanka (CCI) has proposed the appointment of a steering committee to resolve all claims disputes that have and/or will arise following the recommencement of construction projects after a hiatus of over one year.

Speaking to The Sunday Morning Business, CCI Secretary General/Chief Executive Officer Eng. Nissanka N. Wijeratne revealed that while around 30% of public construction projects that had been suspended by the Government had been given the green light to recommence, most had been inundated by claims disputes.

He stated: “The construction projects were suspended for over one year. The contractors are facing many problems because the prices have increased, resulting in their having to bear the additional overheads to maintain the sites during the suspension. Therefore, there are many claims which have not been resolved. Although the Government has given instructions to restart these projects, contractual issues have to be looked into.”

According to Wijeratne, following the extended suspension of the projects, in order to recommence construction, contractors are required to carry out certain additional work which includes, for example, replacing or repairing corroded or deformed work. Accordingly, the contractors are contractually entitled to make claims for such additional costs arising from the suspension of projects.

However, the respective Government institutions have thus far been unreceptive to such claims made by contractors.

Wijeratne revealed that the CCI had submitted a report to the President with 14 action points in order to revive the construction industry through the Construction Industry Revitalisation Committee convened at the President’s Office, headed by Presidential Chief of Staff Sagala Ratnayaka. 

He pointed out that one of the action points proposed in the report had been the appointment of a steering committee similar to the one appointed in the 2015-2019 period, in order to resolve these claims disputes and other issues that may arise in public construction projects.

In fact, the CCI had on Wednesday (13) met President Ranil Wickremesinghe, together with the Governor of the Central Bank of Sri Lanka, Secretary to the Ministry of Finance, Secretary to the Ministry of Urban Development, and other key stakeholders to discuss the proposals made by the CCI. 

At that meeting, the CCI had informed the President of prevailing concerns and the vital need for the appointment of a steering committee to resolve such issues.

Wijeratne further pointed out that once the suspended foreign-funded projects commenced following the completion of the debt restructure, they too would face such claims issues and therefore the existence of a steering committee would be vital to ensure that such projects could recommence smoothly once funding was received.