News
CIDA issues new regulations for key players in construction sector
View(s):In a move to regulate the construction industry, the Construction Industry Development Authority (CIDA) has issued three gazette notifications making it mandatory for key players in the industry to register with the authority. In terms of the new regulations issued under the CIDA Act No. 33 of 2014 qualified persons, contractors and technical auditors working on contract projects are required to register themselves with the CIDA.
The regulations have been effective since February 5 this year. Those wishing to register under the category of qualified persons would have to make an application through the relevant professional body they are attached to.
Approved applicants will be assigned registration numbers and issued a certificate that will be valid for a specific period of time and renewable at expiry. Registered members would have to maintain the standards set by CIDA. They are also required to pay an annual fee. The fees are: Rs.100,000 for engineers, Rs.90,000 for associate engineers, Rs.100,000 for architects, Rs.100,000 for quantity surveyors, and Rs.90,000 for assistant quantity surveyors.
For the purpose of carrying out the business of construction work, contractors applying for registration with CIDA should also be registered in Sri Lanka with the Registrar of Companies under the Companies Act No. 07 of 2007 or with the Divisional Secretaries under the Business Names Ordinance Provisional business names statutes.
The companies should have minimum 51% ownership, (with the exemption of public listed companies when going for renewals) by nationals of Sri Lanka and should not have adverse records of being suspended from the list of construction contractors maintained by the Department of Public Finance of the general treasury or other state organisation. Also they should not be legally insolvent or be declared bankrupt at the time of applying.
Contractors will be considered under two main categories for registration as main and specialists. Their financial capacity, professional staff, supervisory staff, projects done in the last five years and other consideration including construction safety, occupational health and training to workers will also be considered.
Small-time contractors would also be graded according to the size of the project with financial limits ranging from Rs.2 million to Rs.3000 million and would be given points which when achieved, would make them eligible for registration with CIDA. The registration fee will also increase from Rs. 6000 to Rs. 500,000 plus the value added tax (vat).
A Technical Auditing request made by a person will be taken up by CIDA which will appoint a qualified team who will visit the site and evaluate the project and prepare the audit scope and cost proposal.
The comprehensive criteria of registration and monitoring of contractors in building and civil engineering and electromechanical specialized trades and geo technical piling have been published in three booklets and are available with the CIDA Information Centre.