Local contractors push for legislation on delayed payments

Players in the local construction industry are impressing on government, the need for a legislation on delayed payments for contractors.

According to them, such a legislation is critical in developing the industry as delayed payments for their already-executed government contracts were adversely affecting the capacity building of local contractors.

This, they further note is unduly making it difficult for them to compete with foreign counterparts for donor funded projects.

The Chairman of the Construction Sector of the Association of Ghana Industries (AGI), Rockson Dogbegah highlighted this when he led a delegation of the construction sector of the AGI to call on the Minister of Roads and Highways, Kwasi Amoako-Attah in Accra.

This was to discuss issues confronting the construction industry whilst exploring the possibility of partnering government in developing the industry.

Mr Dogebgah also called on government to review the formula for building Price Fluctuation Factor which he lamented does not adequately compensate for increments.

He also stressed the need for the government to work with the private sector to establish a regulatory task force to ensure compliance with health and safety requirements on construction sites.

Mr Amoako-Attah in his response commended the delegation for the initiative and called for it to be institutionalised towards deepening the Public Private Partnerships to the benefit of the economy at large.

He assured the delegation that the conditions of the contract and legislation on payment of interest on delayed payment was still binding on the government.

The Minister also promised to take up the safety issues with the Attorney-General’s Department whilst considering issues of fluctuations and also ensuring contractors were paid as early as practicable.

Mr G.J. Brocke, Chief Director Ministry of Transport revealed his outfit was considering the creation of new opportunities for local contractors for Public-Private Partnership (PPP) projects including constant dialogue with the contractors towards tackling issues confronting the sector.

The AGI Construction Sector seeks to influence the development of the construction industry, through effective stakeholder engagements and policy reform initiatives that will ultimately enhance the competitiveness of the service providers.

Story by Ghana | Myjoyonline.com