The federal government plans a minimum three-year defect liability period for major public-sector construction projects, so contractors stay responsible for fixing faults for longer after handover.
Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema chaired a meeting on reforms meant to strengthen Pakistan’s construction sector and improve how projects are delivered. A statement issued on Wednesday said he directed the Pakistan Public Procurement Regulatory Authority (PPRA)—the body that sets public buying rules—to start work on a defect liability period of at least three years, or longer, for major schemes. Smaller projects would be brought under the same approach in phases.
CIDA Bill and how the sector is organised
The meeting also reviewed the proposed Construction Industry Development Authority (CIDA) Bill. Cheema said the draft needed careful study, including whether Pakistan should create one body for the construction sector or two: one to regulate firms and another to promote the industry and handle related work.
He asked officials, Minister of State for Finance Bilal Azhar Kayani, and representatives of the Constructors Association of Pakistan (CAP) to consult further on that institutional design before any final shape is agreed.
Retention money and dispute boards
Officials discussed retention money—the sums contractors leave with the client during the defect liability period as security against unfinished or faulty work. One idea raised was to park those funds in accounts that earn a return, then pay back the principal plus interest once the stipulated period ends. Cheema called for more consultation so a workable mechanism can be designed.
The meeting also looked at applying the existing Dispute Avoidance/Adjudication Board (DAAB) model to government projects. Such a board would watch how work is carried out and help prevent or settle disputes as they arise. CAP suggested using DAAB on projects worth Rs20 billion and above. Cheema asked for that threshold to be lowered and for stakeholders to agree an appropriate limit.
What happens next
PPRA is to begin drafting the longer defect liability rules for major projects. Further talks are expected on the CIDA Bill’s structure, on how retention money would earn and be returned, and on the right project size for DAAB. Until those consultations finish and rules are notified, the planned three-year standard remains a policy direction rather than a finished regulation.
Aasan alfaaz mein
Sarkar bari sarkari construction projects par contractors ko kam az kam teen saal tak defects theek karne ka zimmedar banane ka plan bana rahi hai. Pehle bari projects, phir dheere dheere chhoti projects is qaid mein aayengi. Is se incomplete ya kharab kaam ke baad theek karane ki zimmedari lambi ho sakti hai. Retention money aur dispute boards jaise masail abhi mashwaray mein hain.
