Kerala Government Contractors’ Association (KGCA) will hold a march to Kerala Legislative Assembly on November 10 along with other major organisations in the construction sector demanding immediate intervention of the state government to solve the crisis that has gripped the construction sector in the state.
KGCA state president Varghese Kannampilly who announced the march said the construction sector in the state is facing a perfect storm. The staggering rise in prices of construction materials and the tendency to make contractors scape goats for the lapses of others have to be ended, he said.
The KGCA march will begin from Jalabhavan, near Museum, Thiruvananthapuram at 10 a.m and will conclude before assembly complex, where representatives of people and leaders of different organisations in the construction sector will address the gathering. The organisations which will take part in the march include Builders’ Association of India (BAI), Kerala Electrical Contractors’ Association and Kerala Water Authority Contractors’ Association.
Pointing out the huge losses incurred by the contractors from the sky-rocketing prices of construction materials Mr. Kannampilly said, because of the peculiar economic situation at present, the prices of construction materials at the time of awarding contracts and a few months later differ sharply. There is no clause in the present contracts to compensate contractors in case of a sharp price hike. The effective solution to this disparity is to include a price difference compensation clause in the contracts. If there is five percent or more spike or slump in prices of materials, final payments could be adjusted to reflect it. This will lead to a win-win situation for both. To be precise, if the material prices increase the payment to the contractors could be increased and in case of decrease, the government could reduce payments proportionately.
Commenting on the barrage of criticisms raised against contractors of late subsequent to damages to construction works including roads, bridges and buildings, Mr. Kannampilly said the role of contractors is limited to executing projects prepared and approved by government departments concerned. Crucifying contractors for technically faulty projects is not justifiable. The government needs to order different departments to design technically sound projects and viable estimates based on the results of scientific studies to avoid mishaps, noted Kannampilly.
On the steps needed to help contracting community in the state, the KGCA wants the state government to prepare and arrange estimates in such a way as to ensure availability of works to small and medium contractors. Moreover, steps needed to be taken to provide various benefits available to micro, small and medium enterprises (MSME) to all contractors in the state. The organisation also demanded that DSR of 2021 be implemented immediately.
Mr Kannampilly added that the vision of KGCA is greater common good. To this extent, the petrol and diesel should be brought under the ambit of GST to ensure fair price, he said. He also demanded punitive action against traders and institutions that collect GST from consumers and refuse to remit it to the government.