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CIDC_Aug 09

Future Directions - CIDC



CIDC recently organised a National Conclave & Exhibition on Construction, 'Future Directions for Capacity Development in Construction Industry', which took place between 12th-14th August 2009 in New Delhi. Summed up here are the key recommendations that came out of the two day deliberations and discussions among leading construction industry stakeholders.

There is a need for certain policy interventions by the Government for improving the current financial environment and economic downturn. It was suggested that the Royal Bank of India (RBI) should direct the public sector banks to meet the credit needs of Construction Industry more liberally.

Human Resource development practices should be institutionalized to meet sector-specific demand of appropriate manpower. The Conclave resolved that the Government should formulate a National Plan for Training and Certification of Constructional personnel for all levels (skilled workers, supervisors, diploma holders, engineers, contractors, etc).  It was further recommended that CIDC should assist the Govt. in the formulation and implementation of such a National Plan.

Third Party certification for “quality” and “safety” at construction works should be made mandatory. Necessary provision in procurement system be made to ensure that third party certification is complied with by all employers.

Huge financial resources are locked up due to a prolonged process and ad-hoc system of arbitration for dispute resolution. The Conclave resolved that an institutional arbitration mechanism be adopted by Central and State Governments for the construction Industry. The objects of a modern arbitration statute are the fair resolution of disputes by an independent and impartial tribunal without unnecessary delay and expense; party autonomy; balanced power for the courts; and adequate powers for the arbitral tribunal to conduct the arbitral proceedings effectively.

Considering the huge sums of unutilized funds in the Construction Workers Provident Fund, which have not been deployed gainfully in the absence of any institutional mechanism, it was recommended during the Conclave to set up a Trust managed jointly by Construction Industry Development Council (CIDC) & Builders Association of India (BAI). This trust shall ensure proper utilization of the monies lying in the provident fund and empower the members/dependents to have effective access to their fund corpus.

It is important to recognize the fact that, presently the construction industry characteristically resists new technologies and takes a long time to incorporate the results of Research and Development (R&D) in practice. It was recommended by the conclave that R&D in Construction should be seen as a continuing activity and, furthermore, that scientific and technological advancements should play a practical role in strengthening the technological base of the construction Industry. The higher technologies should be seen as essential elements for offsetting the high social and environmental costs resulting from continued dependence on traditional materials and technologies. Finally, it was also recommended that the Government should encourage and facilitate financial support for undertaking in-house R&D by private sector players.


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