Construction Association of Bhutan

CAB is in continuous dialogue and interaction with various government agencies to streamline the procurement procedure in order to provide fair opportunity and level playing field for all Bidders. CAB has been instrumental in maintaining the status quo of Mobilization Advance at 10% which was contended to be reduced to 5%. Similarly, upon timely intervention from CAB, the defect liability period is being maintained at 12 months for normal projects against 36 months. CAB was instrumental for incorporation of Price Variation Clause in contract documents of various works authorities. Small works has also been brought under the scope of deviation clause which will be reflected in the revised PRR. CAB is promulgating adoption of a 'unified standard equitable contract document', based on PRR by all procuring agencies. With constant correspondence & intervention from CAB, payment clause to ensure timely payment has been incorporated within the SBD. CAB is also regularly monitoring the compliance of the same by the Procuring Agencies. CAB initiated the annual Construction Fair, the largest of its kind in the country from the year 2017. Through its Construction Directory (bi-annual Publication), CAB provides consolidated list of contractors, consultants & suppliers in the construction industry. Useful statistical information, litigation in construction, technical information and latest technological developments in construction industry are disseminated via the publication. CAB is an affiliate member of the International Federation of Asia and Western Pacific Contractors' Association (IFAWPCA). IFAWPCA in turn is affiliated to Confederation of International Contractors' Associations (CICA), the world body of contractors and builders. While IFAWPCA has a consultative organisation status with Asian Development Bank, CICA has a similar status with the World Bank. CAB is also affiliated to many national organizations, directly or indirectly connected to the construction industry. This facilitates exchange of thoughts, ideas and views. CAB has been given representative status in many committees of Governments, which decide policies on economic development, procurement, taxation, labour laws, environment, etc. CAB has representative as board members to the board of the IFAWPCA, CDB & BCCI. CAB has representative in the oversight committee such as the Independent Review Body, Debarment Committee etc. CAB was part of the working committee for drafting the Economic Development Policy (EDP) 2016 CAB had representative as taskforce member in the drafting committee of the Bhutan Alternative Dispute Resolution Rules and Regulations 2018. Similarly, CAB is included in the drafting committee of the National Construction Industry Policy With the formulation of the MoU with the RICBL, the commission levied on performance guarantee by RICBL has been reduced with the introduction of new slab system for amount between 50million-100million and amount beyond 100 million @ 1.5% pa and 0.75% pa respectively. CAB facilitates Bhutanese Contractors to attend the IFAWPCA Convention in various member country (currently on self-financed basis) by providing visa process support, arrangement of accommodation and logistics. As of 2018 Bhutanese contractors have attended the Convention in Korea & Malaysia. In November, 2018, 33 team delegates from Bhutan attended the Convention in Kuala Lumpur, Malaysia. CAB is collectively pursuing the CSR in Construction Industry and constantly advocating the same to the various stakeholders in construction sector. CAB is also in constant dialogue with the Govt. and other stakeholders to tackle issues and find solutions to problems related to realistic project duration, realistic cost estimate, unreasonable HR/Equipment requirements and other pertinent issues related to construction industry. CAB is making a difference for the construction business through advocacy with a collective voice.