FREQUENTLY ASKED QUESTIONS

1. What is the association for?
   
   

   The construction Association of Bhutan was formed in January 2000 during the All Contractors Meeting called by the BCCI, as an Association for the development & promotion of Bhutanese construction industry. The primary purpose of the Association was to enable Bhutan's representation in the SAARC Council for Construction Industry (SAARC CCI).

   
   
2. What is construction industry by its definition?
   
   

   There is no officially accepted definition for construction industry as such in Bhutan so far. However at the time the Association was formed, representation was limited to contractors, presumably ABCD casses for all categories. Technically construction industry covers: A-Material: Local Construction Material Production Units (sources & supply system including control measures such as prices, quality, standards, etc. Local Dealers for imported construction materials (sources & supply system including standards,specifications, accepted brands, registry system, etc.). B-Services: Private Architectures,Designers & Engineers Private Contractors as implementer of construction activities Private Construction Equipment Dealers Private Construction Equipment Service Centers Private Logistic Support Units for transportation of heavy construction materials From the above it is clear that construction industry as a sector is much more broader & extends to wider coverage.

   
   
3. What is the Association's source of fund?
   
   

   The sources of fund for the Association are: 0.15% contribution from every winning contract by a contractor which is termed as Slab Rate Levy

   
   
4. In what way does the Association assist contractors?
   
   

   At present, the assistance is limited to intervention & representing problems encountered by the contractors both specifically & in general perspective.

   
   
5. What role does the Association play with CDB especially with regard to registration, renewal & up-gradation of contractors?
   
   

   The Association is represented in the CDB board by its President as member and the General Secretary as observer. There are also elected member representative in the CDB directly from Class ABC as of April 2003. A representative from class D to the CDB is yet to be elected.

   
   
6. What is the level of Association's representation in public & private forum?
   
   

   Aside from CDB, the Association's President represents in the     Private Sector Development Committee. The Association's President & the General Secretary also represent along with a government representative in the SAARC CIC as of now. In April 2003, Association is represented in the Project Steering Committee for EFRC support, as one of the stakeholder & beneficiaries. Similarly, the Association's General Secretary will represent in Project Coordination Committee & Construction Industry Technical Training & Development (CITTD) Committee.

   
   
7. What weight-age do the concerned authorities give to the Association's intervention for its members?
   
   

   The Association has in most cases received cooperation and support to its intervention. To the extent possible, views and suggestions of the Association have been called and discussed across the table.

   
   
8. What is the Association's role in arbitrary issues with the contracting agencies?
   
   

   As of now,the Association readdresses the grievances received under a support letter requesting for consideration outside legal entanglement, in the absence of any formalized mechanism for addressing arbitrary issues.

   
   
9. What role does the Association play in interaction with contracting agencies with regard to work tendering/award?
   
   

   Since 2002, Association has been pursuing with the concerned authority for development of systematic mechanism for work tendering & award with full transparency. Association has also voiced for awarding of work to "lowest evaluated bid" and not just to lowest bid or nearest to Department's estimate (up & down). However no concrete response was received, except for the policy statement that 'contracting agencies are believed to be abiding by the guidelines as per the Financial Manual'. The Association has no direct role with the contracting agencies in tendering, evaluation & award of work. Our representation of the contractor's concern is so far a 'post issue'.

   
   
10. What services can contractors avail from the Association?
    
    

    For now technical assistance in filling out the registration, renewal & up-gradation form can be availed. Information on how to go about in license application, CDB registration, fees, etc. are made available. At the same time the secretariat is engaged in the collection of information on project opportunities, local materials & sources, selected imported materials brand & sources, construction equipment inventory, personnel information, HRD program, etc.

    
    
11. How does the Association interact with local authorities for contractors?
    
    

    The association has established Liaison Offices in Phuentsholing, Punakha, Bumthang, Mongar, Trashigang & Gelephu. Concern of the contractors received by the Association are addressed with local authorities through these network or in some instances directly interacted. There is however no formalized mechanism of interaction with local authorities.