Regulate construction industry

CONSTRUCTION companies will in future have to register with the Ministry of Works, Transport and Communication to obtain a licence that has to be renewed every year.

Draft legislation to establish a regulatory body for the construction industry was discussed on Friday at a meeting organised by the Ministry and the German development agency GTZ. The National Construction Council Draft Bill provides for the establishment of a Construction Industry Council to promote, regulate and develop the construction sector.Once the Bill is passed into law, no building contractor may operate unless registered with the Council, and an annual levy must be paid.The registration must be renewed each year.Before issuing a registration certificate (licence) the envisaged Council will consider whether the applicant has the necessary financial resources to operate as a building contractor, possesses the necessary machinery, vehicles and tools, “whether he owns land” and whether he has “managerial, professional and technical personnel”.If the contractor wants to register as an individual, his qualifications and skills will be scrutinised.”The new legislation will penalise contractors if their construction work is poor,” said Works and Transport Minister Joel Kaapanda.”It will also target developers who are so powerful [that they] often ignore municipal regulations.”Proper town planning was very important and rules and regulations would come to rein the developers in, Kaapanda added.”Some developers think they have the freedom to do as they like to get the maximum benefit and no culprit is held responsible, but that will change,” Kaapanda vowed.Applicants can appeal to the Works and Transport Minister, should the Council turn down their request for registration.Failure to renew the annual registration or licence or contravening any provisions of the draft legislation will be punishable by a fine of N$20 000 and a two-year prison term.In the case of a continuing offence, the guilty party will have to pay N$2 000 for each day during which the offence continues.The Council’s operations will be funded from the annual levies and registration fees.”I am happy that the Chinese companies will also have to apply for registration once the Bill has become law,” one participant told The Namibian at the meeting.”The local contractors suffer by losing tenders which go to the Chinese.They can be cheaper than Namibian companies because they often do not pay the prescribed minimum wages the industry has put in place.”The National Construction Council Draft Bill provides for the establishment of a Construction Industry Council to promote, regulate and develop the construction sector.Once the Bill is passed into law, no building contractor may operate unless registered with the Council, and an annual levy must be paid.The registration must be renewed each year.Before issuing a registration certificate (licence) the envisaged Council will consider whether the applicant has the necessary financial resources to operate as a building contractor, possesses the necessary machinery, vehicles and tools, “whether he owns land” and whether he has “managerial, professional and technical personnel”.If the contractor wants to register as an individual, his qualifications and skills will be scrutinised.”The new legislation will penalise contractors if their construction work is poor,” said Works and Transport Minister Joel Kaapanda.”It will also target developers who are so powerful [that they] often ignore municipal regulations.”Proper town planning was very important and rules and regulations would come to rein the developers in, Kaapanda added.”Some developers think they have the freedom to do as they like to get the maximum benefit and no culprit is held responsible, but that will change,” Kaapanda vowed.Applicants can appeal to the Works and Transport Minister, should the Council turn down their request for registration.Failure to renew the annual registration or licence or contravening any provisions of the draft legislation will be punishable by a fine of N$20 000 and a two-year prison term.In the case of a continuing offence, the guilty party will have to pay N$2 000 for each day during which the offence continues.The Council’s operations will be funded from the annual levies and registration fees.”I am happy that the Chinese companies will also have to apply for registration once the Bill has become law,” one participant told The Namibian at the meeting.”The local contractors suffer by losing tenders which go to the Chinese.They can be cheaper than Namibian companies because they often do not pay the prescribed minimum wages the industry has put in place.”