Saturday, July 11, 2026 09:01 AM

Managing construction businesses towards positivity

By Shanker Man Singh

 

Everyone remembers that a few months ago, the Federation of Construction Professionals of Nepal (FCAN) announced that if the government does not extend the deadline of the project, all the works of the project will be suspended and they will go on strike. FCAN expressed dissatisfaction that the government could not address the important issue of extending the deadline of various projects through the annual budget .

Although the government has been confusing the builders who have asked for payment for the work they have completed, they have gradually released the money. The government has been reducing the arrears by making payments recently.

For a long time, the construction workers had been putting pressure on the government saying that they were not getting money as per the work done. Lately, the government has gradually paid the money to the builders.

According to the Ministry of Finance, the Ministry has written to the relevant ministries to pay the money of the builders .

The government has decided to release the resources up to the third quarters of the year 2080/81 B. S. budgetary aid for payment, if the allocated funds are not received from foreign sources by the third quarter of the year.

Similarly, in the annual approval program of 2080/81, the liability fund created for roads, bridges, railways and airfields, embankments and dams, irrigation and water supply structures and other public constructions which have been spent legally in accordance with the prevailing laws and approval criteria in the last year.

And it has been arranged that the payment of the amount certified by the Office of the Controller of Accounts can be made from the quarterly allocation of any current year. In addition, in the case of payment of liabilities that have been spent in accordance with the prevailing laws and approval standards until the end of October of the current financial year, it has been made easy to pay from the allocated amount up to the third quarter.

Construction industry’s demand:

Looking at the past, according to FCAN, due to the effect of last year’s federal and state elections, government delays in payment to businessmen, disruption of supply chain due to market price increase, etc., more than three thousand projects had to be extended.

The businessmen protested with the demands of immediate payment of the amount for working in various agencies, lump-sum extension of all contracts, cancellation of insurance directive-2078, cancellation of rules for construction work by the consumer committee, immediate amendment of the Public Procurement Act and regulations, etc.

​ It is a harsh reality that the construction industry of the country is in a difficult situation. FCAN

said that the budget also ignored serious issues such as the existing high level of inflation, which should solve the problem of outstanding payment of about 70 billion rupees.

On a positive note, it is relevant here that FCAN has commended some of the measures outlined in the budget speech for the coming fiscal year, including increasing the amount allocated following the necessary procedures, delegating responsibility and accountability to project heads, updating the records of construction workers. role in development           Construction entrepreneurs play a major role in the completion of development works in the country. In addition, the serious responsibility of making it quality is also on the shoulders of construction professionals.

It is clear that the construction industry is also making a significant contribution to the employment sector. The construction businessmen are of the opinion that they have been completing the tasks assigned to them by using their own private capital, except for a few exceptions, in the face of many policy, administrative and other problems.

Manufacturing Industry:

In order to promote the construction business as a service industry and to create an environment where the Nepali construction business can participate in international competition, the government needs to provide necessary support.

Especially the work related to construction should be clearly defined and the ambiguity and confusion in this field should be removed.

There is a need for more cooperation between the government and the private sector on how to make the Nepali construction business competitive after the country enters the federal system.

In the current situation where the country has taken a new political direction, the private sector is confident that the private sector will be given the opportunity to contribute to the overall economic development of the country, taking into account the important role of the industry and commerce sector.

Now the global situation is also indicating this. Therefore, the private sector has full confidence that the government of Nepal will not be separated from this global recognition.

A cursory review

During a cursory review of the history, the joint organization of construction professionals of Nepal, which was duly established on Jestha 21, 2047B. S.  as the Nepal Construction Professionals Association, with the consent of the representatives of various districts and regions present at the fourth general meeting of the Nepal Construction Professionals Association held on 21 and 22 Mansir 2054.

By amending the Constitution of Construction Professionals Association 2046, Nepal Construction Professionals Association was converted into Nepal Construction Professionals Federation.

Major Objectives

Nepali construction professionals who embrace the construction business as a profession are bound to one formula to protect, enhance and develop their professional interests and to prepare a model of the level of the domestic construction industry by keeping records of Nepali construction professionals.

The Government of Nepal to implement the policies, rules and principles applied by the Government of Nepal from time to time for the benefit of the construction industry, to amend, implement, make, and maintain them at the international level by removing mismatches and unilateral terms in the documents prepared in the context of the construction work.

It also aims to play an effective role in this work by organizing various conferences, seminars, discussions, etc. to submit suggestions to other organizations or bodies.

Since the construction industry has an important contribution to the overall development and construction work of the country, any policies, rules, and laws related to the construction work of the Government of Nepal that are not in line with the speed of the country’s development and are not up to date should be coordinated with the relevant agencies of the Government of Nepal to make them more helpful and effective for the sake of the country’s development and construction professionals.

The aim is to keep trying to make necessary corrections or amendments. Obtaining membership of national, regional and international construction trades associations and federations, institutions and bodies of different countries, maintaining friendly relations with such bodies and sharing experience and ideas to make construction tradesmen more efficient and effective and play a deep role in the proper development of Nepali construction tradesmen. Purpose is important.

Strive to enhance the skills, knowledge and efficiency of domestic construction professionals to increase their ability to compete with foreign construction professionals, encourage, appreciate Nepali construction professionals and provide awards, certificates of appreciation, etc. to individuals who contribute to the construction business sector and recommend to the relevant agencies.

Doing etc. is also included in the purpose. Helping with body, mind and money in times of divine calamities and natural disasters in the country, trying to solve the problems related to the construction business faced by the construction professionals collectively, the facilities provided to the Nepali construction professionals by various agencies related to the construction business, financial institutions, etc. in a more simple and accessible way.

FCAN was formed to create an environment to enjoy and have more facilities To do various social service and public utility works and to encourage such works. To increase the branch of Nepali construction professionals at the international level and make every effort to enable Nepali construction professionals to participate in international tenders.

Taking all the possible measures for the maximum rights of the construction professionals by conveying the comments and complaints of the construction professionals to the concerned bodies.      In the context of the scope and role of the federation increasing day by day, it is necessary for the federation to improve its physical condition and to make the daily administrative work effective, and for the institutional development of the construction business, it is necessary to coordinate with the Construction Business Development Council, Government of Nepal and other agencies in various policy matters. Although some of the decisions and instructions passed by the 21st General Assembly have been implemented, some decisions are yet to be implemented.

The views expressed in this article are the author’s own and do not necessarily reflect People’s Review’s editorial stance.

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