2007年-世界发展银行全球_Development_of_Construction_Industry___A_Literature_Review_40页_549kb

Summary of Pakistan Infrastructure Implementation Capacity Assessment (PIICA) - Technical Note 1: Development of Construction Industry - A Literature Review

Core Content

This technical note provides a literature review on the development of the construction industry in developing countries, with a focus on Pakistan. It highlights the common challenges and issues faced by the industry, along with best practices and recommendations from international and national sources.

Main Issues and Challenges in the Construction Industry

• Inefficient Procurement Procedures:

  • Inefficient prequalification practices and lack of transparency in the criteria.
  • Unfair advantages to parastatal organizations.
  • Inequitable bid evaluation and contract administration.
  • Delays in payments and endemic corruption.

• Inefficient Bid Evaluation Practices:

  • Contracts are often awarded to the lowest bidder without considering the "workability" or "balance" of the bid.
  • This leads to compromises in quality and safety.
  • Excessive focus on price competition discourages quality and independent consultants.

• Inequitable Contracts:

  • One-sided contract documents that do not protect the rights or stipulate obligations of both parties.
  • Employers often blame contractors for setbacks and fail to compensate for adverse conditions.
  • Complex and rigid contract documents inhibit participation by domestic contractors.
  • Delays in payments and lack of enforceable payment terms.

• Human Resources (HR) Constraints:

  • Lack of professional and adequately skilled personnel at all levels.
  • Insufficient education and training in the industry.
  • Need for better HR management and development.

• Physical Resources:

  • Lack of equipment and spare parts.
  • Financial constraints and liquidity issues.
  • Restrictions on imports and foreign exchange limitations.

Key Recommendations from Literature

• Prequalification Procedures:

  • Develop efficient and transparent prequalification processes that eliminate incompetent contractors and promote fair competition.
  • Ensure prequalification is based on verifiable information.
  • Treat private and state-owned enterprises equally.
  • Establish a central registry for the construction industry to streamline and document the sector.

• Bid Evaluation Practices:

  • Adopt a price-to-quality ratio method (e.g., 80:20 or 60:40) to balance cost and quality.
  • Avoid excessive emphasis on price and encourage fair bidding.
  • Use standardized and simplified contract documents suitable for local conditions.
  • Ensure contracts are tailored to the nature and size of the project.

• Contract Terms:

  • Ensure fair and equitable terms in contracts that protect both parties.
  • Include legally enforceable provisions for delayed payments.
  • Incorporate clauses to minimize cost escalation risks and ensure adequate compensation for contractors and consultants.

• Human Resources Development:

  • Promote structured training in business management, on-the-job training, and policy review.
  • Encourage the formation and development of trade associations.
  • Improve the availability of qualified personnel and foster a learning culture.

• Government and Institutional Capacity:

  • The government must provide a long-term vision and coherent strategy for the construction industry.
  • Institutionalize a learning culture and promote accountability and transparency.
  • Reduce reliance on in-house government engineering units and consider privatization.

Best Practices from International Examples

• Singapore:

  • Introduced the Price Quality Method (PQM) to address the adverse effects of price-based tendering.
  • Established a Contractors' Registry System (CRS) to streamline prequalification.
  • Implemented the Security of Payment (SoP) Act to facilitate cash flow and enforce payment rights.

• General Principles:

  • Emphasize a holistic and long-term approach to industry development.
  • Focus on improving the business environment, HR, equipment, and materials.
  • Promote collaboration between stakeholders within and outside the industry to support reforms.

Conclusion

The construction industry in Pakistan, like many in developing countries, faces significant challenges in procurement, bid evaluation, contract administration, and human resources. Sustainable development of this sector requires a long-term, institutionalized, and comprehensive approach. The government must take responsibility for creating a conducive environment, promoting transparency, and ensuring fair practices. International best practices, such as those in Singapore, provide a useful reference for reforming the industry and improving its capacity for infrastructure implementation.