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There is need for legislation on prompt payment of contractors – AGI

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Mr Rockson Dogbegah, the Construction Sector Chair of the Association of Ghana Industries, has advocated the need for a legislation to ensure the prompt payment of contractors.

Mr Dogbegah was speaking when a delegation from the construction sector of the Association of Ghana Industries (AGI) called on him in Accra.

He said delays in the payment for work done were adversely affecting contractors. 

The visit was to discuss issues confronting the construction industry and the possibility of partnering government to provide an enabling environment for the development of the industry.

It was also to effect stakeholder engagements and policy reform initiatives that would enhance the capacity and competitiveness of construction sector service providers in Ghana.  

Mr Dogbegah said the problem of delayed payment was making it difficult for local contractors to compete with foreign counterparts for donor funded projects.

He said one other issue confronting contractors in the country was the Formula for building Price Fluctuation Factor which did not adequately compensate for increments and asked the Government to take a second look.

He stressed the need for the Government, in collaboration with the private sector, to put in place strong regulatory taskforce to ensure compliance with health and safety requirements on construction sites.

Mr Kwasi Amoako-Attah, the Minister of Roads and Highways, in his response, commended the delegation for the rich ideas and knowledge on the road industry, adding that such meetings should be institutionalised to ensure frequent sharing of ideas to enhance performance in the sector.

He assured the delegation that the condition of contract and the legislation on payment of interest on delayed payment was still binding on the Government.

The Minister also promised to take up the safety issues with the Attorney-General’s Department since an established legislation would provide grounds for enforcement.

He gave the assurance that the Ministry would take a serious look at issues of fluctuations and ensure contractors were paid as early as practicable to avoid such occurrences.

Mr G.J. Brocke, the Chief Director of the Ministry of Transport, said the Ministry was considering the creation of new opportunities for local contractors for Public-Private Partnership (PPP) projects.

He said the Ministry would also create opportunities for constant dialogue with the contractors in order to address issues concerning the sector.

Source: GNA

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