CONSTRUCTION ASSOCIATION
OF
BHUTAN

Mission & vision
 Mission:
To develop and promote the Bhutanese construction
industry and to represent the Bhutanese construction
industry at national, regional and international level
 Vision
To foster the growth of the member contractors to
achieve excellence and become world class providers
of all services in the construction sector

Roles & Objectives
 Role of the Association
To represent as a forum for the construction industry in
Bhutan and address problems and policy issues at national,
regional and international level for the development and
promotion of construction industry
 Objectives
“Development” through identifying, facilitating and
assisting construction industry in business, information
and technology development; and
“Promotion” through assessing, monitoring and assisting
the needs, performance and problems of the construction
industry.

Functions
 Address specific problems and policy issues related to construction industry
 Interact with concerned agencies both within and outside the country for
development and promotion of construction industry;
 Promote awareness amongst the construction industry on national
developmental plans and programs; Initiate and implement developmental
and promotional plans and programs for construction entities;
 Represent and Advocate for development and promotion of construction
industry;
 Gear the construction industry towards strengthening of the association as a
strong representative forum for construction industry’s benefit
 Act as a bridge between the BCCI and the Government for the contractors;
 Identify high quality and reasonable equipments suppliers from within and
outside the country.
 Coordinate contributions from the construction sectors as an when our
country face situations like; disasters .

Activities/Mandates
 Assist. During licensing & registration.
 Recommend on recruitment of manpower.
 Develop database for HRD assessed needs.
 Capacity development through sensitizing government
policies & procurement norms
 Grievance intervention and extending arbitration services
 Disseminate construction related information to all
contractors
 Review policy, plans & programs for the industry
 Institutionalize intervention measures & mechanism to
accord fairness and transparency in procurement and
contractual disagreement

Issues Discussed with the Govt.
 HR/ Employment Generated by Construction Industry
I. No significant development in the HRD in the pvt.
sector
II. Both in-country/ex-country training could be
extended to pvt. engg and managers as well.
III. For the long term purpose, HRD Plan for Economic
Sectors is included in the 11th FYP MP

Prime Minister speaking to our contractors
during the “meet the contractor” 2014.

Equipments
•The Construction industry is
labor intensive .

Quality:
 Avoid awarding the work to extremely low bids
 Revisit tendering and bid evaluation system
 QAS policy – contractor and government engineers
responsible for ensuring quality.
 Improve the rate as per the market rate.
 Up-grade the utilization of Materials.

Issues from other Dzongkhags
related to Procurement Rules.
 Uniform implementation of PRR.
 Evaluation reports still not being made public
 Lack of awareness about govt. rules and regulations
 Between RGoB and Corporations
 Between Govt. to govt.
 Implement more training program with the
contractors and employees, Esp. Engineers and
Managers.

Other Related issues
 Delayed payment for GoI funded projects
 Deviation clause for small works missing.
 Material Testing Labs at JNP and CST.
 Procurement appeal and review committee.
 Re-tendering / negotiation.
 Direct entry to Large & Medium Class – difficult to
qualify since they lose 20 points for credit facility and
bid capacity etc

Cont …….
 Hindrance such as rainfall, snowfall to be considered
 High medical expenses for labor recruitment
 Equipment and manpower getting locked in the E-tool
system
 Shortage of engineers.
 Under-quoting.

Achievement of CAB since 2012
 Appointment of a new General Secretary in oct. 2015
 CAB is a registered member of Civil Society
Organization (CSO) since April 2012
 One contractor engineer can supervise two works
simultaneously pertaining to same contractor only –
govt order no. MoWHS/CDB-2/2012-13/2170 dated 11th
April 2013
 The payment of advance is increased to 10% instead of
7% in the SBD – effective from July 2013 vide letter no
MoF/PPPD-08/2012-13/228 dated 25 June 2013

Cont ….
 Price adjustment duration is reduced to 12months
from 18 months w.e.f 9th Nov 2010 or 12th July 2010 of
Govt Executive Order
 Payment of bills within 30 days – Circular.
 Evaluation report to be made public
 Proposal for introduction of electronic MBs
 Biometric system introduced by Immigration
 Unconditional/conditional BGs

Cont ……
 GoI project pending bills reported to MoF and
MoWHS ministers.
 Foreign workers recruitment agents: options available
 Under quoting.
 Establishment of an Independent Review Body for
Procurement Grievances w.e.f 1st July 2012:
 Mobilization advance is amended as 10% instead of 7%
as reflected in the Standard Bidding Document (SBD)
– effective from July 2013 vide letter no MoF/PPPD-
08/2012-13/228 dated 25 June 2013

Cont ……
 BKK trip. ( Will continue with the interest of the contractors
 Free training program in India – more information on CAB web
page
 CAB is represented as a steering committee for Skills
development project in MoLHR.
 CAB is representated in the CDB Board, Bhutan Business
Committee, Bhutan Pricing Committee.
 Up- graded the CAB official website for better information
devilry.
 Started Bulk SMS for information dissemination.
 Coordinate and contributed financial contribution from the
construction sector during the 4th king birthday celebration 2015,
nov.

Work Plan 2016
 Identification, Setting up of regional offices and operation
 Construction Diary
 Construction Expo
 CI Human Resource Mapping
 Capacity building (CSO)
 SLR collection deadline
 Conduct Annual General Meeting
 Upgrade stand alone system to Web based SRL system
 Development of contractor registration system
 Advocacy tour
 Arbitration case study
 Internal Review Body case
 Field verification

Cont ….

Cont …..

Issues to be discussed with
Government immediately
 Point for fresh engineer in the evaluation system
 CDB registration & renewal fees
 Escalation & deviation clause for Small class
 Differential amount (not applicable within +/- 20%
margin)
 Consumer Price Index (CPI) of Bhutan instead of
Wholesale Price Index (WPI) of India
 Improvement of E-tool System
 CAB to initiate training & recruitment of VTIs

Points from contractors if there is
any!.
 Points from contractors for CAB to take up with the
Government immediately.

Nomination &Election of Members
I. Election of DLC Representatives
 1 Chairman
 2 Large Class Representative (optional)
 2 Medium Class Representative
 2 Small Class Representative
II. Nomination for President and Vice President

Tashi Delek