Mr. Bhim Bahadur Saud

(Advisor, Federation of Contractors Association of Nepal and Mayor of Parasuram Municipality Dadeldhura District, Nepal)

Res-3. MOV

COVID-19 has hit the construction business including tourism sectors, manufacturing and service industry, etc. The contractors had demanded that the government address the issues related to the construction industry. The demands extend the term of contracts for at least one year, bringing a special package to pay for the workers, subsidizing loans, and tax exemption. Since the construction sector plays a significant role, regularly pays taxes and other revenues, and supports the government to maintain a prosperous nation, the government should bring reform packages for the improvement of the construction sector.

Due to the involvement of the locally residing labour, we have done a lot of work. But the project is challenging to complete within the deadline due to the impact of COVID. The local level workforce is not sufficient in terms of skills and quantity. The construction industry needs skillful workers to do the building and bridge-related works. We have to manage the skilled workers from India, as there are limited qualified workers locally.”

Mr. Deepak Gautam,

(Central Member, The Federation of Contractor Association of Nepal)

Res-4. MOV

In my opinion, due to COVID-19, the construction business is the most affected. Based on that estimate, the first is tourism, and the second is the construction sector. We are the first Nepali company to receive the contract award from the U.S. Government. I had a good experience and opportunity to compare the two countries regarding the rules and regulations. The US government has provided adequate compensation to the construction industry. There is a need to extend the construction contract in such a situation. The government has not taken a step ahead to improve the construction industry by negotiating the contract. I have felt that it would be difficult to sustain the construction industry successfully if the issues are not properly addressed.”

Mr. Home Nath Koirala,

(President, Democratic Contractors Association of Nepal)

Res-5. MOV

This COVID-19 has affected not only the construction business but also the entire business. Our construction business has been influenced a lot because we have not been able to work on time. Many workers are needed on the site, and we are not getting enough workers. Because of COVID-19, the governments annnual budget has been reduced by the government and increased the size of the budget on health sectors. It has affected many professionals involving in the construction sector. The risk factors have been raised.

Besides this, the payment has not been made on time to the contractors. This has created a massive impact on the construction business. First of all, the deadline has to be extended. All the work that has not been done, now the deadline has been extended to early September. It is not possible to complete the work within the extended deadline. The job would be completed in three months at ordinary times, but it is not possible at this difficult phase. So, time is needed for the project even more, so when it comes to ADB and World Bank, it seems to be cautious about safety and difficulty to work and requested more time for the projects.

The construction work is affected by the tipper and excavator driver, including grader operators because they have not returned to the sites. The small contractor does not have any plant equipment, and only the big contractors have it. The small contract needs to hire plant equipment. You can imagine how terrified they must have been and how much they suffered is quite challenging to express.

The extension of the project and price adjustment is another issue. It is complicated to work without price adjustment. The inflation rate has become so high; how can we work in such a situation? The projects are over cost runs, and most of the construction professionals are facing the same issue. The government should address these issues on time.”

Mr. Shubharan Neupane

(General Secretary, Contractors Association of Pyuthan, Nepal)

Res-6. MOV

There is a massive impact. Those who have bought tippers, dozers, and excavators while taking a loan from the bank. The COVID-19 has created delay of project completion, non-payment issue, no cash flow, and difficulty paying the loan, installment, and interest. Moreover, low-cost contracts and unhealthy competition are common issues. The liabilities of the bank made the construction professional sell the house and land.

On behalf of the contractors, the contractor should be responsible for their work, and they should adjust as per the changing situation to complete work on time. Contractors must be accountable for their work on time without blaming others. If they are in a problem, they can seek help from their fellow contractors and government also.”