BAI elects new president; urges govt to address their key issues on priority

With the Indian economy gearing up to bounce back after the Covid-19 pandemic, apex construction industry body Builders Association of India (BAI) has urged the government to address the number of issues faced by it on priority basis.

Right from the huge rise in the material cost, lack of skilled manpower to the need of the regulatory authority and Industry status to construction industry are the key areas the government should look at immediately, BAI has stated.

“Working out ways and means of meeting the challenges faced by the Indian construction industry due to the rapidly rising prices of all construction materials will be my top priority’’ said Nimesh Patel immediately after taking over as the 51st president of the nearly eight-decade old BAI.

This is the first time that a person from Gujarat has been elected as president of BAI in its eight decade old history.

Patel is associated with a number of construction industry related organisations in various capacities and is active in many social, cultural and sports organisations. A multi-faceted personality, Shri Patel is CMD of Maruti Infrastructure Ltd. a BSE listed company which is into infrastructure construction and also real estate construction.

The BAI has also urged the government for a ‘Unified Standard Contract Document’ to be adopted by all work authorities throughout the country including local bodies, state governments and corporations to weed out the differences of benchmarks. This should be irrespective of amount and time duration of the contract value and should ensure the reimbursement of increased construction material price with inclusion of Star Rate/Basic Rate policy, it has stated.

The new ‘Standard Contract Documents’ should also ensure the dispute resolution mechanism with proper Arbitration Clauses be included with a time bound decision on disputes raised out of a contract, it has demanded.The BAI is also looking at the status of Industry be accorded to the construction sector by considering the size and contribution of this sector into the GDP of the country. BAI has also urged the government that it should direct all states, especially the BJP-ruled states to adopt the Model Tenancy Act passed by the Parliament in 2020 to safeguard the interest of the owner as well as the tenants ensuring the timely development of the old buildings. “This will help all in having houses on rent,” BAI has stated.

BAI has also pointed at the cartelisation by the Cement industry for profiteering at the cost of the construction and real estate industry.

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