Faithful efforts have been made by the CAP soon after its inception in 1998, incorporated under the Companies Ordinance 1984 vide licence No.: 143 granted by Ministry of Commerce, affiliated with the Federation of Pakistan Chambers of Commerce & Industry as “A” class association, to address the problems facing the construction industry have met with substantial success. Some of these are listed below:
On the initiative of CAP, Construction has been declared as an industry, entitling all fiscal incentives/special treatment and other benefits, as envisaged in the investment policy, as amended from time to time vide notification No. F (10) IF-11/98, dated 07.04.1999 and F. No. 10 (10) IF-11/98 dated 04.06.1999 issued by the GOP Finance Division (Investment Wing).
The defunct Prime Minister Housing Authority (now Pakistan Housing Authority) awarded 42 Housing projects throughout the country to construction companies worth rupees Five billion between June 1999 to October 1999. With a change in the government on 12th October 1999 work was stopped. On a call from affectees, CAP took up the issue. As a follow up of CAP efforts, 18 projects were made ongoing which are almost completed, while 24 projects were dropped. Substantial payments of the work done of the dropped projects have been made.
National Highway Authority (NHA) awarded a contract for the construction of Islamabad Peshawar Motorway (M-I) project to a foreign contractor which was terminated on 23.04.2001. Pakistani subcontractors, suppliers and manufacturers approached CAP to help in the recovery of their amount spent in the execution of the works and to save the industry from a disaster. CAP responded this SoS call and filed a constitutional petition in the Lahore High Court Rawalpindi bench against competent authorities and the foreign contractor. As a follow up of CAP efforts relief was made available and payments of the amount of the work done were started in June-2003. By now as on January-2004 over One billion of rupees have been disbursed to M-1 affectees.
Chairman CAP was included in the advisory board established by the Ministry of Housing and Works, GOP. On the initiative of Chairman CAP, Housing policy was formulated specially for low income group notified vide notification No. F.6 (2) / 2000 - COORD, Islamabad the 9th March 2000 and subsequently got approved the Housing policy 2001 by the Federal Cabinet on 05.12.2001. Policy incentives do include the acceptance of bid bond, performance bond and mobilization advance bond as issued by “A” rating insurance companies of Pakistan approved by the Security Exchange Commission of Pakistan.
Plant, Machinery equipment and articles imported for infrastructure projects including development of industrial zones telecommunication etc have been included in table II of the investment policy thereby entitling the import of construction machinery at 10% of the custom duty vide Notification No. S.R.O. 358(1)/2002 dated 15th June 2002 issued by GOP Ministry for Finance, Economic Affairs, Statistic & Revenue (Revenue Division).
Preparation of documents and subsequent follow up for the notification of the Standard Conditions of Contract by the GOP to be adopted by all the Engineering departments throughout Pakistan vide office order No.: 1 (698) / PP&H / PD / 2000 dated 12-04-2004 issued by Planning and Development Division GOP that the conditions of contract now have a legal status and may become a basis for punitive action in case not adopted by the departments.
All Pakistan Contractors Association (CAP) agitated against the unprecedent rise in the price of steel with the competent authorities in Federal government and in the press. ECNEC in its meeting held on December 16, 2003 reduced custom duty on imported billets from 20% to 10% and subsequently to 5%. We have now proposed zero rate duty imports of Steel Billets. To resolve the issue of steel price escalation, CAP Chairman met with the President of Pakistan General Pervez Musharraf and requested to resolve the issue. In the light of meeting with the President, Prime Minister and the Finance Minster the escalation in Steel, Steel product, Cable, Aluminium and Cooper products was allowed vide order No.: 26 (183) Plan Cord-11 / PC / 2004 dated 11-06-2004 issued by the Planning and Development Division GOP.