CONSTRUCTION INDUSTRY DEVELOPMENT ACT

Arrangement of Sections

1. Short title, date of operation and application.

PART I

National Policy on Construction and its Implementation

2. National policy on Construction.

3. Implementation of National Policy.

PART II

National Advisory Council on Construction

4. Establishment of the National Advisory Council on Construction.

5. Constitution of the Council.

6. Objectives of the Council.

7. Meetings of the Council.

PART III

Construction Industry Development Authority

8. Establishment of the Construction Industry Development Authority.

9. Management and administration of the affairs of the Authority.

10. Meetings of the Board.

11. Seal of the Authority.

12. Objects of the Authority.

13. Functions of the Authority.

14. Powers of the Authority.

15. Director-General of the Authority.

16. Staff of the Authority.

17. Appointment of Public Officers.

18. Appointment of committees for implementation of construction standards.

PART IV

Construction Industry Development Fund and fund of the Authority

19. Construction Industry Development Fund.

20. The management and administration of the Development Fund.

21. Audit of accounts.

22. Application of Finance Act, No. 38 of 1971.

23. Fund of the Authority.

24. Audit of accounts.

25. Application of provisions of the Finance Act, No. 38 of 1971.

PART V

Qualified Persons

26. Register of Qualified Persons.

27. Credential Committes and its functions.

28. Only qualified persons to engange in identified construction works.

29. Records to be maintained.

30. Qualified persons to adhere to standards.

31. Local authority approval for identified construction works.

32. Conduct of investigations against qualified persons.

33. Engagement of foreign consultants.

PART VI

Registration of Contractors, Property Developers

34. Register of Contractors

35. Procedure for registration of contractors and renewal of registration.

36. Suspension or cancellation of a Cerificate of Registration.

37. Appeals against refusal to register a contractor.

38. Employment of registered contractors in identified construction works.

39. Registration and employment of foreign contractors.

40. Monitoring of contractors.

41. Register of Property Developers

42. Procedure for registration of property developers and renewal of registration.

43. Directory of importers, manufactures, and suppliers of construction materials and

44. Directory of heavy construction machinery and equipment.

PART VII

Technical Auditing

45. Technical Auditing.

PART VIII

Standard Documents and Human Resource Development

46. Standard documents specified by the Authority to be used.

47. Human resource development.

48. Skilled persons.

49. Registration of Skilled Construction Workers, Construction Site Supervisors, Middle Level Technical officers and other professionals in the construction industry.

PART IX

Settlement of Disputes

50. Settlement of disputes through conciliation or mediation by the Authority.

51. Right to refer for adjudication.

52. Register of Adjudicators.

Part X

Appeals Board

53. Establishment of Appeals Board.

54. Hearing and determination of appeals.

PART XI

Collection, Processing and Distribution of Information in the Construction Industry

55. Authority to maintain a National Data Base for the construction industry.

Part XII

General

56. Offences.

57. Rules.

58. Regulations.

59. Delegation of powers.

60. Power to enter any land or premises.

61. Resisting or obstructing the Authority.

62. Members, officers and servants of the Authority deemed to be public servants.

63. Scheduled Institution within the meaning of the Bribery Act.

64. Expenses incurred in any suit or prosecution.

65. Repeals and Savings.

66. Sinhala text to prevail in case of inconsistency.

67. Interpretation.

33 of 2014.

AN ACT to provide for the Development of the Construction Industry in Sri Lanka; to regulate, register, formalize and standardize the activities of the construction industry; to provide for the establishment of the national advisory council on construction; the establishment of the construction industry development authority; and the establishment of the construction industry development fund and the fund of the construction industry development authority; to provide measures for the improvement and wellbeing of the industry related professionals, manufacturers, suppliers, contractors and craftsmen; and for the settlement of disputes related to construction activities; to ensure public safety in the construction industry of Sri Lanka; and for matters connected therewith or incidental thereto.

[Date of Commencement: 16th October, 2014]

1. Short title, date of operation and application.

(1) This Act may be cited as the Construction Industry Development Act, No. 33 of 2014 and shall come into operation on such date (hereinafter referred to as the “appointed date”) as the Minister may appoint by Order published in the Gazette.

(2) This Act shall apply to all activities relating to the construction industry within the Democratic Socialist Republic of Sri Lanka, except otherwise provided herein.

PART I

National Policy on Construction and its Implementation

2. National policy on Construction.

(1) The National Advisory Council on Construction established under Part II of this Act, shall formulate a National Policy on Construction and such policy shall comprise matters relating to the construction industry and its goals. The National Advisory Council on Construction shall on completion of the National Policy forward it to the Cabinet of Ministers for approval. Such National Policy may, from time to time, be revised in keeping with the developments of the construction industry.

(2) In formulating the National Policy in terms of subsection (1), emphasis shall be given to the involvement of professionals within the construction industry, including resource personnel in the field of traditional knowledge.

3. Implementation of National Policy.

The Minister may, from time to time, for the purpose of implementing the National Policy on Construction prepared in terms of section 2, give such general or special directions as he may consider necessary to the Construction Industry Development Authority to provide for the promotion and implementation of the National Policy.

PART II

National Advisory Council on Construction

4. Establishment of the National Advisory Council on Construction.

There shall be established a council which shall be called the National Advisory Council on Construction (hereinafter referred to as the “Council”) and shall consist of the members as specified in section 5.

5. Constitution of the Council.

(1) The Council shall consist of—

(a) the following ex-officio members, namely—

(i) the Secretary to the Ministry of the Minister in charge of the subject of Construction who shall be the Chairman of the Council and in his absence, an officer not below the rank of an Additional Secretary of that Ministry, nominated by the Secretary;

(ii) the Secretary to the Ministry of the Minister in charge of the subject of Urban Development or an officer not below the rank of a Senior Assistant Secretary in charge of development work of that Ministry nominated by the Secretary;

(iii) the Secretary to the Ministry of the Minister in charge of the subject of Highways or an officer not below the rank of a Senior Assistant Secretary in charge of development work of that Ministry nominated by the Secretary;

(iv) the Secretary to the Ministry of the Minister in charge of the subject of Water Supply and Drainage or an officer not below the rank of a Senior Assistant Secretary in charge of development work, of that Ministry nominated by the Secretary;

(v) the Secretary to the Ministry of the Minister in charge of the subject of Irrigation or an officer not below the rank of a Senior Assistant Secretary in charge of development work, of that Ministry nominated by the Secretary;

(vi) the Secretary to the Ministry of the Minister in charge of the subject of Housing or an officer not below the rank of a Senior Assistant Secretary in charge of development work, of that Ministry nominated by the Secretary;

(vii) the Secretary to the Ministry of the Minister in charge of the subject of Vocational and Technical Training or an officer not below the rank of a Senior Assistant Secretary in charge of development work, of that Ministry nominated by the Secretary; and

(b) the following fifteen members appointed by the Minister (hereinafter referred to as “appointed members”) as follows—

(i) the Chairman of the Construction Industry Development Authority established under section 8 of this Act;

(ii) the president of the institution of Engineers, Sri Lanka established under the Institution of Engineers, Sri Lanka Act, No. 17 of 1968 or his representative;

(iii) the President of the Sri Lanka Institute of Architects established under the Sri Lanka Institute of Architects Law, No. 1 of 1976 or his representative;

(iv) the President of the Institute of Quantity Surveyors, Sri Lanka established under the Institute of Quantity Surveyors, Sri Lanka (incorporation) Act, No. 20 of 2007 or his representative;

(v) the President of the Institute of Town Planners, Sri Lanka established under the Institute of Town Planners, Sri Lanka (incorporation) Act, No. 23 of 1986 or his representative;

(vi) the President of the Association of Consulting Engineers, Sri Lanka established under the Association of Consulting Engineers, Sri Lanka (Incorporation) Act, No. 42 of 2003 or his representative;

(vii) the President of the Institution of Incorporated Engineers, Sri Lanka established under the Institution of Incorporated Engineers, Sri Lanka (Incorporation) Act, No. 64 of 1992 or his representative;

(viii) two representatives from the National Construction Association of Sri Lanka representing the Major and Minor Contractors, respectively and who are nominated by the National Construction Association of Sri Lanka;

(ix) one representative from the Chamber of Construction Industry, Sri Lanka nominated by the Chamber of Construction Industry, Sri Lanka;

(x) one member nominated by the Institution of Engineers, Sri Lanka established by the Institution of Engineers, Sri Lanka Act, No. 17 of 1968; and

(xi) four members appointed by the Minister from among persons who have achieved eminence in the fields of construction, environmental science, labour relations and public health or occupational health.

(2) A person shall be disqualified from being appointed or continuing as an appointed member of the Council—

(a) if he is, or becomes a member of Parliament or any Provincial Council or any local authority; or

(b) if he is not, or ceases to be a citizen of Sri Lanka; or

(c) if he is under any law in force in Sri Lanka or in any other country found or declared to suffer from unsoundness of mind; or

(d) if he is serving or has served a sentence of imprisonment imposed by any Court in Sri Lanka or any other country; or

(e) if he holds or enjoys any right or benefit under any contract made by or on behalf of the Construction Industry Development Authority; or

(f) if he has any financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member of the Council.

(3) Every appointed member shall unless he vacates office earlier by death, resignation or removal, hold office for a term of three years from the date of his appointment and shall unless he has been removed, be eligible for reappointment.

(4) The Minister may, if he considers it expedient to do so, remove from office any appointed member after assigning reasons therefor.

(5) Any appointed member may at any time resign his office by letter to that effect addressed to the Minister and sent by registered post.

(6) In the event of vacation of office by death, resignation or removal of any appointed member, the Minister may having regard to the provisions of paragraph (b) of subsection (1) appoint any other person to succeed such member. Any member so appointed shall hold office for the unexpired term of office of the member whom he succeeds.

(7) Where an appointed member, by reason of illness, infirmity or absence from Sri Lanka for a period of not less than three months, is temporarily unable to perform his duties, it shall be the duty of such member to inform the Minister in writing of such inability. The Minister may, on receipt of such information, having regard to the provisions of paragraph (b) of subsection (1) appoint some other person to act in his place.

(8) No act or proceeding of the Council shall be invalid by reason only of the existence of any vacancy in the Council or any defect in the appointment of a member of the Council.

(9) All decisions at any meeting of the Council shall be arrived at by the vote of a majority of the members present. in the case of an equality of votes, the member presiding shall have a casting vote.

(10) The members of the Council shall be remunerated in such manner and at such rates as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.

6. Objectives of the Council.

The objects of the Council shall be to—

(a) formulate and amend the national policy on construction and its implementation mechanism;

(b) make representations to the Minister on any need for the development of the construction industry;

(c) advise the Minister and make recommendations on any regulation to be made under this Act;

(d) advise and make recommendations to the Authority on strategic issues, policies and legislative proposals that may affect or which is incidental or connected with the construction industry; and

(e) propose measures to the Authority which are necessary for the development and sustenance of the construction industry.

7. Meetings of the Council.

(1) The Council shall meet at least once in three months. The Minister may however call a special meeting if a need arises to discuss any matter of importance.

(2) The quorum for a meeting of the Council shall be eight members.

PART III

Construction Industry Development Authority

8. Establishment of the Construction Industry Development Authority.

(1) There shall be established an authority called and known as the “Construction Industry Development Authority” (hereinafter referred to as “the Authority”).

(2) The Authority shall by the name assigned to it by subsection (1), be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

9. Management and administration of the affairs of the Authority.

(1) The management and administration of the affairs of the Authority shall be vested in a Board of Management (hereinafter referred to as “the Board”) which shall consist of—

(a) the following ex-officio members—

(i) the Secretary to the Ministry of the Minister in charge of the subject of Construction or an officer not below the rank of a Senior Assistant Secretary nominated by the Secretary; and

(ii) the Secretary to the Ministry of the Minister in charge of the subject of Finance or an officer not below the rank of a Senior Assistant Secretary nominated by the Secretary; and

(b) the following twelve members appointed by the Minister (hereinafter referred to as “appointed members”)—

(i) a member of the Institution of Engineers, Sri Lanka nominated by the Institution of Engineers, Sri Lanka established under the Institution of Engineers, Sri Lanka Act, No. 17 of 1968;

(ii) a member of the Sri Lanka Institute of Architects nominated by the Sri Lanka Institute of Architects established under the Sri Lanka Institute of Architects Law, No. 1 of 1976;

(iii) a member of the Sri Lanka Institute of Quantity Surveyors, Sri Lanka nominated by the Institute of Quantity Surveyors, Sri Lanka established under the Institute of Quantity Surveyors, Sri Lanka (Incorporation) Act, No. 20 of 2007;

(iv) a member of the Association of Consulting Engineers, Sri Lanka nominated by the Association of Consulting Engineers, Sri Lanka established under the Association of Consulting Engineers Sri Lanka (Incorporation) Act, No. 42 of 2003;

(v) a member of the National Construction Association of Sri Lanka nominated by the National Construction Association of Sri Lanka;

(vi) a member of the Chamber of Construction Industry, Sri Lanka nominated by the Chamber of Construction Industry, Sri Lanka; and

(vii) six other persons who are not members of the Council, of whom—

(a) three persons who have significantly contributed to the development of the construction industry in Sri Lanka; one of whom shall be a person appointed upon the request of the President of the Institution of Incorporated Engineers, Sri Lanka established under the Institution of Incorporated Engineers, Sri Lanka (Incorporation) Act, No. 64 of 1992; and

(b) three other persons to represent the fields of—

(A) Agriculture, water Resources or Environmental Science;

(B) Public Health or Vocational Health; and

(C) Social, Cultural Heritage or Traditional Knowledge.

(2) The Minister shall appoint one of the appointed members, to be the Chairman of the Board.

(3) The Minister shall appoint one of the appointed members as the Working Director of the Authority who shall be a full time officer.

(4) A person shall be disqualified from being appointed or continuing as a member of the Board—

(a) if he is, or becomes a member of Parliament or any Provincial Council, or any local authority; or

(b) if he is not, or ceases to be a citizen of Sri Lanka; or

(c) if he is under any law in force in Sri Lanka or in any other country found or declared to suffer from unsoundness of mind; or

(d) if he is serving or has served a sentence of imprisonment imposed by any Court in Sri Lanka or any other country; or

(e) if he holds or enjoys any right or benefit under any contract made by or on behalf of the Authority; or

(f) if he has any financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member of the Board.

(5) Every appointed member shall, unless he vacates office earlier by death, resignation or removal, hold office for a term of three years from the date of his appointment and shall, unless he has been removed from office, be eligible for re-appointment.

(6) —

(a) The Minister may by Order published in the Gazette remove any appointed member from office for reasons assigned. A member in respect of whom an Order is so made under this section shall be deemed to have vacated office on the date of publication of that order in the Gazette.

(b) Any appointed member may at any time resign from office by a letter to that effect, addressed to the Minister and sent by registered post.

(c) In the event of a vacation of office by death, resignation or removal of any appointed member nominated by an organization set out in subsection (1) of section 9, the Minister may appoint any other person to succeed such member as nominated by such organization. If such member was not nominated by an organization, then the Minister may appoint a suitable person from such organization to succeed such member. Any member so appointed shall hold office for the unexpired term of office of the member whom he succeeds.

(d) In the case of a member nominated by an organization, on the nomination of such a member being withdrawn by the relevant organization, such member shall cease to function as a member of the Board.

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