The biggest problem in the construction sector is unhealthy competition. Contracts are awarded at prices as low as 40 percent. If a contract is awarded at a price lower than the cost, then it is clear that the wrong intention started there. In Nepal, contracts are also called for 200,000 rupees, contracts up to 2 billion or 20 billion rupees are awarded. However, in the case of small contracts, there is an average mechanism. It is necessary to have competition for contracts below 500 million rupees by setting an average amount. If the competition for the average amount exceeds the cost, a system should be implemented that does not give the contract to the one below that. The contract should be given to the one below that. When the contract is awarded by setting an average 'bid', healthy competition begins there. Therefore, a system is established that does not go much lower than the cost.

It may be said that only one person will get the contract. However, according to the special rate regulations, a construction entrepreneur cannot get more than five contracts at a time. After the work on any one of the five contracts is completed, he can take another contract from the competition. In the case of small contracts, we should go for average competition. 

The biggest problem right now is with sick contracts. There are also such contracts, which cannot be closed by law or be blocked, nor can another contract be awarded. There are also contracts where 90 percent of the work has been completed, which have expired and have not been extended. For this, a bank guarantee is required, which the bank does not provide. There are such contracts that are 12-14 years old, for which the bank does not agree to provide a guarantee. Not only this, it must also be insured for that period. Insurance companies do not agree to provide such insurance. Let's move forward with contracts that can be completed by extending the deadline. 

Again, in the case of contracts where there is 50-60 percent progress and work has not been done, it is better to extend the deadline and get work done on it. A contract that does not work even after extending the deadline must be terminated. That too can be terminated in two ways. There is no fault on the part of the construction entrepreneur, but if he is at fault, let's impose 10 percent damages according to the contract agreement. No more damages can be imposed. How much is one/two years? Let's punish them by putting them on the blacklist. However, if they were not able to go to the site and do the work, if the time was up, they should apologize and thank them and finalize the contract. 

Currently, the price of bitumen, petrol/diesel used in construction has increased due to the Israel-Iran conflict. If the price increases immediately after taking the contract, it becomes difficult for them to work. Therefore, the price adjustment should be given no matter how many months the contract was signed. Many mistakes have been made by construction entrepreneurs. They did not take the contract without carefully observing the bridge, road or any other place they were going to build. It is important to understand the section they are taking the contract for. So that the construction work does not stop in the middle tomorrow. The contract does not become unhealthy. Only if they are able to do it, they should participate in the contract process. Taking the work without looking at the place they are taking the contract for may result in a loss tomorrow. The loan taken from the bank will be exhausted, the house will be exhausted. It is mandatory to visit the site when placing the contract. 

The project office concerned should write a letter to help you go to the site. A pre-bid meeting is held before the contract agreement is signed. There, you can ask questions about what you have experienced after participating in the contract process. Not all the competitors may go, so it is a good thing to go. You can go here and ask questions about what you have experienced. Is there a land problem at the contract site? Is there a problem with the locals? Do trees and plants need to be cut? Do electricity and telephone poles still need to be moved? You can ask. 

It is better to go on a site visit after this meeting. However, 90 percent of the participants in the contract process do not do this, it is mandatory to do this. The state should also be responsible for such matters. The problem cannot be solved just because the construction business did not work. Problems in projects also occur due to low bids. Financial crises occur. Projects become sick. It is also necessary to convert time into cost. The use of technologies should also be increased during surveys. 

Price adjustment should be implemented even in small contracts. This is applicable to large contracts but not to small contracts. It is said that if the price of any construction material increases by more than 15 percent, its price will be adjusted. Currently, the price of bitumen, petrol/diesel used in construction has increased due to the Israel-Iran conflict. If the price increases as soon as the contract is awarded, it becomes difficult for him to work. Therefore, the price adjustment should be given no matter how many months the contract was signed. If this is the case, he will work confidently. He will not be unfair. If the price of construction materials decreases, it will be adjusted accordingly. 

After the implementation of federalism, the quality of work is reduced when the local wards issue permits for construction work. Before becoming an advocate, auditor, etc., a license is required, and you should have studied that subject. For this, the procedures must be completed. However, in the construction sector, rural municipalities and municipalities are issuing permits haphazardly. This is happening in the greed of revenue. It is not beneficial in the long run. They are getting permits because they have no experience in the construction sector. They are asked to give permits after showing what equipment is needed in construction. Currently, permits are obtained by showing such things only on paper. This needs to be improved. With a permit, one can compete for contracts of up to Rs 20 million. There are many who bid based on how little money they can get the contract. According to records, there are about 32,000 construction entrepreneurs across the country. 

It is necessary to make the Procurement Act and Regulations timely. The procurement process is lengthy. It is necessary to make it faster and shorter. First of all, it is necessary to evaluate the financial proposal by opening it and not evaluating the technical proposal. There is a tendency for employees to be very afraid of this. Currently, the Procurement Act 2063 is being implemented. Some of its sections are not practical. Sub-section 8 of Section 59 of the Act states that if the contract agreement is terminated, the entire security deposit kept by the construction entrepreneur for the work will be forfeited and the amount required to complete the remaining work after the contract is terminated will be recovered from the bidder who does not perform the work as per the agreement, as government dues. However, this subsection should be repealed as it is not practical. If this section is implemented, construction entrepreneurs will be on the streets. 

There is a tendency to rush to contract. Those in the government now do not have to maintain cadres. There is time to do good work in their own way. The Ministry of Finance is domineering in payment. There is a problem in contracting without prior preparation. The issue of putting an e-billing system in the government's 100 agendas is welcome. After the variation orders and bills are placed online, it becomes transparent. The work can be tracked. The Prime Minister and ministers can see it. There will be less work to stop the bill for the completed work. Many points in the government's agenda are good, if it can be implemented literally, there will be a lot of improvement in the infrastructure construction sector. Currently, it takes time for government bodies to collect comments to receive payment for any work. 10/15 people have to sign. Once they reach the department, there is the same wait.

Six months of the year pass by carrying the file of the bill for the work done to the project office, department, and ministry. No one knows about the suffering we are facing. They just say that they did not do the work in vain. There is a practice of issuing contracts in Asad. Construction materials are cheaper at this time. The contract cannot be negotiated at the same rate. The local district administration offices issue the rate. The work starts again in winter. Therefore, it would be easier for construction entrepreneurs if the rate could be kept at the same time as the work.

There is a tendency to rush into contracting. Those in government now do not have the time to maintain cadres. They have time to do good work according to their own standards. The Ministry of Finance is domineering in payment. There is a problem in contracting without prior preparation. Money should be given where there is more work. The money for projects that are not working should be transferred and sent to the project if there is work. This also has a long process, decisions are not made quickly. This slows down the pace of work in ongoing projects. The secretaries of the Ministry of Development should be allowed to manage the budget under their ministry.

If there is insufficient, they should be made to take responsibility for it. Problems arise when everyone tries to do all the work. There should be no obstruction in extracting river-based construction materials from places where an Environmental Impact Assessment (EIA) has been done. There is a problem in many projects where the local level stops this. The auditor's office issues the project's disapproval. While we do not meet them. The project staff is simply met and the amount is deducted. The project then sends a letter stating that the amount cannot be deducted from the bill for our work. The project must settle this. The construction business cannot be blamed.