Contractors in the country have called for a legislation that will compel government to set aside a fund to pay contractors who have executed their work.
The contractors made the call when a delegation of the construction sector of the Association of Ghana Industries (AGI) visited the Minister of Roads and Highways, Mr. Kwasi Amoako-Attah in Accra.
The delegation was led by Construction Sector Chair, Mr. Rockson Dogbegah.
Mr. Dogbegah said delayed in payment for work done was adversely affecting the capacity of contractors in the industry.
He stressed the need for the legislation to remove challenges that causes delay in payment to contractors.
“The Mission of the AGI Construction Sector is to influence the development and growth of the construction industry, through effective stakeholder engagements and policy reform initiatives that will enhance the capacity and competitiveness of construction sector service providers in Ghana,” he said.
Mr. Dogbegah said the problem was making it difficult for local contractors to compete with their foreign counterparts who have access to foreign funds.
Touching on other issues, Mr. Dogbegah said another challenge confronting contractors in the country was the Formula for building Price Fluctuation Factor.
He explained that the system does not adequately compensate for increments, a situation which must be reconsidered.
He also stressed the need for the government to collaborate with the private sector to put in place strong regulatory task force to ensure compliance with health and safety requirements on construction sites.
In his response, Mr. Amoako-Attah commended the delegation for their show of rich ideas and knowledge of the road industry.
He added that such meetings should be institutionalized to ensure frequent sharing of ideas to enhance performance in the sector.
He assured the delegation that the condition of contract and the legislation on payment of interest on delayed payment was still binding on the government.
The Minister also promised to take up the safety issues with the Attorney-General’s Department since an established legislation will provide grounds for enforcement.
He assured that the Ministry would take a serious look at issues of fluctuations and ensure that contractors were paid as early as practicable to avoid such occurrences.
Mr. Mr. G.J. Brocke, Chief Director, Ministry of Transport said the ministry was considering the creation of new opportunities for local contractors for Public-Private Partnership (PPP) projects.
He said the ministry would also create opportunities for constant dialogue with the contractors in order to address issues concerning the sector.