If the Royal Audit Authority or RAA’s recommendations come through, contractors failing to deliver projects on time will not be allowed to bid for future projects. The authority’s report on determining construction duration recommended a prequalification system that will ensure only contractors with a proven track record of delivering projects on time are allowed to bid for contracts. This is because of the increasing cases of delayed construction in the country.
The authority recommends the establishment of a performance rating system by an Independent Review Committee that will monitor adherence to project timelines.
The Independent Review Committee will comprise of members from relevant agencies including a project manager from the Ministry of Infrastructure and Transport, a quality control expert from the Bhutan Standards Bureau, a finance expert from the Ministry of Finance, a procurement officer from the Department of National Properties, and a design consultant from a private agency.
The committee will evaluate eligibility for future bidding processes. Contractors with a history of delays or inefficiencies may find themselves excluded from upcoming tenders, while those demonstrating consistency and reliability will be favoured.
The recommendation is expected to bring transparency and fairness into the contractor selection process, reducing risks of project delays and cost overruns. By holding contractors accountable for their past performance, the system seeks to enhance the overall quality of infrastructure development and public works.
The Construction Association of Bhutan welcomed the proposal, highlighting its potential to create a more competitive and merit-based environment.
“The construction industry and our association have long advocated for this. We have consistently recommended to the government the need for an independent or third-party review committee to monitor projects. With the significant focus on infrastructure development in the 13th Five-Year Plan and the financial importance attached to it, such a committee is essential. The construction sector plays a key role in boosting the GDP and improving the country’s economy through investments across various sectors,” said Trashi Wangyal, the president of the Construction Association of Bhutan.
In the report, RAA highlighted that public sector infrastructure constructions are riddled with delays, defective works and inefficient monitoring and supervision. Such problems usually lead to increasing costs, ineffective service delivery and the need for regular maintenance.
The government spends millions of ngultrum annually in public sector construction. In the financial year 2020-2021, the government spent over Nu 17bn in the construction of public infrastructure, including roads, bridges, irrigation channels, drainage, and water supply among others.
Samten Dolkar
Edited by Phub Gyem
