Government’s plans of industrializing the country will involve the built environment players who are key stakeholders which therefore call for the need to develop the appropriate synergies to help the government achieve its aim, Mr. Rockson Dogbegah chairman of the Association of Ghana Industries, AGI, Construction sector chair has said.
Payment of interest on delayed payment is one of the vital compensations provided in contracts to protect the capital investment of contractors and sustain their cost of financing when the payment due them is delayed.
This also ensures that the contractor is able to maintain his arrangements with his creditors or renegotiate with them for continuous supply of requisite inputs to ensure that construction projects are completed with quality within the stipulated period without disruption.
The construction sector, over years, has grown averagely at an estimated rate of 7 percent annually from 2009 to the third quarter 2017.
However, how much of this growth cannot be credited to indigenous Ghanaian companies in the country?
Most of the big ticket construction works are being carried out by means of foreign direct investment (FDI), which comes along with its own conditions.
Local construction industry players, for years, have incessantly complained of not being able to get a fair chunk of business within the sector.
Contractors in Ghana want government to pass a law that will enforce the payment of interests on delayed payments for public construction works.
They argue that they are overburdened with high interest rates on loans from banks and often lose out when payments are delayed without interest.
For instance, government’s indebtedness to road contractors is estimated at 600 million Ghana cedis.
Mr. Rockson Kwesi Dogbegah, Chairman Association of Ghana Industries (AGI) Construction Sector, has called on government to pass the Construction Industry Development Authority (CIDA) bill to regulate activities in the construction industry. He said this is necessary to help build an “indigenised globally competitive construction industry that promotes excellence and supports national development”.