After reading a news item about the “New Head for PPP Contracts” in the Internet edition of the Daily Mirror, I thought of discussing this very appropriate Construction process to eradicate the wide spread corruption in the huge Construction Industry. The appointee a very close relation of Prime Minister Ranil Wickremesinghe, consider to be a person with experience in Management and Economics, but not in the Construction and Contract Administration field will be a hindrance to achieve the best result in the PPP system. As most Sri Lankan professionals are not experienced in handling PPP projects with other government,
contractors/developers and other stake holders becoming partners. As the government has now taken a positive step to go ahead with this appointment it is an appropriate time to discuss what is “partnering” method against a ‘full turnkey’ solution’, where the people of Sri Lanka can be the beneficiaries. but the economic needs of the country may forced them to support this project by negotiating the crucial issues. By using this very appropriate construction process or method the government can meet the aspirations of the Environmentalists as well as the Development Economists to establish the ‘much needed Development Projects, in Sri Lanka’ with the developers, consultants, work people and others participating in these developments as part of our Partnering process.
The Environmentalist in Sri Lanka and elsewhere in the world is aware that the economy needs to develop a system of resource allocation among the members of a society to protect the environment. In allocating these resources the economist should consider the future members of the society or the future generations. It has become very important to consider how economists value the distant future to achieve a sustainable development, as the members of the present society; we possess the ability to irreversibly alter the resources, environmental quality and total level of welfare available to the future society. Environmental economics has always, in principle, been a central part of economics. Great economists made significant contributions to the subject of environmental economics. Their research studies discuss about important developments concerning the relationship between ‘economy and the ecology’. There is a propound implication on the way economists think about environmental issues since it goes to the heart of economic growth. In essence it is necessary to have a strong economic growth for Sri Lanka to sustain our development and the environment. Even though most Environmentalists in Sri Lanka opposed many developments projects such as the ‘Upper Kothmale Hydro Electricity Project, Samanalawewa Dam (Hydro) Project and Uma Oya Development Project’ for endangering the environment, they failed to consider that a ‘healthy economy’ is the key for them to sustain and preserve the environment. As such this construction process -Partnering – which is economically beneficial to the country will help the environmental groups to be part of this project while saving the environment they value so much in achieving a Sustainable Development.
Construction contracting is a very competitive, high-risk business. This competitiveness and the perception of conflicting objectives among owners, Government and the construction fraternity is well aware that over the last two to three decades contractual claims and disputes have taken root in the building and construction industry in Sri Lanka and significantly affected the performances in terms of productivity and efficiency. Claims and disputes have increased the completion cost of most construction projects and has become a very serious economic problem for the Sri Lankan government as well as the private sector. The present contract system we used to procure contracts, largely as a result of bad planning, poor procurement practices (faulty Procurement Guidelines), and inefficient contract administration experience of Professionals and the Technical Staff, inadequate general management and bad communication skills has affected the performance of the building and the construction industry in three ways: