The construction sector presently contributes about five per cent to the GDP. But experts in the industry believe the sector could do more if the country’s construction laws are amended to reflect modern practice and developments as obtained abroad, ADEBISI ONANUGA reports
Stakeholders in the construction sector of the economy have stressed the need to review the construction laws oat the states and federal levels with a view to standardising them with what obtain across the world.
They observed gaps in the present legislations at the two levels which they said needed to be filled for the sector to be able to occupy a pride of place in the economy.
The occasion was at the inaugural conference of the Society of Construction Law Nigeria held in collaboration with the Construction and Infrastructure Law Committee, Section on Business Law of the Nigerian Bar Association (NBA) held at Eko Hotel and Suites, Victoria Island.
The theme was: Construction and Infrastructure in Nigeria: Current Challenges and Future Opportunities.
For the first session of the conference, lawyer and Fellow, Nigerian Institute of Quantity Surveyors, Ifeanyi Anago, Chairman, Quantity Surveyors Registration Board, Dr Murtala Aliyu, Director General, Council for Regulation of Engineering in Nigeria (COREN) Contract Manager, Julius Berger, Mrs Omonigho Brown and Managing Director, Interstate Architects Limited Arc.
Olusegun Ladega spoke on the topic, Understanding Construction Contracts: From Procurement to Completion.
While Head, Real Estate Finance West Africa, StanbicIBTC Bank, Tola Akinhanmi, Managing Director, Broli Properties , Bolaji Edu and Executive Director, Inter Bau Construction Limited, Mrs Doris Mbadiwe spoke on the topic, Latent Opportunities in the Nigeria Construction Landscape, during the second session of the conference.
Anago regretted that the country was still using same construction laws since 1980. He, therefore, stressed the need for the country to domesticate current construction laws as obtained abroad.
He argued that the construction sector, in spite of its prospects and potentials, has remained untapped by lawyers encouraged members of the legal profession to participate actively in the sector which most of the speakers believed is bigger than the oil sector.
“Lawyers need to acquire subject competence to be able to add value, competence to the project. There are different value they can foster and bring to the table.
They can provide some technical details and add value to the process”, he said.
Dr Aliyu, in his contribution regretted that the problem in the sector was due to the absence of legal participants.
“What are the things we should do to ensure value for money?, he asked, and emphasised the importance of collaboration amongst engineers handling construction projects.
To him, “the moment a project is designed, construction has started”.
Engr. Rabiu stressed the need for constant use of licensed engineers for construction projects.
“For any construction to take place, there must be designed by architects and structural engineers who must first play their roles in execution of construction project”, he said.
Rabiu described procurement in construction as a dream that must come to reality in a situation where all stakeholders in the sector play their role.
He said both the federal and states have their respective laws on procurement, adding that while the public procurement act is used at the federal level, the states use their respective public procurement laws a.
Ladega emphasised that three layers of contractual relationships that are key to execution of a project and listed them as the “Architects, Engineers and Contractors, (AEC)”.
He said the project consultant is expected to exercise the best of his judgments in the execution of any project.
He said designers also have the primary responsibility to supervise his work to ensure compliance and quality control by the builder, who he noted is often using a management contractor to get his job done.
Mrs Brown remarked that the qualification stage is very important for engineering contractors as it is the point at which employer invites contractors for bidding for the design to be constructed.
She listed the different stages leading to the award of a project contract, the most important of which she said is negotiations of terms and condition of contract by the successful bidder.
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Mrs Brown advised that a contractor would do well to learn from engineers and architects and also stressed the need to address issues of sub-contractors invited to participate in project execution for performance.
She also advised lawyers to visit projects sites and asked questions from engineers and architects to have more knowledge of contractual agreements.
She said contract is signed only after agreements are reached.
Mrs Mbadiwe lamented that most construction projects in the country are being executed by foreign contractors to the detriment of indigenous companies as only five per cent are done by them.
She said the construction sector is the fifth largest contributor to the nation’s GDP , pointing out that the sector contributed N540 billion in the third quarter of this year.
She also encouraged participation of youths in the sector through invention of tools and equipments for the construction industry.
“Executive Order 5 encourages the adoption of local technology instead of foreign ones. This automatically created room for local innovations”, she said.
Chairman, Society of Construction Law (SCL), Emmanuel Dike, in his remarks said that the development of the nation’s economy is hinged on the development of infrastructure; hence there has to be synergy amongst the key players and investors in the field of construction.
He said this will give rise to a better understanding of the intricacies involved in complex construction works, prevent time-consuming disputes; and where disputes arise, provide quick resolution techniques.
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