Blog

49^th EXECUTIVE COMMITTEE MEETING of the Construction Association of Bhutan. 3^rd February, 2021.

List of Members who attended the 49^th Executive Committee Meeting.

1. Mr. Thinlay Gyamtsho (President)
2. Mr. Mr. Karchung Dukpa (VP)
3. Mr. Tshering Dorji (Board Member)
4. Mr. Neten Wangdi ( Board Member)
5. Mr. Kezang Choejur ( Board Member)
6. Mr. Tshering Dorji (Board Member)
7. Mr. Tshering Yonten (ED, CAB)

Staff attended:

1. Mr. Namgay Tshering (Program Officer)
2. Mr. Pem Dorji (ADM Asst.)

Agenda adopted by the CAB management.

• Follow up of the 48^th ECM
• Point to be submitted to Government

         a. Youth Employment program

         b. For discussion in Board

• CAB Activities

         a. Work done             

b. forth coming activates

• Membership and Accounts updates
• CAB HR & Staffing
• Any other matters?

The 49^th Executive Committee Meeting of CAB was held on 3^rd February 2021 at the President’s Residence, Thimphu. The meeting was conducted to prepare urgent issues to be put up in the upcoming Board meeting & for the immediate submission to the government on Youth Employment Program. The agenda was thoroughly explained to the Board members by the executive Director for adoption.Whatever decisions taken during the meeting are as follows:

Sl.NO	AGENDA	DECISION TAKEN
1	Follow up of the 48th ECM                 Fund of COVID19 collected, 3.3 million Labour cost sharing with Ministry of Labour & Human Resources (MoLHR)The CAB prepared a project proposal and put up to the MoLHR to recruit Bhutanese technical graduate on a cost sharing basis.  Making use of available Indian Laborers –  Work hindrance letter sent Defer of loan re-payment – Got approvedKidu of interest for Non-Performing Loan (NPL)  Material transportation approved	As a follow up of 48th ECM, 2020. ED explained point by point to the members on the achievement CAB has brought since last one year.
2	Importing the skilled labor and was approved.Redesigned of construction projectStreaming of loading/unloading at gateOther Resource during tender brought down as per our requestExperience of engineer brought down as per our requestSale tax brought down from 5% to 1%	ED informed the floor on follow up issues of 48th ECM such as Bringing down of Sale Tax from 5% to 1 %. As part of re-designed he proposed Mechanization system required in the construction sector to replace laborers. He further explained about the reviews done on AOA & CAB service book, Procedures of elections & nominees for Presidents, ECM & other related.
4	Submission to government   Point to be submitted to Government                         a. Youth Employment program             b. For discussion in Board Increase of threshold for Medium contractors  Increase/lifting of ‘Work in Hand’ ceiling for contractors;  Proposal for revision of Bid Capacity; 7 years Revision of Monitoring Guidelines 2018; and Launching of Construction Journal.	. Firstly the members recommended to provide opportunity to all interested Bhutanese rather than providing only to specific one.   . Secondly, There shouldn’t be any age limit rather it should be kept open to all.   . The government may provide top up 5000 to 6000 on the salary of existing employees working in the construction firms to balance the opportunity.
5		The issue of BBP wage structure was thoroughly discussed and the member understood the purpose. It was also understood that the private firms should provide basic pay where us government provides incentives or allowance for the BBP participants. This allowances are said to be provided till the end of current program. Mr. Tshering Dorji helped to explain       more on this issues to have constructive decision for the long term benfit.The issue was also thoroughly discussed to provide balance benefit to both government & the private firms.
6	Youth Employment Program   List of workers requirements  (attached list)How helpful is the proposalSubmission to government?	The members feel that overall they find the initiative good considering the inclusion of above three points to benefit both government & private contractors equally.
7	For discussion in Board   Work limit of Large to 7 Nos (now 5) Work Limit of Medium to 5 Nos (4)Super large class, No limit above 500 millionFinancial Ceiling of Medium to 250 Million (now 15)Small need to have 1 mini concrete mixture during renewal not for new. Small if don’t take work will be debar for 1.5 years whole BhutanOther NRE requirements as per instructions	. The Board Recommend to include at least a mixer machine for the existing small but for new not necessary.   . Work Limit for the super large should be 40 cores was decided to propose. . Proposing one year for debar which was initially 5 years.   Medium financial should be 250 million with same resource. At least 2 weeks’ time should be given to prepare EMD.   One engineer for one site was proposed but will keep three for the company.   One machine permanent & two can be adjusted after completing the project.
8	Contractor’s work in hand information   Large : 146, Medium = 316,  Small = 1842 Descriptions L M Total (%) No. of Ongoing works 314 336 650 No. of Contractors 176 291 467 No. of Contractors with 0 work in hand 60 137 197 (42%) No. of Contractors with 1 work in hand 28 69 97 (21%) No. of Contractors  with 2 work in hand 37 58 95 (20%) No. of Contractors  with 3 work in hand 25 23 48 (10%) No. of Contractors  with 4 work in hand 15 16 31 (7%) No. of Contractors  with 5 work in hand 17 – 17 (4%)
9	Bid Capacity option 2   Bid capacity improvements Give 20 points for turnover & 15 for similar works Parameter Levels of achievement Score Bid Capacity   Bid Capacity>quoted bid Capacity is between 80-100% quoted bid Capacity is between 60-80% quoted bid Capacity is between 40-60% quoted bid Capacity< 40% quoted bid 25 20 15 10   0   Parameter Levels of achievement Score   Bid Capacity   Bid Capacity>quoted bid Capacity is between 80-100% quoted bid Capacity is between 60-80% quoted bid Capacity is between 40-60% quoted bid Capacity is between 20-40% quoted bid Capacity< 20% quoted bid 25 20 15 10   5   0	Initially all agreed on the proposed bid capacity by ED but as we discussed further there had been slight changes especially in the context of work experience & without work experience. Some suggested to add five more on work experience & 0 for without work experience. The president suggested to add 5 point on the quoted bid capacity between 20-40 %.
	The Bid Capacity is calculated using the following formula           Bid Capacity= 2*A*N-B             Where A = Average turnover of the contractor over           the      last 3     calendar years             N = Estimated duration of the project to be tendered             B = Portion of other ongoing works to be completed             Example calculation medium
	Work done after 48th ECM   In 48th ECM it was discussed that to appoint new Chairperson, DLC in the Dzongkhag where required along with the conduct of CMS training.Action: due to the Covid19 pandemic, we could coordinate 5 batches of CMS training within Thimphu and Wangdue. So, appointment of Chairperson is still due. Additional provision to website improvement carried done.Request government for virtual meeting with all the DLC.	The Board complemented & endorsed for the effort made by the management of CAB through the support of Mr. President, Mr. Tshering Dorji and others who were involve during that process.
	Request to Government   Appeal was submitted to Ministry of Home & Culture Affairs & Ministry of Works & Human Settlement to endorse us to let the Chairperson, DLC to take part in Dzongkhag Tsgogdue.Action: Approval sanction from Hon’ble Zhabtog Lyonpo and accordingly notified the 20 Chairperson, Dzongkhag Tshogdue and Dzongdags.Several submission pertaining to the project time extension and do away with the Liquidity Damage (LD) penalty imposed to the contractors.Action: Notification was officially circulated from the Ministry of Finance in response to our appeal.
	Developed and submitted project proposal to several financing windows.1. Attended the webinar hosted by Seoul Policy Centre on Clean Construction System for efficient public administration and taking into consideration of the ongoing CMS we have developed a project proposal and routed through UNDP country office for the submission.  Project worth of USD 50,000 is approved and we are waiting for within country approvals which couldn’t make through due the nationwide lockdown.	ED requested someone having link with GNHC to follow up at the earliest. He has also committed to deal with an official whom he knows to make the project get through.
	Continues…. 2. Based on the call-off project proposal from “small action fund of Swiss Embassy for 2021” we have developed a project proposal on “Improving the Occupational Health & Safety in the Construction Sector in Bhutan” and submitted.We are now members of team in BSB for approving the products             As of Today Committee In : CDB, ACC , IRB, PRR,  & BSB             Members in DYT, LG Drafting & Construction Act drafting Future: Awarding committee in work	ED also informed the Board about small project being proposed by sherub for the OHS training. He further informed the board about CAB’s representation in different Agencies besides being member of DYT, LG & Construction Act drafting. He proposed to have contractor’s representative in the Work Awarding Committee.
	Forthcoming Activities:   CMS Training in 8 regions             . Zhemgang, Tserang, Pemagatsel, Trashigang,              Phuntsholing/Samtse, Samdrupjongkhar, Gelephu and             Thimphu             (Fund from UNDP) OHS Training in 6 Regions:             Paro, Phuntsholing, SamdrupJongkhar Trongsa       and             Trashigang (Fund proposal for Swiss) Balsting Training 2 region             East and west (not yet decided, submitted for approval)	The Board was informed about the planned training activities in rest of the districts and they endorsed the management to re-schedule depending on the COVID situation.
	Future Road Map of CAB Procurement of membership card printing (seeing for formal approval)             -We can print card as and when required Register with Labor as training institute for Contractor of Bhutan.             a. institute one division for training of contractors             b. takeover refresher course from CDB Lease a land & build office for CAB for long time survivor Employ 1 staff as a CAB workers in each Dzongkhag under DLC	Purchasing of Card printer was approved unanimously as it will benefits whole members. The board has also directed ED to carry on with the proposed plan & follow-up accordingly for future survival of CAB.
	Proposed Membership Fees structure:   Sl.     Class                                      Fees 1        Super Large                          100,000.00 2         Large                                    30000.00 3         Medium                                10,000.00 4         Small                                     2000.00     Total collections if all becomes Member.   Sl.     Class                       Fees                 No.          Amount 1       Super Large           100,000.00         0 2       Large                      30,000              182       5,460,000.00 3       Medium                  10,000              377       3770,000.00 4       Small                       2000                2237     4474,000.00                         Total Collection would be                    2796      13,704,000.00	ED informed the board on the changes of membership fees structure. After delivering extensively there had been no changes for the large & Medium members and the fee of small class was decided at Nu. 2000 with immediate effect. Mr. Leki Dorji representative of small also agreed on the revised fees and approved accordingly.
	PAYABLE Bills as of now: SI No Name Amount Remarks 1 Retirement Benefit 326,023.00 Karma Wangmo 2 Retirement Benefit 374,890.00 Sonam Rinzin 3 Retirement Benefit 361,837.00 Kumbu Dema 4 Food bills & Room charges 189,113.00 Terma Linca Resort & Spa 5 Druk Events 500,000.00 Construction Fair stalls  6 Tashi Infocomm 634411 Internet & Web 7 CDCL 130,000.00 Refund of excess payment received from CDCL for the forum    Total Amount Nu:- 2,516,274.00                                               IFAWPCA Membership     4950.00 US$ (2021 * 50*)	The After discussing extensively on this issue, The board directed ED to clear 50% of Tashi Infocomm’s pending bills and other dues within fiscal year 2021.They further recommended to solve the remaining due of Tashi Infocomm through initiative proposed by ED.As he has good linkages with the CEO of that company.

Additional Issues discussed & approved in the 49^th ECM

As proposed by the Executive Director of this office with regards to election of DLC for the Districts which has no active DLCs. Therefore, the Board approved and directed to reconstitute Haa & Paro DLC at the earliest and directed to re-constitute remaining districts within this fiscal year 2021.

The Allowance of Nu. 1000 each to all DLC chairperson per month was also approved to function in their jurisdiction.

The board decided to spilt the post of DLC from ECM which means DLC chairperson or ECM members cannot hold that two Honary post at a time so henceforth, the board decided to elect that post separately for two entities.

Issues on CAB HR & Staffing proposed by the Executive Director.

As proposed by ED, The Board approved transition of current interim Executive Director from the post of Vice President to fulltime Executive Director Post on Contract basis with a specific term under CAB service rule.

The board also approved the promotion of Ms. Sherub Lhamu from grade 7 to grade 6 as per the proposal of the Executive Director.

With Regards to Ms. Pema Zangmo, who is currently serving under probation period was not approved under regular service. Her probation period was deferred for three more months and she has to wait till next ECM under observation.

The meeting concluded with a dinner from President.