C L Verma, president of the Builders Association of India (BAI) and CMD of Continental Construction Ltd, feels the time has come for builders to articulate their business interests in unison. ``Unlike industry, builders and contractors do not share a common forum where common problems can be discussed and placed before the government. We are planning to set up a confederation of construction industry that can take care of the professional needs of builders and contractors, as also attract adequate government attention on issues that impact the sector,'' says he.Verma has a single panacea for all the ills that bedevil the construction sector: ``Give us industry status,'' he says.

The construction sector is the second largestemployer in the country (31 million workers and professionals) and has a business potential of over Rs 210,000 crore per annum. Moreover, with the government's attention shifting towards the core sector, builders will be called upon to play a key role in executing major infrastructure projects in the country. ``However, there is no single ministry that can coordinate the affairs of the construction sector,'' he laments.

``Industry status will make it easier for construction companies to raise resources from financial institutions. The banking sector already realises that we have been overlooked for a long time. We are now talking to the banking institutions on how financial resources can be mobilised for our projects,'' he adds.

``Of course, we are also putting forth a proposal for a construction bank that can meet the financial needs of builders,'' he informs.Lack of uniformity in the contract and bidding documents is another problem that contractors face across the country. ``The nature of contractdocuments vary with each sector and industry. The Railways, the CPWD, the PSEs—they all have different parameters for inviting tenders. It is extremely difficult for a builder to conform to a large number of variables,'' says Verma.

To overcome this problem, BAI, along with the Construction Industry Development Council (CIDC), is working out certain broad parameters that may be applicable for all bidding documents in the construction sector.Verma also feels that contractors must be given more time to study a particular project proposal. ``Government departments conduct the geological survey for various infrastructure projects. That may take even 10 years. But when contractors are invited to place their tenders, they are given just 30-60 days to conduct their own investigations regarding the project. In such situations, a contractor can only verify the bill of quantity. He cannot check the total feasibility of the project. As a result, he bears the brunt when the project faces time or cost overruns,'' hesays.

``Moreover, many of these projects are initiated at remote places where new facilities have to be created for the workmen. However, the government's support in this regard is always found wanting. Once a project is approved, the contractor is expected to start work immediately. There is no effort on the part of the government to see how the landscaping is to be done, how machinery for the project will be installed, and so on,'' says Verma.``Instead, once the tender document is approved, the government must create the requisite facilities for the contractor to begin his work at the scheduled time. Then there is meaning in penalising a contractor for not meeting the expected standards for any project,'' he says.

Dr R Kapur, director, Unitech Ltd, says Reliance Industries has played a major role in professionalising construction activities. ``By providing an inventory of materials, they help the contractors get on with their job in a very short span of time.''

Kapur feels that construction companiesmust undergo quality improvement and product improvement programmes. ``Very often, we find that tools are not standardised. Workmen in different regions use different kinds of tools. This interferes with their productivity. Also, the R&D sections of major companies could look at developing ergonomically designed tools that can enhance the productivity of the workers,'' he points out.

Kapur says that foreign competition in the sector is imminent. ``When more than Rs 200,000 crore per annum is required for the domestic infrastructure sector, there is no way but to invite foreign players. Further, the entry of foreign players will impel the domestic builders and contractors to get into the professional groove,'' he adds.

But Verma does not approve of the special treatment that is accorded to foreign firms and professionals. ``Foreign assistance may be sought in areas such as materials management, computer programming for projects, etc. But the strengths of the domestic companies must not be overlooked. Afterall, it is the same Indian contractor who successfully meets targets abroad,'' he says.

``In fact, we could do without foreign assistance. But multilateral agencies such as the World Bank insist on foreign participation for any projects that are aided by them. Our government, too, does not trust Indian contractors,'' Verma says.

``Foreign companies have no idea of Indian conditions. Although the stakes for the Indian and foreign partners for a given project may be in the ratio of 55 to 45, the Indian partner brings in nearly 2,500 workers and professionals for the project, whereas the foreign partner inducts just about 15 professionals. The actual work, therefore, gets done by the Indian workers and professionals. This aspect needs to be highlighted,'' he adds.Kapur says that domestic builders and contractors are well equipped to meet international standards in terms of cost and quality of projects. ``However, the safety aspects have not caught on in the work environment,'' he avers.