BUSAC gives financial support to contractors

Kumasi, Sept 10, GNA - The Business Sector Advocacy Challenge (BUSAC) has supported the Ashanti Regional branch of the Association of Building and Civil Engineering Contractors of Ghana (ABCECG) with GH=A29,000 (90 million cedis) out of a GH=A240,000 (400 million cedis) package to help members improve their businesses.

The Association will receive the remaining GH=A231,000 (310 million cedis) in three instalments, Nana Aboagye Danso, the Regional Chairman of the ABCECG said in Kumasi at the weekend.

Nana Danso explained that part of the money would be used to support members who need advance payments for their businesses and those whose retentions had been delayed.

The Secretary for the Association, Mr Tony Asante-Gyinae, appealed to government to review the Public Procurement Board's (PPB) Condition of Contract, which was last amended in 2003, adding that, it was still not favourable to contractors.

He held that it should be made obligatory to clients to make part payments to contractors for contracts, saying, the payment must not be selective but must include all category of projects. Mr. Asante-Gyinae also urged banks and insurance companies to reduce the cost of non-refundable bid bonds.

He prayed that bonds should be used to replace physical cash during the vetting of claims submitted by contractors for projects they executed.

Mr Asante-Gyinae called on contractors to join hands to review the contract document.

Nana Asamoah Boadu, Head of the Construction Division of Building Road and Research Institute advised the contractors to inspect sites before they accept contracts, adding that, they should employ the services of Engineers in their pricing so that they would not run at losses.