By Malai Hassan Othman
BANDAR SERI BEGAWAN, July 24, 2024 - Brunei's construction industry, once a pillar of national development and economic growth, is now at a crossroads.
Architects, engineers, and quantity surveyors in private practice are sounding the alarm over recent government policies they say are crippling their professions and undermining the sector's future.
A Shifting Landscape
For years, public construction projects in Brunei have relied on the expertise of private design consultants, selected through competitive bidding.
These projects, although often barely covering costs, kept consultancy firms afloat and provided essential jobs. However, a seismic shift is now underway.
Government institutions are moving projects in-house, sidelining private firms and threatening their very existence.
This policy shift has led to a sharp decline in opportunities for private sector professionals, who now face plummeting job prospects, reduced salaries, and a devaluation of their expertise.
The fallout is severe: firms are downsizing and shuttering, and professionals are either leaving the field or seeking opportunities elsewhere.
Professional Outcry
"The years of dedication and hard work we've put into building this nation's infrastructure are being dismissed," lamented a local architect who wished to remain anonymous.
"The government's policy is not only devaluing our profession but also jeopardizing the quality of the nation's infrastructure."
Economic Impact
The economic repercussions are extensive.
The construction sector, one of Brunei's largest employers, is seeing a downturn. With 27,810 workers in 2015—many of them non-local—the sector's GDP contribution dropped from BND 109 million in the fourth quarter of 2023 to BND 86.70 million in the first quarter of 2024.
The reduction in government projects is a major blow.
Irony and Accountability
In an ironic twist, Minister of Development Muhammad Juanda Abdul Rashid recently praised the sector's accomplishments, including the Sultan Haji Omar 'Ali Saifuddien Bridge and various petrochemical projects, while acknowledging the need for ongoing maintenance and upgrades.
Yet, this stands in stark contrast to the current shift towards in-house project execution, raising concerns about compliance and standards.
Regressive Policy Changes
This policy change is reminiscent of the pre-independence era when all construction and building works were managed in-house or carried out by foreign companies and expatriates employed by the government through the Crown Agents.
During those days, all works were executed through the Public Works Department (JKR).
When qualified locals began returning from their studies abroad, they were directly recruited by the government, and projects were still managed in-house.
However, as the volume of work grew, it became evident that in-house efforts could not maintain the standards required for a developing nation.
This realization led to locals venturing into private practice, contributing significantly to the industry's progress.
By the 1990s, there was a push to empower ministries to manage their own projects.
However, this decentralization led to numerous mishaps and poor project management.
Consequently, a decision was made to centralize project management back under the Ministry of Development.
A notable example of a successful shift towards local outsourcing is Brunei Shell Petroleum.
The company moved away from relying on The Hague for procurements, instead focusing on building local capacities and concentrating on its core business of production.
Similarly, the government should focus on its core business of governing and supporting the local construction industry by outsourcing projects.
Competition and Compliance
The government's current practice of awarding projects based solely on price is under fire.
Previously, local players benefited from a more balanced allocation. Now, with many in-house designers allegedly not registered under the APEQS Order 2011, there's a clear compliance issue.
According to the Building Control Order 2014 (BCO), only qualified or licensed bodies should be appointed by instructing agents, including government agencies.
This distinction is vital for upholding industry standards. Furthermore, industry professionals argue that competition should be based on quality, innovation, and capabilities rather than price alone.
Setting minimum allowable fees, similar to minimum wages, could help level the playing field and ensure fair competition.
Retendering Controversy
Adding fuel to the fire is the recent decision to retender a major project as a Design and Build initiative.
Parties who had already invested significant resources in preparatory work are now seeking compensation, highlighting the need for strict adherence to financial regulations in government contracts to prevent such disruptions.
Call for Urgent Policy Review
Industry experts are calling for an urgent review of these policies.
They argue for a balanced approach between in-house project implementation and outsourcing to private consultants to ensure the industry's sustainability and maintain a skilled workforce.
"Government projects must involve private consultants to foster a competitive and healthy construction industry. Transparent contract awarding and project implementation are key to allowing consultants to adapt and continue contributing to national development," urged an industry professional.
Future Outlook
Despite these challenges, there are glimmers of hope.
The National Housing Scheme and the Construction Industry Framework 2022-2035 by the Authority for Building Control and Construction Industry (ABCi) aim to embrace innovative technologies and sustainable practices.
For these initiatives to succeed, collaboration with private consultants and valuing their expertise is crucial.
In conclusion, while the government aims to optimize resources through in-house project implementation, this mustn't come at the expense of private sector professionals.
Ensuring compliance with the APEQS Order 2011 and the BCO 2014 is critical.
A balanced approach that fosters collaboration and transparency, sets the minimum allowable fee and emphasizes quality and innovation will safeguard the future of Brunei's construction industry and contribute to sustainable national development. (MHO/07/2024)
No comments:
Post a Comment