Message from the Chairman (CIDC) ……………..

As India gears up to upgrade its physical infrastructure to world standards, the Indian Construction Industry warrants a parallel effort in terms of capacity and institution building and adoption of global best practices. Various initiatives undertaken by CIDC are aimed at achieving this objective.

Our forthcoming event- INCITE, "World Conference on IT in Design & Construction" scheduled to be held during 15th-17th November 2006 at India Habitat Centre, New Delhi. The Hon'ble President of India has kindly consented to be the Chief Guest for the inaugural session of this important event The prime focus of the event will be on efficient application of IT techniques in the functioning of several sub sectors of Construction Industry and to attain holistic quality, productivity and efficiency levels. INCITE will be attracting participation of about 1500 representatives from construction industry, consultants, central and State Government departments/enterprises/agencies for discussions and deliberations to evolve a blue print for action in the context of infrastructure development needs of the country.

Effective dispute resolution mechanisms are required to increase the pace of infrastructure development and save many an ailing project. Working in this domain, CIDC has focused on providing an alternative platform for the construction Industry to look at Institutional Arbitration in place of adhoc arbitration that is presently in vogue. As a proactive step in this direction, CIDC jointly with Singapore International Arbitration Center, has established Construction Industry Arbitration Association (CIAA) - a state of the art Arbitration centre with to provide much needed service to numerous project owners and implementers who seek effective and timely end to the their disputes.

To meet the growing requirements of human resource development at various levels for the construction industry, CIDC has established two bodies- Construction Industry Professional Development Training Association (CIPDTA) for executive level training, and Construction Industry Vocational Training Association (CIVTA) for worker and supervisor level training. Both these bodies have been registered as separate non-profit societies. These bodies will give necessary impetus to training in the construction industry.

From the Desk of the Director General ……

The infrastructure boom in India necessitates large captive requirement of skilled construction personnel. There is acute shortage of skilled construction workers in India. It is a matter of great pleasure that our endeavor to fill the gap has widely appreciated and accepted. We have started getting support from different state governments. First appreciation came from Haryana, where CIDC has entered into a Memorandum of Understanding (MoU) with Department of Vocational Training & Technical Education, Haryana for training & certification of construction workers. Objectives of this MoU are to develop a pool of world-class construction workers and enable them to gain better emoluments. Similar arrangements are expected to be agreed with Rajasthan, Madhya Pradesh, Bihar, Jharkhand & Uttar Pradesh.

A major concern area for CIDC is Contractual disputes in the Construction Sector. It is believed that over 80,000 crores of rupees are locked up in many contractual disputes in this sector alone, besides resulting in time and cost overruns in large number of projects in India. A number of deficiencies in the present mechanisms require a uniform approach at least in the public procurement system. With a view to providing an institutional mechanism for resolution of construction related disputes, the Construction Industry Development Council (CIDC) in cooperation with the Singapore International Arbitration Centre (SIAC) has set up the Construction Industry Arbitration Association (CIAA) in India. I hope, this would be a great help to Indian construction Industry.
P R Swarup

The infrastructure boom in India necessitates large captive requirement of skilled construction personnel. The industry presents great opportunities for employment generation. To keep pace with the demands generated by increasing investments in infrastructure and other sectors, an annual incremental employment of about 0.5 million workers in the Construction Industry is expected. Of these about half may require skill up gradation and training.

The social and economic impact of construction activity on the economy is manifold. CIDC works wholeheartedly with a clear mandate to bring reforms in the Indian Construction Industry and its various constituents. A natural corollary to this is the improvement of social fabric and empowerment of local populace where CIDC undertakes its projects and activities.

Several joint initiatives have been taken up by CIDC with the help and guidance of the Central and State governments to combat this problem. It is a matter of great pleasure that our endeavours to fill the gap have been widely appreciated and accepted. First appreciation came from Haryana, where CIDC signed a Memorandum of Understanding (MoU) with Department of Vocational Training & Technical Education, Haryana for training & certification of construction workers. The MoU was signed during a function organized at Raj Niwas, Chandigarh on 30th January 2006. Hon'ble Chief Minister of Haryana, Shri Bhupinder Singh Hooda presided over the function.

The objectives of the joint initiative as laid down by Hon'ble Chief Minister of Haryana are:

• Develop a pool of world-class construction workers who are formally recognized as being professionals.
• Develop a pool of world-class construction workers who are formally recognized as being professionals.
• Enable the workmen to be proud of their skills, gain respect among peers and to raise their social status.
• Enable the workmen to be recognized as deserving of better emoluments and work conditions.
• Raise the quality of construction in Haryana to world-class levels.

Another MOU was signed with Govt. of Haryana, for Setting up an Academy of Construction with its headquarters at ITI, Palwal.

Drafting of Contract Documents for Government of Haryana

The Government of Haryana has issued a work order vide letter no. 651/HSRDC dated 19/04/06 to CIDC for drafting of Contract Documents for PWD-B&R Branch, Government of Haryana.

National Rural Road Construction Workshop on Industry Interactions for Implementation of PMGSY

• The costing of the projects, while preparing departmental estimates needs to be examined in view of prevailing construction cost indices. CIDC may assist MORD/NRRDA/SRRDAs to periodically update the estimates.
• There is a definite need to attract medium and large size contracting companies to participate in the project. To do so it is advisable to enlarge the size of bid packages. As a start up initiative, this could be done on pilot / test case basis, where the package size could be kept between Rs. 60 - 80 crores. The prequalification stipulation could be prepared by NRRDA seeking suggestions from CIDC.
• In order to institute a good post construction maintenance system, Ministry of Rural Development / NRRDA may consider developing a macro action plan, making use of appurtenant construction opportunities. CIDC may provide support to MORD / NRRDA.
• Institutional Arbitral System to be introduced as an integral part of bidding conditions. MORD / NRRDA may follow the guidelines issued by Ministry of Statistics and Program Implementation. Other contract conditions may also be reviewed in consonance.
• An all out effort to develop the Human Resources at all level be launched by NRRDA/SRRDA with the active support of CIDC.
• A standing task force be constituted under the auspices of MORD to issue that similar interactions are conducted on regular basis and the feed back obtained is converted in implementation mode.
• Banks / FIS / Equipment Pool Owners may be invited to support capacity building through active participation.

Second International Intelligent and Green Building Technologies and Products Conference & Expo

The concept of Green Buildings places a high priority on health, environment and resource conservation issues over its life cycle. Green buildings are comfortable, healthy & energy efficient. These new priorities expand and complement the classical building design concerns: Economy, Utility, Durability and Delight.

Green Buildings are not only about adding together different green features and green benefits; - it is dove-tailing of all the systems together to create a building that is functional and energy efficient at the same time.

Sh. P.R. Swarup, Director General, CIDC making a presentation at Second International Intelligent and Green Building Technologies and Products Conference & Expo in Beijing.

The conventionally designed buildings and conventional methods of construction produce buildings that have a negative impact on the environment as well as the health and productivity of the occupants. These buildings are expensive to operate and contribute to excessive resource consumption, waste generation and pollution.

A good Green building may cost almost the same. Research has shown that the Green building is about 2-3% more expensive than a conventional building. However the operating & maintenance costs are much less resulting in overall savings.

A large number of people across the world have shown their interest in Green Building technology. This fact was noted during the Second International Intelligent and Green Building Technologies and Products Conference & Expo in Beijing, China, during March 28TH -30TH, 2006.organised by CIDC jointly with the Ministry of Construction. This was done on the request of Ministry of Construction, China. The essence of the exercise was to work together to facilitate the environmentally sustainable transformation of construction industry. CIDC organized a Special Session, devoted to collaboration opportunities with Indian Construction Industry leaders. The leading constituents of Construction Industry of China and neighbouring countries participated in this Conference. Dr. Uddesh Kohli, Chairman CIDC and Shri P. R. Swarup, DG, CIDC participated in the second International Intelligent & Green Building Technologies Conference and apprised the audience about opportunities in Indian Construction Industry.

Construction Industry Arbitration Association (CIAA)

One major concern area for Construction industry is the contractual disputes in the construction sector. It is believed that over 80, 000 crores are locked up in many contractual disputes in this sector resulting in time and cost overruns in large number of projects in India. The present alternative dispute resolution mechanisms have provided insufficient relief to the affected agencies. A number of deficiencies in the present mechanisms require a uniform approach at least in the public procurement system. Beside our obligations under GATS, it is necessary to have an effective institutional mechanism of international standards. With a view to providing an institutional mechanism for resolution of construction related disputes, the Construction Industry Development Council (CIDC) in cooperation with the Singapore International Arbitration Centre (SIAC) has set up the Construction Industry Arbitration Association (CIAA).

The prime focus of the Associations to develop and maintain the eligibility Criteria and code of Ethics of arbitrators, especially in highly specialized Arbitration required in fields like Construction Industry. The Singapore Model (adapted to Indian laws) is being adapted for the Centre.

An important aspect of SIAC's rules is time-bound completion of the Arbitration process. Since the arbitrators would be accountable to the Centre on that aspect, a great degree of discipline of time is expected to be observed, as is prevalent in international practice.

In line with the needs of the project, the process of empanelment of arbitrators has commenced. The first group of arbitrators empanelled is from among the "Grandfather" group, whose minimum qualifications have been defined as follows:

"Professionals having eminent position in the field of Construction, Public Administration, legal framework and having a tertiary educational qualification (University Degree), more than 35 years of age, and professional work experience of over 15 years are eligible to be considered for this category."

The possession of these qualifications alone does not signify eligibility. DG, CIDC is authorized by the Centre to confirm eligibility. Others may apply in the second phase.

Arbitration under the auspices of the CIAA will have the following features:

• Speed: The CIAA Arbitration Rules provide for tight timelines for appointment of arbitrators and for rendering of the award. Under the CIAA Arbitration Rules, the arbitrator will have to make a reasoned award within 45 days from close of hearing.
• Trained Arbitrators: The panel of arbitrators of CIAA consists of people from the construction industry as well as the legal fraternity. They have gone through formal training before being admitted to the panel. Four workshops for senior arbitrators have taken place till date - the first one in Singapore in February 2005, the second in New Delhi in June 2005, the third in Chennai in August 2005 and the fourth in Mumbai in February 2006. About 155 arbitrators have been trained and certified in these workshops.
• Transparent process of arbitrator appointment: Arbitrators to be appointed for any given case will be short listed by the Secretariat and ranked based on suitability and qualifications required. The short listed names will then be sent for scrutiny to a confirmation council. An appointment is only made after availability and conflict of interest checks are made. Arbitrators appointed are reminded in each assignment, of the strict Code of Ethics under which they are to conduct the arbitration.
• Transparent management of arbitrator's fees: To assist parties know their financial exposure to costs of the arbitration, CIAA will charge parties based on a published Scale of Fees.
• Monitor the progress of the case: The Secretariat of CIAA will monitor the progress of the case throughout the arbitration.
• Arranging logistics, facilities and services for hearing: The Secretariat would be able to arrange Rooms for hearings. The Secretariat would also be able to arrange transcription, translation and interpretation services. Audio and video recording facilities can also be arranged.

INCITE / ITCSED 2006 : World Conference on IT in Design and Construction November 15th, 16th & 17th, 2006 :

"INCITE" is a biennial congress of leading organizations across the world, which are involved in the process of developing technologies & IT solutions for the construction industry. The last conference in Malaysia in Feb, 2004 was organized by CIDB, Malaysia together with University of Salford & Hong Kong Polytechnic University.

ITCSED is a Conference being organized after 10 years & has a focus on cutting edge ideas in Design relating to IT & Structural Engineering Design.

These two events and focal themes are being coalesced and brought to India in the form of INCITE / ITCSED 2006 in November, 2006.

This World Conference on IT in design and construction in 2006, is proposed to be hosted by CIDC jointly with Glasgow-Caledonia University, UK in association with Hong Kong Polytechnic University and Salford University, UK. Details of the event can be viewed at cidc.in/events/INCITE.htm.

Keeping in view the importance of IT & Advanced Technologies in construction to bring about substantial improvement in construction works practices, CIDC is exploring the possibility of organizing the following parallel seminars during INCITE 2006:

• IT & Advanced Technologies & their Applications in Construction Activity in Railways
• IT & Advanced Technologies & their Applications in Construction Activity in Housing, Urban Development & Civic Infrastructure & Developing an Indo UK Action Plan for this field
• IT & Advanced Technologies & their Applications in Construction Activity in Power Sector
• IT & Advanced Technologies & their Applications in Construction Activity in Petroleum Sector
• IT & Advanced Technologies & their Applications in Construction Activity in Maritime Sector
• IT & Advanced Technologies & their Applications in Construction Activity in Roads & Highway Sector
• IT & Advanced Technologies & their Applications in Construction Activity in the heartland Sates of Uttar Pradesh, Madhya Pradesh & Rajasthan
• Human Resources & their role in IT & Advanced Technologies in Construction Industry
• Global Partnerships in Consultancy for IT & Advanced Technologies in Construction
• Action Plan for Indo-US consultancy in introduction of IT & Advanced Technologies in Housing, Urban Development & Infrastructure

Executive Development Programs (EDPs)

One of the major initiatives taken up by CIDC is up gradation of competence of our construction manager. In this direction, focused quality improvement Seminars

and EDPs are being offered by CIDC. Projects and Contract Management being vital areas form the core matter of such short-duration programmes. MES (Engineer-in-Chief's Branch, Indian Army) has been the major beneficiary from such programs, which are being offered by CIDC on regular intervals. However other government & private organizations have also shown a keen interest.

Engrossed participants at CIDC Executive Development Programme.

These were the programmes organised between Dec. to March 06.

• Training Course in Managing Construction Sites on 28 -30, December 2005 at Radisson Hotel, New Delhi.
• Training Course in Latest Trends in Construction Management TQM & Safety on 2 - 4, January 2006 at Radisson Hotel, New Delhi.
• Training Course in Computer Aided Cost Estimating and Quantity Surveying Techniques on 2 -3 February 2006 at Radisson Hotel, New Delhi.
• Training Course in Emerging Trends in Construction Management on 9-10 March 2006 at Radisson Hotel, New Delhi.
• Training Course in Legal Aspects of Contract Management, Arbitration & Dispute Settlement Mechanism on 22-24 March 2006 at Radisson Hotel, New Delhi.

Construction Workers Training and Certification Programme

The following Construction Workers Training / Certification Programmes were organized by CIDC during January to March, 06

• M/s. G K Construction & Maintenance, Gurgaon on January 8, 2006
• Sustrup, Vill - Sitapur Cola, Dist - Sitapur (U.P.) on January 8, 2006
• CPWD Training Centre, Netaji Nagar, New Delhi on January 9-31, 2006
• CPWD Training Centre, Netaji Nagar, New Delhi during January 9 -2nd Feb. 2006
• MEG & Centre, Bangalore during 16 December, 2005 & 21st January 2006
• MCM Palwal (ITI) on 20th February 2006
• MCM, (MES) ITI, Faridabad on 2nd February 2006
• CPWD, Netaji Nagar on 23rd February 2006
• MEG & Centre, Bangalore on 10th February 2006
• MEG & Centre, Bangalore on 17th February 2006
• CPWD, Netaji Nagar during 23rd February to 11th March'06
• MCM, Palwal, ITI, Haryana on 22nd March 06
• Gujarat Mahila Housing Trust(GMHT), Rameshdatt Colony Ahmedabad, Gujarat on 23rd March 06
• Gujarat Mahila Housing Trust(GMHT), Manipur, Ahmedabad, Gujarat on 24th March 06
• Gujarat Mahila Housing Trust(GMHT), Manipur, Ahmedabad, Gujarat on 25th March 06
• CPWD, WTC, Netaji Nagar, New Delhi during 13th March to 31st March 06