Construction bill upholds open tender process
JAKARTA (JP): The House of Representatives on Thursday passed the bill on construction services, which requires both state and private construction works to be offered through an open tender process.
The bill stipulates that any construction failure during the first 10 years after completion of a job is the responsibility of the contractor.
Under the bill, the public have the right to sue a contractor for construction failures or damages.
Minister of Public Works Rachmadi B. Sumadhijo said at the House's plenary session the bill would provide legal clarity to the construction industry, which contributes about 65 percent of investment value to the national development.
He said the bill would provide increased leverage for local construction firms.
"All construction works, be they government, private entities or individual-owned, in principle have to be offered through a transparent tender process," he said.
The bill exempts from the tendering requirement, highly complex construction works or ones requiring urgent development. The government could also directly appoint a contractor to work on confidential construction projects such as a security bunker.
The bill, submitted by the government last month, also delineates the responsibilities of each party when a construction fails.
Rachmadi said when expectations were not met -- owners, contractors and consultants -- must install an independent team to determine each party's responsibility for the failure.
"If it is the contractor's fault, then a penalty will be imposed. The same thing applies to the project owners, the management and consultants."
In the plenary session presided over by Deputy House Speaker Ismail Hasan Metareum, spokespersons from the four factions -- the Golkar Party, the Armed Forces, the United Development Party (PPP), the Indonesian Democratic Party (PDI) -- said in their final overviews the bill should eliminate all unfair and unscrupulous practices in the construction industry.
"The law should remove all forms of bribery. No parties should now win a tender thanks to bribing the tendering committee," PDI faction spokesman Buttu Hutapea said.
During the 32-year rule of former president Soeharto, most government projects were awarded to officials' family members and other associates without carrying out open tenders.
The PPP faction stressed the importance of limiting the number of foreign laborers in construction works, saying expatriate experts only should be allowed to participate.
"The obligation would help empower local laborers and would save our foreign exchange," faction spokesman Akmad Mugowam said.
The four factions urged the government to issue supporting regulations to implement the law as soon as possible. (gis)