Proposed bill for Construction industry board

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Act No. [.] 2021
An Act to provide for the development of the construction industry in Pakistan and for the
establishment of the Construction Industry Development Board.
WHEREAS it is expedient to establish the Construction Industry Development Board
for the conceptualization and implementation of policies for the development of the
construction industry and for the facilitation of the growth of, and enhancement of quality
standards in, the construction industry in Pakistan;
AND WHEREAS it is expedient to establish the aforesaid Board for the effective
regulation of entities and personnel involved in the construction industry, for facilitating
the efficient execution of infrastructure projects, for encouraging private investment in the
development of infrastructure, for facilitating the effective resolution of disputes in the
construction industry including for purposes of safeguarding investments, and to provide
for matters connected therewith or incidental thereto;
AND WHEREAS it is deemed that the development of the construction industry by the
Federal Government is expedient in the public interest;
It is hereby enacted as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent, and commencement. —(1) This Act may be called the Construction
Industry Development Board Act, 2021:
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions. — In this Act, unless there is anything repugnant in the subject or context,—
(a) “adjudicator” means an adjudicator appointed under section 23(2);
(b) “adjudication claim” means a claim submitted pursuant to section 24(1);
(c) “adjudication response” means a response submitted pursuant to section 24(2);
(d) “adjudication decision” means the decision of the adjudicator made under section 25;

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(e) “arbitration agreement” shall have the meaning ascribed to it in the Arbitration Act,
1940;
(f) "Board" means the Construction Industry Development Board established under
section 3;
(g) "Chief Executive Officer” means the Chief Executive Officer of the Board appointed
under section 10;
(h) “Chairman” means the Chairman of the Governing Board appointed under section 9;
(i) “claimant” means a claimant in the adjudication proceedings under Part III of Chapter
V;
(j) “construction contract” means a construction works contract or construction services
contract;
(k) “contractor” means a person who carries out or undertakes to carry out any
construction works as defined in this Act;
(l) “consultant” means a person who carries out or undertakes to carry out any
construction services;
(m) “construction industry” means the industry related to construction works and
construction services;
(n) “construction works” means ---
(a) the construction, alteration, repair, restoration, maintenance, extension, demolition
or dismantling of buildings or structures (whether permanent or not) that form, or are
to form, part of the land;
(b) the construction, alteration, repair, restoration, maintenance, extension, demolition
or dismantling of any works that form, or are to form, part of the land, including walls,
roadworks, power-lines, telecommunication apparatus, aircraft runways, docks and
harbours, railways, inland waterways, pipelines, reservoirs, water mains, wells,
sewers, industrial plant and installations for the purpose of land drainage, coast
protection or defense;
(c) the installation in any building, structure or works of fittings that form, or are to
form, part of the land, including systems of heating, lighting, airconditioning,
ventilation, power supply, drainage, sanitation, water supply or fire protection, and
security or communications systems;

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(d) any operation which forms an integral part of, is preparatory to, or is for rendering
complete, works of the kind referred to in paragraph (a), (b) or (c), including —
(i) land reclamation;
(ii) site clearance, earth-moving, excavation, tunnelling and boring;
(iii) the laying of foundations;
(iv) the erection, maintenance or dismantling of scaffolding;
(v) the prefabrication of components to form part of any building, structure or works,
whether carried out at or on the construction site or elsewhere; and
(vi) site restoration, landscaping and the provision of roadways and other access
works;
(e) the external or internal cleaning of buildings, structures or works, so far as it is carried
out in the course of their construction, alteration, repair, restoration, maintenance or
extension; or
(f) the painting or decorating of the external or internal surfaces of any building,
structure or works;
(o) “construction services” means, in relation to construction works, to do work or
provide services such as —
(i) architectural, design, archaeological or surveying work;
(ii) engineering or project management services; or
(iii) advice on building, engineering, interior or exterior decoration;
(p) ”day” means a calendar day that includes weekends and public holidays;
(q) “fund” means the Construction Industry Development Fund established under section
37;
(r) “Governing Board” means the Governing Board established under section 6;
(s) “Government” means the Federal Government or any of its line ministries, divisions,
attached departments, subordinate offices, executive departments, autonomous bodies,

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body corporate, or any organization or corporation owned or controlled by the Federal
Government;
(t) “notice of adjudication” means a written adjudication notice served pursuant to section
23;
(u) “panel of adjudicators” means the panel established under Section 31;
(v) “panel of arbitrators” means the panel established under Section 21;
(w)"prescribed” means prescribed by rules or regulations;
(x) “qualified construction contract” means a construction contract —
(i) the value of which is not less than the amount specified in the Schedule; and
(ii) none of the parties to the contract is a person who occupies, or intends to
occupy, the building as his or her residence.
(y) “regulations” means the regulations made pursuant to section 43;
(z) “respondent” means a respondent in the adjudication proceedings under Part III of
Chapter V;
(aa) “rules” means the rules made pursuant to section 42;
(bb)“Schedule” means the Schedule appended to this Act; and
(cc) “Tribunal” means the Construction Industry Tribunal established under Section 15.
CHAPTER II
CONSTRUCTION INDUSTRY DEVELOPMENT BOARD
3. Establishment of the Construction Industry Development Board. --- (1) There is hereby
established the Construction Industry Development Board for carrying out the purposes
and objectives of this Act.
(2) The Board shall be independent in the performance of its functions and shall be a body
corporate having perpetual succession and a common seal, with power subject to the
provisions of this Act, to enter into agreements and contracts, acquire and hold property,
and sue and be sued in its own name.

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4. Location of office. --- The principal office of Board shall be at Islamabad and it may
establish regional offices at such other place or places in Pakistan, as it deems appropriate.
5. Functions and Powers of the Board.--- (1) Subject to the provisions of this Act, the Board
may take such measures and exercise such powers as may be necessary to promote and
stimulate the development, improvement, and expansion of the construction industry in
Pakistan.
(2) Without prejudice to the generality of the powers conferred by sub-section (1), the Board
may:
(a) Develop, in consultation with Provincial Governments, and periodically review, a
national policy for the development of the domestic construction industry;
(b) develop and periodically review:
(i) a national import policy for the construction industry, including in connection
with the importation of specialized vehicles, equipment, machinery, and
spare parts and any other ancillary equipment or technology, as well as the
transfer of new and specialized technology to Pakistan; and
(ii) a national export policy for the export of construction works and construction
services;
(c) advise and make recommendations to the Government on matters affecting or
connected with the construction industry;
(d) prescribe standards for the construction industry from time to time including but not
limited to design, processes, construction techniques, products, and materials;
(e) promote the adoption of internationally recognized quality management systems in
the construction industry;
(f) promote and prescribe standards for the export of construction works and services
and for the import of construction equipment and materials in accordance with the
national import and export policy for the construction industry;
(g) facilitate and promote free competition, fair business practices, and good
procurement methods in the construction industry;
(h) facilitate the timely completion of construction projects including by promoting the
timeliness of payments;

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(i) prescribe requirements for the registration of, and after the date of notification in
section 33(1) and section 34(1) exclusively be empowered to register and maintain a
roster of, contractors and consultants engaged in construction work or construction
services;
(j) prescribe requirements for the registration of, and to register and maintain a roster
of, construction tradesmen, construction foremen, construction supervisors, and
such other construction personnel as determined by the Governing Board from time
to time;
(k) determine the manner in which foreign construction entities would be allowed to
operate in Pakistan;
(l) prescribe training requirements for the construction industry, conduct tests and
award certificates of proficiency, and collaborate with other institutions to organize
seminars, workshops, conferences, courses, or other training programs;
(m) develop construction specific contractual provisions and templates including a
repository of model contract and bidding documents for the construction industry;
(n) promote and carry out research for the development of the construction industry and
to collect, analyze, compile, publish and disseminate information relating to the
construction industry;
(o) promote the safety of buildings and the health and professional welfare of
construction industry workers;
(p) promote the efficient use of energy in buildings and to advise the Government on
the measures and regulations to be implemented;
(q) facilitate the timely and effective resolution of construction-related disputes;
(r) facilitate the formation of financial institutions and instruments for the development
and growth of the construction industry;
(s) prescribe and receive fee and charges; and
(t) receive donations and contributions from prescribed sources and raise funds by all
lawful means.

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CHAPTER III
MANAGEMENT AND ADMINISTRATION
6. Governing Board. --- (1) The general direction and administration of the affairs of the
Board shall vest in the Governing Board, consisting of the following members, namely:-
(a) Chairman;
(b) Secretary of the Division to which business of the Board stands allocated;
(c) Secretary, Communications or his nominee not below the rank of additional
secretary);
(d) Secretary, Housing and Works or his nominee not below the rank of additional
secretary;
(e) Secretary, Industries and Production or his nominee not below the rank of
additional secretary;
(f) Secretary, Railways or his nominee not below the rank of additional secretary;
(g) Secretary, Water Resources or his nominee not below the rank of additional
secretary;
(h) Chief Secretaries of the governments of Balochistan, Khyber Pakhtunkhwa,
Punjab, and Sindh or their nominees, not below the rank of provincial
secretaries;
(i) Engineer-in-Chief, Pakistan Army;
(j) Chairman, Naya Pakistan Housing & Development Authority, or his nominee.
(k) Member - Infrastructure and Regional Connectivity, Planning Commission;
(l) One representative of Pakistan Engineering Council;
(m) One representative of Pakistan Council of Architects and Town Planners;
(n) Three members from the private sector appointed by the Federal Government,
representing construction industry stakeholders, including at least one female
member;
(o) CEO of the Board.

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(2) The CEO shall be the ex-officio Secretary of the Governing Board.
(3) The members, other than ex-officio members, shall be appointed on prescribed terms and
conditions, and shall hold office for a term of three years from the date of their appointment,
extendable for another term.
(4) A member, other than an ex-officio member, may resign from his office by writing under
his hand addressed to the Federal Government.
(5) The Board may, for carrying out its functions, constitute such committees, from time to
time, as may be considered appropriate and delegate its powers as it may prescribe.
7. Powers of the Governing Board. – (1) The Board shall exercise all powers as shall enable
it to effectively perform its functions specified in section 5. In particular, and without
prejudice to the generality of the foregoing power, the Board shall –
(a) be responsible for setting of objectives and policy guidelines of the Board;
(b) approve the annual budget of the Board;
(c) prescribe regulations, including regulations for exercising its powers and
performance of its functions;
(d) recommend to the Federal Government rules to be prescribed under this Act;
(e) consider and approve policies, plans and programmes of the Board; and
(f) formulate procedures and necessary framework for utilization of funds generated or
acquired through services, donations, investments or grants.
8. Meetings of the Board. --- (1) The Chairman or, in his absence, the member designated
by the Chairman for the purpose shall preside at a meeting of the Board.
(2) One-half of the total members shall constitute a quorum for meetings of the Board
requiring a decision by the Board.
(3) The decisions of the Board shall be taken by the majority of its members present and in
case of a tie, the member presiding a meeting shall have a casting vote.
(4) The members shall receive such fees and expenses for each meeting as may be prescribed
by regulations.

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9. Chairman. --- The Chairman shall be appointed by the Prime Minister on such terms and
conditions as the Prime Minister may deem fit.
10. Chief Executive Officer. – (1) The CEO shall be appointed by the Prime Minister on the
recommendation of the Governing Board, for a term of three years on such salary, terms
and conditions as may be prescribed.
Provided that he shall be eligible for re-appointment for one more term but shall cease to
hold office on attaining the age of sixty-five years or the expiry of the term, whichever is
earlier.
(2) The CEO may resign from his office by giving one-month notice in writing under his
own hand, addressed to the Prime Minister.
(3) The CEO shall be answerable to the Governing Board for all administrative, financial,
and technical matters of the Board. The Board may delegate such administrative and
financial powers to the CEO for carrying out day to day affairs of the Board as it deems
necessary.
11. Disqualifications to become a member and conflict of interest. --- (1) The dis-
qualifications of certain persons to become or hold office in any corporate entity under the
provision of the Companies Act, 2017 (XIX of 2017) shall ipso facto, apply to the members
of the Governing Board.
(2) To the extent that any member of the Governing Board has any conflict of interest with
respect to any matter under consideration by the Governing Board, such member shall, to
the extent of that matter, not be eligible to participate in any discussions or decision making
of the Board or the Governing Board.
12. Appointment of officers and staff of the Authority. --- (l) The Board may appoint such
officers, experts, advisers, consultants, and members of staff as it may consider necessary
for the efficient performance of its functions in the prescribed manner and on prescribed
terms and conditions.
(2) The Governing Board, through regulations, may delegate any of its powers relating to
the appointment of officers and other staff to the CEO or any other officer.
(3) The officers, members of the staff, advisers, consultants, experts, and other persons
appointed by the Board shall not be civil servants within the meaning of the Civil Servants
Act, 1973 (LXXI of l973).
(4) The officers, members of the staff, advisers, consultants, experts, and other persons of
the Board when acting or purporting to act under any of the provisions of this Act or rules

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or regulations made thereunder shall be deemed to be public servants within the meaning
of section 21 of the Pakistan Penal Code (Act XLV of 1860)
CHAPTER IV
PAYMENTS
13. Payments under qualified construction contracts. --- Qualified construction contracts
shall provide for such terms of payment as may be prescribed from time to time, provided
that in the event such terms are not specified in the qualified construction contract, any
default provisions as may be prescribed shall be applicable to the qualified construction
contract.
14. Payments claims. --- (1) An unpaid party may serve a payment claim on a non-paying
party for payment pursuant to a qualified construction contract.
(2) A payment claim shall be in writing and shall include –
(a) the amount claimed and the due date for payment of the amount claimed;
(b) details to identify the cause of action including the provision in the qualified
construction contract to which the payment relates;
(c) description of the work or services to which the payment relates; and
(d) the basis of the calculation of the amount claimed.
(3) A non-paying party who admits to the payment claim served on him shall serve a
payment response on the unpaid party together with the whole amount claimed or any
amount as admitted by him.
(4) A non-payment party who disputes the amount claimed in the payment claim, either
wholly or partly, shall serve a payment response in writing on the unpaid party stating the
amount disputed and the reason for the dispute.
(5) A payment response issued under sub-section (3) or (4) shall be served on the unpaid
party within 15 days of the receipt of the payment claim.
(6) A non-paying party who fails to respond to a payment claim in the manner provided
under this section is deemed to have disputed the entire payment claim.
(7) Upon expiry of the period to serve a payment response, a party to a qualified
construction contract may refer a dispute arising from the payment claim made under this
section to adjudication in accordance with section 22.

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CHAPTER V
DISPUTE SETTLEMENT
PART I
CONSTRUCTION INDUSTRY TRIBUNAL
15. Establishment of Construction Industry Tribunals. --- (1) The Federal Government
may, by notification in the official Gazette, establish as many Tribunals as it considers
necessary to exercise jurisdiction under this Act.
(2) Where more than one Tribunal has been established to exercise jurisdiction in the
same territorial limits, the Federal Government shall define the territorial limits of each such
Tribunal.
16. Composition of the Tribunals. --- (1) The Tribunal shall comprise of the following
members to be appointed by the Federal Government, namely: —1
(a) a retired judge of the Supreme Court or a High Court who shall be the Presiding
Officer of the Tribunal;
(b) a full-time member well known for their integrity, expertise, and experience in
construction law.
(c) a full-time member well known for their integrity, expertise, and experience in
technical matters related to the construction industry.
(2) Members of the Tribunal shall hold office for a period of three years and shall be eligible
for reappointment for a similar term and shall cease to hold office on attaining the age of
sixty-eight or the expiry of the term whichever is earlier.
(2) The Presiding Officer and other full-time members shall be entitled to such salary and
other terms and conditions of service as the Federal Government may by rules prescribe.
17. Jurisdiction of the Tribunals. --- (1) The Tribunals shall:
(a) pursuant to applicable provisions of the Arbitration Act, 1940, have the jurisdiction
of the Court, as such term is defined in the Arbitration Act, 1940, in respect of
qualified construction contracts;
(b) have the jurisdiction to review and enforce adjudication decisions made under
section 25 in respect of qualified construction contracts; and
1 Composition and eligibility requirements to be discussed further

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(c) exercise jurisdiction over all suits and other civil proceedings related to construction
services arising out of qualified construction contracts;
provided that, in each case, matters shall only be referred to, and the jurisdiction of
a tribunal shall come into effect in a given territory after the Tribunal has been
established in that territory.
(2) Notwithstanding anything contained in any other law for the time being in force, no
court other than the Tribunals shall exercise jurisdiction over the matters referred to in sub-
section (1).
(3) Nothing in sub-section (2) shall be deemed to affect any proceedings pending before
such court immediately before the coming into force of this Act.
18. Powers of the Tribunal. --- (1) In the exercise of jurisdiction under section 17(a), the
Tribunals shall have the applicable powers pursuant to the Arbitration Act, 1940.
(2) In the exercise of jurisdiction under section 17(b) and section 17(c), the Tribunals shall:
(a) have all the powers vested in a civil court under the Code of Civil Procedure, 1908
(Act V of 1908); and
(b) in all matters with respect to which the procedure has not been provided for in this
Act or any rules made hereunder, follow the procedure laid down in the Code of
Civil Procedure, 1908 (Act V of 1908).
19. Review of adjudication decision. --- Any review application under section 17(b) shall
be disposed of and the decision of the Tribunal pronounced, as expeditiously as possible
but not later than 30 days from the date of receipt of the application except in extraordinary
circumstances and on grounds to be recorded.
20. Appeal. --- (1) Any person aggrieved by the final judgement or order of the Tribunal
with respect to the jurisdiction of the Tribunals under section 17(a) may prefer an appeal in
accordance with the applicable provisions of the Arbitration Act, 1940.
(2) Any person aggrieved by the final judgement or order of the Tribunal with respect to
the jurisdiction of the Tribunals under section 17(b) and section 17(c) may, within 30 days
of the final judgement or order of the Tribunal, prefer an appeal to the High Court having
territorial jurisdiction over the Tribunal.

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PART II
ARBITRATION
21. Establishment of a panel of arbitrators. --- (1) The Board shall establish a panel of
arbitrators and shall from time to time select persons to be members of the panel to act as
arbitrators in relation to construction disputes and shall select one of those persons to be
the chair the panel who shall perform such functions as may be prescribed from time to
time.
(2) Persons selected under subsection (1) shall be members of the panel of arbitrators for a
period of 5 years commencing on the date of selection and shall be eligible for reselection
at the end of the period of 5 years.
(3) The Board may, for good and sufficient reason, remove a member of the panel of
arbitrators.
(4) A member of the panel of arbitrators may at any time resign by giving notice in writing
to the Board.
(5) Members of the panel of arbitrators selected by the Board shall be individuals of moral
character and recognized competence in the construction industry, who may be relied upon
to exercise independent judgment and who are willing and able to serve as arbitrators. The
selection of the members of the panel of arbitrators shall be in accordance with such criteria
and in such manner as may be prescribed from time to time.
(6) In accordance with prescribed procedures, parties to an arbitration agreement may
request the Board to appoint an arbitrator from the panel of arbitrators, who shall be
appointed by the Board within 10 days of the receipt of the request.
(7) The Board may prescribe:
(a) fees and charges in connection with the appointment of the arbitrator;
(b) the standard terms of appointment and fees for members of the panel of arbitrators;
and
(c) a code of practice governing the conduct of members of the panel of arbitrators.
PART III
ADJUDICATION
22. Right to refer certain disputes to adjudication. – (1) Following the establishment of a
Tribunal exercising jurisdiction under this Act in a given territory, a party to a qualified

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construction contract may refer a dispute arising from a payment claim made under section
14 to adjudication.
(2) The parties to adjudication may at any time by agreement in writing extend the
jurisdiction of the adjudicator to decide any other matter not referred to the adjudicator
pursuant to sub-section (1).
23. Initiation of adjudication and appointment of adjudicator. --- (1) A claimant may
initiate adjudication proceedings pursuant to section 22 by serving a written notice of
adjudication containing the nature and description of the dispute and the remedy sought
together with any supporting document on the respondent.
(2) Subsequent to the serving of the notice of adjudication, an adjudicator shall be appointed
in the following manner:
(a) by agreement of the parties in dispute within 15 days from the service of the notice
of adjudication by the claimant; or
(b) from the panel of adjudicators established by the Board in the prescribed manner
within 10 days of the receipt of:
(i) the request of either party to the dispute if there is no agreement of the parties
under paragraph (a); or
(ii) upon the request of the parties in dispute.
(3) An adjudicator may resign at any time on giving notice in writing to the parties to the
dispute.
24. Referral of dispute to adjudication. --- (1) The claimant shall refer the dispute to the
adjudicator within 15 days beginning with the day on which the appointment is made in
the form of a written adjudication claim containing the nature and description of the dispute
and the remedy sought together with any supporting documents and shall at the same time
provide a copy of the referral and all accompanying documents to the respondent.
(2) The respondent shall, within 15 days from the receipt of the adjudication claim, submit
a written adjudication response to the adjudicator and shall at the same time provide a copy
of the response and all accompanying documents to the claimant, provided, however, if the
respondent fails to serve any adjudication response within the specified time period, the
adjudication may proceed notwithstanding the submission of the response.
(3) The claimant may, within 10 days, from the receipt of the adjudication response, submit
a written reply to the adjudication response to the adjudicator together with all supporting

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documents, and shall at the same time provide a copy of the reply and all accompanying
documents to the respondent.
25. Adjudication decision. --- (1) The adjudicator shall reach a decision within 45 days from
the expiry of the period stipulated for the submission of the adjudication response reply in
accordance with section 24(2) or such longer period as is agreed by the parties after the
dispute has been referred provided, that the adjudicator may extend the period of 45 days
by up to 10 days, with the consent of the claimant.
(2) An adjudication decision which is not made within the period specified in sub-section
(1) shall be void.
(3) The adjudication decision shall be made in writing and shall contain reasons for such
decisions.
(4) The adjudicator shall act impartially in the conduct of the adjudication and shall comply
with the prescribed code of practice for adjudicators, whether or not the adjudicator is a
person who is a member of the panel of adjudicators.
(2) The adjudicator may, with the consent of the concerned parties, deal at the same time
with several disputes arising under the same qualified construction contract or related
qualified construction contracts.
(3) The adjudicator shall not be liable for anything done or omitted in the discharge or
purported discharge or his or her functions as adjudicator unless the act or omission is in
bad faith, and any employee or agent of the adjudicator shall similarly be protected from
liability.
26. Effect of adjudication decision. --- (1) The decision of the adjudicator shall be binding
until the dispute is finally settled by the parties or a different decision is reached on the
reference of the dispute to arbitration or in proceedings initiated in a court or tribunal, as
applicable, in relation to the adjudication decision.
(2) A party may enforce an adjudication decision by applying to any court or tribunal
having jurisdiction for an order to enforce an adjudication decision in accordance with
section 17(b).
27. Adjudication review applications. --- (1) Within 20 days of an adjudication decision, an
aggrieved party may apply to the applicable Tribunal to set aside the adjudication decision
on one or more of the following grounds:
(a) the adjudication decision was improperly procured through fraud or bribery;

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(b) the adjudicator has not acted independently or impartially; or
(c) the adjudicator has acted in excess of his jurisdiction.
(2) Where the respondent is required in consequence of an adjudication decision to pay an
adjudicated amount to the claimant, the respondent shall not lodge an adjudication review
application unless he has transferred the adjudicated amount to an authorized account
opened and maintained by the Board in the prescribed manner.
(3) Following the determination of the adjudication review application by the applicable
Tribunal in accordance with the timeline set forth in section 19, any adjudicated amount
held pursuant to sub-section (2) shall be transferred to the party entitled to the receive the
amount.
28. Costs of Adjudication. ---(1) Each party shall bear his or her own legal and other costs
incurred in connection with the adjudication.
(2) The parties and the adjudicator shall be free to agree on the terms of appointment of the
adjudicator and the fees to be paid to the adjudicator.
(3) If the parties and the adjudicator fail to agree on the terms of appointment and the fees
of the adjudicator, the standard terms of appointment and fees for adjudicators, as may be
prescribed from time to time, shall apply.
(4) The parties to a dispute may at any time agree to revoke the appointment of the
adjudicator and the parties shall be jointly and severally liable for the payment of the
reasonable fees, costs, and expenses incurred by the adjudicator up to the date of the
revocation.
(5) An adjudicator is not entitled to any fees or expenses relating to the adjudication if the
adjudicator fails to decide the dispute within the period specified under section 25(1).
29. Powers of adjudicators. --- (1) Subject to any prescribed rules or regulation, the
adjudicator shall have the power to:
(a) define the process of conducting the adjudication proceedings including limiting the
submission of documents by the parties;
(b) order the discovery and production of documents;
(c) set deadlines for the production of documents;

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(d) appoint independent experts to inquire and report on specific matters with the
consent of the parties;
(e) call for meetings with the parties;
(f) conduct any hearing and limiting the hearing time;
(g) carry out inspection of site, work, material or goods relating to the dispute;
(h) take the initiative in ascertaining the facts and the law in relation to the dispute;
(i) correct his or her decision so as to remove a clerical or typographical error arising by
accident or omission but may not reconsider or re-open any aspect of the decision;
(j) order interrogatories to be answered; and
(k) do such other acts and things necessary for the performance of his duties as may be
prescribed by rules or regulations.
(2) The non-compliance by the parties with the provisions of this Chapter shall be treated
as an irregularity and shall not invalidate the power of the adjudicator to adjudicate the
dispute nor nullify the adjudication proceedings or adjudication decision.
(3) The adjudicator may on the ground that there has been non-compliance in respect of the
adjudication proceedings:
(a) set aside either wholly or partly the adjudication proceedings; or
(b) make any order dealing with the adjudication proceedings as the adjudicator deems
fit.
30. Right to suspend work or reduce rate of progress of work for failure to comply with
adjudicator’s decision--- (1) Where any amount due pursuant to the decision of the
adjudicator is not paid in full before the end of the period of 15 days beginning with that on
which the decision is made, the party to which the amount is due may suspend work or
reduce the rate of progress of work under the qualified construction contract by giving
notice in writing under sub-section (2).
(2) Notice under this sub-section shall specify the grounds on which it is intended to
suspend work or reduce the rate of progress of work and shall be delivered to the other
party not later than 15 days before the proposed suspension is to begin.

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(3) A party who exercises his right under this section –
(a) shall not considered to be in breach of contract;
(b) shall be entitled to a fair and reasonable extension of time to complete his obligations
under the contract;
(c) shall be entitled to recover any loss and expenses incurred as a result of the
suspension or reduction in the rate of progress of performance from the other party;
and
(d) shall resume work of the rate of progress of work in accordance with the qualified
construction contract within 10 days after having been paid the adjudicated amount.
31. Establishment of a panel of adjudicators. --- (1) The Board shall establish a panel of
adjudicators and shall from time to time select persons to be members of the panel to act as
adjudicators in relation to disputes arising under qualified construction contracts and shall
select one of those persons to be the chair the panel who shall perform such functions as
may be prescribed from time to time.
(2) Persons selected under subsection (1) shall be members of the panel of adjudicators for
a period of 5 years commencing on the date of selection and shall be eligible for reselection
at the end of the period of 5 years.
(3) The Board may, for good and sufficient reason, remove a member of the panel of
adjudicators.
(4) A member of the panel of adjudicators may at any time resign by giving notice in writing
to the Board.
(5) Members of the panel of adjudicators selected by the Board shall be individuals of moral
character and recognized competence in the construction industry, who may be relied upon
to exercise independent judgment and who are willing and able to serve as adjudicators.
The selection of the members of the panel of adjudicators shall be in accordance with such
criteria and in such manner as may be prescribed from time to time.
32. Code of practice for adjudication. --- The Board shall prepare and prescribe a code of
practice governing the conduct of adjudications under section 25(4), including but not
limited to matters concerning confidentiality of adjudication, conflicts of interest, and
independence and impartiality.

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CHAPTER VI
REGISTRATION
33. Registration of contractors. --- (1) After such date as the Federal Government may
notify in the official Gazette, no person shall carry out or undertake to carry out any
construction work under a qualified construction contract or hold himself out as a
contractor capable of performing work under a qualified construction contract, unless
registered with the Board and holding a valid certificate of registration issued by the Board
under this Act.
(2) Every certificate of registration shall be in the prescribed manner and form, and may
specify the category of construction work that may be carried out or undertaken by the
contractor.
(3) The Board may, for the purpose of the registration of contractors, impose such conditions
as it thinks fit and may suspend, revoke, reinstate or refuse any registration of any person
under this Act.
(4) The Board shall keep and maintain a register of the registered contractors under this Act.
(5) A person aggrieved by the decision of the Board made under subsection (3) may, within
30 days after the date the decision of the Board is communicated, appeal in writing against
the decision in the manner prescribed.
34. Registration of consultants. --- (1) After such date as the Federal Government may
notify in the official Gazette, no person shall carry out or undertake to carry out any
construction services under a qualified construction contract or hold himself out as a
consultant capable of performing services under a qualified construction contract, unless
registered with the Board and holding a valid certificate of registration issued by the Board
under this Act.
(2) Every certificate of registration shall be in the prescribed manner and form, and may
specify the category of construction services that may be carried out or undertaken by the
consultant.
(3) The Board may, for the purpose of the registration of consultants, impose such
conditions as it thinks fit and may suspend, revoke, reinstate or refuse any registration of
any person under this Act.
(4) The Board shall keep and maintain a register of the registered consultants under this
Act.

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(5) A person aggrieved by the decision of the Board made under subsection (3) may, within
30 days after the date the decision of the Board is communicated, appeal to the Governing
Board in writing against the decision and the decision subsequently made by the Governing
Board shall be final.
35. Register of construction personnel. --- The Board shall keep and maintain a register
which shall contain the names, addresses, trades, skills and other particulars of accredited
and certified construction site supervisors and skilled construction workers.
36. Penalties. --- (1) Any person who contravenes section 33(1) or section 34(1) shall be
punishable with imprisonment for a term not exceeding three months, or with such fine as
may be prescribed, or with both, and, in the case of a continuing offence, with a further fine
as may be prescribed.
(2) Any person who employs any contractor or consultant in contravention of section 33(1)
or section 34(1) shall be punishable with imprisonment for a term not exceeding six months,
or with such fine as may be prescribed, or with both, and, in the case of a continuing offence,
with a further fine as may be prescribed.
(3) Any person who contravenes section 33(1) or section 34(1) shall not be entitled to recover
before any court or other authority any sum of money for services rendered in such work.
CHAPTER VII
FUND, ACCOUNTS, AND AUDIT
37. Construction Industry Development Fund. --- (l) There is hereby established a non-
lapsable fund to be called the "Construction Industry Development Fund” which shall vest
in the Board and shall be utilized by the Board to meet charges in connection with its
functions under the Act including payment of salaries and other remunerations payable to
the persons in service of the Board.
(2) The fund shall consist of-
(a) funds provided by the Federal Government for payment of salaries establishing
infrastructure and running the day to day business of the Board;
(b) loans and grants by the Federal Government or any provincial Government or
local authority;
(c) other loans or funds obtained by the Board;
(d) foreign aid, grants, and loans negotiated and raised, or otherwise obtained by the
Board, in consultation with Finance Division;

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(e) charges for services or for the provision of any information or report automated
or otherwise to any government entity;
(f) fees and commissions collected by the Board as prescribed from time to time;
(s) income from the sale of movable or immovable property;
(h) funds from floating bonds, shares, debentures, commercial papers or any other
securities issued by the board or through any other means;
(i) income from investments; and
(j) all other sums received or earned by the Board.
(3) The Board Fund shall be kept in one or more accounts maintained by the Board in local
and foreign currency in any scheduled bank in Pakistan and shall be operated in accordance
with the prescribed regulations.
(4) The Federal Government may provide funds for administrative, operational, and any
other expenses.
(5) Bank accounts of the Board shall be opened with the prior approval of the Governing
Board.
(6) Investments shall be made in accordance with applicable laws.
38. Accounts. --- The Board shall prepare its own budget in respect of each financial year
and shall maintain complete and accurate books of accounts of their actual expenses in the
prescribed manner.
39. Audit. --- The accounts of the Board may be audited annually by a reputable firm of
chartered accountants approved by the Board from amongst the approved list of Auditor
General of Pakistan;
Provided that the Federal Government may also require the Auditor-General of Pakistan
to conduct special audit of the CIDB, as and when it considers necessary.

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CHAPTER VIII
MISCELLANEOUS
40. Annual Report. --- Within one hundred and twenty days from the end of each financial
year, the Authority shall cause a report to be prepared on its activities including utilization
of funds under this Act during the financial year, and shall be laid before the Parliament.
41. Indemnity. --- No suit, prosecution or other legal proceedings shall lie against the
Federal Government, Chairman, Chief Executive Officer, members of the Governing Board,
consultants, officers or other employees, acting for and on its behalf in further of the
functions of the Board, as the case may be, which is in good faith done under this Act, or
rules or regulations made thereunder.
42. Power to make rules. --- The Federal Government may, by notification in the official
Gazette and with the recommendation of the Board, make rules for carrying out the
purposes of this Act.
43. Power to make regulations. --- Subject to this Act and the rules made thereunder, the
Board may by notification in the official Gazette, make regulations for carrying out
purposes of this Act.
44. Power to amend Schedule. --- The Federal Government may, by notification in official
Gazette, make such amendments and modifications in the Schedule as it may deem fit.
45. Act to override other laws.--- Except as provided in this Act, the provisions of this Act
and the rules and regulations made hereunder shall have effect in respect of matters relating
to the construction industry notwithstanding anything to the contrary contained in any
other law, including but not limited to the provisions of the Pakistan Engineering Council
(Amended) Act of 1975 and the rules, regulations, and bye-laws made thereunder.
46. Removal of difficulties. --- If any difficulty arises in giving effect to any provision of
this Act the Federal Government may make such order, not inconsistent with the provisions
of this Act, as may appear to it to be necessary for the purposes of removing the difficulty.

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SCHEDULE
Hundred Million Pakistani Rupees (PKR 100,000,000)