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CONSTRUCTION REGULATIONS: HEFTY FINES FOR OFFENDERS

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MBABANE – The Construction Industry Council (CIC) regulations have since been tabled in Parliament.

They were tabled by the Minister of Public Works and Transport, Chief Ndlaluhlaza Ndwandwe, two days ago. They come with stiff fines for offenders. Article 85 provides that a person or contractor who contravenes or fails to comply with a provision of the regulations commits an offence. Where no penalty is provided under the respective provision, such person shall be liable to a penalty not exceeding E50 000 or 20 per cent of the value of the project where the contravention or failure occurred.

Contractors

Obstructing an inspector is also an offence. A person who unlawfully obstructs an inspector from carrying out duties by refusing such an inspector entry into any of the entities or premises of contractors as described in the Act commits an offence. The person shall be liable on conviction to imprisonment for a period not exceeding 12 months or a fine not exceeding E 5 000 or both. Among the key sections of the regulations is the one on registration conditions for joint ventures. A foreign joint venture shall be recognised and registered with the council when there are no Eswatini contractors who can undertake the construction works and the ratio of ownership shall be at least 40 per cent for the Eswatini company.

“An entity which has a department or section that is involved in construction works shall register with the council upon payment of a fee to be determined by the council. An entity shall not sign or issue construction information without a professional indemnity. At least one person within the entity, who is professionally qualified in the relevant discipline, shall be professionally registered with the Architects, Engineers and Surveyors and Allied Professionals Council,” read the regulations in part. There is also a section on minimum indemnity cover.  

Terms

In simple terms, an indemnity policy is an insurance policy to cover a defect relating to a property. Such policies are commonly used to cover against the cost implications of a third party making a claim against the defects.
According to the regulations, the minimum indemnity cover shall be taken out by a company or firm to cover all its professionals.

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