Report on the Current State of Construction Industry in Sri Lanka

This report provides a comprehensive overview of the construction industry in Sri Lanka. It begins with an introduction to the industry's significance, its contribution to the GDP, and the government's infrastructure plans. The report then details the importance of professionalism, professional organizations, and the role of ICTAD (Institute for Construction Training and Development) and CIDA (Construction Industry Development Authority). It explains the contractor registration scheme, grading system, financial limits, and minimum point requirements for different grades. The report also covers the organizational structure of the construction industry, including head and site offices, and the roles of various professionals such as architects, engineers, and quantity surveyors. Different types of construction contracts are discussed, along with the importance of procurement policies and labor productivity. The report also explores the industry's structure, economic factors, and performance models, emphasizing product homogeneity, resource movement, and the impact of mechanization. Overall, the report offers valuable insights into the current state and development of the construction industry in Sri Lanka.

Introduction
The Construction industry in Sri Lanka is the total annual turnover is Rs.800
billion and contributed about 9% to the Gross Domestic Production (GDP).
Increased activity has been prescribed from recent years related to rail, road
projects, civil and telecommunication related infrastructure. Furthermore, it
provide 600,000 manpower. The government of Sri Lanka has attentive to an
infrastructure-friendly infrastructure plan that will enable the construction industry
gain more market share. Commercial construction activities such as warehouses,
industrial facilities, retail buildings and offices have increased.
To successfully complete a project, it is need to finishing work on time with
quality. Helps practitioners’ supports to target and make a way effectual way based
on prospects accretion and improvement. Construction professionals have several
specialists and some of them care about design and construction; other guarantee
the consistent structure and quality of the project. In addition, the quantity surveyor
is concerned with the financial aspect of the project. Determine and self-regulation
are the two main features of development-related aspects for managing
construction projects. (Odediran, 2012)
Professional organizations generally provide extensive promotion for
professionals, some professional organizations are specially important to the
construction industry. Professionals are licensed RICS, SLIQS, and IESL.
Professionalism is the use of specialized knowledge, skills and experience
to serve; acting to the highest standards of through, work and action. There are a
number of special features and characteristics in professionalism to be
implemented in professional organizations.
These characteristics greatly affect the success of their trading career. It’s
Attitude, Appearance, Vocabulary, Behavior, and Mindset.
Furthermore, some business affiliates provide the support of professionals
to share their knowledge and experience. Professionals are therefore able to use
organizational resources for the success of their projects, some of which are
significantly important to the construction industry. Mention of ICTAD in Sri
Lanka. ICTAD means The Institute for Construction Training and Development.

ICTAD Registration (known as CIDA registration) is a requirement for
obtaining government contracts and more than 2,500 construction contractors are
registered with the CIDA. Maintains a database of contractors. CIDA mean
Construction Industry Development Authority.
Purpose / Benefits of the Registration Scheme,
 Following the rating system, client organizations can select the appropriate
contractor for project. But this registration scheme is not intended to replace
pre-qualifications for major contracts.
 The grading system with allow the contractor to self-develop and improve,
preventing contractors from accepting projects beyond their capabilities.
 Ensuring contractors complete projects on time, cost and quality goals.
Registered contracting organizations in Sri Lanka for registration of
Building/Civil Engineering, Electromechanical, Piling and Specialized
Construction with company’s registrar or provincial secretaries under the
companies act.
Ownership of at least 51% of Sri Lankans.
The registration is valid for 3 years and must be renewed thereafter.
The financial constraints of the Contractor Registration scheme are set
according to the current state of the Construction Industry. The ‘Point System’ for
evaluating contractors has been also been developed accordingly.
Construction contractor rating Guidelines – (ICTAD/ID/10) available for
sale at the ICTAD information center. A purple report book is issued for the
convenience of all parties. Following are the abbreviations of the schemes ‘C’ –
Building and Civil Engineering, ‘EM’- Electromechanical Services, SP -
Specialized Construction) and GP – Stacking and ‘Financial Limits’.
(Construction, 1989)

Specialty Grad
e
Financial limit
(Rs. Million)
C1 X ≥ 600
Building Construction C2 600 ≥ X ˃ 300
Highways C3 300 ≥ X ˃ 150
Bridge C4 150 ≥ X ˃ 50
Water Supply and Drainage C5 50 ≥ X ˃ 25
Irrigation and Land Drainage C6 25 ≥ X ˃ 10
Dredging & Reclamation C7 10 ≥ X ˃ 5
Strom water Drainage C8 5 ≥ X ˃ 2
Grayness and Revetments and
Reclamation C9 2 ≥ X
C10 1 ≥ X
These are the main activities of the Information and Communication Technology
Agency,
 Recommended strategies for the development of the construction industry and
assist in their implementation.
 Regulating the registration and grading of construction contractors.
 Promoting the professionalism of consultants and coordinating the activities
of professional bodies and assisting in the establishment of similar institutions
in the construction industry.
 Promoting and facilitating the export of construction industrial services by
accepting foreign contracts.
 Providing consulting services to the construction industry.
 Assist in human resource requirements of the industry and provide training
facilities.
 Promoting the development of skills and specialization of staff and
professional organizations in the construction industry.
 Promoting/conducting research on issues related to the construction industry.
 Promoting quality assurance and productivity in the construction industry.
 Assisting the development of industries related to the construction industry.

 Carrying out or assisting in any other work for the promotion of the
construction industry.
The grading of contractors is done as per the guidelines registration, grading and
monitoring of construction contractors. Each of those the grade is required to meet
the minimum point requirements set out in the guide. Below are the details of the
minimum point requirements.
Minimum Point Requirement
Total
Points
Required
Registration
Fee Rs.
Application
Processing
Fee Rs.
Financial
Capacity
Professional
Staff
Supervisory
Staff
Work Experience
Last 5
years
Largest
Project
RS. Points Points Points Points Points
C9 0.16
M 0.4 - 1.0 - - 1.4 6,000 + Vat 500 + Vat
C8 0.4 M 1.0 - 1.0 - - 2.0 8,000 + Vat 500 + Vat
C7 0.8 M 2.0 2.0 1.0 - - 5.0 15,000 + Vat 500 + Vat
C6 02 M 3.0 2.0 2.5 1.5 1.5 11.0 20,000 + Vat 2000 + Vat
Those who wish to register under C6 grade must meet that requirement for
work done in the last 5 years and 1.5 marks (Rs. 6.0 million) for the largest job
completed in each specialty.
We can submit the following documents to get the facts mentioned
previously given table. Financial Ability, audited financial statements (this is
essential for a C6 grade).The minimum financial ability required for C6 grade is
RS. 2,000,000.00. Additional points are allowed for higher financial capabilities.
Financial viability can be accomplished as follows; Saving Accounts –
Average balance for the last 3 months, Current Account – as the highest and lowest
average value calculated balance for the last 6 months, fixed deposits – Minimum
deposit period should be 6 months, Permanent overdraft (P.O.D.) issued to the
contract.
Professional staff is essential achieving 2.0 marks under professional staff
for grade C6. If any company partners fall into this category, you can prove it
submission of copies of educational certificates if not you should get it the service
of a consultant. If so such service agreements, qualifications and the letter of

consent of the advisor should be submitted. Maximum score it is limited to 2.0
which an advisor can allocate, and he must submit to it.
We can get 1.0 points under this area at least 5 years, or if we have
successfully followed a special course for minor’s scale contractors organized by
CIDA. Contractor must do for extra points a permanent supervisory staff work
with us. (Construciton, 2016)
Copies of the relevant pages of the CIDA report should be submitted by the
grade 6 contractor. The book with the approval of the subscriber organizations.
Prove work experience. Following information can submit for the experience,
Registration information from various government agencies, Contractor report
book issued by various public-sector undertakings, Letters of agreement and
completion. Submit document for the information on work experience over last 5
years and Complete information on the largest jobs.
In the construction industry main office and site office structure require to
organize productively long-term development. It is necessary to cause a real
structure based on purpose and functionality, taking into account the various
scopes of the market. Consideration of proper work development plan and
established management will also help line up the material and human resources. A
structure that considers proper decision-making approaches to be control. The
approach to management, involving leadership, workgroups, behavior and work
processes in emphasized in a way that is relevant to future growth and
development sectors.
The head office and site office structure are considered in terms of designing
and effective work program and implementing innovations. Structural engineers,
mechanical engineers, electrical engineers and other technical staff should
collaborate with each other to manage future work-based components. This section
should also mention the active departments and a few other workers who
concerned about the basic plan. In addition, information should be provided to the
head of finance department and the site office so that the work process can be
symmetrical in managing the overall action plan implementation. It is also
important to create a valuable and unique location that will help generate areas
relevant to proper development and growth for rapid construction.
There are number of special features and characteristics in professionalism
to be implemented in professional organizations. These characteristics greatly
affect the success of their trading carrier. Architects, engineering consultants,

quantity surveyors and builders professionals in the construction industry. They
must organize project resources to properly manage project activities and maintain
project completion, quality cost control, environment and safety measures.
Generally the “Architect” must have proper educational qualifications and be well
trained to impart their knowledge regarding the sustainability and safety of the end
users for the success of the project. Also landscape architects, town planners, and
infrastructure and building architects.
During the construction phase “Engineers” (civil, structural, electrical,
geotechnical and mechanical) often have to visit the site for inspection and ensure
that all activities comply with their engineering drawings, schedules and
specifications. They should also be concerned with the monitoring and certification
of methods and materials.
“Quantity surveyor” is the person/company who manage the costs associated with
construction project such as new construction, renovations and maintenance.
Quantity surveyor monitor the cost of each aspect of a construction project as a
specialist while ensuring that the total cost of the project does not exceed the
estimated cost while minimizing the cost of the project and saving more.
(Littlewood, 2003)
Different types of contract work that manages to systematize the entire process
required to effectively design future projects related to construction tendered by
contractors. This section consists of four public construction contracts generating
the path effective road –
*Time and material agreements when the full scope of the project is unclear
*Contracts related to unit price
*Cost plus contracts
*A fixed price or a one-time contract type that helps generate better sectors in
managing future work.
Initiating a number of contracted action procedures and liaising with the relevant
system aids can generate a better idea of delivering the right good or services
within a specified time. This section is also useful for time management and
consideration of pricing technology. However, with the agreed price structure,

procurement policies need to be properly generated so that standard work follow-
up can be better maintained.
Organization Structure for the Housing Project
Employees, Property management and effective management can generate
an appropriate path based on long-term assistance and development follow-up in
this sector. Improving labor productivity in the construction sector as well as field
service technologies can deal with appropriate approaches based on justifiable
functions. Various Innovation processes and mainstream construction activities
follow the structure, employee requirements planning and appropriate management
of this section.
M1
The structure of the construction industry focused on various approaches
based on economic analysis and determination of current market related factors.
The performance model with innovative design approaches initiated in this sector
also helps to highlight business features and market competitiveness. The structural
framework with system-based dynamics helps to create product homogeneity so
that the product-based process can focus more on manufacturing processes,
services and product management, and broader market-related activities in this
sector. Further development and progress can be considered by focusing on the
Managing
Director
Project
Manager
Store Keeper Clark Quantity
Surveyor
Trainning
Quantity
Surveyor
Draftman Site Engineer
Assistant
Engineer
Technical
Officer
Safety Officer
Head Office
Staff
Financial
Department
Human
Resource
Management
Tendering
Department
Pre Contract
Tendering
(Tendering)
Post Contract
Tenering
(Billing)

assembly of the constructed material, product innovations and ancillary work
planning. The degree of monopoly power in terms of construction rate determined
the size of the company and the number of employees.
Product homogeneity and resource movement have been able to focus on
price and volume of production. The introduction of mechanization has focused on
a number of advances that follow an effective and effective path, taking into
account continuous changes and improvements. It is important to consider the
employees of the construction project and focus on different departments of the
project such as mechanical engineers, project planners, electricians, field workers
and financial planners.
Construction work specific factor conditions, support and related industries
different construction industry, terms of demand and company strategies, rivalries
and structure followed.
D1
The construction industry in Sri Lanka is a significant driver of economic activity.
Demand in the construction industry is driven by a number of economic factors,
including interest rates, inflation, consumer sentiment, technological change and
trade cycles. Demand for this specialty has grown significantly as a result of recent
corporate scandals. The supply chain for this industry of a somewhat complex
nature and includes products (equipment components or materials) and services
(surveys, tax management, engineering, consulting and design). Within the
structure the job vision with project related activities should also start with the
involvement of the work process in particular. Resource and effective resource
management profile and the expression of appropriate government initiatives can
be followed by technological development in the future. Resource-based
construction and supply with car designs should also focus on this sector. One of
the most important criteria to be included in describing the structure of the
construction industry in price adjustment with demand-related formulation in any
given market. Ethical considerations in the construction industry are kept with the
idea of ethical philosophy, recommending and directing behavioral behavior. The
business integrity division and business follow-up should be linked to proper
management follow-up. Proper structuring of corporate social responsibility with
key approaches are criteria for environmental sustainability in the construction
industry is required. Standard and relevant work settings systematize several
activities and the honesty, integrity, fairness, fair reward, objectivity and

accountability sector. Construction industry professionals should deliberately
follow the ethical code of ethics that helps them focus on long-term development
plans. Ethical standards (IES) work adapts work process management with
effective work approaches further builds work management. Proficiency in
working under ethical aspirations, skills and managing public needs should also be
developed in this sector.
P4
There are different types of construction companies in the market and it helps to
manage the proper functional areas with the that initiates further development. The
work performed by different construction industries is categorized differently in
this category.
 Small renovation contractor
 Owner builder
 General contractor
 Real estate developer
 Package builders
 Professional construction manager
 Sponsor builder
 Program manager
Different types of builders are assisted to make the right plans based on the
need and they follow the appropriate timing and budget related aspects of this
section.
P5
Various construction organizations focus on developing strategic with price-
related criteria to help provide better quality services to customers. The
program focuses on the multi-level understanding sector where professional
builders propose successful implementation plans. The rise of the joint
venture and the stakeholder maintenance divisions proposes collaborative
work approaches based on long-term development follow-up. The owner
builder plans things for the beginning and is involved with the relevant

system adaptation that helps create the relevant work plan. Typical builders
follow the relevant methodology that managers to create the right
approaches based on long-term work efficiency so that the final results can
be met with the right work.
On the other hand, management friendly management relationships between
different contractors emphasize project-related planning, cost overruns,
delays and quality after further long-term intervention. Any form of poor
management requires minimizing and cultivating a better framework based
on stakeholder provision and further budget planning. Those how manage
the real estate sector must manage contact payments and properly confirm
the expectations of the parties. Networking is a key component of this
sector, which helps to integrate with progress-based work approaches.
M2
Tenders plays a key role as a catalyst for managing to create appropriate
approaches based on supplier management. In the construction process,
tender procedures are followed in selecting the contractor who will generate
the procurement paths and help manage the relevant system-based
implications that will manage the related services and product management.
A key component of this sector is that work helps to integrate with this
sector. Progress-based work approaches.
Construction companies also follow business-oriented sectors that create
design efficient design procedures that connect with management divisions
involved with long-term design-based divisions with designers, chief
contractors, suppliers, and facility managers to create structural work plans.
Effective innovative design planning can work with relevant long-term
relationship criteria, regardless of the nature of the service and product.
Large product with appropriate opportunities and service offerings should
also be managed in this sector so that the overall action planning and
publication related to the future work direction can be fully articulated.
Keeping a record of this and managing work
approaches should also be managed. In this section, it proposes the
management of several contracts and the understanding of further work
interventions, and the formulation of appropriate negative approaches to
potential work that manages to achieve development and growth criteria.
D2

These changes in construction companies, trade, and contracts are based on a
number of provisions based on future changes. Along with the service plan,
the distribution of physical goods, the financial plan should also have access
to this sector, which is associated with security-based approaches.
The advance trading process considers a strategic based on the various uses
and policies that manage to express future aspects associated with long-term
work criteria. In the contract, the parties agree and sign a paper that sets up a
process with the relevant system by assessing the future work process.
A contractual agreement follows the standards and procedures applicable to
the trade. Making an appropriate agreement in the trade process can generate
the direction of work processes that systematically consider long-term
intervention.
Various construction companies are also able to develop financial
derivatives that can be linked to the proper investment structure with proper
management of investors.
It helps to generate a better path, taking into account future implications,
based on the formal work union that suggests that a long-term management
plan can be made under the security-based asset management prospect.
Agreements and standardization approaches that manage to focus on future
work approaches also follow the work settings involved.
The agreement between the parties focuses on the regulated market price
structure, which is resolved through appropriate intervention and the work-
based association also follows. Representing the various work process
segments and managing construction-based approaches can lead to the
opening of various activities and engaging with the specific purchasing
sector.
P6
Modern construction methods are integrated with the various technologies
that initiate the applicable work process index and also follow the
appropriate development-based indications. It also focuses on the needs of
the various work processes sector and industry related to development and
planning of appropriate work construction.
Modern Construction Methods (MMCs) are linked to relevant and
developed work criteria that show relevant design and planning approaches,
which can reduce construction time and maintain proper sustainability. In
the present situation, several methods have been adopted to design a

properly explained work with a broad work application and implementation
section. Various modern approaches are,
3D Volumetric Modules, Precast Concrete Foundation, Precast Flat Panel
System,
Precast Cladding Panels, Concrete Formwork Insulation, Precast Concrete
Foundation, and Concrete Wall and Floors.
Sustainable needs are met by focusing on proper production, production and
supply chain management so that the construction industry can face a proper
system based path. To achieve sustainability, it is important to adhere to a
high level of compliance and to include information that can initiate a long-
term work process. The business process in the construction industry focuses
on cost-effective and growth. Overall access in maintained and employees
are properly trained to support further development based activities. The
benefits of pre-configuration approaches should further development based
activities. The benefits of pre-configuration approaches should also be taken
into account in this section, so that they can be maintained and published as
applicable to the work planning association.
P7
Contract design schemes have been initiated for the design and generation of
structural work implications based on the systems-based component
involved in the micro and macro project.
Micro Planning Management considers practical site implications that
project relevant system integration and builds further approaches based on
future work in this area. Consideration of location-based scheduling and
information system-based criteria can generate better approaches by
considering proper infrastructure and linking site-based information
management with the workflow sector as appropriate. Formal work planning
and publishing work channels also initiate practical site communication
approaches based on future services. Site hierarchical projection structured
work follow-up management can generate a suitable application in the
future.
The macro contract plan supports the multiplication system association and
considers the structural capabilities based on the relevant work processes
section that deals with the proper relationship. Identification is further linked
to the physical location based structure and the macro management criteria

that work with the relevant system adjustments that are interconnected with
the contract.
P8
By designing information models and liaising with contractors, designers
can start a workable work ethic with them that manages the entire project.
Understanding several project related requirements and working to maintain
the construction programming cycle is an important part. There are basically
four levels of BIM (0-3) that are associated with public procurement projects
and manage costs, facilities, and time frame.
The impact of BIMs on cost modeling approaches and construction
programming is considered and the relevant workflow interface can be
generated in this section. The planning of any kind of work start-up and the
elimination of problems and conflicts should also be managed within this
division so that various work implications can be expressed. Contractors and
clients initiate potential collaborative activities that can follow design-
related liability and follow a procedure that involves the supply chain.
Project-qualified project suppliers consider easily identifiable and virtual
environment-based settings that are linked to pre-design specification and
manage the relevant system in the commercial process. BIM’s work
appraisal and process distribution are also linked to the prerequisite of the
construction process.
M3
Innovation is a broad concept that connects to the relevant system-based
association and manages to create a proper interaction with the BIM
segment. The future scope also considers the inclusion of new ideas and the
systematic management of the development and growth Association in the
areas of prototype and unitary construction follow-up.
The various uses of construction companies initiate appropriate interventions
to connect with further benefits and implications. Integrated system analysis
and design-based projection refers to the proper control and enhancement of
access to the long-term function of this component. BIM helps to make
appropriate improvements in various design based activities, enhance the
competitiveness of specific companies and adhere to overall strategy based
criteria with systematization that generates appropriate product knowledge.
Design and innovation approaches find a correctional method that can be

followed by a knowledge-based association and further enhances client
satisfaction in the sector.
D3
Innovative construction methods and related system support design also take
into account forecasting software, optical voltage glaciers, self-healing
concrete, modular constructions, 3D modeling and forecasting software.
Design approaches, new material management with energy supply and
adoption of related work processes also focus on the wave of innovative
construction methods with attractive development.
With the exposure of future work support, a wide range of work-based
engagement criteria have been adopted that directly link to design
approaches. Managing the relevant design procedures and further design
integration focuses on the technical prospect in a better way. Technological
innovations in this sector should also be considered so that improved quality
and lower material costs can be accessed in this sector. Further relation
based on systematic work channel and long-term growth direction can be
considered by considering the different constructions and appropriate
monitoring procedures printed in 3D. Furthermore, pre-construction
approaches are associated with virtual reality-based aids that can further
support the working procedure.
P10
Government regulation and legislation in the construction industry is
perhaps one of the important attributes of the rule that should prevail in an
industry where life and death are at risk. The importance of these specific
government regulations is that these construction projects are able to comply
with certain aspects of construction and their activities. Therefore, the
government rules are as follows.
It should be noted that the main legislation affecting the contracting process
also applies to industry. One such constitution is the occupational health and
safety act 1974. This specific act imposes on all construction workers a fair
use of health and safety as well as a duty to effectively and effectively
ensure the well-being of all workers in the work process.
In construction process contracts, the Construction and Regeneration Act
1996 deals with the concepts and work processes of health and safety in the
construction industry.

P11
The existence of cooperation as well as the initiation of proper
communication methods are responsible for ensuring the effectiveness of
security measures. It should be noted that in the process of construction
work it is important to have a very strong collaborative team that will help to
initiate unity within the premises. Therefore, the following can be
considered effective in the role of cooperation to ensure safe practices;
Collaboration in the work process in the construction industry helps to
effectively improve employee safety.
With the help of collaboration, it helps to associate better coordination in an
effective, effective way.
Improving emergency response is another important role of cooperation in
the construction industry.
On the other hand, it is important to understand the importance of the
communication success order in ensuring that the concepts of safe work are
effective and effective. They are as follows:
With the help of proper communication system initiatives, it is easy and
moving for the construction industry employee to define the specific goals
and objectives that companies are pursuing.
Improving team building and development is another important feature of
effective communication in the construction industry.
M4
Improving team building and development is another important feature of
effective communication in the construction industry
Construction companies should make safety their priority.
It is important to provide extensive training to the employees of the
company.
With the help of employee feedback, it is possible to understand the extent
to which construction companies have been able to incorporate their health
and safety practices.
D4
It is undeniable that the concepts of health and safety are considered
significant in the construction industry. It is therefore important to

understand the impact of health and safety legislation and their benefits and
disadvantages in the construction industry.
It should be noted that the effectiveness of health and safety in the
construction industry can further enhance productivity by repositioning the
health of employees within the entire community. As a result of health and
safety legislation, it is easy and convenient for employees in the construction
industry to be able to perform effective safety procedures.
Conclusion
This study will lead to final conclusion that, of course, the specific employer’s
attitudes and qualifications, skills, communication skills, experience, and
initiatives can be done within specific features and characteristics. These are very
important factors to enhance the professionalism of the construction industry.