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August 20, 2009

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City building industry set for shake-up

SHANGHAI will raise the qualification standards of the construction business and regularly disqualify the worst performers in the industry.

The city's top construction watchdog made the announcement yesterday as it outlined measures to streamline the industry.

Supervision of operators in Shanghai would be increased and best performers, including construction companies, material producers and engineering supervisors, would be put on lists available to the public, Huang Rong, director of the Shanghai Urban and Rural Construction and Transport Commission, said yesterday at the mid-year session of the Shanghai People's Congress.

This initiative is aimed to help establish a credit system for project developers, enabling them to select the most efficient operators for their constructions.

The commission is also planning to improve the city's construction business admission standards and set up a regular ratings mechanism.

Those with business violations or failing appraisals would have their names publicized and be forced to quit the construction industry, Huang said.

Huang said the commission was also working out solutions to prevent issues with the city's project bidding procedures.

Construction operators offering the lowest price frequently win project bids, while much less emphasis is placed on technical expertise.

Some lawmakers suggested that the construction watchdog should be fully involved throughout the bidding procedure.

Later construction should also be closely supervised, they said, to prevent operators from cutting corners in the interests of profit rather than professionalism.


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