The federal government has announced plans to extend the standard Defect Liability Period (DLP) for public development projects from one year to three years, with a long-term goal of increasing it to five years to improve the quality and life of public infrastructure.
Federal Minister for Economic Affairs Ahad Khan Cheema said the longer liability period will require contractors and executing agencies to maintain higher construction standards and remain responsible for defects for a longer time.
Cheema also announced that consultants will be brought under a new regulatory framework of the Construction Industry Development Board (CIDB), making them legally and financially accountable for design flaws and errors.
While contractors currently face penalties for poor performance, no legal mechanism exists to hold consultants accountable. Representatives of the Consulting Association of Pakistan (CAP) supported the proposal.
Separately, the minister directed Minister of State for Finance Bilal Azhar Kayani to begin formal consultations with the State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA) on banking challenges faced by construction firms.
The discussions will also examine the feasibility of establishing a dedicated Construction Development Bank (CDB).
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