Construction Act Ratified

On 23 April 2017, the Construction Act was published in the Maldives gazette, which sets out the standards and parameters to be followed by all actors in the industry.

The Act gives the Minister – responsible for enforcement of construction sector policies – an array of powers and requires the Ministry to make regulations to achieve the objectives set out in the Act. The Minister is charged with preparing regulations regarding, among other things, safety standards, designing and standard operating procedures to be followed in the construction sector, conducting the relevant trainings required for actors in the sector, categorisation of contractors and other matters that are necessary for the proper implementation of the Act.

The Act also establishes the “Maldives Building and Construction Board” which is responsible for advising the Minister and other relevant actors on matters specified in the Act. The Board is comprised of 7 appointees, from both private and, public sector, who can sit on the board for 2 consecutive 2 year terms.

Some other key areas covered by the Act include the creation of a standardised building code, a fine regime for persons who do not comply with the Act and subsequent Regulations, giving priority to Maldivian workers in the construction sector and, guaranteeing compensation for services rendered. The Act also provides a dispute resolution mechanism for parties who seek to contest fines and other actions taken against them under this Act. The dispute must be lodged within 14 days of the action and a response to the disputed action must be given within 1 month.

The law explicitly governs construction sector work conducted by all actors recognised under the Act, including government institutions. However, tourism related construction work undertaken in islands allocated for tourism and, construction work of certain residential buildings located in the atolls are not governed by this Act.

The Act will come into force, 6 months from 23 April 2017.