Regulatory

frameworks of the construction sector in Yemen: Legal Framework and Suggested Changes

Dr. Mohamed Moghram

Assistant Professor of Public Law Faculty of Law & Shariah Sana'a University Yemen Republic
Paper presented at construction workshop 28-29 September 2010 Sanaa

Construction industry in Yemen in brief introduction

Construction sector in Yemen considered as an important

sector of the economy and has multiple linkages with other sectors in the country It contributes significantly to socio-economic development and creates employment opportunities in the country construction industry in Yemen faces some problems like many otter less development countries such as :

Construction industry in Yemen in brief introduction

in term of institution capacity, many local construction

companies started their construction operations in many projects, but lacked experienced staff. most of local firms lack expertise, construction machinery and equipment and construction materials. Yemeni engineers lack experience in modern construction techniques

Construction industry in Yemen in brief introduction

most of the construction materials are imported because

Yemen does not produce them or produces limited amounts (e.g. cement). Yemeni construction lacks domestic machinery or construction equipment. All construction equipment needs to be imported and A 5% custom duty is imposed on these equipments,

Construction industry in Yemen in brief introduction

foreign construction companies involved in construction

sector are obliged to pay, unless they are exempted by the investment law for investment projects. Yemen does not have a National Construction Database. It is evident from the field that there is no reliable statistics can be presented with regard to building or construction performance

Construction industry in Yemen in brief introduction

construction sector in Yemen characterized with the

following legal weaknesses: Construction industry in Yemen is not identified as a separate Sector. ineffective and fail to effectively implement laws and regulation. Administrative regulations of construction sector are cumbersome Enforcement of the legislation is still weak and ineffective lack of clear unified construction standards and regulations
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The assignment of this study

the assignment of the study comprised on the following : conduct a systematic review and analyses of Yemeni regulatory and legal framework of the construction sector in Yemen ; Identify gaps and make recommendations for amendments to the Yemeni law in light of the international best practices Review the existing legislative and regulatory framework of the industry identify critical constraints/shortcomings affecting its development
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Methodology of the study

this study used a descriptive and analytical method and conduct a detailed internal review of the provisions within the legislation concern with the construction sector in Yemen. It includes: An extensive review of the existing legislations; Data collection; examination of this data in light of the existing Yemeni legislations; Comparison of the Yemeni context with some best practice of legal framework of construction industry in the region and the world.

Legal and Regulatory Framework of construction sector in Yemen

legal and regulatory framework of the Yemeni constructions

industry includes the following laws and regulations: Procurement law no. 23 of 2007 and its bylaw. Labor laws no 5 0f 1995 and its amendments Construction industry codes and regulations including Decrees of the Prime Ministers ( many regarding procurement law implementation ) Investment law no 22 0f 2002 Republican Decree of Law no. 22 of 1997 concerning Commercial Companies(the Companies Law) as amended by Republican Decree no. 15 of 1999, Law no.12 of 2001, Law no. 28 of 2004, and Law no. 37 of 2008
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Legal and Regulatory Framework of construction sector in Yemen

Republican Decree of Law no. 35 of 1991 regarding

corporate entities as amendment by Republican Decree Law no 7 of 1997 Regulation of classification, black listing ,qualification and licensing of construction sector. (Decrees of the Prime Ministers ) Financial law Banking law

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Categories of Construction industry in Yemen

No basis or annual reports on contracts or contractors, small and

large constructions industries exist it is difficult to categorize construction industry in a systematic method. Decree of the Prime Ministers No. (419) of 2008 concerning Classification and Registration of the Contractors gives some definition and classification of some of construction industry in the article 2 of this decree we chose some of them as follows: Contractor: Any natural or articial person who shall be permitted pursuant to a License issued by the Ministry or by the concerned oce to exercise a contracting profession in a eld r more of the elds that specied in this Regulation and according to conditions and according to conditions and requirements set forth in same regulation.
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Categories of Construction industry in Yemen

Work of the roads: Building, paving and asphalting of the roads, construction of runways, paving of public squares and side-walks, construction of bridges and tunnels, supporting walls and box and pipe culverts including: Installation of steel rails and bars, protecting barriers, traffic signs, painting works, fixing of guiding and warning plates. Buildings works: All works related to industrial, cement and metal buildings installations and structures, pre-tab light (prefabricated) buildings works and works related to establishing of garden, parks, central markets, town and streets landscaping and enclosures, fences and pavements works as well as other works thereof. .
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Categories of Construction industry in Yemen

Marine Constructions Works: Works related to sea ports building,

ships reparation basins, marine pavements as well as drilling, driving stanchion in, anchorage cleaning and deepening works as well as marine barricades and rails, bridges and corniches Water and Sanitation Works: Works relating to water and sanitation including building of stations for water purification as well as stations for water treatment and disposal of waste and exertions, installation of sewerage networks and erection of pumping and drainage stations. Dams, Water structures and Irrigation Canals Related Works: Construction of dams, water structures and building of canals and various types of irrigation projects (of cement or heavy dust bulk of stone) works of protection from disasters.
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Categories of Construction industry in Yemen

Works of Drilling of Water Wells: Work related to drilling of

artesian wells, water wells as well as various installation and fittings. Electromechanical Works: All works relating to implementation of power generation and distribution, installation of networks, lighting of streets and installing of electrothermal stations as well as renewable energy and distribution thereof.

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Categories of Construction industry in Yemen

Refrigeration and air conditioning works:- Central system of

refrigeration warmness, air conditioning and ventilation. Mechanical works:- Installation of lifts, mobile ladders, grain silos. Installation of fire extinguishers and safety systems in the establishments and fixing of conveyor belt, mechanical heating system, installing of turbines, steam boilers, liquid gas filling stations and others. Decoration works: - Decoration works of various types of gypsum, wooden and metal buildings. Furnishing of halls, theatres and sizable rooms as well as construction of fountains and swimming pools. Chapter Two of this decree detailed the scope and fields of the previous definitions in article 4. Which stated that Provisions of this regulation are applicable to prime and sub-fields of building and construction contracting works as follows:
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Categories of Construc/on Legisla/ons in Yemen

The major construction related laws and regulations in Yemen are

categorized on their application into the following

General Application Laws:

mean most of laws and regulations applied directly to construction industry which such as: Public Procurement Legislations consist the procurement law and its bylaw regulation. labor laws no 5 0f 1995 and its amendments investment law no. 22 of 2002, and; Republican Decree of Law no. 35 of 1991 regarding corporate entities as amendment by Republican Decree Law no. 7 of 1997.
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Categories of Construc/on Legisla/ons in Yemen

Applicability of the laws and regulations:

Means construction laws and regulation that applied to certain entities and governmental institutions such as : Ministries headquarters. Public establishment and authorities other central bodies and their branches thereof at local units,

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Categories of Construc/on Legisla/ons in Yemen

specialized funds and other units covered by the

states general budget. Administrative units of the local authorities. Public sector units. Units with autonomous or dependent budgets. Certied Credit and Grant Agreements

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Procurement law No. 23 of 2007 on Tender, Bidding and Government Storehouses

The public procurement system in Yemen is regulated by the

provisions of the procurement law 23 of 2007 This law issued on August 14, 2007. This new law replaced the former Law No. 3 of 1997 on Public Procurement. The new law was aimed among other aims at: adjusting previous of the Yemeni law on Public Procurement to the provisions of international standards enhancing the correctness of the conducted contract award procedures and modifying the provisions,
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Procurement law No. 23 of 2007 on Tender, Bidding and Government Storehouses

Protection of public funds, maintaining the states property and

assets and ghting corruption in bids and auctions. Fairness and equality in treatment of bidders in bids and auctions. Integrity, transparency and accountability, and streamlining and dening procedures in bids, procurements and storehouses. Economic eectiveness in bid and auction activities. Eective supervision and monitoring of bid, procurement and storehouse activities to safeguard and protect public funds and interest Encouraging contractors, suppliers and consultants to develop their performance professionally and economically.
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Procurement law No. 23 of 2007 on Tender, Bidding and Government Storehouses

High Tender Board is the high authority that responsible

for controlling and approving all bids that exceeding the ceiling limits determined by the executive bylaw. This board is considered one of the agencies combating corruption though its focus on the following; Technical aspects of bidding and tendering in a competitive and fair manner protecting public funds and interest.

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Procurement law No. 23 of 2007 on Tender, Bidding and Government Storehouses

The board also handles the complaints received from the

bidders about the procedures or any alleged violations. The Ministry of Finance, however, is considered to be responsible for the work of biddings regarding monetary issues, while Ministry of Public Constructions in areas related to contracts oversights, public work establishments from the technical aspect Ministry of International Cooperation regarding development projects which are funded partially or fully through foreign loans
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Gaps on the Procurement system and its Laws and Regulations

most of its provisions are about an administrative and

control function. This law needs to incorporate the modern concept of the procurement system that reected in a strategic function of the government to promote better scal management and to support government development policies.

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Gaps on the Procurement system and its Laws and Regulations

The procurement system is bedeviled by technical and

managerial diculties arising from skill shortages, and as a result, applications of technological and management techniques to construction processes. Challenges faced by Contractors in construction sector in Yemen are centered mainly in some areas i.e the bidding process, evaluation and contract award, contract formats and project execution.

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Gaps on the Procurement system and its Laws and Regulations

Despite ample regulation of procurement, no

specic regulation governs international competitive bidding. In practice, foreign rms participate in national competitive bidding, the regulation for which does not aord the customary risk mitigation provisions that would attract the lowest priced bids and promote competition (e.g. exchange risk protection, arbitration for dispute resolution, appropriate delivery terms, etc.).
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Gaps on the Procurement system and its Laws and Regulations

Procurement law 23 of 2007 allowed the contracting

authorities to award the contracts in situation where in the procedure there was only one eligible tender submitted there are some inconsistencies in its provisions articles 91 with the standards and guidelines for process of biding, contract awarding and contract implementation.

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Gaps on the Procurement system and its Laws and Regulations

The prequalication and designing bids process

requires more technical expertise which in a short at most of government ministries and entities governed by the procurement law and its bylaw. Training Needs Assessment in order to build and foster their technical skills through planning ongoing training process. Unication and popularization of good practices concerning the award of public contract,
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Suggestion on the Procurement system and its Laws and Regulations

From the above analysis, some suggestions are need to

correct weaknesses in public procurement systems through: Comprehensive legal frameworks, with coordination of the regulatory authorities in a clear policy and strategy to promote construction sector in Yemen. Eective monitoring and auditing procedures and organizations to ensure compliance with laws and regulations. Standard of terms and conditions of contracts. Improved transparency and public availability of rules governing the process, and
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Suggestion on the Procurement system and its Laws and Regulations

an improved capacity for developing and retaining

people with professional skills in procurement Separate legislation pertaining to the selection of consultants from legislation pertaining to the procurement of goods and public works improvement of control mechanisms, as well as training of the awarding entities and bodies dealing with control of contract award procedures

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Suggestion on the Procurement system and its Laws and Regulations

the legislative framework on public procurement also

consists of the following regulations that were enacted by regulative Authorities (executive branch as authorized by the constitution). This regulations had changed or modied many times by cabinet decrees. these changes did not published such changing the ceiling limitation amounts of biding at all levels.

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Suggestion on the Procurement system and its Laws and Regulations

And also has stipulate conditions not mentioned in

the law such as art 9 of this bylaw. One particular aspect of the present system is that it treats equally the selection and contracting of intellectual or professional services (consultants) and the contracting of other general services

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Regula(on not completed

The procurement law in Yemen permits various

agencies to issue procurement regulations independently. This greatly increases the risk of inconsistencies, overlaps, or gaps, and no mechanism is available to coordinate the development of procurement regulations issued by regulatory agencies so that all can be reconciled and better aligned with government policy.
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Regula(on not completed

The procurement law stated in its articles that: Mixed sector units where 50% or more of the

capital is owned by the State shall lay out their own rules and regulations that manage bid and auction activities.

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Regula(on not completed

These rules and regulations shall not be eective

until they have been approved by each authorized entity, and endorsed by the Cabinet Mixed sector units where less than 50% of the capital is owned by the State shall lay out their own rules and regulations that manage bid and auction activities, to be approved and endorsed by the bodies concerned at each unit as per their founding laws.
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Regula(on not completed

The Ministry of Defense shall lay out rules and

regulations of its own to manage supplies and military works. These rules and regulations shall not be eective until they have been approved by the Cabinet. The High Authority may supervise bid and auction activities at the bodies mentioned in sections (A, B and C) of this Article.

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Regula(on not completed

If the value of bids conducted by the sector units

referred to in section A of this Article exceeds the threshold identied in the regulations, the approval of these bids shall be within the scope of the High Tender Committee jurisdiction. The entities referred to in this article shall implement the provisions of this Law and its Executive Regulations until the entity-specic rules and conditions have been approved, provided that these rules and regulations conform to the goals and principles of this Law.
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Regula/on eec/ng bids

Minister of Finance Resolution no 1of 2010 regarding

the preparation and design of bids. This resolution restrict the biding process by not allowing any entity to enter in biding before it gets approved from the ministry of nance which is not tabulated by the law.

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Investment Law no 22 of 2002

The Investment Law no 22 of 2002, which is a result of

many changes and amendments of the rst law since 1991 considered a comprehensive and eective piece of legislation aimed at : providing a denite structure, distinct frontier and; eectual management to investments activities in Yemen

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Investment Law no 22 of 2002

This law is designed to promote and regulate the

investment of Yemeni, Arab and foreign capitals. the law stated that all activities and project is governed by the provisions of the investment Law within the context of the state general policy, goals and priorities of the national economic and social development plan, and not in contradiction with the Islamic jurisdiction The law treats the Arab and foreign investor as well as the Yemeni investor without any discrimination.
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Sectors are not an inves(ng sector

sector as non investing sector and not benet from

guarantees and benets that given to its projects these sectors are the following: Exploration and extraction of oil, gas and minerals that are governed by special agreements. Weapons industry and explosive materials. Industries that harm the environment and health. 4. Banks and exchange bureaus 5. Financial trade, importing, wholesale and retail trade.
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Gaps on the investment law

Despite the all provision in the law, there are still some

problems that eect a good implementation of the law and regulation as indicated below: Lack of protection for property or enforcement of contracts lack of dependable jurisprudence, enforceable contracts, secure land titles, Predictable taxation or tari protection, in some cases physical infrastructure and physical security. Lacks of a well-structured legal framework to ensure property rights to investors
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Sugges/on
Some suggestion regarding these issues is important such

as: Improving the construction investment environment, by reducing the public and mixed corporate competitions as a presence of government in some areas of construction sector (e.g., parliament building monopoly without bidding and weakness in other areas )(e.g. justice, land tenure, banking regulation, information and promotion for potential investors) Emphasizes within the investment laws and regulation additional necessary rules and regulations required to combat corruption and penalize the ocers of investment authority and other institutions governed the investment issues.
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Labor law No. 5 of 1995. and its amendments

labor matters in Yemen are governed by provisions of labor

law no 5 of 1995 and its amendments This law applies to all labor relationship regardless the sector they are working foreigners working in the Republic under an international Convention to which the Republic is a party, this exemption being subject to the limits set by the Convention in question; foreigners holding diplomatic or special passports who have obtained a visa and who work in the Republic subject to the conditions of such political visas as may be issued to them;

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Labor law No. 5 of 1995. and its amendments

there are no specic regulations apply to construction

sector even in the law of procurement its bylaw did not mention any specic provisions for the employees and employers relationship in construction sector all related issues of labor are governed by this law as stated in this article as Para. 1. The provisions of this law shall apply to all employers and workers except those covered by a special provision of this law

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 Labor force and training, investment law no 22 of 2002

stipulates that project shall recruit and train the maximum number of Yemenis possible, and shall present replacement plan of Yemeni cadres substituting the foreign cadres within appropriate period of time and according to the nature of project

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 Occupational health and safety laws. (No specic law rather

several provisions in labor law There are no specic laws and regulation regarding occupational health and safety, however, some rules and provisions are found in several laws such as article 105 of procurement law, and articles 113 to118 and articles 123 to 127 of labor law no. 5 of 1995 and its amendments. Public safety in procurement law only concern on the storage as stated in article 105 of procurement law: Radiant, inammable, poisonous and explosive materials or any other materials harmful to the environment may not be stored near residential communities, public facilities, or water resources. In all cases storage methods should be in compliance with rules of public safety
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Sugges/on on investment LaW

It is important for occupational health and safety to be

regulated within the procurement law and also incorporated in the registration and classication regulation. The suggestion of this study is to consider this as requirement of registration and classication of any construction rm and company. It is also suggest that good records of health and safety should be one of bases for biding evaluation.

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Republican Decree of Law no. 35 of 1991 regarding corporate entities and Public Sector Enterprises as amendment by Republican Decree Law no. 7 of 1997.

Based on the Article 34, 123 and 124 of Law no. 35 of

1991 regarding corporate entities and public sector enterprises which gives privileges and prefe Waiver of the Requirement to Demand Provision of a Performance Bond The withdrawal from the obligation to request a deposit or a security on due contract performance. rences for those entities as follows:

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Republican Decree of Law no. 35 of 1991 regarding corporate entities and Public Sector Enterprises as amendment by Republican Decree Law no. 7 of 1997.

Took into consideration the exceptional circumstances

in a specic case where requirement concerning security on due performance of the contract could preclude the conclusion of a contract or cause the signicant increase of tender prices. exempted from registration fees and some taxes for its economic units

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Prime Ministers decree No. (419) concerning Classification and Registration of the Contractors. And Prime Ministers Decree No. (420) of 2008 concerning Classification and Registration of firms and engendering consulting companies

These regulations as stated by regulation shall be

issued by the Ministry/the Oce in accordance with the provisions stipulated in this regulation which shall specify and allow the contractor to exercise a certain type and level of the contracting works. Certicate that shall be granted to non-Yemeni contractors who are duly classied at the in homeland

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Prime Minister oce decree No: (263) for the year 2008.Concerning the Black List

The provision of article 10 of procurement law no.23 of

2007 stated that The entities subject to this law, when in need of consulting services, shall post an advertisement in a proper media outlet to receive information from consultants willing to oer the advertised consulting services. The Executive Regulations detail the required procedures. Despite this provision, no one of the contractors has been caught in violation of this article; even these violations exist in practice. Article 10 0f procurement law no. 23 of 2007
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Sugges/on
Revamp and Enforce Blacklisting Regulation The construction sector are faced many problem that need to be

solved through revamping and enforcing blacklisting. there is much provisions to punish corrupt ocials, but not enough to punish corrupting rms. The prosecution of the criminal oence is dicult and time consuming, and hence, not eective. The government has every right to deal only with ethical rms. Business community should be required to adhere to a code of conduct if they wish to deal with public purchasers. Any infringement shall result in sanctions. The blacklisting rules need improvements permitting exclusion from public contracts for a period, or permanently, depending on the seriousness of the oence.
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Companies law
The Companies Law has been issued. This law requirements in terms of shareholders,

directors, minimum capital levels and incorporation procedures. The law sets forth provisions governing conversion, merger and dissolution of companies. its most relevant provisions pertains to the condition stating that a total local equity of not less than (51%) must be complied with in any commercial company, while remaining 49% may belong to foreigners.
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Sugges/on
Registration of rms and company does not help much

on the issue of procurement therefore it is important to have the following suggestion: The registration system should serve its purpose related to public procurement and currently functions to the disadvantage of many capable Yemeni bidders. Leaves the problem of pre- and post qualication of unregistered foreign contractors unresolved

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Construction building law no.22of 1995and it bylaw no.448 of 2008

Building Regulations are concerned with the adequacy

of building construction. these only specify minimum construction performance within a limited framework of health and safety objectives. The construction industry suers from an inadequate regulatory framework, the absence of construction norms, and the lack of a qualied workforce.

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Sugges/on
Rationalize and Increase the Eectiveness of Yemeni

Building Regulations as the primary legal instrument in Yemen for setting building performance standards. Ensure that the interpretation and operation of the Building Regulations is uniform, harmonized and competent across the country

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The Financial Law no. (8) of 1990 which amended by Law no.(50) of 1999 and bylaw of the financial law
As stated by article 2 of the nancial law, it apply to all ministries, government

authorities and bodies and dierent organs and branches contained by the public budget of the state including all administrative units and local councils covered by the governorates budgets. The same provisions apply to all economic units of the public and mixed sectors and units of independent and annexed budgets unless the incorporation laws stipulate the contrary. The provisions of this law apply also to wherever there is no special provision applied to those bodies which incorporation laws include special rules, provisions and regulations. ARTICLE (74) of nancial law stated that The establishment, amendment and canceling of public taxes could not be made only by law and nobody is exempted from their total or partial payment except in cases stated by law. It may be impossible to charge anybody to pay any taxes, levies and public charges except by law is violated by imposing fees for city improvement which reaches one Yemeni Reyal on each cement bag 50 Kg entered the city.

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Sugges/on
This law need to revised and amended in the content

of revenue and procurement issues

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taxa/on law
The Income Tax Law and related regulations (Article

13) require prots or losses, audited by a chartered accountant accompanied by copies of the nal accounts, balance sheet, the depreciation statement prepared by the taxpayer, and a statement of the accounting principles upon which all the gures shown in the declaration are based.

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taxa/on law
Minister of Finance Resolution no. 255 of 1999, Article

4, adds a requirement for explanatory notes. Projects registered by Investment Authority are subject to customs exemptions as stated by investment law 22 of 2002. The law stipulated that customs exemptions provided for in Articles (16), (18) and (19) of this Law, shall be deemed to be relating to projects registered by the Authority.
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banking law
The Central Bank of Yemen has primary regulatory

authority over banks, in addition to its various other roles in government and public nance. It is the single most eective independent regulatory body in Yemen, with fairly strong regulatory and monitoring powers. The Banks main weakness is similar to other institutions in that it lacks strong tools for en forcing regulations and forcing violators into line. In addition to the above rules, banks are subject to additional Central Bank rules:
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banking law
Facilities granted to relate parties must be granted on

substantially the same terms as those granted to similar third party customers; Total credit facilities granted to any employee may not exceed one years gross compensation;

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banking law
Total credit facilities granted to any non-employee

Board member may not exceed 0.5% (one-half percent) of the banks total capital plus reserves; Total credit facilities granted to any shareholder owning 5% or more of the capital is limited to 15% of the banks total capital plus reserves; Total facilities granted to all related parties in aggregate must not exceed the banks total capital plus reserves;
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banking law
Related party loans may not be written o without a court

decree of bankruptcy, unanimous approval of the General Assembly, Central Bank approval, and the write-o will not be tax deductible as a loss; .However, in term of banking laws and regulation concerning the construction sector: There is no bank or nancial institution that specializes in construction nance. There is also a lack of technical expertise in nancial services that cater to construction development. Infrastructural weaknesses pertaining to the construction sector contribute to the problem.
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banking law
Local constructions are burdened by the lack of

availability of loans and other nancial services to most construction sector. Construction dispute linked to these problems led to the gaps in construction sector.

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Sugges/on
Reforming the nancial sector is essential if the

banking system is to play its role in mobilizing and eciently allocating resources

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Construc/on Regulatory Authori/es

legislations of the construction industry are issued by

the legislature authority. the policies, procedures, guidelines and delegation of authority relating to construction industry in Yemen are issued by the executive branch of the government through : cabinet ministers, Ministry of Public Works and high ways,

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Construc/on Regulatory Authori/es

The High Authority for the Control of Tenders and

Auctions, The High Tender Committee, Ministry of Finance, and also through other ministries.

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Weaknesses in the construc/on system

The challenges being faced by the construction sector

in Yemen include insucient education and training (lack of HR). Absence of commitment from the government authority especially in contract enforcement.

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Weaknesses in the construc/on system

Lack of long-term vision and planning for the sector ineective budgetary procedures resulting in cost over-

runs, Fluctuations in work load, defective contract documents, corrupt contracting procedures.

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Weaknesses in the construc/on system

Lack of protection against adverse physical conditions. Payment related delays, problems of bonding and

insurance. Lack of adequate nancial resources, un instability of foreign exchange. Unfair competition from state-owned contractors and consultants Non-availability of equipment and miscommunication of information.
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Absent of coordinated agency

There is a need to establish a single coordinated

agency and simultaneously support other public policies such as development of construction and social goals, without compromising the main objectives of economy, eciency, transparency and accountability department or agency to evolve, coordinate and oversee policies and procedures in construction industry.
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Competence, Skills and Training of Ocers and Sta

Most of the laws and regulation reviewed in this study

approved that there is no Competence, skills and training of ocers and sta , because the construction industry in Yemen is yet to develop to maturity. Except for a few large rms, the majorities are labor contractors, without adequate nance, equipment or professional sta and are mainly dependent on government contracts. The governments policies, the tendering and contracting procedures, and documents are mostly responsible for this.
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Competence, Skills and Training of Ocers and Sta

Contractors have been treated as mere labor providers,

with the government assuming responsibility for design, provision o f materials and technical supervision, and even preparation of claim bills on behalf o f the contractor. Also, for a long time, the government has tended to protect local contractors from foreign competition by packaging large contracts in small packages, which has constrained their growth.
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Sugges/on
The industry needs a change o f environment in order

to grow to maturity. For the bulk of smaller contractors, the government should promote training in all aspects of the construction and expose them to modern and international practices and documents. Such training programs should cover costing, risk assessment, dierent types o f contracts, preparation of bids, logistics, construction insurance, contract and claims management, quality enhancement, dispute resolution, etc.
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Sugges/on
The government should also promote creation of

equipment leasing companies and expansion of project/construction insurance. In all these initiatives, the government should work together with existing institutions in the public and private sectors. As for the larger contractors, the government should promote joint ventures with more experienced foreign rms by suitable packaging of large contracts, so that local rms acquire logistics, contract management and other skills from such association.
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Sugges/ons for changes

The study provided some suggestions related to legal

and regulatory system in Yemen that helps to improve such system. To correct weaknesses in public procurement systems through: Comprehensive legal frameworks, Eective monitoring and auditing procedures and organizations to ensure compliance with the regulations,
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Sugges/ons for changes

Standard terms and conditions of contracts, improved transparency and public availability of

rules governing the process, and improved capacity for developing and retaining people with professional skills in procurement

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Conclusions and Recommenda/ons

1. Conclusions Legislation can have a great eect on the policy,

planning, and the quality of services and management of construction sector in Yemen. It is essential that laws and regulation can: Express the policy of the government Dene the scope and functions of dierent categories of construction sector

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Conclusions and Recommenda/ons

Regulate the requirements for practice of construction

projects and the working condition, and provide guidance and standers that need to be followed. Regulate the distribution of responsibility of various governing authorities of construction sector.

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Conclusions and Recommenda/ons

2. Recommendation Development of the construction sector requires a

long-term commitment from the government in term and polices and Laws Related to the Construction Sector Law governing Urban Planning and Building in Yemen. This law will constitute the building codes aimed at organizing and regulating the elds of urban planning and building in Yemen.
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Conclusions and Recommenda/ons

The Building Control Regulations Standards and Specications for the Construction

Industry. A Healthy Construction Industry requires adequate numbers of professionals, semiprofessionals and artisans to eectively execute construction and maintenance work

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Conclusions and Recommenda/ons

The following laws should be subjected to scrutinizing

study in order to amend them and harmonize them illuminating any contradictions: Republican Decree of Law no. 35 of 1991 regarding corporate entities as amendment by Republican Decree Law no 7 of 1997

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Conclusions and Recommenda/ons

Regulation of classication, qualication and licensing

of construction sector. Financial law, in term of procurement system and revenues collection. Banking law to take inconsideration the construction and small enterprises sector. Labor laws no 5 0f 1995 and its amendments.

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Conclusions and Recommenda/ons

The following laws should be issued and

promulgated: Establishing the Construction Occupations licensing framework is an eective means of regulating the construction industry and ensuring an ecient framework for skills recognition which is compatible with the national framework.

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Conclusions and Recommenda/ons

Promoting the development of the building

construction sector through : Promoting the development of the building construction sector by oering incentives to small contractors, and providing facilitation in technology based training programmes;

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Conclusions and Recommenda/ons

Promoting the development of Technical and Vocation

skills to enhance the human resource capacities in skilled and semi-skilled categories of the construction sector Ensuring the adherence to developed standards for building materials, and construction methods and techniques.

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Thank You!!! And Now open my selfe for your questions and comments it is your chance..............
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