In supersession to circular MoWHS/CDB-2/kg/2005-06/248 dated August 26, 2005, the Construction Development Board, Ministry of Works and Human Settlement, based on its decision of the 56th Board Meeting held on the 5th May 2011, is pleased to amend the above circular as follows:
1. A construction license holder/construction firm shall not lease his/her license to another license holder or to any non-licensee to run the business. Firm(s) shall not issue letter of authorization in favour of an employee of another firm for the purpose of tendering or execution of works. If a firm is found engaging in such practices it shall be construed as violation of rules as per MTI Rule 3 and his/her license will be suspended indefinitely.
2. The license of a Firm/Person convicted by the Royal Court of Justice for any offence shall be suspended considering the gravity of the offence for a period of six (6) months to three (3) years. In case of being convicted twice by the Court, license shall be cancelled.
3. The license of a Firm/Person convicted by the Royal Court of Justice for more than three (3) years imprisonment shall be cancelled.
4. Disciplinary actions to the extent of indefinite period of suspension shall be taken for fraudulent misrepresentation of any facts during the registration or classification process or during the process of procurement of works and non-compliance with CDB norms.
This circular is amended in order to further streamline and to curb unhealthy practices prevailing in the construction industry. Therefore, all the contractors/construction firms are hereby requested to kindly note for strict compliance.
Zhabtog Lyonpo & Chairman, CDB