The National Council for Construction (NCC) says the move by government to stop advance payment to contractors will have an adverse effect on the industry.
Briefing the press in Lusaka today, NCC Executive Director Dr. Sylvester Mashamba said this is because most contractors will fall into debt to meet contractual obligations.
He said advance payment is important because it enables the contractor to buy materials and mobilise his plant equipment and begin works.
Dr. Mashamba has further bemoaned government’s blacklisting of 42 major contractors in the country.
He said the blacklisting of 42 major contractors in the country will result in few works being done as the number of contractors has drastically reduced.
Meanwhile, government is owes construction consultants and contractors an estimated K380 billion which has culminated over the years.
NCC Executive Director Dr. Sylvester Mashamba has since urged government to settle the outstanding amount.