Islamabad: The Capital Development Authority (CDA) has waived off the condition for developers to submit 5% bank guarantee, of the total project cost, for obtaining their building plans’ approval, according to a news source published on August 6.
As per details, the CDA meeting held on Wednesday allowed the developers to mortgage 10% sellable cover area in the authority’s favour, or submit 5% insurance guarantee (from insurance companies having AA ratings).
Previously, developers were required to submit a bank guarantee equivalent to 5% of the total project cost – according to the revised building bylaws in 2020. Under this condition, builders were required to keep the amount in bank accounts until the project is complete – costing millions to the builders.
Moreover, the rule aimed at making the builders adhere to the originally approved buildings plans and keep them from any possibility of fraudulent practices. Now, however, this condition has been relaxed to assist developers and move the socioeconomic wheel of the construction sector.