Elamaran Perumal (Law Officer) 26 March 2010

Applicability of Buildings & Other Construction Workers Act

Dear Learned Friends,

The Law says that during the construction stage of a power project, the provisions of the Factories Act are not applicable ,because there is no manufacturing activities inside the plant area and under such situation situations only the Buildings & Other Construction Workers Act-1996 is applicable. Some members of the legal fraternity say that for implementation of BOCWA in a particular state, the appropriate government has to notify the provisions of Act. For power project which is a 50%-50% equity Joint Venture between a Central PSU and a State Electricity Board,under construction stage now. Who will be the appropriate government for implementation of the BOCW Act?

With regards,

Elamaran Perumal.

Reply Follow

3 Replies

Vinod kashyap (Advocate & Legal advisor) 27 March 2010

In this act appropriate govt. is central covt. because state govt. is only a collecting agency in Section 3 sub. section 3. The rate of cess decided by central govt. through notification S.O 2899 dated 26/9/1996. Apart it Sec.14 gving the power for making rules only to centeral govt. not to state govt.

Shreyas Zinjarde (Advocate/Consultant) 28 March 2010

For all the purposes the appropriate government is the central govt. kindly ref to section 2(a) ,(d),(e), (i) and (j) of the Act

Venkataraman (Manager) 28 March 2011

Dear members

Kindly clarify the following points w.r.t BOCW Cess

1. How the Cess is leveid, whether on the cost of construction alone by excluding land cost, workmen compensation, equipment cost & machinery cost i.e shall we exclude the cost other then material cost used for construction

2. in case if the project is entrusted to contractor on lumpsum basis, who engages workers, then whose liability is cess

regards

venkat