The Tribune

By NEIL HARTNELL

Tribune Business Editor

THE Bahamian Contractors Association (BCA) is taking "a leadership position in the Caribbean" to develop a region-wide industry certification programme, its past president fearing they will otherwise be "left out in the cold" by requirements such as 100 per cent performance bonds.

Stephen Wrinkle told Tribune Business that the absence of internationally-recognised certification and standards, such as those proposed in the long-awaited Contractors Bill, was a main reason why foreign developers were now demanding that Bahamian companies post performance bonds equivalent in value to 100 per cent of the contract.

Pointing out that Bahamian consumers were unprotected against rogue operators in the absence of formal regulation, as they had "no viable way" to determine which contractors were competent to do certain jobs, Mr Wrinkle said the situation was also acting as a barrier to increased construction industry employment.

During a meeting with the BCA, the new government promised to review the Contractors Bill left on the drawing board by the former Ingraham administration, Mr Wrinkle expressing optimism it would be brought to Cabinet and Parliament soon.

"Unless we are able to move this legislation forward, it's impossible for Bahamian contractors to get their share of the work [from foreign developers]," the immediate BCA past president told Tribune Business.

"We have no legislation and no protection in place whatsoever. In terms of employment, it's extremely important. A Bahamian contractor typically has employees who are 95-100 per cent Bahamian, and every contractor you can award contracts to will directly employ tradesmen, administrative staff and other related staff, and money will go into the Treasury very quickly."

He added: "By the same token, consumers and foreign direct investment clients coming to the Bahamas have no viable way of knowing which contractors are capable of doing what.

"Foreign developers have strong qualifications put in by their financiers. If we're going to get some of this foreign work, we have to get ourselves licensed, certified and recognised at an international level.

"It's not that the developers don't want to use us; it's the financiers in New York and London, and their insurers. We have to step up to the world stage by performing at a global level. To get in the game we have to ante up."

As part of the $225,000 Inter-American Development (IDB) grant to strengthen the BCA, the Association is set to achieve a regional first - hosting the inaugural conference and annual general meeting (AGM) of the Caribbean Contractors Association in the Bahamas during October 2012.

"We're working towards a Caribbean-recognised certification process," Mr Wrinkle told Tribune Business. "So when we start negotiating again with the likes of the European Union, as we did for the Economic Partnership Agreement, and Canada, the Caribbean is recognised as a partner.

"It is a very important role that the BCA is moving forwards to assume in the Caribbean - to host the conference and take a leadership position in moving the Caribbean position forward. That's where we're headed. That's what's got to happen. Otherwise we'll be left out in the cold all the time."

He added: "Because of the international finance, insuring and bonding requirements, we find ourselves in a very defensive position.

"Typically in the Bahamas it's been a 10 per cent performance bond, but in many cases we're now seeing them ask for up to 100 per cent of the contract, and that's purely driven by international finance.

"One of the reasons people ask for these big bonds is there's no certification. That's one of the advantages to putting in place certification and licensing regimes. It recognises contractors, and gives official status to that contractor. It's only through validation and continued dialogue that we'll be able to formulate a programme that works."

Recalling the BCA's recent meeting with minister of works, Philip Davis, his parliamentary secretary, Renward Wells, and their team, Mr Wrinkle said there was "still a substantial amount of work to be done" on the regulations that accompany the Contractors Bill.

With regard to the Bill itself, Mr Wrinkle said that among the issues to be ironed out from the BCA's perspective was the transfer of electrical contractors from the ambit of the Electricity Act to the new Bill.

Due to the absence of legislation regulating the construction industry, Mr Wrinkle said electrical contractors had come under that Act and BEC. It was the same for issues such as the handling of volatile substances.

"We're trying to thrash it out and see how we bring them into the fold," the immediate past BCA president explained. "The intent of the Bill is to have all contractors under one umbrella, under the Board run by the Ministry of Works.

"They've got to work out the legislative framework to do it, moving them from one hand to the other. From our point of view, we've resolved all the outstanding issues and accommodated all the requests of the previous government and other stakeholders."

Mr Wrinkle said Mr Davis left the BCA meeting promising to "familiarise himself" with and review the Contractors Bill. "Hopefully, in short order he will force this through, get it passed and get some measure of protection and regulation in place," he added.