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Contractors chief fears: ‘We’re often last choice’

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamian Contractors Association’s (BCA) president says he does not have “much hope” local firms will win significant work on major upcoming projects, adding: “We’re often the last choice.”

Leonard Sands told Tribune Business that while Bahamian contractors “should have first shot at any work inside the country” this is rarely the case with large-scale foreign direct investment (FDI) projects that usually “find ways not to use Bahamians”.

He spoke out as Greython Construction, a US-headquartered contractor with offices in California, Missouri, Connecticut and St Lucia, revealed that bid documents for work on Carnival’s new $500m Grand Bahama cruise port, Celebration Key, will be released to sub-contractors, vendors and suppliers in November and December 2023.

Greython, which appears to be either the primary contractor, project manager or combination of both, revealed on social media postings that requests for proposal (RFP) will be issued in no less than 30 areas including excavation for building foundations; asphalt; concrete, rebar and formwork foundations; masonry block; cabinetry; electrical; fire alarm and fire protection; plumbing; carpentry; and moisture protection.

The notice, which has been seen by Tribune Business, discloses that Greython Construction has already opened a Grand Bahama office at 19A Peel Street in Freeport, news of which prompted Mr Sands to again hit out at the failure to properly implement and execute the Construction Contractors Act that was passed by Parliament in 2016.

He pointed out that, if the Act’s system for licensing and registering contractors was in place, along with the Board to oversee and enforce it, Greython would first have to obtain the latter’s permission and the necessary licence authorisation to enter The Bahamas and perform the work it is doing for Carnival.

Asked how much Bahamian contractors stand to benefit from both Carnival’s project, plus the likes of the Grand Bahama Shipyard’s $600m expansion, Mr Sands told this newspaper: “I really don’t have much hope. I don’t understand how that impacts Bahamian contractors in any way, shape or form until such time as we have information that suggests they’ll be engaging Bahamian contractors. We don’t know that.

“We can assume, but that has not proven to be the reality. We’ve often found with these foreign direct investment (FDI) projects that they say they will use Bahamians and then find ways not to use Bahamians. We’re not moved by Carnival or the Shipyard. They’ve not reached out to the BCA at all. They’ve not made any inquiries, and we don’t know about the projects and what the requirements will be.

“The only thing I suspect they’ll do is contact the Department of Labour for workers. We’re the BCA. We represent contractors. But the Department of Labour will reach out to us and say: ‘Can you circulate this to your members? We are a body made up of Bahamian contractors,” Mr Sands added.

“We should have first shot at any work inside the country, but we’re often the last choice.” The Act to regulate the construction industry was passed into law in 2016 with now-prime minister, Philip Davis KC, the then-minister of works, the Cabinet member primarily responsible for bringing it to Parliament.

However, it has never been brought into practical effect because the joint public-private sector Board that is supposed to oversee the industry’s self-regulation, and the licensing/certification of contractors according to ability and scope of work performed, has never been appointed.

The initial “grandfathering in” period for all pre-existing contractors under the Act also expired in 2018 and now has to be reset. This period was designed to give all contractors wishing to practice sufficient time to apply to the Board to be registered and licensed.

As a result, the Bahamian construction industry remains arguably the largest and most important sector not to have its own regulatory body or licensing criteria that would help set industry standards and qualifications. And there is nothing to signal to foreign developers and project managers what scale and scope of works each Bahamian contractor is capable of performing, plus their experience.

When informed about Greython’s role, and office in The Bahamas, Mr Sands said the Construction Contractors Act “says they need to seek approval first and get licensed” before starting operations, but this is impossible because the Board has never been set up and appointed.

“We have in The Bahamas, on Bahamian soil, this entity from outside The Bahamas engaging in work inside The Bahamas,” he added. “This is our whole issue. This is why the Construction Contractors Act needs implementing properly. This is the main story.

“As part of the law, everybody should get a licence to do construction in The Bahamas. From 2016 that was the law. We are allowing foreign investors and their agents to say they will be doing work in The Bahamas without a licence. This is where the BCA stands on its footing in demanding the Government stop acting against the Bahamian people and ensure the law is followed.

“This underscores the singular reason why the Act is in place, but it is not followed because the Government of The Bahamas is holding up action that needs to take place under the law. The Board can revoke licences, take action if someone is operating outside the law, but there is no Board,” Mr Sands continued.

“Who do you submit a complaint to without a Board? There is no agency to complain to about a breach, and you cannot complain to the Board because it is not in place to bring an action. They cannot go to the Commissioner of Police and say we need you to stop work on that site. The Government needs to address this. The Government needs to fix it.”

Grand Bahama Shipyard has pledged that a significant portion of the work involved in its $600m investment in two new dry docks will be conducted locally. Carnival’s Grand Bahama port is set to open in 2025, with some 350 jobs expected to be created during the construction phase.

Comments

Maximilianotto 1 year ago

Very simple - lack of competence in execution of large complex projects, no bonding availability, that’s the reality - nobody to blame, it’s simply a small market and nobody here to execute large projects.

DiverBelow 1 year ago

If the Bahamian version of the 'construction industry' cannot establish/meet Industry Standards among themselves? How can you expect world class developers to risk their liabilities & funding with such a disjointed local industry? Accept the subcontractor position, develop the craftmanship, meet the skills & standards, get certified to enable liability insurance coverage. As a person, company, or industry, You Must learn to Walk before You can Run; though You May Think Otherwise!

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