The Tribune

By SIMON COOPER Res Socius SOME things are really strange. We have guarantees for just about everything these days, and that even includes a notice promising that some biscuits have never seen a nut before - unless, of course, the factory owner went crazy complying with the regulations for writing it. Tour operators disappear in their own dust when they make promises they do not keep. Yet some builders walk away 'scot free' from their mistakes, and it seems the Government does not care much about this either. How crazy is this? A home is the most expensive thing most of us will ever buy, and owning one is something that underpins our national way of life. How come a homeowner who bought a dud home has to struggle on their own, while some poor unfortunate who bit into a dodgy hamburger can summon a brace of health inspectors? I was glad to hear that the Bahamian Contractors Association (BCA) is proposing regulations for the national building industry. I hope it is not the same as the system some other people tried to use, when they attempted to unsuccessfully draw me into their net, and boost their income. I'm not saying there are no stars in our construction industry. I am well aware that many better firms issue comprehensive guarantees and stick to them. My beef is that this system is open to abuse by cowboys because it is not transparent, and these are not always 'small-fry' either. I have been looking around the globe to see what other countries do, and have come to the conclusion that the UK's NHBC model is still the best one. The National Home Builders Council (NHBC) is a voluntary non-profit builders' association paid for by those who join it, and their system is really very simple. Every new home that an NHBC-registered contractor sells comes complete with an insurance certificate that the Financial Services Ombudsman underpins. The cover is good for the first 10 years. What is more, it transfers to the new owner if the property sells on. The biggest advantage is that the insurance survives if the builder quits business. This is not to say that the National Home Builders Council is offering to repair cracked tiles and leaking taps. Their cover addresses structural and weather-proofing issues only which, after all, are the most worrisome. As an added check on cowboys, the builder is held responsible for effecting repairs during the first two years. For the balance of that period, NHBC insurance picks up the tab. After that, the structure should have settled down anyway. Approximately 80 per cent of all new homes are built in the UK this way every year. I should like to think that 80 per cent of professional building contractors in the Bahamas would welcome something like this, too. Just think about the merits of excluding known dodgy builders, and of having a very public register available for scrutiny on the Internet. NB: Simon Cooper is a founding partner of Res Socius, a business brokerage firm authorised by the Bahamas Investment Authority that facilitates the sale and purchase of businesses. Contact 636-8831 or visit www.ressocius.com.