The Tribune

EDITOR, The Tribune.

Please permit me to share my views on the Minister of Works’ recent disclosure that the Contractors Insurance at BAMSI had expired, due to the delay in completion and the contractor had not extended the same.

It is my understanding that contractors selected to undertake building construction on behalf of the Government is required to have and provide proof that some form of “All Risk” Contractors Insurance is in place to cover events (fire) which occurred at BAMSI, I would think that the Ministry would keep a copy of the same on file, and perused periodically to ensure that coverage remains effective. This becomes even more necessary on projects that are delayed in completion.

If this is the case, the Ministry ought to have been aware that the insurance coverage had expired and ought to have taken proactive steps to ensure that it was renewed.

Failing the contractor’s willingness or effort to renew the same the Ministry ought to have done so itself and deducted the cost of premiums from any funds due to the contractor. I am assuming that they would have held a sum in retention as is the usual practice in contracts of this nature.

As a matter of fact, the Ministry’s right to renew the insurance and deduct the cost to do so in circumstances where the contractors fail, or refuse to do so, ought to be a standard provision in contracts of this nature between the Ministry and a contractor.

The Ministry, better than anybody else, ought to know that the project was delayed, and, therefore, ought to have taken proactive steps to ensure that the contractor had extended the insurance coverage, if any was effected in the first place.

If the Ministry was not aware that the insurance on BAMSI had expired and was not renewed, then they were just as negligent as the contractor, as these are matters of fact which they ought to have notice of and ought to themselves have taken the necessary insurance to protect the investment.

CLAUDE B. HANNA

Nassau,

February 26, 2015.