The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE Ministry of Works is updating its contractor database through a new pre-qualification system that will form the basis upon which contractors are invited to submit bids for projects.

Works Minister Desmond Bannister announced this in the House of Assembly yesterday, saying pre-qualification documents will allow the ministry to determine if a contractor is suitably qualified to complete public works projects. 

Bahamas Contractors Association President Leonard Sands praised the development yesterday for the efficiency and transparency it will add to the tendering system, adding the government must now enhance this by finally appointing a Construction Contractors Board to licence contractors.

“We like that for a contractor to be awarded any government contract it would have to be in a pre-qualification system so then you won’t have people showing up, being awarded a contract and nobody even knows where this company came from,” Mr Sands said. “That happens a lot of times. This takes away opportunities for a rogue situation to occur because you have to fill out a questionnaire, be in this database so they know you and other persons know you there and now you can bid on this contract properly.

“We see this as a positive step for government increasing transparency in the bidding process and as an end result reducing the amount of abuses in the contracting process.”

The new pre-qualification process comes as the government continues to iron out its e-procurement system in which potential suppliers of goods and services will have to be registered in an online database.

As part of the pre-qualification process, contractors will have to supply information about their identity, organisation structure, financial management, technical performance and category of work desired. Categories of work include civil engineering, marine structures, road and airport construction, building construction, painting works, landscaping, electrical works, air conditioning works and plumbing works. Categories of work value include zero to $49,999, $50,000 to $249,999, $250,000 to $999,999 and $1m and over. 

Those seeking work valued over $1m will be “asked to provide details of audited accounts for the last three years, showing revenue, cost of sales, gross profit, net profit and a full balance sheet with current and fixed assets and liabilities with accompanying notes,” Mr Bannister said. Contractors will have to provide resumés for key personnel and details about any prosecutions, loss of life or serious injuries that may have involved their organisation in the last three years. A history of construction contracts will be required along with a reference from a previous employer. Business licence information, a bank reference letter, a value added tax registration certificate, a copy of a health and safety plan and an organisation plan will be required, along with other documents. Weight will be especially given to a contractor’s technical performance and experience. 

“Once contractors are prequalified in particular categories, they will have the opportunity to be invited to bid on a rotational basis,” Mr Bannister said. “Furthermore, contractors may be deleted from the list if the quality of performance falls below acceptable levels and elevated to higher categories when ability to advance has been demonstrated.”

Mr Bannister said there are currently 600 pre-qualification document submissions by different contractors being evaluated by the Ministry of Public Works. 

Asked about the capacity of the ministry to make the new system work, Mr Sands said: “What we believe would make the process 100 percent better is if the licensing of contractors was in place which it isn’t yet. We’re just waiting for the minister to appoint the board. That pulls everything together. You have persons who are pre-qualified, they are presenting themselves as contractors, they’re saying to the government they’re contractors, but have they been qualified and licensed as contractors yet? No, they have not. While we look at what the government is presenting as a wonderful idea in terms of weeding out opportunities for abuses of the system and corruption, we still believe that you have the risk of persons who qualify as contractors being awarded contacts and could still put the government’s purse at a loss.”

Passed in 2016, the Construction Contractors Act provides for the establishment of a Construction Contractors Board that, among other things, will be responsible for licensing registered contractors, making recommendations to the minister and exercising discipline over registered contractors through its disciplinary committee.