The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An ex-Bahamian Contractors Association (BCA) president yesterday renewed calls for the government to properly regulate the sector following Cavalier's failure, adding: "It's critical to our survival."

Leonard Sands told Tribune Business that fully implementing the Construction Contractors Act should be "the very first thing" that Desmond Bannister, minister of works, does in 2020 given that it was "beyond urgent" to both improve the Bahamian construction industry's competitiveness and aid post-Hurricane Dorian rebuilding.

Warning that "the risk is too great" for the government "not to complete the task", Mr Sands added that the situation was "stifling growth" in the local construction market as he knew of international investors waiting "with bated breath" for the Act to be given full effect before they invested tens of millions of dollars in The Bahamas.

He argued that the drive to appoint the Board, which will oversee the licensing and regulation of all Bahamian contractors, had been given fresh impetus by Cavalier Construction's confirmation yesterday that a liquidator will be appointed to wind-up arguably the biggest name in the industry over the past 64 years.

Mr Sands argued that the impact of Cavalier's failure "may be bigger than we even recognise right now", and he re-emphasised the need for Bahamian contractors to be placed on a "level playing field" with foreign rivals by a regime that would certify contractors according to the work they are competent to perform.

"The Construction Contractors Act is just critical to the survival of the Bahamian construction market," he told Tribune Business. "It is critical to the survival of our industry. The licensing means you cannot just come in here and build a house. The Act protects against that kind of stuff.

"Right now we have an open market with no protection, so there can be more fall-out. That's the biggest risk to me. Cavalier may not be the last one... It's beyond time for the government to take action, appoint the board and go forward with at least stabilising our industry."

Desmond Bannister, minister of works, told Tribune Business yesterday that while the Act's full implementation via the board's appointment is a personal "focus" for early 2020 there may need to be a "minor" change made to the legislation.

Declining to detail what this potential reform is, until he receives legal advice from the Ministry of Works' in-house attorney and the Attorney General's Office, Mr Bannister said of the Act: "That is a focus I am going to be taking early this year.

"There is a school of thought that there may have to be a minor amendment to the Act. I'm taking advice on that, and as soon as I get that I'm going to move."

Acknowledging the Act's benefits for Bahamian contractors and their customers, Mr Bannister added: "It's going to be able to help Bahamian contractors. They're going to be able to register, and are going to be able to put their qualifications forward so they are able to compete on a level playing field locally."

Tribune Business last year reported that the latest hold-up to the Board's appointment stemmed from the fact that the Act, which was passed by the former Christie administration in 2016, committed the Bahamian taxpayer - via Parliament - to financing its activities.

It is thought that no funding was set aside for that purpose in the 2019-2020 budget, and finding the necessary monies is now a challenge given the $677.5m deficit - and $508m in extra borrowing - that the Government is now expected to incur as a result of Hurricane Dorian. It is thought this Board is the only self-regulatory one where the government is committed by law to providing financial support.

Still, Mr Bannister's comments are likely to be greeted warmly by Mr Sands given that the ex-BCA president is urging him to make the Board's appointment his first priority for 2020. "The minister, he has to, he has to complete the task and enforce the Construction Contractors Act by appointing the Board," the latter told Tribune Business.

"The risk is too great, especially leaving all the Dorian reconstruction to persons who are not properly licensed to the work. We in this industry see it as a golden opportunity to enforce the Construction Contractors Act 2016, and we hope the minister is minded to make it a reality in 2020. We are ready for it. I hope it is the very first thing he does in 2020. It is beyond urgent now."

Mr Sands added that "the international community will give us extensive kudos for doing it at this time, I am certain of that", and said: "I know of international investors, developers and groups waiting outside our nation but are not engaging with the tens of millions they want to invest without that significant piece of legislation being effected.

"They will not put their money to it. The Government, through the Ministry of Works, as kindly as I can say it, is stifling growth in the sector. These people want to deal with licensed Bahamian contractors that have been licensed and vetted to do the work, and have the capital to do the work. The legislation is in place but the licensing has not started, and they wait with bated breath."

Mr Sands added that this would also "lift the shadow of unregulated construction from the industry" as he pushed back against allegations that the Act was designed to exclude small contractors and tradespersons from the sector.

"Sometimes people think this Act is about excluding," he acknowledged. "It's not about excluding; it's designed to include more persons to build the nation. It gives a clear path for everyone who wants to work in this industry to be a contractor. That's not excluding; that's including."