By YOURI KEMP
Tribune Business Reporter
ykemp@tribunemedia.net
BAHAMAS Contractors Association president Leonard Sands does not see construction slowing down for 2024 and could see a 20 percent uptick, but warned restrictive banking policies could put a damper on the growth.
Mr Sands told Tribune Business the economy has stabilised to such an extent that it would boost investor confidence and that would equate to more spending, which would bode well for everyone.
He added: “Obviously, this would mean new projects on the horizon. Other than that there are still challenges that exist. Namely, the restrictive policies have impacted the amount of construction and starts. And I think that’s an area of opportunity, we need to address.”
Mr Sands went further to explain that banking policies have become too restrictive for the construction sector, pushing people away from building homes and the amount of housing starts for 2024 could be increased by 20 percent if these restrictive policies would be removed that was put in place immediately after the pandemic came to an end.
He also said: “Banks have really turned the screws on consumers and asking them to increase their outlay of capital. Certainly some banks have decided not to give mobilisation, which is the 10 percent to start the project.
“They are now even asking some contractors to come out of pocket to start the project for clients and the banks reimburse them.”
Requiring a contractor to come up with a ten percent mobilisation fee on a $500,000 project would not be doable in many instances with small and mid-sized contractors.
If this growing problem could be addressed, the construction industry could have strong growth for 2024.
Comments
DWW 3 months, 4 weeks ago
First one needs to separate the "builders" from the "contractors". The 2 are not the same. A builder builds a house and collects a paycheck at the end of the day for his work, there is no profit margin and someone else is managing construction. A "Contractor" works on a fixed price contract with specifics and responsibilities of the project to be completed. So many so called 'contractor's' cant read and have a young lady fresh out of high school typing up a 1 page "contract" to try and get work. A contract means if you don't complete the job or don't do it right there are penalties to be paid. Way too many people working in this business who don't have a clue what they are doing.
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