Contractors want more regulation, local content

TT Contractors Association president Glenn Mahabirsingh has a wishlist of three items for the construction industry: contractor registration and licensing; a joint public-private construction planning committee; and a foreign-currency mechanism for publicly funded construction projects.

Speaking at the TT Contractors’ Association 55th Anniversary and Contractor of the Year Awards on Saturday, Mahabirsingh said these recommendations would directly affect the efficient execution of state-financed projects.

“Now that we have new procurement legislation, the association will be renewing its efforts to have contractor licensing and registration become a reality. Contractor registration and licensing would protect individuals and businesses from losing their money to unscrupulous and unqualified contractor and ensure projects are completed safely and effectively.

“It would maintain fair competition; discourage unqualified or unlicensed people from entering the market; and provide the public with the added comfort of knowing that registered contractors would have the necessary bonds and insurances to protect against any liabilities.”

Mahabirsingh urged government to create a committee that brings all construction industry stakeholders together to share information, plan projects, resolve bottlenecks and brainstorm solutions to problems before they become a crisis or cause public outcry.

“We would also like to have a mechanism to facilitate the supply of foreign currency to execute state projects.

"The construction industry certainly welcomes the large number of projects announced in the 2023/204 budget, but to execute these projects in the timeliest and cost-effective way requires timely access to foreign exchange to take advantage of the best prices and better manage the new global supply-chain challenges.”

Mahabirsingh said while the association had been advocating for procurement reform for the last 55 years, it had been cautioned it may live to rue the proclamation of the legislation.

“That caution should remind all stakeholders that the work does not end with the act being proclaimed. We share a responsibility to ensure the goals and spirit of the act are achieved and that its provisions and regulations continue to be improved to the benefit of TT.”

He said contractors must meet the standards and requirements mandated in the act, and their actions, performance and decisions must stand up to scrutiny.

“Once we are providing goods, works or services involving the use of public money, this is fair and welcome scrutiny as we all seek to secure a sustainable future for our country and our children.”

He said the association was thrilled with Clause 27:1 of the act, which says that no later than six weeks after the approval of the national budget, the procuring entity must publish on its website or other electronic format, information on its planned procurement activity for the next 12 months.

He said this will allow contractors to decide what projects they should focus on, what technology or equipment they might need to acquire, and whether they had the right manpower. He said this information would be a win-win for the industry and the state in terms of competitive and efficient tendering.

Mahabirsingh applauded the procurement entities that have begun reporting, at the end of each quarter, all contracts awarded in the previous quarter. He said the association was also pleased to see more notices of public invitation to tender being advertised.

TT Contractors Association founder Emile Elias asked the board to advocate for a local content committee for the construction sector.

“I was asked to join a local content committee in 2003, but when I went I was shocked to learn they were only interested in the energy sector. To this day, you read in the newspaper, local content committee, energy sector, but what the heck happened to us? Why aren’t we part of the local content initiative?

“I want to ask the president to agitate for the creation of a similar committee by the government which would be a public-private initiative to identify ways in which we can improve local content for the local content industry.

"We need to see how we can create a local content atmosphere for the building contractors and professionals in our industry and give them preference, because every project that is built is an opportunity for national development.”

Feature speaker Mariano Browne asked if contractors could depend on government to be the main driver for growth in the industry moving forward.

“How do we balance growth in the economy, and how do we raise the tide only on the basis on what happens in the energy sector?

"We’re also dealing with a declining population, which will affect us in terms of the demand for housing.

"How do we deal with institutional deficiencies? How do we build managerial capacity, track record and skill sets into the local sector that allow us to export?”

Minister in the Ministry of Housing and Urban Development Adrian Leonce said his wish was for larger contractors to assist smaller contractors in navigating the structure of the industry.

He said larger contractors could be responsible for the country’s infrastructure under the Works and Transport Ministry, while the smaller contractors could assist his ministry in building houses under the Housing Development Corporation and the Land Settlement Agency.

Works and Transport Minister Rohan Sinanan said the construction industry will be very busy over the next few years.

“This year the government PSIP is close to $6.5 billion, added to which, we have off-budget financing that did not come into the PSIP, and then public-private budgets.

"If you add that to the PSIP, I estimate $15 billion in construction over the next year.

"The challenge to you, the contractors, will be how competitive you are to get into that role, because the government has done its part, even though we have some challenges in implementation.”

Sinanan said he was proud to hear of local contractors going abroad, to St Lucia and Guyana, to work, and encouraged more contractors to look at opportunities abroad.