President of the T&T Contractors Association (TTCA) Mikey Joseph says the construction sector can play a key role in T&T’s economic revival.
He said even with a smaller public sector investment programme (PSIP), there can still be significant capital expenditure to stimulate the economy if projects are carefully prioritised, planned and properly executed.
“Well-managed expenditure and project oversight could produce value to expenditure benefits greater than previously obtained,” he said.
Among Joseph’s recommendation is that the Housing Development Company (HDC) limit the scope of its large projects, while the Ministry of Work’s PURE Programme and the role of the Highways Division be reassessed.
“We believe that a better balance is needed between expenditure on civil sector rehabilitation and expenditure on building construction. Should this be undertaken, a wider cross section of the population would be able to work thereby stimulating greater economic activity throughout the country.
“While the TTCA cannot confirm the asset base of the Highways Division, we are certain that the PURE Unit has a substantial amount of assets, physical and human, and has proper processes in all areas,” he said.
The TTCA president said that the Urban Development Company of T&T (Udecott) has all the prerequisites to fulfill its mandate, including proper monitoring and control measures that provide real-time information.
He said the agency’s procurement structure allows for delivery of projects ranging from thousands to millions of dollars.
“As far as we are aware, the HDC has been fulfilling their obligations and ought to be used as a model for other state enterprises involved in the delivery of construction projects,” Joseph said.
“Our only recommendation relating to HDC at this time is that funding be provided so that HDC could act as one of the stimuli for the construction industry and that their largest contracts be limited to 200 units.
“This would allow for cost containment, improved delivery, quality and competitiveness and most importantly employ more businesses increasing the total number of workers engaged in the workforce. Done smart and done right, the state’s housing programme will stimulate greater economic activity throughout the country.”
Joseph said TTCA members are owed more than $640 million by the Education Facilities Company Limited (EFCL). He said attempts to settle these debts have been hindered by political interference and weak corporate leadership.
He is calling on Government to protect local contractors from unscrupulous foreign contractors who sub-contract local industry professionals under onerous conditions.
“We believe to correct this, our laws should be amended to require all matters be heard in our jurisdiction.
“There are also those foreign contractors who, for whatever reason, simply do not wish to pay for goods and services provided. When their client pays, they abscond without settlement of their debts to local contractors.
“The issue of non-payment by both local and foreign contractors is severely hurting the industry and destroying many small businesses.
“We appreciate that not all foreign contractors who have worked within our shores have acted in such a manner and we applaud and appreciate those who have been able to create true sustainable partnerships and who continue to work successfully to contribute to our nation’s development,” he said.
Joseph suggested that mandatory local content requirements be included in all contracts by state agencies.
“It is not merely enough that we endeavour to improve the build environment as we strive towards developed nation status, but we must first and foremost ensure the development of our people by providing meaningful employment, inclusive of training programmes and opportunities for skills development,” he said.