'Caught with pants down' on contractor regulation

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Two past Bahamian Contractors Association (BCA) presidents yesterday said Hurricane Dorian had "caught the government with its pants down" when it came to the industry's self-regulation.

Both Leonard Sands and Stephen Wrinkle told Tribune Business that the failure to properly implement the Construction Contractors Act by appointing a board to oversee the licensing of contractors according to their ability threatened to undermine the rebuilding of Abaco and Grand Bahama unless the issue was speedily addressed.

They warned that the absence of such a licensing system exposed homeowners and businesses in the disaster-hit areas to potentially defective construction work during the rebuild, while also eroding the government's ambition of ensuring all properties adhere to The Bahamas building code.

Non-compliance with the Code was cited as a major factor for why many structures collapsed so easily under Dorian's category five winds, but both former BCA chiefs said the continued absence of the self-regulatory licensing regime threatens to cause a repeat during the next major storm as there is nothing to detect - or prevent - the participation of incompetent contractors in the reconstruction.

Desmond Bannister, minister of works, told Tribune Business that the government is in the process of "significantly boosting" its pool of building inspectors, and also looking to involve private sector engineers and architects in the process, to help ensure new and rebuilt properties meet all the building code's requirements post-Dorian.

He had previously told this newspaper two weeks' prior to the category five storm's arrival that the Minnis Cabinet "has made, or is in the process of making", all the necessary Board appointments. Michael Pratt, the current BCA president, said the industry had submitted its share of nominees, and was "working hard" to bring the process to a conclusion.

There has been no formal announcement of the board's appointment subsequently, though, with Mr Bannister even coming under fire from his controversial registrar of contractors, Omar Archer, for "procrastination" and "inaction" over the board's appointment.

Messrs Sands and Wrinkle yesterday argued that the present situation leaves consumers and the government with little to no redress for shoddy workmanship, which the latter branded "a recipe for disaster" given that 7,339 homes across Abaco and Grand Bahama have been described as "severely damaged" in Dorian's wake.

"This is where the brunt of my concern lies," Mr Sands told this newspaper in relation to the Board and licensing system. I think the Government has missed an opportunity - a little bit by its own fault, but nature swooped in there - and it has been caught with pants down.

"If the Contractors Board had been put in place, and the Government already approved them, you would have the Board making recommendations as to who gains contractor licences based on the criteria set out in the Act, which has been law since 2017, and identity the best professionals in the industry to take on the work.

"Because that's not the case anyone can represent themselves as a good, bona fide contractor. The urgency is now much more pressing than it has ever been before before that the Government appoint the Board and allow it to regulate the industry. We agree that the Government should not want to take that on. Allow professionals to regulate the industry."

The extent of Hurricane Dorian's devastation is expected to ignite a reconstruction boom in Abaco, especially, and Grand Bahama once work begins in earnest in 2020 and carries on through the next decade. Insurance claims will need to be received by homeowners and businesses, some of whom may elect not to rebuild, while the remaining Dorian debris will have to be cleared, the security situation improve and utilities/infrastructure be restored to assist this process.

The long-awaited assessment of the category five storm's financial impact, produced by the Inter-American Development Bank (IDB) and other multilateral agencies, estimated that it had left almost 3,000 homes "uninhabitable", and some 7,339 "severely damaged", as it inflicted $1.487bn worth of damage on the housing sector in Abaco and Grand Bahama.

Housing, not surprisingly, was identified as the sector most impacted by Dorian with around 9,000 homes - representing more than 11 million square feet of physical property - damaged to some degree by its winds, storm surge, falling trees and flying debris.

"Approximately 9,000 homes, and in excess of 11 million square feet of structures, have sustained some damage on the two islands. On Abaco, more than 75 percent of the dwellings were somehow affected, and approximately 57 percent of the houses were severely damaged. Central Abaco (Marsh Harbour), Treasure Cay, and Hope Town were the most affected locations," the joint report found.

"Damage to the housing sector on the islands of Abaco and Grand Bahama is estimated at $1.48bn, 88.9 percent of which took place on Abaco. Losses in the housing sector are attributed to the interruption of accommodation and rental services due to severe damage or destruction of the house, making it temporarily or permanently uninhabitable. The assessment team estimated losses at $56.8m resulting from 2,894 homes left uninhabitable after the hurricane."

This now presents a major opportunity for legitimate, skilled Bahamian contractors - if the proper regulatory framework is in place. "Freeport, while it has its challenges, is bursting with opportunities," Mr Sands said. "Abaco, though, is bursting with opportunity because off the mainland, Treasure Cay, Hope Town, are ready to rebuild. You have wealthy people ready to rebuild multi-million dollar homes.

"The challenge is: Who's the contractor? Can I trust the contractor? Are they a professional licence holder? That should be a matter of public safety and public concern that should cause the Government to act speedily. The Act was created out of public concern, and Hurricane Dorian re-established the public concern that they do not want sub-par building."

Mr Sands suggested that a "semi-Ministry of Works" needed to be created in Abaco to oversee the reconstruction process and ensure properties are built back to code. Adding that the rebuild could take 10-15 years, he said: "We have to start right. Let's put the policy mechanism in place to allow for scrutiny and ensure every building is built to code."

His concerns were echoed by Mr Wrinkle, who described the self-regulatory licensing regime's continued absence as a "recipe for disaster" that would lead to defective workmanship and failures to comply with the Building Code that would go unpunished.

Explaining that it was impossible to determine whether there were sufficient, qualified Bahamian contractors to complete Dorian reconstruction, he said: "Until such time as the Government decides to effect the Contractors Bill and licence the contractors we won't know who's who./

"I find it remarkable that they're trying to rebuild the northern end of this country, which was devastated by the hurricane, without licensing the contractors. They talk about enforcing the code, overseeing the builders, but don't want to licence them. What recourse do they have? Until they licence, they're not going to. It's as simple as that.

"You don't have to have a licence to build a residence, hotel or condominium. There's no way they can police the industry without having the licensing in place. They can't do it now. That's why we have the problems we have. It continues to baffle me why we can't complete the Bill's implementation, as then you'd have some idea of who's in the industry and their capability to to do the work. It's baffling."

Comments

Chucky says...

Come on Wrinkle, now is not the time for your suppression of the little guy agenda.

The last thing we need is another protect the rich contractor scheme. The big guys telling the little guy what work they can do is BS and you know it.

It’s a free market system, so let it be free. The project owners can choose their contractors, legally anyone can build a home, so clearly your proposed regulations will not protect anyone.

Building inspectors pass the works performed, or require corrections to deficiencies, so that base is covered.

And on the big projects, bonding requirements weed out those who are not qualified and fully protect project owners, so no need for your BS proposal here either.

What’s the matter with you rich guys anyways, despite all your money you still can’t compete?

You really feel the need to use regulations to keep people down?

Skip did ok without regulations to stifle the competition; u must been spoiled or something?

Posted 27 November 2019, 1:57 p.m. Suggest removal

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