BCA predicts 'great year' for construction

Wed, Jan 30th 2013, 11:07 AM

The Bahamas' construction industry could see a major turnaround by June, according to an industry executive.
Leonard Sands, vice president of the Bahamian Contractors Association (BCA), said that 2013 is shaping up to be a "great year for construction".
He believes that commercial activity will drive the sector over the next few months, including the construction of plazas and strip malls.
"I think commercial projects like strip malls and plazas are going to continue to drive the construction sector. We now have another major shopping plaza on John F. Kennedy Drive. Prior to that, in the end part of August going into October we had a plaza on East Street by the Independence Circle. Now we have plazas going up on Carmichael Road, just before Bacardi Road where the new Wendy's is located," Sands shared.
"I am fully confident that this year will be quite different from 2012 and 2011 because of the indications and studies done so far."
Sands noted that some of his colleagues have already landed some big projects.
"You are starting to see the larger private home communities. There is more activity with people moving around and material purchases are being made," he explained. "I think going into 2013, some people have landed projects that were not scheduled to happen until later on in the year and they are starting to work on them now."
The BCA executive estimated that commercial activity will lead to an explosion in the residential market.
"Right now, we can look forward to there being a lot more activity in light construction on the commercial end, and then we are going to start to see the residential market really start to explode," said Sands. "When that starts to happen, then the business people will get involved. They will take out rental spaces. They will start to spend their money and then the people from those areas will decide to invest in the housing sector. That way the whole industry evolves."
In the meantime, Sands is calling on the government to focus on regulating the country's construction sector, as it continues to pose a challenge for stakeholders.
"We are hoping that the government will be focused on the regulation and legislation of the Bahamian construction industry. There's pent up demand and the lack of regulation is what causes foreign direct investment (FDI) to decide not to participate because investors need assurances, to participate in an industry that is trusted and regulated. The government needs to get to work on that," Sands added.
Last October, Deputy Prime Minister and Minister of Works and Urban Development Philip Brave Davis told Guardian Business that the legislation surrounding the much-anticipated Contractors Bill had been circulated. However, there are still some outstanding issues that need to be ironed out, and an exact timeline for the bill has not been determined.
"A draft has been circulated but there are a couple of issues that we have to settle with the Bahamas Electricity Corporation (BEC) with the electrical side of the bill and once those are put to bed, we will make arrangements on those provisions," he said.
The proposed bill has been designed to protect both contractors and consumers. According to the BCA, its introduction will bolster transparency when it comes to the awarding of contracts.
In essence, it could significantly improve the position of local contractors to win future projects.

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