Lien laws for construction sector could be introduced soon

Thu, Jul 6th 2017, 11:00 AM

Minister of Public Works Desmond Bannister yesterday asserted the need for work to progress on the Construction Contractors Lien Bill. In the event that the fate of another mega construction project is similar to the Baha Mar saga, lien laws would ensure that subcontractors are paid in full.
Speaking at the Bahamian Contractors Association's (BCA) monthly luncheon, Bannister said his ministry would continue to work on the bill over the next fiscal period.
Among other things, Bannister said the bill would protect professionals from the risk of not being paid for services rendered.
"Too often, particularly subcontractors are left with no avenue to claim against a property after supplying labor or materials for work on that property," he said. "This legislative proposal provides a remedy."
President of the BCA Leonard Sands, who is a staunch advocate for lien laws, pointed out that its implementation, in conjunction with the Contractors Bill, 2016, would clamp down on non-payment with regard to projects of any size.
Sands also said he thinks that if lien laws were in place, delayed payments for subcontractors that performed work on Baha Mar, "would not have happened".
"The lien laws mean that if something like Baha Mar happened again, the contractors that are owed money would have to be paid.
"Their debt would have to be settled before the ownership of the property can even shake hands, because the law would prevent them from even transferring ownership before settling their debt," said Sands.
"The small guy out there who is owed 1,500 or the big guy who is owed $90 million have to be paid.
"That is a wonderful thing for hard-working people who invest themselves into their businesses, do work, and need to get paid as well."
In addition, the minister of works said the provisions of the Contractors Bill, 2016, "are meant to be a deterrent to unscrupulous conduct", adding that the legislation is "long overdue".
"For too long consumers have been subject to unscrupulous contractors, unexplained cost overruns and poor workmanship. Except for civil lawsuits, there was little recourse for those with complaints against contractors," said Bannister.
"Many are the stories of the vulnerable, particularly single women, who have lost money and materials -- paying deposits and seeing no work done by contractors who disappear."
He contended that the act would be a change agent for regulation in the construction industry.

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