THE CONSTRUCTION sector depends heavily on the state’s projects to stay afloat. It was a ballpark figure, but Contractors Association President Glenn Mahabirsingh said in a conversation with Business Day, close to 80 per cent of the industry’s revenue comes from tenders for state projects.
He said in the next fiscal year recently passed procurement legislation will play a major role in how the construction sector will do its business. This is why Mahabirsingh is calling for government to stick to the legislation, particularly with regard to the divulging of future government development plans and projects. He said the government needs to publicise their plans and tenders early, so the construction sector can make its own plans for the next fiscal year.
He also called for government to have a wide range of projects that would be accessible to contractors working at different levels and capacities.
We need to plan ahead
Section 27 of the Procurement Act stipulates that procuring entities, including Government, publish information regarding all its planned procurement activities for the next year no later than six weeks after the approval of the national budget.
Mahabirsingh said this will give contractors an advantage, in that they will be able to plan ahead for projects and tenders in the coming year.
“This will be first time the industry will be getting some sort of indication of the projects in the pipeline,” he said. “Therefore the industry can plan and understand what the next 12 months would look like and they can target specific projects in specific areas as opposed to chasing every project that comes up.”
He said prior to the passing of the procurement legislation, contractors had to listen out for plans highlighted by government in the budget, and keep an eye out for tenders issued in local publications.
“… but the plans would not be granular, for strategic planning,” Mahabirsingh said. “This fiscal year, I am sure that everyone would be looking for that procurement plan.”
He also called for early issuance of tender notices and documents. He told Business Day he hoped that tender documents would be issued and respondents evaluated and even awarded with contracts by early November or December, so that projects in the pipeline could begin early in January and take advantage of the dry season.
“There are a lot of programmes, such as road, infrastructure and drainage projects that could be affected by weather conditions. If earlier tenders take place that would mean contractors could be on the ground from early January,” he said.
[caption id="attachment_1036509" align="alignnone" width="683"] Glenn Mahabirsingh, president of the Contractors Association[/caption]
Mahabirsingh to contractors,
Crunch your numbers and have foresight
Mahabirsingh said contractors need to have foresight, in order to plan projects around the uncertain global economy, noting that global shocks affect construction costs. He added that cost control will be key to balancing costs and materials in an uncertain
