Constructive policy needed for construction industry

Ramkarran says

– or foreign companies will continue to dominate

Government is being urged to implement a construction policy for the construction industry that includes the role and interests of small contractors in Guyana.

This is the strong view of Senior Counsel Ralph Ramkarran, who wrote in his

latest Conversation Tree column that there does not seem to be any equal opportunities in the sector.

“A flawed and unfair policy, devised in secret and implemented surreptitiously, without stakeholder input, will receive no support and result in poor choices of even the small contractors,” he opined.

Ramkarran made reference to the collapse of the Palmyra foundation structure intended to support an Indian Arrival Monument which was proposed to be unveiled on Arrival Day (May 5).

He highlighted the fact that the choice of contractor, the design of the project and the reason for the collapse, all remain State secrets.

“While not much has been announced, it appears that the Government has embarked on policies to make the small man into a real man by opening up opportunities in construction and other areas,” the attorney remarked.

While acknowledging that there have been complaints that Guyanese contractors of African descent were being discriminated against, Ramkarran said bringing a contractor from Linden to undertake a contract in the Corentyne, suggests that the policy of redress is in full swing.

“On principle, the policy to encourage small contractors to raise their game and develop is a good one. If the ethnic balance needs redressing, so be it, once it can be done without discriminating. But a haphazard policy with haphazard implementation will result in more Palmyras,” he pointed out.

Ramkarran said at the moment, it does not appear Government is overly anxious at any bad work from the small contractors who are being promoted.

“The theory goes that they will make mistakes because they are only now getting the chance. As they get more experience, the quality of their work will improve. This molly-cuddling, to make the small man a real man, didn’t work up to 1992. It will not work now,” he added.

The attorney explained that the Government needs not only to encourage small contractors, but that it needs to sustain medium-sized contractors and to encourage them to grow into large contractors, stressing that a balance has to be created that will benefit all.

“The policy of dividing one contract into 10 equal parts and giving one part each to 10 contractors, one to the medium-sized with millions of dollars in equipment and dozens of employees, and nine to small contractors with no equipment or a front end loader at maximum, that is, no overheads, will benefit no one,” he lamented.

The former House Speaker recalled that during the last Government, Guyana was spending approximately $20 billion a year on infrastructure, but BK International, Seeraram Brothers and Dipcon dominated construction, and the absence of competition was deeply felt.

With the potential of a huge increase in infrastructure spending, from the potential oil and gas sector in Guyana, Ramkarran said unless the Government applies a constructive policy that encourages large and medium local contracting companies to develop, while ensuring that small contractors obtain their share in smaller contracts and sub-contracting, foreign companies will return to dominate the local infrastructure landscape.

According to him, once here, the companies may once again stifle the possibility of local capacity to expand. “Failure to seize the time now to develop sensible policies for the construction industry, which protects and encourages both medium-sized and small-scale companies will result in foreign companies re-entering the construction industry and smothering the development of Guyana’s construction capacity. The small contractor will then remain small, no matter what the Government does,” he added.