With small contractors making up 75 to 80 percent of the overall construction sector, the Bahamas Contractors Association has revealed that the “harsh reality” is that the “overwhelming majority” do not have the basic skills to successfully attain and execute a construction contract.
Bahamian Contractors Association (BCA) President Godfrey Forbes told Guardian Business that while many small contractors are highly proficient tradesman with marketable skills in their trade, they often lack competency in the administrative, financial and managerial aspects of their field.
His comments come as the BCA is preparing to wrap up an Inter-American Development Bank (IDB) funded training program for contractors which Forbes admits was not as well-attended as he would have liked.
“I would’ve anticipated that there would’ve been more of a response from some of the smaller contractors in New Providence knowing that for the most part the entire course is mostly free, except for registration, and only required your time to take advantage of it,” he said.
The two-week, 40-hour course has been running since April 2013 in conjunction with the Bahamas Technical and Vocational Institute (BTVI) and has seen 118 participate. A further 18 will take part in the latest segment.
The ‘Level 1’ training covers topics such as estimating works, tendering, contract negotiation, project administration and finance, among other crucial aspects of the field. Participants must pass the final exam with at least 70 percent in order to obtain their Level 1 certification, which they can use to seek higher level certifications.
Forbes, a contractor himself, said the skills the training seeks to provide should help both contractors and the clients they seek to serve.
“It talks about how to get pre-qualified, how to put together a tender, submit overall quotes and all that, as well as the skills of negotiating a contract.”
He added that many times small contractors may find that customers are not happy with the quote provided, but rather than understanding how they can best adjust designs or other components to potentially meet the client’s budget and expectations, they instead lose the contract opportunity.
Meanwhile, the BCA president said that by becoming more proficient in providing quotes that fully reflect all of the likely costs involved in a contract, contractors will reduce the likelihood that customers are left with cost overruns or incomplete jobs, or that the contractor loses out on the profit they were expecting.
In addition, certification should aid local contractors who want to participate in internationally-funded projects, by allowing them to prove they are proficient to a particular level.
“The harsh reality is that there are many small contractors who don’t really know all of the components that are required to make the whole contract a success.
“I was just speaking in the classroom two weeks ago about how you find the average contractor will get a quote for material and say it will take about three weeks to do the work, so they put a price together for staff and material but they forget to include the cost for their business license, NIB, severance pay, their vehicle and gas to go back and forth. Some don’t take those things into account and at the end of the day they find they are getting to the end of the job and they have consumed the monies and it’s 15 percent incomplete, and they find themselves having difficulties completing the job. The customer is calling them and they have nothing to go back for. This is the problem we are trying to circumvent.
“We want to teach them all of the necessary requirements so that they can account for it and manage the contract in a fashion which is successful and which keeps the customer happy,” said Forbes.
Forbes said that many small contractors are versatile and skilled tradesmen who have never been presented with the chance to gain administrative and project management skills to compliment their competency in the field.
Notwithstanding the need that exists, the BCA and BTVI may have to run an additional class in order to meet the requirements of the $175,000 that was received from the IDB to provide the training, having found that low enrollment to date means it has yet to meet the development bank’s demand that 150 benefit from the training.
Forbes added that the BCA is now having discussions about how best to continue to provide the training opportunity to contractors now that the IDB funding is coming to an end.
“We are looking at offering it online. We think it’s going to be hard to get them in there in a class until 10 p.m. in the evening after work,” said Forbes.
Speaking about his experience on the BCA/BTVI course, Nevin Winters, a building contractor for the past five years, said he is excited about enhancing his knowledge and performance in the industry.
“I believe it will help me to deliver better quality work,” said Winters, owner of New Era Builders.
Meanwhile, Kemuel Knowles is convinced that the program will complement the cabinet-making and mill work classes he completed at BTVI 15 years ago.
“I feel this will elevate me, as I do carpentry, roofing and masonry on the side. It will make me more marketable,” he said.
BTVI’s Dean of Construction Workforce Alexander Darville acknowledged that the course is only the tip of what is necessary in the field.
“I’m seeing this as being the gateway for the future of becoming a licensed contractor,” he stated.
By: Alison Lowe
Guardian Business Editor
