Jamel Banton | Addressing local contractor problems in St Thomas highway project

A recent social media post by The Gleaner titled “Yallahs residents want local contractors removed from roadwork project” sheds light on the disappointing state of affairs in Jamaica’s construction industry. With the residents saying local contractors are managing poorly and they would prefer a Chinese company managing, it is time for some introspection.

This emphasises the urgent need for an overhaul in the selection process of local contractors. The prevailing practice of awarding contracts primarily based on low cost has resulted in sub par project outcomes, mismanagement, and cost overruns. Let us explore the pitfalls of focusing on low cost, highlighting the case of St Thomas, and needed improvements in the procurement process to foster self-reliance in this industry.

PITFALLS OF LOW-COST CONTRACTOR SELECTION

Awarding contracts solely based on the lowest tender cost can have economic pitfalls for the Jamaican people. While it might appear cost-effective at first, it often leads to significant cost overruns and poor-quality outcomes. Choosing the lowest bidder without considering their current capabilities and past track record can result in delays, shoddy workmanship, and inconveniences for the public. The initial savings from a low-cost contract can quickly be overshadowed by the additional costs required to rectify issues, prolong project timelines, and ensure quality.

THE ST THOMAS HIGHWAY CASE

The challenges faced by local contractors in St Thomas provide valuable insights into the potential reasons for the failures observed in the construction industry. While external factors such as delays in utility relocation and land acquisition have undoubtedly contributed to the hardships experienced by local contractors, there are inherent weaknesses within the industry itself that need to be addressed. The successful navigation of these challenges by a few local contractors highlights the importance of proper project management and the presence of competent professionals in key roles.

It is worth noting that the complexities of projects like the Southern Coastal Highway Improvement Project, with multiple elements being constructed concurrently, require strong engineering management and a dedicated full-time team of supporting roles such as surveyors, quality-control inspectors, experienced supervisors, and quantity surveyors. The inability of some local contractors to adequately hire and develop professionals in these fields has led to a lack of full-time competent staff, resulting in sub par project execution, delays, cost overruns, and potentially compromised quality.

Additionally, the unique nature of the St Thomas project deserves attention when considering the failures observed. Constructing a highway on a narrow thoroughfare while simultaneously accommodating public traffic is a challenging endeavour. The hustle of taxis, trucks carrying aggregates, excavation work, and the need to ensure safety for workers and the general public further complicates the project. It is likely that the local contractors who have struggled with these difficulties were not fully prepared to handle the complex logistics and safety requirements associated with such a project. Insufficient planning and cash flow allocation would have significantly impacted workflow, project schedules, and ultimately costs.

Finally, in this context, it ought to be said that other successful highway projects completed in Jamaica were built in isolation of most of these challenges. Not an excuse for non-performance, but a worthwhile note when seeing the grass being greener on the other side.

IMPROVING PROCUREMENT PROCESS

While Jamaica’s public procurement standards for awarding grade certificates are relatively well-developed, the procurement process for the construction industry could be improved to mitigate economic pitfalls associated with low-cost contractor selection. Emphasising factors beyond price, the implementation of comprehensive technical post mortems after each project should become crucial. This evaluation would provide insights into a contractor’s performance, considering aspects like staff and equipment resources maintained throughout the project, adherence to schedule and budget, and overall quality. The findings and recommendations from technical post mortems should inform future bid reviews, prioritizing contractors with a proven track record of excellence.

The success of such approaches will however depend on the technical and administrative capacities within the various government agencies. But then again, why must the capacity exist inside government? Why not privatise the review processes to capable technical private firms, fuelling the growth of another industry with relevant checks and balances to remove biases, conflicts of interests and potential for corruption?

However it is done, by shifting towards a comprehensive evaluation that considers long-term cost-effectiveness, projects can be awarded to contractors who consistently deliver high-quality outcomes, fostering a culture of excellence and minimising economic burdens for the Jamaican people.

INVESTING IN LOCAL CONTRACTORS

We need to invest in the growth and development of local contractors rather than losing faith in their abilities. By overhauling the selection process and emphasising quality, accountability, and proper management, Jamaica can nurture a pool of capable contractors who can deliver projects effectively. This investment will foster self-reliance and enable progress on our own terms, while also minimising the economic pitfalls associated with poor project outcomes. It is time we put a stop to the “eat a food” mentality.

Jamel D Banton is a registered professional engineer and managing director of Smith Warner International. Send feedback to columns@gleanerjm.com