The Ministry of Housing and Water has terminated contracts with 15 contractors in several major housing areas, including La Bonne Intention, Prospect, Perseverance, and Little Diamond, due to performance issues.
This was revealed by Minister of Housing and Water Collin Croal on Friday during his ministry’s yearend press conference.
“I have seen on my desk a number of termination letters over the last couple weeks for some contractors and they have one on one engaged the beneficiaries to ensure they are aware and the completion can be done by another contractor.
“At least about 15 contractors we have terminated,” Minister Croal said.
The housing minister revealed that he engaged with the contractors in late December 2024 to address issues and progress.
In noting that some of the complaints are legitimate, Croal said “where we required termination, we have been doing those, where because of how far they have gone in terms of completion and the process in terms of how the money is released from the bank etc, we have been working with the contractors.”
The construction of government-built houses, including the new young professional homes has faced hurdles due to tight profit margins, Minister Croal explained.
“The cost for those houses that are being built, the young professional houses now, the new ones, they are being built to $24 million.
“If you take that same design and you try building for yourself, it will post a challenge to you, it therefore is being built by contractors not for a great profit margin and that is why sometimes we struggle with contractors because from a government level we want to keep the cost of the houses at minimum and in order to achieve that, obviously the profit margin will not be like someone who is working for a private individual or private sector,” Croal explained.
Nevertheless, he said once the contractor bids and is awarded, they have an obligation to the contract.
