Place greater emphasis on local contractors and encourage more opportunities for home improvement.
These are two of the major hopes expressed by the T&T Contractors Association ahead of the 2025 budget presentation.
The Business Guardian reached out to the president of the Association Glenn Mahabirsingh to get his view ahead of the still to be announced budget day. He stressed that more attention should be given to construction due to its economic impact.
“The construction industry is a significant contributor to T&T’s economy, accounting for approximately five to six per cent of the gross domestic product (GDP). It is a significant source of employment, engaging both skilled and unskilled workers, and generates demand for goods and services from various sectors.
“The industry plays a crucial and commendable role in infrastructure development, encompassing the construction of essential elements such as roads, bridges, airports, and public buildings, which enhance the country’s competitiveness and attracts foreign investment,’ Mahabirsingh told the Business Guardian.
He added that the industry also served as an important foil to the energy sector.
He explained, “The construction sector supports the energy industry by constructing and maintaining oil and gas facilities and pipelines. Moreover, the construction of tourism-related facilities such as hotels and resorts contributes to the growth of T&T’s tourism industry, which is essential for foreign exchange earnings and employment. In summary, the construction sector is a crucial driver of T&T’s economic growth, employment, and infrastructure development.”
For the 2025 budget, Mahabirsingh listed eight things on his wishlist which he said, “will significantly impact and benefit the construction industry in T&T.”
Top of the list was the prioritisation of local contractors, as the association called on the Government to “implement policies favouring competent local contractors in government projects to stimulate the local economy and create jobs.”
Mahabirsingh however urged that this should also come with “timely payments for contractors.”
He said, “It is crucial to establish a streamlined payment process to ensure that contractors receive timely compensation for their work. This will not only enhance cash flow but also protect completion rates, making the sector more reliable.”
Additionally, he called for greater attention to public infrastructure maintenance.
“Allocate funds specifically for maintaining and rehabilitating existing public infrastructure to improve safety and functionality,” said Mahabirsingh.
This shared some similarities with one of the calls made by the president of Association of Real Estate Agents (AREA) Sally Singh in her budget wishlist shared with Business Guardian last week.
Singh said then, “Greater infrastructure investment is critical to diversify development throughout the country and make it more affordable for potential purchasers. With the implementation of property tax this year, we hope that there will be a more equitable level of development when regional corporations are able to provide improved infrastructure through the taxes collected in their area. “
Mahabirsingh, in his wish list, became the latest to call for increased access to foreign exchange. The ability to access foreign currency has been a burning issue across various sectors but the Contractors’ Association president noted it was important to ensure that projects were delivered on time.
“Facilitate the availability of foreign exchange for contractors to ensure they can procure necessary materials without delays, crucial for maintaining project timelines,” Mahabirsingh said.
Foreign direct investment (FDI) was also a concern raised by Singh.
“Foreign investment incentives are key to promoting real estate in our country and while there are some measures in place, they cannot compare with those of the region where FDI is vibrant.”
In that regard, Singh pointed to current legislation which proved to be hindrances to foreign direct investment.
“AREA strongly believes that the land licence applied to Tobago only under the Legal Notice of 2007 must be removed as it is an enormous deterrent to investment and a disadvantage to Tobago. Reducing barriers and offering incentives for foreign investors will certainly improve the investment environment and attract international capital into the local real estate market.”
Mahabirsingh said, “Further invest in training programmes that equip young people with essential construction craft skills such as plumbing, carpentry, electrical work, and masonry, fostering a skilled workforce.”
Mahabirsingh also felt attention needed to be paid to licensing and building codes in the budget presentation.
“Enforce contractor licensing requirements and ensure adherence to local building codes to maintain high construction quality and safety standards,” said Mahabirsingh.
The Contractors Association president however became the latest voice ahead of the budget, calling for incentives to help improve investment in the industry, namely through home improvement.
He said, “Introduce incentives for homeowners to improve their properties and construct new homes, stimulating economic activity and enhancing living conditions.”
In the past two weeks, both AREA president Singh and Jean Paul de Meillac, the CEO of real estate agency Terra Caribbean both made calls for tax incentives which would help the real estate and by extension the construction sector.
Singh told the Sunday Business Guardian last Friday, ‘One way to stimulate real estate transactions and property improvements would be through greater tax incentives, such as enhanced tax credits or deductions for property purchases, renovations, or investments.”
She said further, “These economic stimuli to encourage purchasing or owning property should increase real estate activity and boost demand, encourage investment, and stimulate growth in the real estate sector.
“By implementing these measures, government and financial institutions can create a more dynamic real estate market, stimulate economic growth from resultant downstream activity such as renovations, home furnishings, security upgrades, landscaping etc, and address housing supply and affordability issues.”
De Meillac had more directly explained how an adjustment to stamp duty could turn to further returns for the construction industry as the money previously spent on that duty would likely be invested in home renovations.
Mahabirsingh was also hopeful the fiscal presentation would offer traffic congestion solutions. He noted that traffic gridlocks would often reduce operational efficiencies around the country.
He said, “Develop comprehensive strategies to manage and reduce traffic congestion, such as improving public transport, enhancing road infrastructure, and implementing smart traffic management systems.”
This concern too had been echoed by Singh, who told the Business Guardian, “Investing in infrastructural projects such as roads, public transportation, and the full range of utilities can offer more reasonably priced properties, enhance property values and make certain areas more desirable, encouraging both residential and commercial real estate development.”
Mahabirsingh also hoped that the 2024/2025 package would also include training programmes for youth interested in joining the construction industry.
He said should these areas be addressed, “T&T can strengthen its construction sector, promote economic growth, and significantly improve its citizens’ overall quality of life.
“These recommendations have the potential to create a more robust economy and enhance the living conditions of our citizens, instilling a sense of optimism for the future.”