Masterbuilders Association Urges Policy Push to Scale Up Jamaican Contractors

The Incorporated Masterbuilders Association of Jamaica (IMAJ) is pressing the Government to put a clear policy in place that grows local contractors and strengthens the wider construction sector.

The association's appeal comes after Prime Minister Dr Andrew Holness, speaking on Friday at the ground-breaking for the Galina Housing Development in St Mary, said Jamaica needs a contracting class capable of thinking at enterprise scale, and urged local builders to expand to meet the country's rising demand for housing.

While the IMAJ said it agrees with the Prime Minister's position, the body insists that local firms will only be able to meet the demands of national infrastructure if they receive stronger backing in scale, capitalisation, technology and management.

"Local contractors cannot grow their balance sheets, invest in equipment, hire and train workers, and absorb projects of greater scale where payment timelines are uncertain, procurement timelines make planning difficult, variation claims remain unresolved for prolonged periods, and foreign competitors operate with financing, and concessionary arrangements not available on equivalent terms to Jamaican private enterprise," the IMAJ said in a media release.

The association also pushed back against what it described as a public narrative that lays project delays solely at the feet of contractors, noting that many setbacks stem from scope changes, design finalisation, approvals, site conditions, variation handling and other issues across the broader delivery chain.

"If those realities are not acknowledged, local contractors are unfairly blamed for systemic weaknesses, and the country discourages the very talent and investment it needs to build long-term construction capacity," the release stated, adding that the IMAJ is calling for the Government's Emerging Contractor Capacity Policy to be shaped in direct consultation with the organised construction industry and to confront four urgent priorities.

The IMAJ argued that the capital base of Jamaican contractors needs strengthening, since firms cannot expand in the way the Prime Minister envisions without access to affordable financing.

"First, Jamaica needs a dedicated contractor enterprise capacity programme, delivered through the Development Bank of Jamaica or a structured partnership with housing development entities such as the NHT [National Housing Trust], providing local firms with access to equipment financing, working capital support, bonding facility support, technical training, and management capacity-building," the release said.

The association further argued that the current public procurement environment is cumbersome and pushes private firms away from State contracting.

"Second, public sector procurement and project management must operate with the same discipline now being demanded of contractors. Agencies must be held to defined timelines for procurement decisions, certification of contractor's invoices, processing of variations, and, importantly, payment of certified sums," the IMAJ said. "The current environment, where project decisions, payment, and variation resolution timelines remain uncertain, makes it much harder for contractors to sustain the investment and growth the Government is asking for."

The group also called for foreign developers to be bound by contractual requirements covering knowledge transfer and human development.

"Third, foreign contractor participation in Jamaica must be governed by a transparent and enforceable local participation framework. IMAJ supports Prime Minister Holness's commitment at Galina that these engagements must not be extractive and must include skills transfer, technology transfer, Jamaican technical expertise, and corporate social responsibility," the IMAJ stated.

"Those commitments must now become binding contractual obligations, with published targets for Jamaican employment percentages, local subcontracting, local materials procurement, skills certification outcomes, and community investment. Compliance must be publicly reported. The policy commitment made at the ground-breaking must be a measurable obligation in the contract."

The IMAJ rounded off its position by insisting it must have a formal seat at the table when any national policy aimed at building local contractor capacity is being drafted.

"A policy designed for the construction industry without the organised construction industry at the table will not adequately address the real constraints faced on the ground. IMAJ formally requests a seat in that process," the release added.