Presenter

Geoffrey Vaughn

Ministry of Public Works

13/02/2014

The

construction

sector

as

define

by

Standard

Industrial Classification, are companies or sub-sectors

that are engaged in the construction of buildings
(residential and commercial), structures (bridges, dams,
sluices etc). Included are those sub-sectors that engage
in demolition works, blasting, soil investigation, drilling,
landfill, and those engaged in infrastructure works
(roads, drains, ports, airport etc).

Ministry of Public Works

13/02/2014

There are special characteristics which relates to exceptional

relationship between the construction sector and the level of
economic development such as

The level of adaptation of technology by contractors in Guyana.

The level of development of our human resource mainly in

science and technology, construction etc.

The development and level of our infrastructure system in

Guyana.

Contribution

of

National

Funds

(Budget

allocation)

to

infrastructure development.

Ministry of Public Works

13/02/2014

Guyana continue to experience economic growth the latest

estimates shows that 2013 saw a economic growth of
approximately 5%. This is excellent but how do we sustain
this with all the challenges we are faced with in our critical
construction sector.

Ministry of Public Works

13/02/2014

Challenges that would be addressed in this presentation are:

Education and Training

Contractors Capacity

Utility Services

Material Shortages and Cost Increases

Quality in Construction

Ministry of Public Works

13/02/2014

Guyana continues to have a shortfall in this most important asset

our human resource. This asset is needed to meet the demand of
the technological revolution of the twentieth century.

There is an ominous shortage of professionals, sub professionals,

technicians and skilled tradesmen. The weakness is most
noticeable at the level of sub-professionals and supervisory staff
such as chargehands, technicians and foreman. Most times
chargehands and foremen are procured from the ranks of the
skilled (senior) tradesmen (Suite 2001).

Ministry of Public Works

13/02/2014

An overview of the 2012 2013 CSEC results shows

that much students are not passing the science
base

subjects

such

as

Mathematic

(30.35%),

Chemistry (52.39), Physics (54.34%) and English

(45.69). This is where the core of our Construction
challenges begin.

Ministry of Public Works

13/02/2014

In reviewing reports from the University of Guyana

Faculty of Technology for the period 2009 to 2013
shows that two thousand nine hundred students
(2,900) enrolled for the Engineering programme
from a total enrollment of thirty one thousand and
ninety (31,090).
This represents 9.3% for the five year period of the
total University population.
Ministry of Public Works

13/02/2014

YEARS

ENROLLMENT AMOUNT

2013 - 2014

677

2012 - 2013

613

2010 - 2011

640

2011 - 2012

748

2009 2010

222

TOTAL

2,900

Ministry of Public Works

13/02/2014

Even our technical Institute saw a decline in its pass

rate for 2012 (76%) and 2013 (58%) a decline of
18%. It must be known that 15% of the student
population drop-out for various reasons.

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13/02/2014

10

The

issues

raised

in

training

gives

us

an

understanding to the reasons for;

Time overrun

Basic understanding of Bill of Quantity while

tendering

Lack of understanding of the procurement rules

Cost overrun

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13/02/2014

11

Assessing the contracts awarded for the last five

years, projects where loans or grants are received
via funding agencies (IDB, EU, World Bank) shows
that only a few National contractors have the
capacity to execute projects funded by these
agencies.

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13/02/2014

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Advantages
Involvement

of

international

Disadvantages
finance

makes National construction firms have no funds or

possible the implementation of several projects, expertise to participate in the sponsorship of

such as those of major infrastructure (roads, privatized projects.
projects.
bridges, Sea Defence etc.
etc.)
Direct foreign investment in projects leads to National construction companies lack the technical
increase in construction demands, creating work and managerial capability to undertake most of the
opportunities for local firms.
firms.

foreign funded projects.

projects.

Competition among foreign firms lowers the costs It is possible that National firms will be deprived of
of projects to nationals.
nationals.

the opportunity to grow (Hillebrandt, 1999)

1999)

Presence of large numbers of international firms Foreign construction firms may pay lip service to
offers scope for technology transfer and the technology

transfer

(carillo,

1994)
1994)

or

take

development of national firms and upgrading of measures to avoid it.

it. Moreover, local companies
the sector.
sector. The large number of such firms also may not be in a position to benefit from
means that technology transfer can be a tool for technology transfer, or to subsequently utilize the
competition

acquired expertise.
expertise.
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13/02/2014

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Poor quality in construction results in rework. Poor

quality elements not only do not perform in the
manner for which the structures were designed and
built i.e. they possess reduced capacity, but they
last only a fraction of their design life; this issue
have become one of our major concern in the
construction

of

our

roads

bridges

and

also

buildings.
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13/02/2014

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Frequently we excuse or attempt to justify poor

quality by saying we are working to meet schedules
or deadlines or we are cutting cost of construction.
We have seen instances where poor quality has led
to contract being terminated as per contract
condition. Poor quality construction is all around
us, our roads, buildings, as well as our other
infrastructures and utilities.
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13/02/2014

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In 2013 several projects saw materials being rejects

for not meeting specification. We have had several
contracts within the Ministry terminated for poor
quality works.

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13/02/2014

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The issue of quality is closely related to training and

development, they are shortages of clerk of works
and technicians whom on most projects has the
responsibility of ensuring quality and standards as
per contract specifications.
Poor quality of construction means that there will be
a high percentage of rework which we have seen
over the last five years.
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13/02/2014

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The shortage of construction materials continues to

be a major concern to the construction sector. The
sector has seen a significant growth with increase
construction in the housing, roads, sea defences,
bridges and other infrastructure. This increase has
caused a increase demand for certain construction
materials such as:

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13/02/2014

18

Stone

Cement

Steel sheet piles

These are three materials which are constantly

needed by contractors for the execution of works.
There were several projects delayed due to the
shortage of these materials.

Ministry of Public Works

13/02/2014

19

Projects within the sea defence unit and the National

Drainage and Irrigation Authority required sheet
piles which was difficult to access due to the
reduction in production by the Chinese company
because of Environmental Issues. Both entity saw
delays in the projects works for almost 1year.
In some cases alternative material was considered
but with some amount of reluctant.
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13/02/2014

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2011 to 2013 saw a shortage of aggregate for the

construction sector. Ministry of Public Works CPTU
was tasked with the assignment to determine the
effects of aggregate shortage in the sector. Below
is a table of the findings;

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13/02/2014

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We must not forget the challenges that we faced in

2005 2007 during our preparation for World
Cup cricket. During this period steel prices went
up, there was a shortage of cement and even a
shortage of our critical human resources.
These challenges are not new therefore we have to
find ways to deal with it and the time is now.

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13/02/2014

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Details

Amounts/Tons

Baracara Quarries

114,457

Toolsie Persaud Ltd

84,965

BK Quarries Inc.

464,043

Metallica CC Quarries

7,442

Durban Quarries

9,290

Total

680,197

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13/02/2014

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Description

Demand

Supply

Deficit/Surplus

Boulders

788,560

110,950

677,610

Under Layers

85,943

56,687

29,256

3/4 stones

416,337

85,263.24

331,073

3/8 stones

9,673

4,351

5,322

Crusher run (1st and

2nd Grade

139,290.32

166,997

27,706

Stones

7,500

50,915

43,415

Other Aggregates

205,034

205,034

Totals

1,447,303

680,197

767,106

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13/02/2014

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In this presentation of these critical issues one

does not claim that the list is all inclusive. It seeks
to

briefly

address

the

more

critical

issues/challenges.

These

issues/challenges

explained

are

our

expectations for a collective discussion that will

serve to achieve a higher level of efficiency within
the sector.
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13/02/2014

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The Government and the Private Sector need

to

work

together

so

as

reduce

these

challenges. There is need for more Public

Private Partner projects which will reduce the
impact faced in the sector.

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13/02/2014

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Sinnott, Lewis and Pineda (December, 2005, p17) stated

every one dollar spent on construction generally
generates up to five (5) extra dollars of GDP.
GDP.
The capital spending on construction services may
stimulate the economy by creating employment and
boost the GDP but one of the major factor other than
the

those

mentioned,

is

that

it

provides

built

infrastructure which is essential for the service and

manufacturing sector.
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13/02/2014

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