Housing Ministry terminates contracts with 15 contractors
The Ministry of Housing has announced the termination of contracts with 15 contractors due to performance issues in several key housing areas, including La Bonne Intention, Prospect, Perseverance, and Little Diamond. This decision was revealed by Minister Collin Croal during the ministry’s year-end press conference on January 3, 2025.
Minister Croal explained that the terminations were necessary after thorough evaluations of the contractors’ progress. “I have seen on my desk several termination letters over the last couple of weeks,” he stated.
He assured the public that the ministry has taken steps to ensure a smooth transition, including direct engagement with affected beneficiaries.
“We have worked one-on-one with the beneficiaries to ensure they are informed and that the completion of their projects will be handled by another contractor,” he added.
The decision follows a series of discussions between the ministry and contractors in late December 2024. While some issues raised by contractors were considered legitimate, the ministry determined that terminations were unavoidable in cases of persistent underperformance. Minister Croal emphasized that while the ministry strives to work with contractors where possible, it must also uphold its commitment to delivering quality housing projects on time.
One of the major challenges facing the government’s housing initiatives is the tight profit margins associated with constructing government-built homes, particularly the newly introduced young professional houses. According to Minister Croal, each house is being built for $24 million. He noted that building a similar design privately would likely be even more expensive, presenting a financial challenge for individuals.
The government’s efforts to minimize housing costs have resulted in lower profit margins for contractors, which in some cases has led to delays and other issues. However, the minister made it clear that once a contractor is awarded a project, they are obligated to fulfill the terms of the contract.
This latest development highlights the ministry’s dedication to maintaining high standards and ensuring the timely completion of housing projects, even as it continues to address challenges within the sector.
