Is Legislation a Barrier to the Procurement of Construction Goods and Services? Review of Trinidad and Tobago’s Construction Industry

Abstract

The past trends and current impact of the Central Tenders Board Act of 1961 on the procurement of goods and services for the construction industry is investigated. The question of procurement reform is explored within the context of the construction industry of Trinidad and Tobago. Evidence is provided that the Central Tenders Board Act of 1961 is outmoded and in need of changes to meet today’s demands. Although the proposed Procurement Bill of 2006 embraces more of the government’s objectives and operating principles, evidence points to an overambitious bill that includes terms more likely to cause confusion rather than provide clarity. The finding from the proposed bill of 2006 points to the removal of the term value for money as it is a vague and difficult concept to legislate. The following clause and justifications based on United Kingdom regulations are recommended for inclusion: (1) suspension of contractors for noncompliance of a certain nature, (2) complaint clause, (3) audit procedures, (4) notification of successful and unsuccessful tenderers, (5) automatic suspension of procurement process for breach in procurement procedure by a state entity once a complaint is filed, (6) under what conditions should renegotiation be based on a scope change, and (7) under what conditions should retender be necessary. These deficiencies in the proposed bill of 2006 put the focus on complimentary legislation and their role in ensuring construction procurement under the Central Tenders Board Act of 1961 can still be effective.