Cayman Islands lawmakers took a major step last week toward ending the days of fly-by-night construction companies, some of which took advantage of island residents in the months following Hurricane Ivan.
Mr. Tibbetts |
The Builders Law, which regulates both businesses and individual workers, was approved unanimously by the Legislative Assembly on Thursday.
“This bill marks a significant milestone,” Leader of Government Business Kurt Tibbetts said during last week’s debate. “It signals…that we are starting to maintain a very high standard of construction and development.”
Mr. Tibbetts said the law would not take effect until at least 1 January 2008, which he hoped would give companies enough time to get their records in order.
According to the legislation, both businesses and workers will have to register with the government through a newly created 10-member Builders Board. The board will award or deny licences based on various qualifications in five categories: general, building, residential, sub-trade or civil contracts.
A list of qualified contractors and companies will be kept updated and available for public review. Companies already licenced under the Local Companies (Control) Law (1999 revision) are not entitled to automatic registration under the new Builders Law.
Mr. Tibbetts said he envisions the Builders Law as a one-stop shop for registering companies and contractors, as opposed to making them obtain separate licences from various trade boards.
Yearly licencing fees for companies range from $500 to $5,000 depending on what category of work they want to perform. A $100 fee is charged to individuals. For companies working on Cayman Brac and Little Cayman those fees are cut in half. A non-refundable application fee is also required.
Any person who wants to register as a qualified contractor must pass an exam administered by the Builders Board, or similar qualifying agency.
Businesses have a much more stringent set of specifications to meet. The board is allowed to consider previous conduct of the company and the conduct of persons having interest in the company.
The business seeking registration must also be 60 per cent owned by Caymanians, unless it is already licenced and has been operating as a construction firm on island for at least 20 years.
Licences can be suspended or revoked from companies or workers who persistently perform work that does not display the level of competence expected.
Precisely what that level of competence will be is left entirely to the discretion of the Builders Board.
The body governing contractor registration is made up of three contractors, two architects, a lawyer, the Cayman Islands Planning Director, the Director of Labour, and two members of the public. Appointments to the board are for two-year terms and are made by the Cabinet.
The make-up of the board concerned opposition MLA Rolston Anglin who said an independent group should be appointed to penalise contractors who don’t make the grade.
“You will have situations where a large company representative will be on the board, and perhaps some of those persons (with licences in question) are their sub-contractors,” Mr. Anglin said.
Leader of the opposition, MLA McKeeva Bush, was skeptical about whether this bill would actually prevent bad contractors from getting work.
“When bad work is done…there needs to be something (with) bite. Whether this law is going to do that remains to be seen,” said Mr. Bush.
The chief officer responsible for physical planning will appoint enforcement officers to keep track of registered companies and issue fines for violators.
People who perform work without registration status can be given up to a $2,000 fine, with an additional $250 fine each day they keep working without being registered. A second offence can carry a three month prison term.
Businesses that violate the law are subject to a $10,000 fine, with an additional fine of $2,500 each day their rogue work continues. In addition, the director or manager of that business can be fined $2,500 plus a $250 per day fine.
The law also provides an appeals process for people who are fined, suspended or removed from the contractor registration list. Members of the public can also file complaints against contractors with the Builders Board.
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