Local contractors must be assisted to be competitive

The government has, in recent times, given an indication of its desire to help grow local initiative by encouraging the patronage of made-in-Ghana goods.

President Mahama has shown in practical terms that he is committed to ensuring that Ghanaians would strive to produce what they consume and consume what they produce.

This, no doubt, is a project which, if implemented properly, could lead to the growth of local industry and save the country a lot of money which, otherwise, would go into the importation of consumables.

One area of business that seems to be suffering is the local construction industry. It is a known fact that many local contractors have lost contracts because they do not have the capacity to execute those projects. 

Building the capacity of local industries is one sure way of growing that industry.

This is why the disclosure by the National Chairman of the Association of Road Contractors (ASROC) that some contractors who completed work over a year ago had not been paid for work done is worrying. 

The Daily Graphic is of the opinion that regular payments to contractors or any other businesses for jobs executed tend to fuel the economy and enhance national development. 

When contractors execute projects mostly for the government and payment delays, everybody suffers.

The economy suffers because it leads to low quality of work, poor standards and unfair labour practices, while workers of the various companies and their dependants are also affected, just like the company itself that had to take bank loans to pre-finance the project and has to pay huge interest.

The Chairman of ASROC last Tuesday enumerated some problems that affect the construction industry which, if not checked, could hamper its contribution to national development.

From last year to date, 10,000 construction workers have been sent home for irregular and non-payments for work done.

Many contractors have also abandoned their work sites due to constant pressure from the banks and other debtors.

The Daily Graphic finds it uncomfortable that contractors are not paid more than a year after the execution of the projects. Reports that the businesses of many contractors are collapsing, while some have abandoned their sites or are working at a slow pace, are not good commentary.

The Road Fund set up to facilitate payments to contractors for work done must be streamlined to play an effective role in that direction.

The government’s aim of enhancing national development through infrastructural development could be stymied through the non-payment of contractors for work done. 

Every effort must be made by the government to ensure that payments are made, and in good time too, to ensure the sustainability and growth of local industries.