BVI News

We are driving up the cost of construction — Penn

Eighth District Representative Marlon Penn has raised serious concerns about the escalating construction costs in the BVI, describing the situation as unsustainable and detrimental to the everyday person.

During the recent budget debate in the House of Assembly, Penn pointed out that rising expenses affect homebuilders and the construction sector at large. Penn criticised the current approach to government projects and resource management, which he said contributes to the issue. He highlighted the controversial delays surrounding repairs of the Ralph T O’Neal Administration Complex as an example of poor spending decisions.

“The complex needs to be fixed… the $14 million we’re projecting to spend over the next three years could build a building,” Penn said.

He added: “I’m not against fixing the complex, I’m against the money that we’re spending to fix it. That $14 million is in addition to the money that we already spent,” he argued, pointing out that new buildings had been constructed for far less. Penn questioned why such a significant sum was allocated to repairs rather than exploring more cost-effective solutions, such as constructing additional government office spaces.

“We are driving up the cost of construction in this country out of the hands of the ordinary man with this type of economics,” Penn said.

The Eighth District Representative also criticised the lack of a detailed spending plan for the $100 million loan taken by the government, warning that without proper oversight, public funds are being mishandled.

“We can’t go borrow money now, again, to increase our recurring expenditure. We’re already paying for our loans from our savings. We’re spending our savings to pay for our loans, with no sign of new revenues in sight,” he argued.

Penn urged the government to adopt a more strategic approach to reduce construction and housing costs. He called for clear planning and expert oversight in executing large-scale projects to ensure taxpayers’ money are well spent.

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6 Comments

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  1. Da is da price says:

    The cost of construction in the BVIs has always been high because most estimating practices are not based on reason or logic. How many builders out there can cite production rates for their work? How many know how much it actually costs them to do run their business? How many can show you a detailed bid that outlines exactly how they arrived at their bid price. It’s not rocket science. Spreadsheets make cost analysis and bidding fairly easy. This kind of stuff can be taught in high school math.

    The other part is that govt foments these practices by paying asking prices instead of asking for a reasonable explanation before going ahead. Examples abound. More than a million was paid for the vending stands at Park. Works out to be something like $ 500 /square foot, for a stand with half walls and a roof! We rejected a UK loan guaranteed for 300 million because we didn’t like that UK’s condition was that there be a clear explanation of how loan monies would be spent. We just borrowed 100 million, but so far, there has been nothing said about where the 1 million a month note is coming from.

  2. DONT MIND HE says:

    PWD SETS ALL THDE RATES UNDER GOVERNMENT WATCH

  3. The road says:

    Fix them potholes by long swamp to chapel hill please

  4. Robin says:

    Not just driving up costs but construction sector is greedy and the government to blame cause them so not help poor people. They fattening construction pocket with the excess cost to build and they get less for more.

  5. Dire Need says:

    What/where will the additional prison be located.
    When will construction start.
    How many millions will it cost
    How will we fund the additional staffing of both uniform and civilians.
    ” Unsolved crimes”with murders and murderers topping the list of unapprehended, known identified and unidentified criminals are dangerous to us and to visitors.
    Will this dire issue be taken care of prior to a fullfillment
    of the death wish aka
    Independence.
    Where is the budget for this Dire
    Necessity and why the silence concerning this urgent issue.

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