Ministry of Transport and Works Clarifies Policy on Mobilisation Payments for Roadworks Projects

The Ministry of Transport and Works (MTW) is clarifying that there is currently no policy against “upfront mobilisation payments” for roadworks projects within MTW. This was recently stated in some sections of the media, and the ministry is refuting this claim.

Mobilisation payments are issued for a range of projects under the remit of the ministry. In instances where a mobilisation payment is required by a contractor, and the contract sum exceeds $50,000, the mobilisation payment will be specified in a Solicitor General-approved contract. An Advance Payment Guarantee is tied to any contract which involves a mobilisation fee.

The guarantee is usually for a minimum of 10 per cent of the total cost of the project. Consequently, the contractor would be required to deposit a sum of no less than 10 per cent of the project’s cost to the Treasury of Barbados, or provide a surety from a bank or an accredited insurance company for the same. The contractor is obligated to cover any expenses of the bond.

Once all these requirements are satisfied, both parties will sign the contract and the mobilisation payment will be issued to the contractor immediately. Overall, the entire process is a lengthy one, and in instances where work is required to commence immediately or to be completed within a short timeline, some contractors opt to proceed without a mobilisation fee.

Accelerated Mill and Pave Programme

The Accelerated Mill and Pave Programme is a part of MTW’s strategic maintenance plan to enhance roads with deteriorated surfaces where utility services have already been installed, do not require significant upgrades, or do not require road reconstruction or drainage works. As a result, road users should be provided with rapid relief through the enhancement of the road’s surfaces.

It must be noted that the $30 million allocated to the Ministry of Transport and Works Accelerated Mill and Pave Programme must be spent by the end of Government’s 2023/2024 Financial Year, which culminates on March 31, 2024.

Roads under the Accelerated Mill and Pave Programme are assigned to contractors based on a rolling allocation system where they are given one or two roads at a time, and are then paid on the completion of their work. The costs of individual roads vary from $190,000 to $1.2 million.

Moreover, contractors hired to work with this specific programme, must be able to pave shortly after they have finished milling. Therefore, construction firms contracted to work with MTW’s Accelerated Mill and Pave Programme must have: