Bahrain: Delays in paying contractors working on government housing projects are down to steps to ensure work is progressing as planned, according to a government minister.

Housing Minister Bassem Al Hamer told the GDN that payments would only be made following inspections – and admitted that could take weeks in some cases.

However, he urged any companies facing excessive delays to contact the ministry, following allegations that some working on a Sitra housing development had not been paid for more than eight months.

“I haven’t heard that much about late payments that may drag on for months, but delays are normal,” said Mr Al Hamer.

“We want to make sure that whatever (money) we dispense matches actual work.

“In the end all contractors will be paid in accordance with our commitments, but we have to check things first and the matter needs examination and field visits.

“Some contractors may say 60 per cent of work is complete, but it is just 30pc. It happens and for that we need to thoroughly correlate.

“We don’t want to harm contractors and their financial ability is something that we regard highly if they are to continue doing work in the best way possible, without any delays or flaws.

“Anyone facing huge tardiness has to contact us immediately.”

However, sources told the GDN that some companies working on the Sitra project had received “slow work progress notices” due to lack of progress on the site, despite alleged non-payment.  

“Payment of workers’ wages, and payments to suppliers and subcontractors are all adversely affected,” said sources.

“To exacerbate the problem, the Ministry of Housing has now issued ‘slow work progress’ notices to some contractors, instructing them to ‘remedy the unacceptable present situation’ regarding lack of progress at site. 

“Other similar Ministry of Housing projects are affected by lack of budget.

“Whilst most contractors would accept a reasonable delay in payments, working on the premise that government projects are normally assured payments, delays of this length of time are totally unreasonable. 

“Unofficially, the contractors have been advised that there is no allocated budget for the works in Sitra and that until the Finance Ministry issues the necessary paperwork, the contractors will not be paid. 

“This further drains resources of an already strained industry, which is attempting to recover losses endured on stalled private projects.”

The Housing Ministry is currently working on an ambitious scheme to build five new towns, constructing up to 40,000 new homes between 2014 and 2022.

As many as 60,000 families are on waiting lists for social housing. “Work is ongoing in the Northern Governorate with the first batch of homes to be distributed at the end of next year, while it is progressing in the Eastern Hidd and Southern Towns,” said Mr Al Hamer.

“We will soon work on 1,200 homes in the Ramli Town, while work is ongoing to continue reclamation at the East Sitra Town – with us completing designs and tendering work by the middle of next year for some of the 5,000 homes.” 

mohammed@gdn.com.bh