New measures expected to improve the timeliness of payments to building and road contractors

In a significant move to address chronic payment delays in the construction sector, Works Minister Maria Bird-Browne has announced comprehensive reforms following intensive consultations with building and road contractors. The government’s new measures target two critical pain points: delayed compensation for completed work and challenges importing specialized equipment.

The breakthrough came during what Minister Bird-Browne characterized as a pivotal sector-wide meeting that brought long-standing operational issues into sharp focus. Contractors had identified cash flow interruptions and equipment accessibility as primary constraints affecting project timelines and quality.

In response, the administration has established a streamlined payment system designed to maintain current financial obligations to contractors, significantly reducing the gap between work completion and compensation. Simultaneously, the Cabinet has approved expedited importation protocols for essential tools and machinery required by local construction firms.

Minister Bird-Browne emphasized that these structural changes aim to strengthen partnerships between contractors and the Ministry of Works, mitigate project delays caused by financial constraints, and enhance overall execution of government infrastructure initiatives.

The reforms form part of a broader strategy to position 2026 as a landmark year for infrastructure development. The government anticipates improved collaboration between contractors, the Works Ministry, and broader governmental agencies, creating stronger alignment on national development goals.

This new approach is projected to increase operational efficiency, bolster local contracting capacity, and accelerate planned upgrades across the nation’s infrastructure landscape. The comprehensive 2026 agenda encompasses road rehabilitation, drainage system enhancements, public building repairs, and climate resilience improvements—all expected to benefit from these operational reforms.