Chamber of Commerce organizes meeting for construction sector about delays in building permits
The Chamber of Commerce (KvK) Bonaire recently organized a meeting for contractors and project developers about the worrying signals that the Chamber of Commerce has received from this sector regarding the delays in the permit process and their consequences. The construction sector is very concerned about the current situation.
According to BES legislation (BES Building Decree), the decision on a permit should take place within sixteen (16) weeks. Unfortunately, in practice it appears that this takes up to two or three times as long, with all the consequences that entails.
The delays not only have direct consequences for business operations, but also have broad economic and social implications, such as significant financial risks for contractors, their employees and their clients.
This leads to the following points:
- Contractors face fines for delayed deliveries
- Employment in the sector is threatened because many employment contracts are not renewed due to uncertainty about project start dates
- Increasing costs for labor, materials and transportation
- Customers who may need to reapply for financing for a higher amount
In the medium term, if delays continue, the industry expects that this could lead to a possible recession in the construction sector, which will have negative consequences for both the housing market and the local economy. In addition to the above, the sector fears that the long delay in the approval of the Structural Vision will also result in the economy entering a recession. Such a recession could lead to social unrest, higher unemployment and an increase in crime, resulting in a greater burden on the government and society.
The Chamber of Commerce calls on all parties involved – from contractors and project developers to local authorities and policy makers – to jointly look for solutions to this situation. The Chamber of Commerce offers to participate in such a meeting as a facilitator. Only through better cooperation and more efficient processes can the sector be stabilized and the negative consequences for the economy and society limited.
Finally, the Chamber of Commerce encourages contractors and project developers to unite so that their interests can be represented more effectively and they can present themselves as one voice.
