Gov’t Looking to Raise Ceiling for Non-Tender Contracts

The Government is looking to lift the ceiling for the procurement of small contracts that do not have to go to tender, to $1.5 million.

Minister of State with responsibility for Works in the Ministry of Economic Growth and Job Creation, Hon. Everald Warmington, said that currently, the limit for such contracts is $500,000.

“The rules allow for three quotes to be received and an award made based on the prices. It may sound like a lot of money, but we all know that in the context of works, this sum is negligible,” he said.

Mr. Warmington, who was speaking during his contribution to the 2016/17 Sectoral debate in the House of Representatives on July 6, pointed out that since the increase from $250,000 to $500,000, the Jamaican dollar has devalued by some 65 to 70 per cent.

He noted that it was for this reason that the Government is proposing that the ceiling for the procurement of these small contracts be raised.

“We believe that this better reflects current realities where costs of works are concerned and will reduce the amount of barriers that often prevent simple tasks from being accomplished in a reasonable time,” Mr. Warmington said.

“There are times when small projects are tendered, and owing to one reason or another it takes three months, six months or even nine months to get implemented. We want to change this,” he noted further.