NASSAU, BAHAMAS- Bahamian Contractors Association President Leonard Sands is raising serious concerns over what he describes as a long-standing and now almost expected pattern of unchecked cost overruns on government construction projects, pointing to repeated budget increases and limited transparency in how additional funds are sourced and approved.
Sands warns that cost overruns have become a normalized feature of public infrastructure projects, arguing that the consistent gap between projected and final costs is undermining confidence in both government spending and the wider contracting profession.
Sands says the issue is no longer treated as an exception but as something that has become so routine in public works delivery that it is rarely challenged, even when final project costs rise significantly above initial estimates.
According to Sands, the construction sector has reached a point where budget overruns are no longer treated as anomalies but as expected outcomes.
“It is safe to say we never finish projects on budget,” he noted, adding that increases of 20 to 30 percent—or significantly more—have become common across public works.
He pointed to a recurring pattern where projects are announced at one figure, only to end significantly higher, with limited explanation provided to the public.
“If a project is announced at $80 million, you can reasonably expect it to end at $100 million or more,” he said.
Sands argued that this normalization has created an environment where overruns are rarely questioned with urgency, even when the financial implications are substantial.
Concerns over public spending have also been amplified by political criticism surrounding the government’s Golden Yolk initiative—an agricultural project aimed at reducing the country’s reliance on imported eggs.
Michael Pintard, leader of the Free National Movement, recently lambasted the administration’s handling of the program, accusing the Progressive Liberal Party of promoting success without tangible results on store shelves.
Pintard recently stated that the government has spent between $50 million and $60 million on the initiative, which was first introduced three years ago with an initial $15 million investment.
Sands said the broader issue remains unchanged: large public investments that escalate significantly over time without clear, consistent explanations risk damaging confidence across sectors.
At the heart of Sands’ concern is what he describes as weak oversight mechanisms and an absence of structured accountability when projects exceed their budgets.
“Where is the oversight?” he asked. “If you budget $29 million and need another $11 million, there should be a formal process. You should have to justify that increase before an independent body.”
He emphasized that every overrun represents additional public funds that must be sourced from elsewhere.
“Where is that extra money coming from?” he said. “That’s the question the public should be asking every time.”
Beyond fiscal concerns, Sands warned that the ongoing pattern of overruns is damaging trust in the contracting profession itself.
“When contractors submit legitimate bids, people assume there is padding built in,” he explained. “So when someone quotes $600,000 for a home, the public thinks you’re trying to make off with $200,000.”
He stressed that this perception is unfair but acknowledged that repeated high-profile overruns have shaped expectations.
“It undermines the integrity of professionals who are trying to do the right thing,” Sands said.
Adding to industry frustration is the continued delay in establishing a Contractors Board, a long-promised regulatory body intended to strengthen standards and accountability.
“I thought that was going to be fine months ago,” Sands said. “Apparently the government has changed its mind.”
“They made commitments and they have not lived up to those commitments,” he added. “One can only assume they changed direction.”
Sands noted that while construction activity remains steady—driven by major private developments and government contracts—the sector’s biggest challenge is not demand, but governance and perception.
“We have enough existing supplies,” he said. “It will probably be another six months before that becomes an issue.”
Sands cautioned that unless stronger systems of oversight and transparency are introduced, the cycle of escalating costs will continue to erode confidence in both government and the construction industry.
“You cannot just say a project started at $29 million and ended at $40 million without explaining exactly why,” he said. “There has to be accountability for that difference.”
Without reform, he warned, mistrust will deepen—and contractors who operate fairly will continue to face skepticism shaped by factors beyond their control.
“The public needs to understand where every dollar goes,” Sands said. “Without that, you cannot build trust.”
