(PRESS STATEMENT) – Total Construction Supplies (TCS) provides an advancement of cash and building materials to small contractors obtaining work under the Constituency Development Program (CDP).
This is designed to provide project financing. The persons seeking assistance are required to provide an assignment of funds to TCS and agree to pay 7% interest chargeable on the materials and cash advanced.
Total Construction Supplies immediately thereafter, supplies all the materials required and transports them to the project site. It must be noted, that materials not sold at TCS are also purchased from other suppliers, paid for, picked up and transported to the project site by this facility on the Contractors behalf.
Within two days of the project being certified complete by CDP, the Contractor is paid the contract sum less Government taxes, materials and the 7% which is calculated on materials and cash advanced. This process eliminates the contractor’s wait for payment from treasury.
Whereas we keep our clients’ business confidential, the aggrieved contractor who went to Richard Frederick placed it in the public domain, we will therefore use this same information for referencing. He obtained a contract of $39478.11 to construct a retaining wall and claimed materials supplied cost only $5700 which represents less than 15% of the contract sum. The fact is that other construction materials were purchased from other Companies on his behalf and transported in like manner to that which came from TCS. A statement for those purchases is also in his possession. Two Days after we were notified of his completion, we contacted him for the balance of his cash payment which he received in full.
After he had been assisted and the project completed, he expressed concern of the 7% interest, He was then provided the option to pay for the materials used and wait for his payment from treasury. He still opted to receive the cash payment realizing the benefits of receiving immediate payments.
The fact is to date, we have not received payments from Treasury for this project, nor the majority of projects we have financed this year. From experience, we financed and paid contractors for similar projects in April of 2017 and received payments from Treasury in November 2017.
Our Company obtained a loan from a commercial bank at 8% interest to finance its operations. Would it be good business practice to pay small contractors with cash of over twenty-five thousand dollars’ “interest free” per project and wait months to be paid by Treasury? Would it be good business practice to utilize our resources, provide transportation when materials are needed, deliver to projects at different times and provide all the requirements without charge?
I must also indicate that we have no preferential arrangement with the CDP as
1. Other financial institutions offer similar programs to small contractors at 10 to 21% interest.
2. Other retailers of building materials also participate claiming to offer materials interest free, however offer an increased credit price which is up to 15% higher than their regular cash price and provide cash advances at 15% interest.
Our materials are sold at very competitive prices, lower than our competitors.
In the past, there has been a number of complaints by small contractors. We are all aware of the many complaints contractors made a few years ago for payments from CDP. The objective of this facility from Total Construction Supplies is to give contractors an option for immediate payment and allow CDP the flexibility of offering contracts even if funds are not readily available.
We will therefore continue to make this facility available for contractors who wish to take advantage of it. Total Construction Supplies is dedicated to offer materials at the most competitive prices and we are also dedicated to assisting the small contractors as they create employment for themselves and others.