1 - 7 March 2001

Contractors advised not to accept barter agreements

by David Kelleher

Building contractors who are members of the Federation of the Building and Civil Engineering Contractors are being advised not to accept barter agreements in connection with projects in the private
sector.
This action is being taken to remedy a situation that is rampant in the construction industry. A shortage of cash in the sector has forced contractors to accept payment for their services either in material or else in property.
In a letter to The Malta Business Weekly, the president of the FOBC, G. Xuereb said the federation was strongly advising its members not to accept any further barter arrangements, in connection with projects in the private sector, to apply the normal standard payment terms and not to offer any extended credit terms, and to quote rates that fully cover indirect costs and overheads and ensure to allow for a decent profit.
Mr Xuereb said the FOBC was set up in December because most of the members, if not all, were feeling the pinch.
“In my opinion, action should have been taken well before December 2000, as the Construction Industry had already been feeling the adverse effect. In fact I would be correct in stating that the Construction Industry, together with its all Associated Trades, had a nose dive well over six years ago. Things have to be put right and this without undue delay. I would rather say with immediate effect,” Mr Xuereb said in his letter.