REVIVING THE CONSTRUCTION SECTOR IN THE OECS I have posted below the first three of twenty seven ( 27) recommendations that were generated to stimulate the construction sector in the OECS. My hope is that your reading of this may influence some small change in the view of the society of the importance of a vibrant construction sector. ================================================ IMMEDIATE RECOMMENDATION # 1: National and Regional Sensitization on the OECS Building Code The OECS States have spent considerable time and legislative effort to get the Building Codes to be an integral part of the construction industry. Yet there has been little regional success, primarily because the document is not readily available to those involved in the design and planning approval process. In October 2011, the Government of St. Vincent and the Grenadines announced the formal implementation of the national building code and guidelines. The Ministry of Housing also announced a national sensitization and education programme; however the National Building code is not available on the Government’s website. While National Sensitization to the general public is important, the most critical initial target groups are those who are doing designs and those that are involved in approving designs. The proposed approach is first to make the availability of the document as wide as possible. The Building Code should be freely available on the following websites: a. Ministries of Physical Planning b. Government Information Services c. Ministries of Public Works d. OECS Secretariat e. All Professional Associations Printed copies should be placed at the front desk of the Planning Department for easy consultation by the public. The National Sensitization will also involve the staff of the Planning Department, where the OECS Building Code becomes a “Document of Use”. The use of the Code will be mandatory in the review of drawings in the approval process. Parallel to the national sensitization is the need to update the building codes provisions to ensure that they are in line with state of the art research. The Association of Caribbean States has been involved in this regard and engaged consultants to look at the OECS Building code provisions and to examine the upgrades required. The ACS Report entitled “Updating Building Codes for the Greater Caribbean for Winds and Earthquakes” has developed Model Codes for use of code makers. The Report also states that National Codes should be reviewed after every 5 years. The OECS should pursue the opportunities for technical assistance from the ACS for the updating of the OECS Building Code in line with the recommendations of the ACS Report. Since the completion of the ACS project there have been three important developments with respect to hazard levels for engineering design purposes in the Eastern Caribbean – the 2007-8 Caribbean Basin wind-hazard maps (USAID-PAHO), the 2008 effects of climate change on wind speeds for structural design (World Bank-CCCCC-ICC) and probabilistic seismic hazard assessment of the Eastern Caribbean (Municipality of Milan-EUCENTRE-SRC). The National Sensitization is a low-cost initiative that can be immediately implemented. The OECS Secretariat website will carry all the National Building Codes for member countries. The next stage of the National Sensitization will be the contractors who have to build the structures. The concept is based on ensuring that the drawings are in accordance with the Code and those who are reviewing and inspecting the structures follow the Code. The Recommendation for immediate implementation is summarized as follows: a. Pursuit of a targeted national and regional sensitization on the OECS Building Code at the target group of professionals and government officials in the Planning Departments. b. Pursue a Technical Assistance initiative with the ACS on the updating of the OECS Building Code drawing on the ACS Report on “ Updating Building Codes for the Greater Caribbean for Winds and Earthquakes” c. IMMEDIATE RECOMMENDATION # 2 – Implement some of the Provisions of the Puerto Rico Energy Conservation Code With the rising cost of energy, there is need to regulate the design and construction of buildings for the effective use of energy. Some of these provisions will also assist the hotel industry in reducing their energy costs. The following provisions found in the Puerto Rico Energy Conservation Code are proposed for immediate implementation: e. Mandatory installation of energy conserving measures for Swimming Pools. This will involve pool pump motors meeting stated criteria and Pool Heaters powered only with renewable or alternate sources of energy f. Mandatory use of solar water heaters for residential buildings g. Stated Design conditions for cooling loads calculations h. Commercial Buildings will be subjected to specific requirements for Commercial energy efficiency. IMMEDIATE RECOMMENDATION # 3 Engage discussion with the Insurance Companies through the OECS Insurance Association to develop a Building Code Effectiveness Grading Schedule The concept is to engage in discussions with the insurance companies to initiate a Building Code Effectiveness Grading Schedule. This Schedule will assess the building code in effect in an OECS State and how the State enforces the National Code with an emphasis on the mitigation of losses from natural disasters. It will be done by an independent body financed by the Insurance firms. A State whose National Building Code is well enforced should demonstrate better loss experience and insurance rates should reflect that. The entire country therefore benefits as the prospect of lowering disaster–related damage and the associated lowering of insurance premiums becomes an incentive to enforce the national codes both by the property owner and the State. The State thus over time benefits from the outcomes of safer buildings, less damage after a disaster event and lower insured losses from such catastrophes. The primary factors influencing reinsurance rates (and therefore insurance rates) are stated as follows: • The availability of capacity from reinsurers • The severity and frequency of natural hazards • The general standards of the building industry measured, in part, by the existence and effectiveness of national codes • The vulnerability of the particular property to the effects of natural hazards The implementation of a Building Code Effectiveness Grading Schedule will influence the latter two major components which are within the control of the OECS Governments. A Study commissioned by the National Association of Mutual Insurance Companies ( NAMIC) of the USA to summarize estimates of the impact of adoption and enforcement of model building code standards on natural disaster costs, revealed that reduction in property loss can climb to 79%. The NAMIC Study summarized studies done on Hurricane Katrina showing 79% reduction in property losses and for Hurricane Andrew in the range of 50% to 55%. For small island economies faced yearly with hurricane threats, implementation and enforcement of codes are of benefit to the property owner, the Government and to the Insurance Company. United Insurance Company Ltd based in Barbados but operating throughout the OECS, has implemented a Safeguard Compliance checklist. If an Owner complies with all the items of the prescribed hurricane –resistant safeguards then United Insurance will offer a 25% reduction in premium. The Company also offered a 40 % discount on premiums for professionally - assessed commercial buildings. If it is assumed that the insurance company will only share half of the savings in risk reduction with the Client, then it can be deduced that the insurance companies are of the opinion that the minimum savings on losses due to effective implementation and enforcement of national building codes is in the order of 50 %. Hurricane Ivan caused an estimated $ 1.0 Billion USD in property damage in Grenada, and thus one can conservatively estimate that with effective implementation and enforcement of a building code, a maximum of $ 500 million USD could have been saved, or 100% of the GDP (World Bank estimate on Hurricane Ivan damage were placed at 204% of GDP). These are staggering costs that continue to engage the attention of the Governments of the OECS. The recommendation presented is to engage in discussions with the OECS Insurance Council to develop a Building Code Effectiveness Grading Schedule and to also encourage the reduction of premiums to their Clients as an incentive for implementation of the National Building Codes.
Posted on: Fri, 27 Sep 2013 09:26:04 +0000
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