Barbados Market Survey Mission BARBADOS MARKET SURVEY MISSION

FRIDAY 11 APRIL , 2014

AISHA STEWART

Barbados Market Survey Mission- Basic Information

Date: January 21- 25, 2014

Number of Meetings Held: 16 services sector meetings

Sectors of Focus: Professional Services, ICT Services and Construction Services

Professional Services

Professional Services

Based on research the two subsectors of focus were as follows :

MANAGEMENT SERVICES

Focus on:

optimizing current resources

human resource functionality and;

minimizing business cost.

.

ACCOUNTING SERVICES

Focus on:

business restructuring accounting services,

tax restructuring services and;

financial advisory services

Professional Services-Mode of Delivery

MANAGEMENT SERVICES

Business persons are open to doing work online

Initial meetings should take place face to face.

ACCOUNTINGS SERVICES

Face to Face meetings are preferred bycompanies utilizing accounting services.

Business persons have are distrustful aboutsharing financial details on line.

Professional Services- Power Structure MANAGEMENT SERVICES

Dominated primarily by small Barbadian firms.

Large clients are Trinidadian-owned businesses

Many local firms offer a wide variety of services comparable to the offerings of Barbadian firms.

ACCOUNTING SERVICES

The area of accounting services is dominated by four large multi-national firms:

Ernst and Young

Price Waterhouse

KPMG

Large firms in Barbados are synonymous with quality service.

Professional Services- Power Structure MANAGEMENT SERVICES

Work is based on proximity and relationship with decision makers in the client companies.

ACCOUNTING SERVICES

Extremely competitive

Professional Services- Standards and CertificationMANAGEMENT SERVICES

Degrees from the University of the West Indies and noted international degrees are recognized.

Great emphasis is placed on the reputation and credibility of the service provider.

ACCOUNTING SERVICES

Accounting Services – service providers must be registered with the Barbados Institute of Charted Accountants.

Professional Services – Regulatory Framework Accounting Services

Service providers who intend to perform accountancy services are required to register with the BICA.

There is a residency requirement of 6 months before a person can be registered by the BICA

Professional Services- Market Penetration Strategies Form strategic alliances with large companies/conglomerates in Trinidad and Tobago, with subsidiaries in Barbados

Two large conglomerates are embarking upon significant restructuring exercises.

Construction Services

Construction Services Types of construction services that were the focus of the Barbados trade mission were as follows:

Architectural Services

Engineering Services

General Construction Services

Construction Services- Mode of Delivery

Architectural Services

Mode 1 a viable option at the initial stages of

constriction

Mode 4 – once construction architect is excepted to be on site

Engineering Services

Mode 1 an option if the services is focused on

consulting

Mode 4 – engineer is expected to be on site

General Contractor

Mode 3- establish a firm in Barbados

Mode 4 – work with established firms as a

sub contractor

Construction Companies – Power Structure General Contractors Sector dominated by three local Barbadian firms. They are as follows:

Innotech Services Ltd

JADA Construction

Rotherly Construction Ltd.

1. The design, build and finance model of completing projects

2. JADA and Innotech both indicated that they often sub contract design elements to architectural firms.

Construction Companies – Power Structure Barbadian architectural services and engineering firms have been badly affected by the economic recession.

The majority of firms depended on the domestic housing market demand.

Construction Services-Standards and Certification Architecture Services –

Architects that meet the regulatory requirements to practice are not required to attain additional international standards to work in Barbados.

Engineering Services

Engineers that meet the regulatory requirements to practice do not have to attain additional international standards to work in Barbados.

Construction Services-Standards and Certification General Contractors

General contractors are expected to comply with numerous laws and regulation related to building.

No specific international standards companies or building code are required.

Construction Services- Regulatory Framework

Architecture Services

Service providers are expected to register persons with the Barbados Institute of Architects (no residency requirement).

The cost for registration of architectural services has recently the fee has been increased to USD 1250.

Construction Services- Regulatory Framework

Engineering Services

To be a registered engineer in Barbados, a qualified person must work with a registered engineer for four years.

The registration fee is USD 1250

Construction Services- Regulatory Framework

General Construction Services

Contractors have to adhere to Town and Country Planning Division in Barbados.

No building code

Adhere to the Safe and Healthy at work at act ( 2005) in Barbados

Co- Financing Assistance for the Sector 1. Assistance with registration fees in the sector - Architectural Services fee has tripled

2. Assistance with legal services directly related with penetrating the Barbados and Jamaican market

Construction Services- Market Penetration Strategies

Construction

There are several construction projects already in train in Barbados, large contractors in Barbados are responsible for the entire project following the design and build model.

Barbadian firms indicated that they sub contract work on larger projects

Several large Trinidadian owned Barbadian stores have publically indicate they intend to expand these include BS and T, Super Centre and ANSA McAL Da Costa Manning.

Construction Services- Market Penetration Strategies Engineering Services Local engineers should focus on partnering with local contracting firms since these firms have been awarded several larger projects to these firms.

Slow demand for engineering consultancy

ICT Services

Information Communication Technology ( ICT) The specific ICT services of strategic interest:

Software Development

Computer Engineering

App Development

ICT Infrastructural Services

ICT- Modes of DeliveryMode 1 - ICT firms indicated that the nature of their work the majority of firms do a large percentage of their work virtually

Relationships play a key role in getting jobs.

ICT- Standards and Certification There were no specific standards and certifications required in the market.

Reputation is critical for ICT service providers to get work.

Co financing Assistance Assistance with legal services directly related with penetrating the Barbados and Jamaican market

Regulatory Guide

Temporary Stay CARICOM nationals can apply for a CARICOM skills certificate.

Trinidad and Tobago nationals meeting the above criteria can apply to obtain a skills certificate at the Ministry of Foreign Affairs.

Once the service provider obtains the certificate they are permitted entry into Barbados for six months.

Service providers entering Barbados using a skills certificate are expected to register in Barbados upon entry.

Temporary Stay CARICOM nationals with CVQ for vocational skills are also eligible to enter Barbados for a 6 month period.

Business persons with a valid contract are allowed entry into Barbados for the duration of the contract. At the border, service providers would permitted to entry for 6 months. Service providers with contracts exceeding 6 months are required to follow up the Immigration department to extend their stay.

Temporary Stay Business persons with a valid contract are allowed entry into Barbados for the duration of the contract.

At the border, service providers would permitted to entry for 6 months.

Service providers with contracts exceeding 6 months are required to follow up the Immigration department to extend their stay.

Establishing a Commercial Presence Companies interested in assigning senior management and crucial technical persons to their Barbadian operations are required to submit the following to the information division:

Valid Passport

Return Ticket

Proof of financial resources for personal maintenance, namely credit cards, travellers’ cheques, cash or combination