Parliament will debate new laws on the licensing of contractors on Tuesday after the Nationalist Party challenged a legal notice published by the Planning Ministry in July.

The opposition says the new regulations should go further.

The new rules require contractors to be licensed to build, demolish and excavate buildings by January 2025. They need “provisional approval” to continue working till then.

The new rules also require contractors to have an insurance policy covering third-party damages and damages to workers for any work done.

The PN will be presenting their amendments to the bill during Tuesday’s parliamentary sitting.

PN planning shadow minister Stanley Zammit said the amendments have three key points.

We should not limit ourselves just to the point of building a structure but extend licensing to the point of when a building is usable- PN planning shadow minister Stanley Zammit

Currently, licensing only covers construction, demolition and excavation professions. The PN amendment proposes that all occupations related to the completion of a building, such as painters and plasterers, should be included, Zammit said.

“Most construction site incidents happen at the finishing stage,” Zammit said.

“This is the most crucial point. We should not limit ourselves just to the point of building a structure but extend licensing to the point of when a building is usable,” he said.

The second point revolves around insurance.

As the government legal notice stands, contractors need an insurance policy for any work done covering third-party damages and damages to workers.

PN proposing contractors have permanent insurance policies

The PN is proposing that contractors have permanent insurance policies on their operation and not specific works.

Zammit said that as the law stands, contractors are not covered for what happens while works are not in progress.

The Malta Developers’ Association have made similar calls for mandatory long-term insurance.

However, the Insurance Association of Malta has defended the government’s decision not to make insurance coverage a prerequisite for licensed contractors, saying there is no such thing as annual insurance to cover all risks.

The PN is also proposing more compliance tests including with the tax authorities and Department of Industrial and Employment Relations. 

Contractors would also have to undergo environmental, social and corporate governance audits, should the government accept the PN proposal. 

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