The island’s construction industry is heading for a slump because building projects are being held up by delays within the Department of Planning, insiders fear.

A number of industry experts told The Royal Gazette this week that, although the sector had been booming in recent years, work was beginning to dry up — and that new projects expected to have already come online were still waiting for approval by the department.

The sources claimed that a combination or staff shortages and red tape was creating a bottleneck, causing project approvals to be delayed by months.

Anthony Pearman, head of Aptech Granite & Marble Ltd, told The Gazette: “Currently the industry is at a standstill on account of delayed planning approvals.

“Contractors and subcontractors are having to implement reduced hours in order to lengthen a project until a permit is approved. We can't plan our workloads nor can we estimate a project if there is nothing being released.”

According to Mr Pearman, as many as 400 planning applications submitted to the Department of Planning are still awaiting approval.

Mr Pearman has formed a group of more than 50 construction workers from a number of companies calling for the planning department to be abolished, with civil servants being replaced by industry experts.

He said: “We have around 2,200 to 2,500 people in the construction industry that contribute a steady revenue stream to this economy — approximately $250 million, or between 5 per cent and 10 per cent of GDP.

“Slowing this industry down can throw this frail economy into a depression with dire consequences for the economy as a whole.

“Our members have deep issues trying to explain to clients that simple permits we used to call ‘one day permits’ are now taking three to six months for approval, while a full Development and Planning application is taking between one and two years.

“It is not good and it won't surprise me if some contractors start sending their employees home and cancelling work permits because there is nothing to build or renovate.

“That is not good for the industry or the economy.”

Mr Pearman’s concerns were supported by Tom Sherratt, a quantity surveyor and managing director of Outlook Construction Consultants Ltd.

Mr Sherratt said: “At OCC we are seeing indications that the construction industry is headed towards decline for the first time in over a decade.

“General contractors are reaching out to ourselves and other industry partners on a regular basis looking to secure work for Q3 2025 and beyond. We haven't seen this level of outreach since the economic decline Bermuda experienced in 2010.

“It has also become apparent over the past 12 months, that the Department of Planning’s ability to process development applications has become increasingly compromised. We are aware of dozens of applications in planning which are overdue for processing.

“Many of these applications are for 'real projects', meaning that as soon as the plans receive approval, these projects will go out to the local market for pricing and implementation.”

According to Mr Sherratt not all delays were the fault of the department, but he added that staff shortages, “performance issues” in positions that are filled and “basic workflow issues” were all compromising the effectiveness of the department — and the industry.

He said: “The combination of these issues is creating a perfect storm, with the potential result contributing to a significant number of construction layoffs in the near future.

“Now is not the time to try to improve drawing and information standards, or make plans to have strategic meetings to discuss future implementation of complex solutions.

“It is imperative that the Department of Planning sticks to the basics, and focuses all available resources on simply approving development plans and clearing the current backlog.”

The Department of Planning has confirmed that staffing numbers are down by more than 20 per cent.

There are 36 posts within the department but only 28 are filled. Vacancies exist for two planners, an enforcement officer, one plans examiner, a building executive, and an administrator.

Last night Diallo Rabain, the Minister of the Office of the Cabinet, who has oversight of the Department of Planning, recognised that the department faced issues — and promised action.

The minister — who has been in the job less than a month — said he was “struck by the volume and urgency of planning concerns that have come my way”.

After being sent question by The Royal Gazette, Mr Rabain said: “I've received e-mails, WhatsApp messages, and countless conversations with people stopping me in the street, all pointing to one thing — Bermudians care deeply about how our planning system functions and want to see it work better.

“Whether you are a homeowner seeking approval for a small renovation, a contractor eager to break ground, or a professional trying to move a project forward, I hear you. We hear you. And we are taking this seriously.“

Mr Rabain acknowledged that the current system “is not meeting expectations” and promised an “action plan” of initiatives to bring about change.

These included stakeholder engagement sessions, industry collaboration and public feedback.

He also defended Department of Planning staff, claiming: “They are hardworking public servants committed to fairness, justice, and professionalism.

“Despite facing significant pressures and, at times, unwarranted criticism, they continue to serve with integrity, ensuring that all building operations comply with current codes and that planning policies are upheld to protect our community's welfare.

“This effort is not about pointing fingers. It is about moving forward together.”