The construction industry is a very unique and critical industry of Barbados, whose contribution to national development can not be over-emphasised. This paper examines the role which the industry has played in the economy, with the aim of offering a better insight on the issues which contribute to its performance. The paper is organized into four major sections. The first section provides some insight into the nature of the construction industry, and its peculiarities as well as its principal players are highlighted. Section 2 offers a historical analysis of the industry’s contribution to the performance of the economy. This includes a discussion of the factors affecting the demand for the industry’s product. Section 3 looks at the future of the industry and its growth prospects. The paper concludes with a brief look at some of the potential challenges the industry is expected to face in the future.