BQ Contractors Limited

Transcription

July-September-2011-Final.indd 1
2011/08/18 11:38 AM
From the Editor
Celebrating 50 years of progress
Contents
Construction industry builds on gains
achieved with independence ......................4
Lemunge: Contracts between Employers
and Consulting firms for supervision
of road works should be revisited .............12
New association of contractors sets out
ambitious agenda ....................................18
Leader of CATA decries ‘lack of
seriousness’ in efforts towards united
front ........................................................23
Fifty years of ALAF Limited
Manufacturers of quality steel pipes.........25
Anthony Almeida R.I.B.A: Quality
and not quantity was the aim ..................27
BQ Contractors shows the way as
top Mid-Sized Firm .................................32
Interview with CRB Chairperson ............34
Where we were and where we are ............35
Civil Works Contractors see bright
future ahead ‘if empowered’ ....................36
CRB Registrar: Compliance is
increasing ................................................39
Editor
Eng. H. N. Ilahuka
MediaCom Ltd
P. O. Box 105122
Dar es Salaam
Tel: + 255 22 2617082
E-mail:[email protected]
Editorial Committee
B. C. Muhegi
M. Bairi
S. Njaa
V. B. Lobo
D. S. Msekeni
A.G Uriyo
H. N. Ilahuka
- Chairman
- Member
- Member
- Member
- Member
- Secretary
- Editor
The Contractor is published quarterly by the
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Dar es Salaam
Tel: + 255 22 2131169 / 2137962-3
Fax: + 255 22 2137964
E-mail: [email protected]
Website: www.crbtz.org
The views expressed herein do not necessarily reflect
the official views of the Contractors Registration
Board or its individual officers, or any particular
organisation.
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Printed by
W
hile putting together this
special issue, which marks 50
years of our nation’s independence
and the role of the construction
industry in the development thereof,
we were spoilt for choice about
what to include: The industry has
been part and parcel of the nation’s
development plans so much that
one would be hard pressed to
identify one important area where
the construction industry has not
played a major part. Be it in sport
(stadiums), works (roads, bridges,
airports and ferries), communications
(communication towers and related
infrastructure), to mention just a
few –contractors have been at the
forefront. It is not an exaggeration
to say that when one looks at the
nation’s infrastructure one feels a
tremendous sense of pride in the
role played by contractors and the
construction industry in general.
So, it is an opportune moment for
contractors to pat each other on
the back and savor the fact that
they have contributed immensely
towards the nation’s progress. Should
firms or individuals congratulate
each other when they do what
they are supposed to do? Yes: when
critics seem to rejoice at every
misstep you make, and you get
an opportunity to sum up your
impeccable achievement, it is good
to blow one’s own trumpet. Indeed
the industry has come to embrace,
over the years, an important concept
called excellence.
Excellence is multifaceted
and it entails giving priority to
considerations of quality of the works,
safety to workers and the general
public, the ethics, the environmental
and social impact concerns. To these
add the consideration of price –the
right price – and you get Value for
money.
Value for Money - a concept that
requires such attitude and culture
which seek continuous improvement
- has taken root among industry
practitioners. Contractors and the
industry in general now know
how to deal with challenges that
hinder Value for money outcomes,
namely, incompetence, corruption
(when contractors collude with
supervisors to take shortcuts during
project implementation), lack or
disregard of professional ethics
(when practitioners become greedy
and corrupt and over design in order
to make the project expensive to
increase their share if –as always – the
fee is a percentage of project cost),
failure to observe the interests of the
public (disregarding environmental
or social impacts). Other challenges
include rising energy costs, limited
resources, safety and health concerns,
and dramatic weather, issues which
have led to a growing awareness
of the impact humankind has on
sustainable development for our
own survival.
The construction industry has a
responsibility to make a positive
difference for sustainable
development. And this is not
the business of the Tanzania
Construction industry alone but it is
the responsibility of everyone on the
planet: Today’s structures must be
environmentally friendly in that they
should improve the air and water
quality and save energy.
When the country became
independent in 1961 the
construction industry was a low-key
business. There were no contractors
as we know them today, for example,
there were no quantity surveyors nor
were there professional engineers
while there was only one architect.
In fifty years the industry has seen
thousands of these practitioners
and it is inevitable that not all
will have benefited fully from the
opportunities that came by.
Although some projects like the
Bank of Tanzania and the National
Parliament were too complex to be
undertaken by local contractors,
some of those contractors gained
access to these projects through
subcontracting –thereby getting
an opportunity to learn and perfect
their skills and knowledge which
may have become handy in their
subsequent projects. They may have
learned the hard way, and at times
even losing money through mistakes,
but there is ample evidence that if all
factors are considered, they gained
more than what they lost.
Let the spirit that has prevailed in the
last five decades guide the industry
in the years ahead.
Cover photos : In fifty years the nation’s construction industry has done much to improve the quality of life of the people as depicted in the photos
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The Contractor, July-September, 2011
2011/08/18 11:45 AM
A Word from the Registrar
Dear Readers,
As Tanzania celebrates 50 Years
o f I n d e p e n d e n c e, w e t h a n k
Almighty God for enabling us be
witnesses and to be part of this
momentous occasion. I take this
opportunity, on behalf of the Board
and contracting community to
extend warm congratulations to the
President of the United Republic of
Tanzania, Dr. Jakaya Mrisho Kikwete,
the Government and the nation as
a whole.
As the nation celebrates 50 years,
it is an opportune moment for
CRB, Contractors and Stakeholders
to take stock, review history of
the contracting industry and its
development, acknowledge failures
(if any), appreciate the achievements
gained. The Board joins the nation
in celebrating this occasion by
dedicating the Annual Consultative
Meeting 2011 which is titled “50
Years of Independence: Empowering
Contractors to Meet the Challenges
Ahead”. We have similarly dedicated
this issue of The Contractor.
This Special Issue has gone back
through a time tunnel to inform
the contracting community where
we came from. It traces contracting
development prior to independence
until the present. Indeed, it touches
on the various challenges that have
been faced and that are still being
faced. Achievements are shown, but
also failures where they occurred
are also mentioned, together with
impeding challenges. The various
articles herein point to interesting
facts and interventions. We also
note that efforts at seeking solution
to industry challenges started quite
some time back. Moreover, we
clearly see that the Contractor has
played an important and influential
role in building the nation that we
should be proud of.
Interviews have been held with
people who were there at the time
of independence and are also still
living, so that we could get their
perspective of whether the dreams
that they dreamt of at the time of
independence have materialized.
We have also carried out a number
of profile inter views with the
Associations.
I can not drop my pen without
congratulating fellow contractors
and other contracting stakeholders
who emerged among 100 midsized firms that were awarded in
July 2011. Warm congratulations
are in order to BQ Contractors who
emerged first among the various
mid-sized firms. This also extends to
other contractors who have shown
Tanzania and the world what a
formidable force contractors are. We
wish them well, and pray for the day
that they may appear among top
large-sized firms.
I do hope that the various articles
will prove to be informative and
that they will stir up the community
to take up the challenges that exist.
May I take this opportunity to thank
all those who have contributed in
making this Special Edition a reality.
May Almighty God continue to
guide us in this noble objective of
Empowering the Contractor of Today
to Meet the Challenges of Tomorrow.
B.C. Muhegi
REGISTRAR
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2011/08/18 11:45 AM
Construction industry building on
gains achieved with independence
I
n the last 50 years, the construction industry has evolved
from an insignificant industry at independence to a
strong and dependable segment of the economy. There
is no doubt that the construction industry has undergone
fundamental changes over the period. The Contractor has
traced the transformation that the industry has gone
through by seeking the views of industry practitioners
who are conversant with the sector.
Half a century after independence, the construction
industry has made impressive strides on many fronts,
albeit not lacking in shortcomings too. One notes a
remarkable metamorphosis in the industry when talking
to some construction practitioners of the old era –and
some from the recent past, including Architect Anthony
Almeida (90), James Kikenya (84) and Engineer Nisephor
Lemunge (71).
The construction industry before
independence
The construction industry has come a long way from
the days Tanganyika got independence on 9 December,
1961 when there were only two architects, namely Arch.
Anthony Almeida, Arch. Beda J. Amuli and Arch. Mohamed
Sumar and six engineers by the names of James Kikenya,
Felix Mchaki, Aniseti Shayo, A. E. Mbuya, G. Kimbuzi and
M. Ngadaku.
At the time of independence, there wasn’t a single local
contractor. The few contractors available were mainly
foreigners; a few self-styled Greek contractors and some
Asian contractors who had moved here from Kenya. A
few of these contractors had permanent establishments
in Tanganyika. They included Vitabhai Construction, V. M.
Chavda, Pioneer Construction, Tanganyika Engineering
Company (TECO, now known as Mwananchi Engineering
Contracting Company (MECCO), UNICO, A. G. Abduhussein
and G. A. K. Patel and Hem Singh who had moved from
Kenya.
The slow development of the local industry is attributed
mainly to the lack of interest on the part of the trustees
(Britain) to make long-term infrastructural investments
in the country – this due to Tanganyika being under UN
trusteeship. The few project conceived were solely for
the purpose of enabling the government of the day to
function and produce raw materials for the export to
the British Empire. In addition, most activities for public
building, road works and other civil works were executed
by the Public Works Department (PWD), a government
department. Although there were a number of private
sector developments, mostly residential buildings, the
government remained the main client. Most of the large
projects in those days were undertaken by contractors
from Kenya and Israel.
Before engineering courses started at the University of
Nairobi, the Engineering School Kampala used to train
Engineering Assistants who were later promoted to full
engineers through practicing in the civil service. About 12
Tanganyikans, including Mahanyu, and Kikenya graduated
from that institution before independence. Tradesmen
were groomed at Moshi and Ifunda technical schools,
which produced competent local carpenters, masons and
fitter mechanics. However, most of the tradesmen were
Asians and Luos from Kenya.
Building materials were imported from either Britain or
Kenya. It must be remembered, however, that the British
did not have any interest in establishing industries
– thus even cement and steel were brought in from
abroad. Importation of these materials was guaranteed
and timely, remembers Arch. Almeida who has, to his
credit, designed quite a number of buildings – including
Matasalamat Mansion, Tanganyika Library, National
Insurance Corporation headquarters, Tanesco Training
Centre (now Ilala Zonal Office), Dar es Salaam Technical
College (now Dar es Salaam Institute of Technology) and
Kisutu Girls’ School, just to mention a few.
Dar es Salaam is dotted with some beautiful, small, old
buildings that were built during the pre-independence
Landmark at Kigamboni: Old control tower
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2011/08/18 11:45 AM
era but these will soon disappear because new buildings
in new designs are being erected fast to replace them.
Post-independence to
pre-liberalization (1960 – early 1980s)
The post-independence period saw a boom in the
construction sector as the new government tried to
provide infrastructure to meet the needs of the newlyindependent Tanganyika. Most of these projects were
mainly foreign-financed and focused on roads, education,
health and the social sector. Such projects attracted a
greater influx of foreign contractors and engineering
firms into the country. Firms like Stirling Astaldi, Neloteer,
Allied Plumbers, Allied Construction, and others, entered
the country that time.
Among the first local construction companies which
came to the scene was the state-owned National
Housing Corporation (NHC) led by one of the early preindependence graduates of the Engineering School
Kampala, Mr. James Kikenya. Kikenya was first appointed
there as Engineer in 1965 and later became its General
Manager. Before coming to NHC, Kikenya first was
employed by the Public Works Department at Tabora
(1956) and later had opportunities to study in
Germany and then in the United Kingdom.
Mr. James Kikenya
–including the flats at Drive-in and Oysterbay police
units adjacent to the US Embassy in Dar es Salaam and
Mzinga Corporation units in Morogoro.“The Government
badly wanted to raise the standard of living of the people
but the shortage of decent housing was the biggest
hindrance, that’s why such units became a common
Probably what is not immediately apparent
to many people now is the fact that NHC,
then registered as Contractor Grade 3, was
constructing its own houses. According to
Kikenya the mainstay of the corporation activities
was in “the all-important area of low cost housing
and slum clearing” throughout Tanzania. Medium
cost units like Keko NHC Flats were constructed
by private contractors for the corporation, he
says. “In the slum areas we would pull down
the ramshackle shacks and construct a new
low-cost house for the owner, who would pay a
small rent over a period until we recovered the
cost,” he says. “It was not only quite satisfying
to see slums disappearing but also to see the
transformation of the lives of the people as a
result of improved housing,” he adds. On new
areas like Kinondoni, Mburahati and Keko in Dar
es Salaam and elsewhere upcountry, we would
build units and rent them out straightaway.
“Some of the medium cost units were rented out
while others were provided on tenant-purchase
arrangements,” he says.
According to Kikenya, the National Housing
Corporation had two important subsidiaries,
namely National Estates Designing Company
(NEDCO) and Tanzania Concrete Articles
(TACONA). These subsidiaries were providing
top-quality services and their contributions to the
development of the construction industry were
remarkable. NHC was undertaking construction
for state institutions like Magereza and Police and
all the houses we built were designed by NEDCO
Modern harbour control tower, Dar es Salaam
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2011/08/18 11:45 AM
Construction at the University of Dar es Salaam in the early 1960s (Photo by courtesy of Tanzania
Information Services - Maelezo)
feature in almost all big towns,” he says. Another scheme
in this effort, which was undertaken by NHC, was the Sites
and services project, which was launched in Mwenge, Dar
es Salaam in 1975. “NHC acquired plots where we would
build a foundation and then sell it to a Client, who would
undertake to complete the construction on his own.”
Kikenya then gives an anecdote on why the place is called
Mwenge: he says because the scheme was a national
agenda, it had been arranged that the Vice President,
Mr Kawawa, should launch it; however, it became known
rather late that on that same day Kawawa was to receive
the national torch at another area in the city. What to do?
An idea was put to Kawawa that he could do both at the
Sites and Services location –which would also help to
lift the profile of the scheme. Kawawa did that and the
village, which saw both events, was thus named Mwenge!
Kikenya says the biggest challenge the construction
industry faced in the early 60s and 70s was the lack
of skilled labour as there were very few technical
training institutions. However, the industry managed to
supplement the few who were coming out of those few
institutions by teaching on site. “Contractors of those
days did a commendable job because they effected this
knowledge transfer as a national duty,” he says.“Even local
Indian contractors, who were clandestinely bringing in
skilled labour from India, he says, “they still offered our
boys on site training wholeheartedly.”
Kikenya says unlike what he hears today, corruption was
not an issue then. As contractors, NHC did not meet any
corrupting influences from any quarter, he says. Only petty
thieving of materials at the sites, “but even this was at a
very small scale because materials needed by a particular
project were computed diligently beforehand, and the
checking during the project was quite thorough.”
The 1970s saw a sharp increase in construction activities
under newly-formed parastatal organizations such as
the National Bank of Commerce, National Insurance
Corporation, Tanzania Housing Bank that invested
heavily in real estate to fill gap which came about
when big private firms left the scene because of the
Arusha Declaration. However, many small local building
contractors also emerged with varied backgrounds and
competence.
Foreign currency restrictions, coupled with monopoly
distribution of building materials by state-owned
companies, led to poor availability of building materials.
Newly established state factories such as Twiga Cement
and Tanga Steel Rolling Mill were gripped with operational
problems resulting in erratic and inadequate outputs on
their part. Also, since most of the parastatals did not have
competent technical staff to manage their construction
projects, the quality of work deteriorated drastically and
corruption ensued.
The construction industry experienced further turbulence
in the period following the 1978 Kagera War, when foreign
currency restrictions became even more stringent. Many
clients were forced to suspend their projects due to lack
of funds. A number of foreign contractors left the country
at that time. It is during these times that local contractors
learnt to improvise with locally available materials,
recalling the use of terrazzo bathtubs and washbasins
for a certain housing project.
Some observers who were actively involved in the
construction industry say that contractors of the past had
an inbuilt appreciation of quality which is lacking these
(Continued on page 9)
6
2011/08/18 11:45 AM
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(Continued from page 6)
days. One of such observers id Eng. Nisephor Lemunge
who was General Manager of one of a few big stateowned companies, Mwananchi Engineering Constracting
Company (MECCO). He says that quality is evident inside
of the old Bank of Tanzania, the NIC Investment House
and the Extelecoms building. Eng. Lemunge contrasts
the beauty of those days and “to day’s world of plastic
beauty” exemplified by the love for artificial flowers, love
for cheap short-living decorated ceramic tiles, imported
artificial “wooden” doors and furniture some covered with
plastic leather.” He also observes that the performance
of consulting engineers leaves much to be desired. “It is
also unfortunate to state that the kind of attention that
Consulting Engineers used to pay to quality of road-works
has now been relegated to history,” he says.
It is acknowledged by all that it is during this transition
period that shoddy construction works became the norm.
The industry began having the tendency of delivering
projects late, with huge cost overruns. A project like Sukari
House, whose construction was begun by M/S C.E.B and
completed by M/S Builders Chavda, took 12 years to be
completed at double its initial price. The project was
stalled often, and for lack of very minor components
too. Practitioners on that project remember a point
where work was halted for 12 months while awaiting
replacement of a tower crane’s motor. Other projects with
similar catastrophes include the NASACO Housing Estate
and the TPTC Printing Unit, to mention but a few.
technologies. At the same time, economic reforms led to
restructuring and the eventual downfall of quite a number
of parastatals that had come to be the building industry’s
major clients. This resulted in a temporary lull in the
industry. The latter part of this era saw the reemergence
of private sector developers, though on a smaller scale.
According to industry observers, trade liberalization
made life easier for architects and building contractors.
Standards went up, availability of a wide range of
materials greatly improved and people could now afford
good-quality goods available on the local market.
It is this period that saw the emergence of local civil
contracting as a viable industry following the launch of
the Integrated Roads Project (IRP) in the early 1990s and
other civil works projects in the late 80s. Although there
were other civil works projects being executed earlier, it
was IRP which, for the first time, made deliberate efforts to
develop local civil works’ contracting capacity – previously
non-existent, as most civil projects were undertaken by
the MoW (previously known as COMWORKS or the PWD)
or foreign contractors. Since the demand for contractors
brought about by IRP could not be met by the emerging
local contractors, a fresh influx of foreign civil contractors
ensued.
Challenges of local contractors
The post-liberation period
(1980s – present)
The challenges facing local contractor, in the experts’
opinion, include lack of adequate work opportunities,
corruption, poor availability of credit facilities and
inadequate business skills.
Trade liberalization and economic reforms, which started
in the late eighties, had a significant impact on the
construction industry. Trade liberalization improved the
availability of construction materials and adoption of new
Work opportunities
In the past foreign contractors came to the country to
Construction site in Dar es Salaam: ‘Major progress has been made by the industry in the past 50 years’
9
2011/08/18 11:45 AM
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construct specific projects like roads, airports, harbor
works, large building works, and hydropower projects
etc and normally left the country on completion of a
project. They were mostly European companies. The
foreign contractors were therefore not a threat to the
local contractor. Today, we have foreign contractors who
will bid for any size of job that is advertised and open
to foreign competition. Some of them quote very low
prices and particularly for building works. Local firms
feel threatened in that although foreign firms constitute
about 4% of all registered contractors they execute
about 60% of the volume of work in money terms. These
foreign firms have the equipment, the working capital
and the experience while the local firms have no hope of
attaining these assets in the near future. So, assisting the
local construction industry is the way to go. But, experts
say, as long as we continue relying on foreign aid, it will be
difficult to create a sustainable local construction capacity.
But Eng. Lemunge sees the opening up of the East African
market as “a disaster” for the opportunities of small
Tanzanian Contractors, especially those registered in
Class Seven to Class Three categories. He says the Kenyans
are generally better equipped, better experienced, more
aggressive and can more easily raise working capital from
financing institutions in their country. He suggests that
Kenyan Contractors should be allowed to come into the
country only as other foreign firms.
Corruption
There is a perception that corruption is endemic in the
construction industry and Eng. Lemunge, for one says
this vice, at least in the construction industry, is mostly
“employer driven” as there has always existed the view
that contracting is a highly profitable business and that a
contractor can easily part with 20 percent of the contract
price without difficulty. Thus on signing a contract the
employer expects something. There is also the mindset
that whoever awards a contract “must be given something
as a reward.”Thus from the top down to the office cleaner
they expect something from the contractor. Contractors
who do not cooperate are often denied jobs or face
unbelievable harassments on site.
But how was corruption tackled in the construction
industry of the 1960s and 1970s? Eng. Lemunge says that
apart from the existence of the Anti-Corruption Squad
and the Leadership Code there was apparently no any
special way corruption was specifically tackled in the
construction industry. He attributes the current state of
corruption to “living in an environment where society
tolerates corruption, and where success is measured by
possession of material goods and luxurious living.”
Finance and equipment
One of the most critical challenge facing most local
contractors is poor access to credit in terms of working
capital and hire purchase of equipment. Eng. Lemunge
cites a study which was conducted by International
Labour Organization (ILO) on the problems facing the
development of local contractors in Eastern and Southern
African countries, Tanzania included. He says it showed
that the most critical resource problems facing local
contractors are: lack of construction equipment and
the fact that they do not have easy access to credit for
working capital financing. In this regard, the initiatives of
CRB of setting up the Contractors Assistance Fund (CAF)
and the proposed Construction Industry Development
Fund (CIDF) as commendable steps in the right direction.
Eng. Lemunge also suggests the establishment of
government-owned zonal plant hire pools so as to
enable contractors to have easy access to construction
equipment; he also asks the government to provide
seed money for the initial operation of the Construction
Industry Development Fund (CIDF).
Business management skills
Training should be given its due recognition. Experts
warn that local firms cannot compete evenly with
foreign counterparts unless they adopt modern business
management skills. These days a competitor can have
an edge due to possession of modern technology and
the information superhighway. Construction industry
practitioners should subscribe to continuous professional
development in order to keep abreast with modern
technology and business trends in the industry. CRB
is commended for the effort it has put in developing
the knowledge base of local contractors through its
Sustainable Training Programme.
On formal training, Eng. Lemunge is quite happy with the
training being offered by institutions in the country. He
says the graduates of these institutions are good “when
given the opportunity.” However, he acknowledges gaps
when it comes to understanding contracts – which is
vital.“Our educated people are generally too weak in the
English language yet English is the applicable language
for all construction and engineering contracts,” he says.
All experts say major progress has been made by the
industry in the past 50 years. Over the period, they say, the
country has managed to lay down the proper foundation
for successful development of the industry: we have CRB,
NCC, ERB, AQSRB, PPRA, the Public Procurement Act (2004)
and it’s Regulations (2005), TACECA, CATA, PCCB and the
Construction Industry Development Strategy formulated
by the government in the early 1990s. What is required
now is commitment to the ideals enshrined by and in
those documents and organizations, they say.
There is agreement among observers that the surge being
witnessed now in the construction industry is a precursor
to bigger opportunities which contractors should prepare
accordingly to take part in.
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2011/08/18 11:45 AM
Interview
Lemunge: Contracts between Employers and Consulting
firms for supervision of road works should be revisited
Eng. Nisephor Marandu Lemunge (71), who graduated with a degree of B Sc Eng.
(Hons) from University College London, University of London, in 1967 and an
M. Sc. Eng from University of Washington, USA, in 1973, has practiced engineering
in several capacities first, upon graduation, in United Kingdom and later in
Tanzania. His first appointment here was with Sir Alexander Gibb and Partners,
Consulting Engineers, where he worked as Site Engineer from 1969 to 1970. He
was later appointed Regional Engineer, Mbeya (1970 – 1971), Assistant Chief
Engineer, Ministry of Communications and Works (1971 – 1974) and General
Manager, Mwananchi Engineering and Contracting Company Limited (MECCO)
(1974 – 1981).
He now works as a freelance Consultant and Civil Works Contractor.
Eng. Lemunge
Recently, The Contractor asked for his opinion on a number of issues, and this is what he had to say.
Q: If there is one particular project which stands out
in your memory of many years (in terms challenges or
complexity) what is it and what makes it special?
As you know I was General Manager of MECCO, a state
owned contracting Company. MECCO was a partner in the
Consortium that built the Kidatu Hydroelectric project.
This project was large and complex but also technically
quite challenging in many ways; for example, construction
of the head race tunnel and the penstock involved
tunneling in stratified and loose rock that required a lot
of stitching and guniting. I had worked in tunnel works
in London, which involved soil excavation that posed
a constant danger of working under compressed air
because of ground seepage but apart from this it was
nothing compared to Kidatu. Coming to the surface,
and talking about challenging projects, one should visit
Kariakoo Market, built by MECCO, and see the quality of
work in casting in-situ the concrete columns and the
several identical curved reinforced concrete roof shells.
It requires total commitment to quality, and thinking
beyond conformance to structural specifications to
produce that kind of work.
Q: What values or work ethic which contractors (and
individual practitioners) of the past had and which you
still admire?
Contractors of the past had an inbuilt appreciation of
quality which is lacking these days. Go round Dar es
Salaam take a quick look outside and inside of the old
Bank of Tanzania (which was mysteriously gutted by fire!),
the NIC Investment House and the Extelecoms building
and compare the finishing work on these buildings with
the kind of finish achieved on the recently built, heavily
plastered and painted buildings and you will see what I
am talking about. It is now a world of plastic beauty: love
for artificial flowers, love for cheap short-living decorated
ceramic tiles, imported artificial ‘wooden’ doors and
furniture some covered with plastic leather; etc. All these
do reflect, I believe, the mindset of the Employers and not
that of our Architects! It is also unfortunate to state that
the kind of attention that Consulting Engineers used to
pay to quality of road-works has now been relegated to
history. The seriousness that was given to project design
in the office was equally if not more so shown on site
supervision of the works. On one of the road projects in
Tanzania the Consultant had several Engineers working
on every aspect of the works. In fact never will you find
a contractor working on any pavement operation or
bridge work without an Engineer from the Consulting
Engineering firm being present paying attention to
quality assurance and quality control. These days there
appears to be too much reliance on what is written in
the contract, namely it is the contractor’s obligation
to execute, complete and correct defects, even if the
engineer had approved work later on found to be faulty,
i.e. approval does not shift liability. But this being so, does
not warrant blatant laxity on the part of the Engineer. It
is my view that the selection process and consultancy
contracts between Employers and Consulting firms
particularly for supervision of road works ought to be
revisited so that the obligations of the Consulting firm
are stated in more easily verifiable terms than the current
contracts which simply state that the consultant shall
carry out his obligations with due diligence, efficiency
and with generally accepted professional standards and
practices. This is not adequate for assignments involving
works supervision.
Q: Narrate the challenges you faced in the past which
have disappeared because of technological advances
It is changes in the information and communications
technology that can be said to have greatly eased
management problems in the construction industry,
apart from this we still depend on Tower Cranes for tall
buildings, Graders and the same types of earth moving
equipment for road works; most of these equipment are,
however, much more efficient, but also very sensitive
to chakachuaji fuel (fuel purposely adulterated with
12
2011/08/18 11:45 AM
2011/08/18 11:45 AM
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kerosene). The mobile phone, the computer, email,
modern surveying instruments etc have changed the life
of a serious contractor. There is also a bigger choice of
equipment and tools available in terms of size (capacity)
to cater for large to small works of all types, but while
this equipment exist their purchase price remains
unaffordable to many contractors and those who can
afford to acquire them are faced with the acute shortage
of skilled operators.
Q: If you could be provided with every resource you need
to help local contractors advance their competitiveness,
what would you ask for?
I am not sure if I understand your question, but I think
you want me to list the main resource-related problems
hindering the development of local contractors. A study
I carried out for the International Labour Organization
(ILO) on the problems facing the development of local
contractors in Eastern and Southern African countries,
Tanzania included, showed that the most critical resource
problems facing local contractors are: lack of construction
equipment (they do not own the necessary construction
equipment because they do not have the capital for
buying them, nor are there plant hire companies from
which they could hire the necessary construction
equipment); they do not have easy access to credit for
working capital financing. So to answer your question
as to what resources I will ask for in order to advance the
local contractors’ competitiveness I have two answers.
First I will ask for the establishment of government-owned
zonal plant hire pools so as to enable contractors to have
easy access to construction equipment; secondly I will
ask the government to provide seed money for the initial
operation of the Construction Industry Development
Fund (CIDF).
Q: What are the differences in the way
local contractors saw foreign contractors
in the past and the way they see them
now?
In the past foreign contractors
came to the country to construct
specific projects like roads,
a i r p o r t s, h a r b o r wo r k s,
large building works, and
hydropower projects etc
and normally left the country
on completion of a project. They were mostly European
companies. The foreign contractors were therefore not
a threat to the local contractor. Today, we have foreign
contractors who are almost here to stay. They will bid
for any size of job that is advertised and open to foreign
competition. Some of them quote very low prices and
particularly for building works. Local firms feel threatened
in that although foreign firms constitute about 4% of all
registered contractors they execute about 60% of the
volume of work in money terms. These foreign firms have
the equipment, the working capital and the experience
while the local firms have no hope of attaining these
assets in the near future.
Q: What would you consider to be the most innovative
technology in the construction industry today?
Sorry I cannot think of one immediately now; but let me
say that our industry is not famous for major innovations.
We use the same means and methods for decades.
Q: What can Tanzanian contractors expect to gain in
the opening up of the East African market?
Opening up of the East African market will spell disaster
for the small Tanzanian Contractors, especially those
registered in Class Seven to Class Three categories.
The Kenyans are generally better equipped, better
experienced, more aggressive and can more easily
raise working capital from financing institutions in
their country. Many Tanzanians seem not to be aware
that economically Kenya is a giant when compared to
Tanzania. Just consider the fact that one US Dollar is
exchanged for 82 Kenyan Shillings while the same Dollar
is exchanged for 1,500 Tanzanian Shillings. It is my view
therefore that Kenyan Contractors should be
allowed to come into the country only as
other foreign firms.
NIC Investment House built by MECCO
15
2011/08/18 11:45 AM
Q: Since there was no regulation in the pre-CRB era,
how were ‘rogue’ and untrustworthy firms made to do
the right thing?
It is wrong to think that in the pre-CRB era there were
no regulations thus implying that it was a free reign
era where contractors could not be punished for
professional wrong doing. There was in existence the
Architects, Quantity Surveyors and Building Contractors
Registration Board which registered and regulated the
affairs of contractors in accordance with the Architects,
Quantity Surveyors and Building Contractors Registration
Ordinance of 1972. Contractors could be warned,
demoted, suspended, deleted from the register or even
taken to court depending on the offence. Prior to 1972
Building Contractors were registered and regulated by
the Ministry responsible for public works. It is true that
the current CRB strict regulations on Health and Safety
were not in place and therefore the rate of accidents on
construction sites was appalling. It is also true there were
some “rogue” contractors especially during the time of the
East African Currency Board who would deliberately front
load their bids so that by the time they had done 20% of
the Works they had collected about 50% of the contract
price, and would then abandon the contract and move
to Kenya then play the same game in Kenya and then
Uganda and finally re-emerge in Tanganyika with different
names and financially very liquid and thus able to register
as Class A company and establish a hardware shop on
the side. It is difficult to control such crooks even today,
especially where some employers are more interested in
the total price offered and do not rigorously examine the
pricing structure of the lowest evaluated bid.
Q: What are your views concerning the way our colleges
prepare future practitioners of the construction
industry?
Frankly I am quite happy with the technical education
offered in the country. I have worked with locally trained
Engineers, Technicians and even VETA-qualified Artisans
and they are good when given the opportunity. There
is only one big problem in our country and that is our
educated people are generally too weak in the English
language yet English is the applicable language for all
construction and engineering contracts.
16
Kariakoo Market which was built by MECCO
Q: How was corruption tackled in the construction
industry of the 1960s and 1970s?
Apart from the existence of the Anti-Corruption Squad
and the Leadership Code I do not think there was any
special way corruption was specifically tackled in the
construction industry of the 1960s and 1970s. It was
completely beyond imagination to have on the radio an
advertisement like the one where a young suitor is openly
required to declare that he owns a house, a car (Toyota
GX), a healthy bank balance and a Master Card before he
is allowed to marry an ordinary girl in the village. Where is
society heading to or are we telling our college graduates
to become big fisadis in order for them to get married?
Q: There is perception that corruption is endemic in
the construction industry. If you agree with this view,
what in your view, are the factors behind this state of
affairs now?
Corruption in the industry is mostly employer driven.
There has always existed the view that contracting is a
highly profitable business and that a contractor can easily
part with 10 – 20 percent of the contract price without
difficulty.Thus on signing a contract the employer expects
something.There is also the mindset that whoever awards
a contract he must be given something as a reward. Thus
from the top down to the office cleaner they expect
something from the contractor. Contractors who do not
cooperate are often denied jobs or face unbelievable
harassments on site. Then there are the outright crooks
that will go any length to seek contractor’s cooperation in
cutting corners and bending regulations in the awarding
of contracts just for the purpose of making big money.
Thus contractors are also to blame for the endemic
corruption in the industry. Your question as to what are
the factors propelling this state of affairs, my answer is
we are living in an environment where society tolerates
corruption, big offenders are not prosecuted and worst of
all success in the society is measured, as mentioned above,
by possession of material goods and luxurious living.
Q: Please comment on the progress made by the
industry in the past 50 years and what needs to be done
in the short term to move the industry forward.
Over the past fifty years the country has managed
to lay down the proper foundation for successful
development of the industry:
we have CRB, NCC, ERB, AQSRB,
PPRA, the Public Procurement
Act (2004) and it’s Regulations
(2005), TACECA, CATA, PCCB
and the Construction Industry
Development Strategy
formulated by the government in
the early 1990s. What is required
n ow i s c o m m i t m e n t t o t h e
ideals enshrined by and in those
documents and organizations.
In short we have now to walk
the talk.
2011/08/18 11:46 AM
2011/08/18 11:46 AM
New association of contractors
sets out ambitious agenda
P
roblems facing local contractors
today will soon be history thanks to the establishment of a
new contractors association, which
has promised to provide a solution
to their woes.
The Association for Citizen
Co n t ra c to r s Ta n z a n i a ( ACC T ) ,
which was registered in February
this year, intends to be a voice of
contractors in all matters of their
interest. According to Eng. Andrew
Mwaisemba, Chairman of ACCT, the
association will represent contractors
in discussions and consultations with
government regarding their welfare.
It also intends to foster accountability
in construction works so that every
contractor will perform their duties
in accordance with the Contractors
Registration Act and according to
conditions of contracts they sign.
Furthermore, the association seeks
to fight corruption in collaboration
with institutions like Prevention and
Combating of Corruption Bureau
(PCCB), Contractors Registration
Board (CRB), Public Procurement
R e g u l a to r y Au t h o r i t y ( P P R A ) ,
ministries and other stakeholders,
Eng. Mwaisemba said.
Like many other players in the
industry, Eng. Andrew Mwaisemba
says corruption is a big problem that
denies local contractors the right to
participate in many public projects
“[for even good contractors have
now been hooked to the bad game
played in the industry.” He says ACCT
looks forward to making the industry
corruption free one day. “Corruption
affects the quality of work for those
who think there is no other way of
winning tenders except through
bribery end up using the money
intended for projects to bribe officials
and go for cheap materials to fill the
gap,” he says.
Another objective on ACCT’s agenda
is to offer professional training to
contractors, especially in areas of
contract administration, tendering
and financial management among
others. It will also assist contractors
in accessing financial support which
is currently a challenge, he says. “The
association will collaborate with
bankers, suppliers and insurance
companies so they may assist
contractors depending on their
needs on credit terms,” he said.
Given the difficulty in accessing
loans from the banks due to what
Mwaisemba calls cumbersome
procedures and conditions, ACCT is
looking into the possibility of entering
into agreements with banks so they
may have special arrangements for
contractors. Talks are currently going
on with the United Bank for Africa
(UBA).
Plans are also afoot to get suppliers
agree to supply building materials
to contractors on a credit basis.
“This is why ACCT has a two-type
membership, one being for ordinary
members who are contractors
themselves and the other being
affiliate members who shall include
suppliers, manufacturers, banks and
insurance companies,” Mwaisemba
says. It turns out that some contractors
already have such agreements with
suppliers and joining the association
will only give suppliers assurance of
getting their payment.
ACCT, which currently has 22
members, started as a group of friends
who were registered contractors.
It was in the course of discussing
problems facing the industry that the
friends came up with an idea to form
an association which would serve
as a platform for discussions among
them and other industry stakeholders
regarding problems they face.
The association was formed by a
group of fifteen building and civil
contractors in different classes,
and one specialist contractor in air
conditioning, says Mwaisemba.
According to him, ACCT’s uniqueness
is that it is result-driven. They want to
bring about change in the industry
and make sure contractors enjoy
their cake in public procurement,
ensure they perform accordingly
and have access to loans. They plan
to establish a special fund through
which members, especially those in
lower classes, will be given financial
assistance such as advance payment
guarantee. “This is an obligation of
contractors themselves and if all
goes as planned, we will in future
establish a commercial bank and
other investments,” said Mwaisemba.
He says the association will achieve
much through networking, without
which contractors cannot fight
their common enemy or win the
battle “because we are fighting
for business opportunities.” Apart
from membership fees, ACCT’s other
sources of fund will be floating shares
to contractors, among other schemes
envisaged.
The Chairman of ACCT says the
tag ‘Citizen Contractors’ in the
association’s name is meant to
highlight the fact that it is “for all
local contractors who are victims
of circumstances.” Despite the
constitutional right given to citizens
of this country to have a chance
to par ticipate in any business
opportunity, he says, contractors have
for a long time not been getting this
opportunity “because of corruption,
irresponsibility and lack of patriotism
on the part of civil servants with
powers to decide who should be
engaged in public procurement.”
“[ These officials] are ready to use
any opportunity available in public
procurement for their own benefit
rather than following the laid down
procedures.” As a result, it’s the noncitizens who are given the upper hand
in accessing these opportunities,”
Mwaisemba noted.
Eng. Mwaisemba says lack of skills
has always been used as an excuse,
something he says is not valid. For
how would local contractors gain
competence if they don’t even get
opportunities to undertake small
works? After all, its local engineers
who work in foreign companies and
Mwaisemba wonders how they can
be employed by foreign companies
if they are not competent. That is why
ACCT invites only those contractors
who are serious to be members of the
association and who are interested
in bringing about change in the
industry, he says. “Clean contractors
who are ready to change professional
habits, those who can perform and
be ready to contribute not only to
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2011/08/18 11:46 AM
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2011/08/18 11:46 AM
the association’s development but to
the industry’s at large.” Mwaisemba
says his association will not tolerate
contractors who divert loans, do not
repay loans and those who do not
abide by professional ethics.
Mwaisemba says one of the reasons
local contractors face financial
challenges is because they don’t get
paid on time and therefore the small
capital that they have gets lost in
the long run. And contractors don’t
complain because they fear to be
victimized although, he says, the few
who dare to complain manage to get
paid though it’s not always that easy.
His association intends to train
contractors on how to avoid such
delays, say, by urging them to stop
working if they are not paid within
the contractual period. It’s because
of delayed payments that some
contractors fail to service their loans
accordingly and therefore end up
making a bad name for themselves, he
says. ACCT is already looking into ways
of ending delayed payments, which
are sometimes caused by delays by
consultants to certify claims. The
plan is to have an audience with the
National Construction Council (NCC),
Architects and Quantity Surveyors
Registration Board (AQRB), PPRA
and other players in the industry
to see on how the problem can be
solved. ACCT wants to tell them
what is exactly what is going on
in the industry by giving them
vivid examples and request them
to intervene. The association has
already met with CRB which he says
has been working as a contractors’
association for it sometimes speaks
for contractors, “in the absence of
contractors’ associations.”
“In the meantime, we are fighting
for small projects. Many Class One
local contractors have the ability to
undertake projects worth more than
20bn/- but all projects are given to
foreigners,” said Mwaisemba giving
an example of the construction of
University of Dodoma of which he
says 95 per cent was done by foreign
contractors. The quality of work,
according to him, leaves a lot to be
desired and nobody is questioning
the competency of the foreign
contractor. He says competency
on construction sites which local
contractors are said to lack involves
many players such as the client,
consultant, and others and that the
contractor should be the last player
to be questioned when it comes to
the issue of performance because
on site, he performs what has been
decided by the consultant. If the
consultant does not play his part
then everything goes wrong.
Although ACCT is still new in
the industry, it has a number of
achievements to pride in so far. It
has managed to change institutional
attitude and forced some clients to
follow procurement procedures as
stipulated in the public procurement
act.
“ We have also been seriously
sensitizing contractors to follow
these procedures and many have
succeeded,” said Eng. Mwaisemba. He
says he has been receiving up to five
contractors a week for consultation
on procurement matters and that
they have been more than glad to
help.
Eng. Mwaisemba believes that now
that ACCT is in place, contractors
should expect tremendous positive
changes in the industry because the
association plans to hold massive
awareness campaigns for the
public and contractors regarding
construction business because there
still is a lot to be done.
E n g. M w a i s e m b a c a l l s u p o n
contractors to play their part first by
complying with the law pertaining
to construction business before
demanding their rights.“Contractors
have a right to demand their rights
using laid down procedures but
they should unite if they at all want
to succeed and be happy in their
business,” he says.
21
2011/08/18 11:46 AM
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2011/08/18 11:46 AM
Leader of CATA decries ‘lack of seriousness’
in efforts towards united front
L
ocal contractors in Tanzania have been called upon to
join forces and form a strong association lest they get
completely banished from the business.
The call was recently made by the Secretary General
of Contractors Association of Tanzania (CATA), William
Ngowi in an interview with The Contractor. He says the
future looks bleak and warned that if local contractors
do not come together as one, they will soon be outdone
by foreign contractors who have already seen the
importance of doing so. He gave an example of Chinese
contractors in the country who have come together to
form an association.
Ngowi said CATA is at the moment not strong “because
of a low membership and a serious shortage of funds.”
According to him, the association has a membership
of about 439 contractors as opposed to the over 7000
registered contractors countrywide. “To be strong,
the association needs to have at least 50 per cent of
registered contractors as members,” Ngowi said, adding
that contractors need to understand the importance of
the association.
He said very few members attend meetings which are
held two to three times a year and he attributed lack
of interest in the association to “too much dependence
of contractors on lobbying to win tenders rather than
winning them through fair competition.” He accused
some contractors for attending meetings only when
they think they will get quick gains like getting projects
rather than focusing on sharing ideas and proposing
ways forward.
“It’s because of dependence on corruption that most
contractors don’t see the importance of improving the
welfare of the majority,” Ngowi says, noting that things like
getting advance payment guarantee for small contractors
or even bank loans can only be possible if contractors
have strong associations.
But because of lack of strong associations, a majority
of local contractors have not been benefiting from
the growth in the industry. This is why the industry is
dominated by a few foreigners who, according to available
statistics, take 70 per cent of all the market share of
construction works in the country despite constituting
only 3 per cent of the Contractors Registration Board
(CRB) register. “In real sense, local contractors are being
pushed away from the business very fast. Looking at the
mushrooming high rise buildings in Dar es Salaam for
example, very few have been built by local contractors,”
noted Ngowi.
In its efforts to have a strong association, CATA is looking
into ways of making membership to the association
mandatory, which they believe would make things easier
for the association to become a strong pressure group.
However, some observers say the move is likely to face
strong opposition from contractors who have a feeling
that CATA has not lived to their expectations. Speculation
is rife that some contractors have already withdrawn
membership.
However, CATA, which fails to fulfill some of its objectives
due to lack of funds (as it only depends on its few
members’ contributions), has a number of achievements
to look back on. For example, apart from offering security
declaration to its members in state-funded projects, CATA
managed to convince the government to bar foreign
contractors from participating in contracts below 1bn/- so
as to give access to local contractors. The association also
participated in proposing amendment of the 2004 Public
Procurement Act whose proposed bill might be presented
in parliament this year. Furthermore, CATA also succeeded
to lobby for inclusion in regional business consultative
meetings, which help it to know and notify its members
when work opportunities become available.
CATA is not as dormant as some people may be made to
believe: last month, its officials met with TRA officials to
see how things could be improved on the cumbersome
process regarding payment in VAT exempted projects.
Ngowi says it takes up to a year for a contractor to be
paid and CATA is proposing they be paid on a monthly
basis. CATA plans to meet the parliamentary committee
concerned on the matter, for it found out that there
was nothing TRA could do about it, since it is not easy
to change government regulations. “We spoke to the
Prime Minister who showed a positive sign saying
people in government did not know these things,” said
Ngowi. CATA is also planning to seek audience with the
Tanzania Bankers Association to see if they can find ways
to ease the financial burden on local contractors. While
talks could take long before a solution materializes, the
association deemed it important to establish a Saccos
(Savings and Credit Cooperative
Society) to start with. This will help
members to easily access bank loans
as well as equipment. CATA Saccos
has 21 members at the moment.
Ngowi said the Saccos members are
few because most CATA members
are not even aware it has been
established “since they don’t attend
meetings when they are called.”
He said branches will be opened in
the association’s regional offices in
future.
“But because of lack of strong associations, a majority of local contractors
have not been benefiting from the growth in the industry. “
N g ow i b e l i e ve s a re m e d y fo r
contractors’ problems lies with
contractors themselves and that
problems will not be solved
by individuals but through
associations.
23
2011/08/18 11:46 AM
2011/08/18 11:46 AM
Fifty years of ALAF Limited
Manufacturers of quality steel pipes
Q
UALITY of the products sets
a company apart from other
competitors in the similar field
and healthy COMPETITION results
into competitor’s continuously
endeavouring ways to improve
quality and add value to their
products.
Viewed from this angle, competition
directly influences quality.
In
a
competitive
environment,
whichever company succeeds in
having a better quality product as
compared to competitors, besides
other elements, can be rest assured
of market leadership and consumers
confidence.
The above describe the policies
and practice ALAF has adopted
since its inception in the year 1960.
The result of which is that ALAF
continues to command competitive
edge over the other competitors in
all the products it manufacturers of
which Steel Pipes is one of them.
ALAF Limited, formerly known as
Aluminium Africa Limited is among
the few manufacturing companies
that have been operating in the
country since pre-independence
time. ALAF was incorporated way
back in 1960 and is a nucleus of
the Aluminium and Steel industrial
sector in the country with state-ofthe-art manufacturing facilities at its
Dar es Salaam plant.
ALAF manufactures wide range of
products of international quality
standards for roofing and allied
applications under different brand
names viz. Galvanised Corrugated
Roofing Sheets which is known
as SIMBA (Bingwa wa Mabati),
Coloured Roofing Sheets with
ZINCAL base which is known
Look, it pays to
advertise in
The Contractor
RESINCOT, Zincal Base Roofing
Sheets which is known as SIMBA
DUMU( Imara,Uhakika,Huduma
Zaidi) and Steel Pipes and Sections
which is known as SIMBA. All
products of ALAF are the market
leaders in their category, and export
it to its neighbouring countries like,
DRC, Burundi, Rwanda, Zambia &
Malawi.
Under the SIMBA brand, there are
Black Pipes; Furniture Tubes; Square
and Rectangular Hollow Sections;
Z-Purlins; Steel Strappingsetc. ALAF
also deal in imported Galvanized
Steel Pipes; Steel Channels; Steel
Beams; Steel Columns; Steel
Angles; Mild Steel Plates, High
Tensile D’Bars etc conforming to
internationally accepted quality
standards.
SIMBA
Black
Steel
Pipes
manufactured by ALAF rank best
in the market and conform to the
quality standards specified by the
Tanzania Bureau of Standard and
British Standard Specifications BS
1387/1985 and are available Class A
(light); Class B (medium) and Class C
(heavy) in standard 6 meter lengths
Recently, ALAF has become the
first and only in its category to be
awarded with ISO 9001:2000, and
IS0 14001:2005 in Tanzania, based
on ALAF’s quality standards and
commitments towards maintaining
good environment.
Contrary to the belief of many who
thinks that, the imported steel pipes
are better in quality as compared to
quality of ALAF’s products, the facts
are as follows:
(a) The presently imported pipes
in Tanzania do not conform
If you are a player
in the construction sector and do
not know how to reach the other
players,You can definitely reach
them by advertising in
The Contractor
to standards as specified
by the Tanzania Bureau of
Standards and / or to any
other internationally accepted
standards whereas SIMBA
Pipes manufactured by ALAF
strictly conform to Tanzania
Bureau of Standards
(b) The imported pipes are
generally of 5.8 meter in length
which is shorter than the
standard length of 6 meters of
SIMBA Pipes;
(c) The imported pipes are of
much lower thickness than the
required thickness for the pipes.
SIMBA Pipes are of thickness
as specified by the Tanzania
Bureau of Standards and British
Standard Specifications BS
1387/1985.
(d) The imported pipes do not
have standard packing and
marking about Class of Pipes
whereas SIMBA Pipes have
Standard bundle packing and
are painted with different
shades of colours at both end
of the pipes. Yellow Colour
for ( Class A), Blue Colour for (
Class B), Red Colour for ( Class
C), which make it convenient
for the buyers to identify and
purchase as per their specific
requirement.
The customers are being cheated
by the scrupulous importer of sub
standard pipes, as they do not get
value against the money they spent
because these imported pipes do
not conform to the quality standards
of Tanzania Bureau of Standards or
any of the internationally accepted
standards.
Advert Size
Price
Quarter Page
Half Page
Full Page
Inside Back Page
Back Page
Tshs.150,000/=
Tshs.250,000/=
Tshs.400,000/=
Tshs.500,000/=
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25
2011/08/18 11:46 AM
2011/08/18 11:46 AM
Anthony Almeida R.I.B.A: Quality and
not quantity was the aim
Anthony Almeida, Goan (Indian), whose father came to Tanganyika during the German colonial period, was born in
Dar es Salaam in January 1921. In 1931 he was sent to British India, along with his younger brother, for studies which
included architecture in 1948, after which he returned to Dar es Salaam to manage property left by his father who
had expired in Dar es Salaam in 1943. He worked for a year with a local Asian engineer’s firm. However, his ambition
was to have his own architectural practice and so he opened his own firm in 1950, in Dar es Salaam.
He recently spoke to The Contractor on a number of issues. This is what he had to say.
Q: Which were your earliest projects of your practice?
Believe it or not, the very first work of my practice
consisted of a small toilet block for an existing primary
school run by an Asian community in Dar es Salaam!
Needless to say, no fees were charged!
From the commencement of the practice and up to the
year 1954, the practice was involved in works for Dar es
Salaam’s Asian community and which consisted of godowns, workshops, small factories, flour mills, etc., in the
Chang’ombe area and a few of the typical commercial
(shops) cum residential buildings in the town centre. All
of these works, I need to confess, lacked architectural
merit for no fault of the architect himself. It is said that
one can take a horse to the water but one cannot force
it to drink. Likewise, I took architectural solutions to the
clients but could not get the clients to accept them!
Fortunately, in 1954, my own Goan community asked me
to undertake a project for a new co-educational primary
school. The completed St. Xavier’s Goan School (presently
Kibasila Secondary School) in Chang’ombe acted as a
showcase of my architectural ability and brought in new
and demanding types of works as listed elsewhere herein.
Q: Which have been your most important projects to
date?
They are 19 projects in total, spanning the years 1955
to 2008 and include Dar es Salaam Technical College
(1955); St Joseph’s Secondary School (later Forodhani
Anthony B. Almeida, R.I.B.A
Secondary School) (1956); Huruma Hospital Rombo,
Moshi (1960-1983); St. Joseph’s Primary School (now
Upanga Primary School), Dar es Salaam (1961); St. Xavier
Church, Chang’ombe, Dar es Salaam (1962); Tabora School
for the deaf (1963-1975), Central Library, Dar es Salaam
(1968), NIC Headquarters, Dar es Salaam (1970); Kisutu
Resident Magistrates Courts, Dar es Salaam (1972); Joint
Christian Chapel, University of Dar
es Salaam (1975) and Restoration/
Refurbishment of German colonial
period building – the TRA Building
along Samora Machel Avenue, Dar
es Salaam (2008).
Q: Being the first architect in the
country and having your own
firm in 1950 must have posed
challenges as you were practicing
alone. How did you manage to
handle so much work – and fame?
I became the first qualified architect
who had been born in the country
and later B. J. Amuli became the first
indigenous, qualified architect.
In the post-1954 period of my
practice, I began to attract only
Contractor,
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Library,
Dar es Salaam,
which was2011
designed by Arch. Anthony B. Almeida
27
2011/08/18 11:46 AM
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2011/08/18 11:46 AM
large and prestigious projects which were undertaken
in collaboration with structural engineers, quantity
surveyors and specialist consultants. Such projects were
undertaken one at a time, so to say. Quality and not
quantity was the aim. The drawing office staff were all
locals and therefore needed on-job training which was
made a lot easier during the pre-1954 period of the
practice when construction work was less complicated
and less demanding.
Fame? I certainly feel elated to find that my architecture,
the architecture of a Tanzanian, is gaining international
attention.
Q: Compare your experience of working with contractors
in the earlier times and now.
During the earlier pre-Independence period, the building
works were mainly carried out by immigrant Indians who
already had the required experience to satisfactorily carry
out the simpler types of the buildings of the period.
However, the later incoming modernist architect was faced
with the added task of ‘teaching’ the builders modern
construction involving, for example, the use of pre-cast
concrete blocks (instead of coral stones) for wallings,
use of reinforced concrete frame structure construction
(instead of wall-upon-wall type of construction), use of a
whole lot of new systems (electrical, plumbing, drainage,
etc.), use of a whole lot of new finishes, etc…
However, my work was made a lot easier as most of
the earlier projects (post-1954) were government
projects and the government (through the Public Works
Department) provided on-site, full-time ‘clerks of works’
who were qualified to carry out the necessary on-site
supervision (and thus the ‘teaching’).
Experience of working with contractors now
Of late, I have not been involved in sufficient projects in
order to make a justifiable judgment on the advantages
or disadvantages of working during the present times.
However, for the smooth running of any projects, the
client should select an architect with proven ability and
in turn the architect should advise on the selection of a
contractor with proven ability.
Q: Which qualifications do you value most in a
contractor?
The contractor needs to have the proven ability and the
proven experience of having satisfactorily completed
works, preferably similar to the type required to be carried
out. Importantly, in this exercise, the architect needs to be
involved in the selection process.
Q: Dar es Salaam is becoming congested and many
people are looking for accommodation. Are high
rise buildings (with more than, say, 15 storeys)
the appropriate solution or if there is a better
High-rise apartment blocks are significantly altering the skyline of Upanga in Dar es Salaam
29
2011/08/18 11:46 AM
solution, what is it?
Today, the population of Dar es Salaam is said to be
just over 4 million and all these people require living
accommodation and such accommodation is only being
made available by strictly business-minded private
investors, in the high-rise buildings mushrooming all
over the city. Considering Kariakoo – that was set aside
for the Africans during the German colonial period – and
its present development of congested high-rise buildings
(being described by some as a ‘concrete jungle’), one
cannot escape the fact that the development cannot be
considered ideal or easily acceptable to the present-day
indigenous people who only recently left the rural areas
where each had their own piece of land, and own dwelling
amidst spacious openness and ample greenery, etc. The
‘concrete jungle’ is the result of the lack of town planning.
During the British colonial period, all building proposals
had to first obtain the government Town Planner’s
No doubt something is very wrong today and to know
exactly what is wrong, one must await the findings of the
investigators appointed by the government.
Q: Computers and other digital gadgets are being used
extensively in the building industry these days, but
surprisingly there is a marked absence of these tools in
your office. How come?
Can anyone tell me, if the Makonde carver had invested
in a computer, would his carvings thereafter be more
artistic?
Q: Aluminium and glass seem to dominate as the
preferred choice for frontage on most high rise buildings
in the city centre lately. What is your opinion on this?
Glass (curtain wallings) in buildings are ideal for countries
with cold climates, because glass allows the unhampered
passage of the sun’s heat into the buildings – a desired
amenity for the occupants. Therefore, can there be any
Concrete versus glass: Simply a case of old versus new or that of the beast and the beauty?
“approval in principle” for the Town Council to consider
full and final approvals.
Q: There is a widespread view that the construction
industry is witnessing more disasters at construction
sites now than in the past. What are your views on this?
As an active architect from way back 1950, I have never
been aware of any building collapse that took place in
the earlier days; however, I am well aware of the several
building collapse that have occurred more recently.
30
justification for using glass curtain wallings in Dar es
Salaam that suffers a hot and humid climate? Do Dar
es Salaam’s buildings need heating or do they need
cooling? Solar protection of buildings is what is needed,
and a praiseworthy example can be seen in a newly
completed building along Garden Avenue, designed by
foreign architects.
An interesting question: How many of the glass curtain
wallings being used are a cover for a multitude of
architectural sins?
2011/08/18 11:46 AM
50 Years of Independence
Jakaya Mrisho Kikwete
President of the United
Republic of Tanzania
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E-mail: [email protected], [email protected]
2011/08/18 11:46 AM
BQ Contractors is top Mid-Sized Firm
18 Contractors and 3 Consulting Firms Appear in Top 100 Mid-Sized Firms
A
s the nation celebrates 50 years,
it is also a cause for celebration
for 18 Contractors, 3 Consulting
Firms and other Stakeholders in the
Contracting Industry as they were
named among the Top 100 mid-sized
firms. Above all, it was a captivating
moment for Eng. John Bura, Managing
Director of BQ Contractors Ltd. when
he stepped onto the stage of Mlimani
City Conference Centre to accept his
award from the Deputy Minister of
Industry, Trade and Marketing as
the Top Mid-Sized Firm in Tanzania.
His firm was placed at the top
among the 100 mid-sized firms
that were honoured in a colourful
gala dinner which was initiated for
the first time in December last year
by Mwananchi Communications
Limited (MCL) through its Citizen
brand in partnership with KPMG.
The Top 100 Mid-Sized Companies
Survey sought to identify the
c o u n t r y ’s m e d i u m - s i z e d
companies in order to showcase
business excellence and highlight
some of the most successful
entrepreneurship stories in the
country. Participating companies
were those whose annual turnover
ranged between Sh 1 billion and
Sh 20 billion but did not come
from the banking and insurance
sectors. The criteria included
profitability, liquidity, return on
equity, level of indebtedness, among
other performance indicators. Many
of the firms (about 73%) believe
that integration process within the
east African region and beyond
has contributed to growth of their
business.
A delighted Eng. John Bura noted
that the quest for the award was
a ‘tough duel of excellence’ and
is quoted in the Citizen as saying
“I know the challenges ahead…. I
know that being Number One means
that everyone will now be looking
forward to get to this place…. I
know that next time the number
of participants in the survey will
It is very interesting to note that about
20% Contractors and Consultants
appear among the Top 100 mid-sized
firms. These firms include Unicool
(East Africa) Company Ltd, which
came second. Other construction
firms in the top 20 include Reni
International (sixteenth position) and
Fabec Investment Ltd. (nineteenth
position).
I t is wor thy to note that BQ
Eng. John Bura and his wife lift up the trophy
increase but I am ready to face their
challenge”. BQ Contractors, which is
a Class I Mechanical Contractor, but
which has also ventured into Building
and Civil Works, has had humble
beginnings but now offers services
to big companies like Songas.
Contractors, Fabec Investment, SSTL
Group, Ensol Tanzania Ltd., East
African Elevators Ltd. and Berkeley
Electrical Ltd. have been profiled in
our previous issues of The Contractor.
Congratulations to all the firms that
made it into the Top 100 list.
LIST OF CONTRACTOR & ALLIED CONSTRUCTION STAKEHOLDERS
Position Name of Contractor or Consultant
1.
2.
16.
19.
26.
33.
42.
46.
51.
54.
32
BQ CONTRACTORS LTD.
UNICOOL (EAST AFRICA) CO. LTD.
RENI INTERNATIONAL LTD.
FABEC INVESTMENT LTD.
SSTL GROUP
HERKIN BUILDERS LTD.
ENSOL TANZANIA LTD.
TROPICAL ALUMINIUM & GLASS
NIMETA CONSULT LTD. (Consultant)
SKOL BUILDING CONTRACTORS
Position Name of Contractor or Consultant
56.
57.
58.
59.
66.
68.
74.
77.
79.
91.
98.
EAST AFRICAN ELEVATOR COMPANY
INTER CONSULT LTD. (Consulting)
UWP CONSULTING LTD. (Consulting)
MOLLEL ELECTRICAL CONTRACTORS LTD.
BERKELEY ELECTRICAL LTD.
SIGN INDUSTRIES LTD.
BUSINESS MACHINES LTD.
MICRONIX SYSTEMS LTD.
TECHNO IMAGE LTD.
HIMA INVESTMENT LTD.
AGUMBA COMPUTERS LTD.
2011/08/18 11:46 AM
BQ
BQ Contractors Limited
Mechanical, Civil & Building Contractors
BQ Contractors Limited was established in 1996 and registered with
Tanzania Contactors Registration Board (CRB) as Mechanical, Civil and
Building Contractors.
COMPANY PRODUCTS INCLUDE:
ADDRESS
Â
Â
Â
Â
Â
Â
Â
Â
Â
NHC Biashara Complex,
Mwananyamala Komakoma area
Plot 50/29, Room 103 &
2nd Floor wing B
P.O. Box 32396
Dar es Salaam, Tanzania
Tel: 0784-608301, 0773-608301
E-mail: [email protected]
www.bqcontractors.co.tz
Mechanical works
Civil works
Building works
Engineering, Turnkey Projects
Tank inspection
Scaffolding Services
Manpower hire contracts
Insulation by lagging and cladding
Corrosion protection / painting works
2011/08/18 11:46 AM
Interview with CRB Chairperson
‘We realize that we need a targeted approach
of seeking to develop major contractors’
Q: The board has been quite busy over the last five
years; please highlight some of its achievements.
The last five years, as have been the previous 14 years since
the Board’s establishment, have been challenging as we
seek to address contractor regulation and development
in a proactive manner. In this time, we have been focused
on addressing issues related to ethics, capacity and
competence, recognition and deployment of the local
contractor, quality of works, safety and occupational
health – and therefore embarked on implementing
strategic directions to address contractors’ challenges
and safeguard public safety. This has been made possible
through strategic interventions as addressed by our first
Corporate Strategic Plan 2004–2008, second Corporate
Strategic Plan 2007–2011 and third Corporate Strategic
Plan 2010–2014 (that we are now implementing).
Q: What are CRB’s plans for this
year and five years to come?
As pointed out earlier, the Board is currently implementing
the third Corporate Strategic Plan 2010–2014. The Plan
aims at making CRB a leader in the regulation and
development of contractors in the region. In realizing
this, the Board is currently focusing on improving
four Key Result Areas: Compliance and Conduct of
Contractors and Other Stakeholders, Capacity and
Competence of Contractors, Occupational Health, Safety
and Environment and Enhancing CRB’s Organizational
Performance to deliver the other three key result areas.
Q: Comment on the overall
performance of the industry
Macroeconomic indicators show that the overall
performance of the industry has been improving over
time, despite the global financial crisis. Currently, the
construction sector contributes about 6.6% of GDP,
which is significant by itself. The sector’s contribution
to employment creation accounts for about 9% to 11%.
The sector growth rate has been increasing from 10% in
2004/5 to 13.1% in 2010, which shows that construction
is ticking. This is also evident in the increased number
of contractors appearing in the register – from 1,787 in
1999 to 6,309 at present.
Q: How far has CRB gone in achieving its
mission of being an exemplary regulator that
develops dynamic, capable and competitive
contractors who observe business ethics,
undertake construction projects efficiently and
participate in regional and global markets?
The Board has realized that being exemplary is achievable;
34
however, the Board
should seek to not only
be exemplary, but also
a leading institution
in the regulation
and development of
Contrac tors in the
region. Within East,
Central and Southern
Africa, it is a pioneer in
being a government
a u t o n o m o u s
institution regulating
contractors. Many of
Eng. Consolata Ngimbwa,
the other institutions,
CRB Chairperson
such as CIDB South
Africa, also focus on
regulation of professionals. We are thus being challenged
to not only be the leader, but also to lead always – and
we are ready to rise to the challenge.
Q: What are the major challenges encountered
and how does the Board intend to meet them?
As we level the playing field, we are seeing developers
seeking new ways to escape using bona fide contractors.
We are on our toes to ensure that our legislation is able to
address these challenges. On capacity and competence,
we realize that we need a targeted approach of seeking
to develop major contractors and, together with the
Ministry of Works, we are in the process of implementing
a Programme for the Deliberate Development of
Contractors in Road Works. The model, if successful,
could also apply to the building, electrical, mechanical
and specialist sectors. Other interventions are also
underway to address the chronic access to finance and
equipment challenges. The Board is also in the process
of seeking interventions to address skills concerns by
collaborating with VETA. We are also looking to enhance
safety, occupational health and environment by raising
awareness and collaborating with stakeholders. We
are turning to contractors’ associations to assist us in
promoting self-regulating mechanisms in the area of
ethics.
Further, we intend to implement measures to improve
the Board’s operations; very soon, we will be launching
a CRB Service Charter that will facilitate service delivery
with our clients.
Q: What’s your view of the industry’s future?
The industry has a bright future. Looking at the trend
over the last 50 years, and the reforms that have taken
place within the industry, we are looking at a positive
2011/08/18 11:46 AM
tomorrow. What is needed is for the various players
to carry out their respective roles properly. I challenge
contractors’ associations to be proactive in advocating
for the interests of their members and linking them to the
government and other stakeholders so that contractors
are recognized as a formidable force in the next 50
years; it is my belief that this is possible with the proper
environment in place.
Where we were and where we are
Statistics paints very interesting pictures, though very difficult to collect in Tanzania. Statistics serves to show different
trends and directions that can assist in assessing industry performance and determining interventions. Let us have
a glimpse of where we were in the past and where we are today based on available statistics.
Characteristic
Statistic
Then
Year
Statistic
Today
Year
Population (million)
12.3
1968
42.74
2011
Construction Contribution to Employment
12%
1975
9%
2009
Construction Contribution to GDP
4.5%
1968
6.8%
2009/10
Construction Value of Capital Formation
50.1%
1968
50%
2010
Construction Growth
-4%
1973
– 78
10.0%
2009/10
Number of Contractors
121
1971
6,309
2010
SME Contractors Contribution to Total Turnover
50%
1981
23.6%
2010
Cement Consumption (1,000)
251
1968
1.6 mln
2005
Where we are: The changing skyline of Dar es Salaam
35
2011/08/18 11:46 AM
Civil Works Contractors see bright
future ahead ‘if empowered’
As we mark 50 years of independence, there is a lot to celebrate and look back on as
far as the development of the construction industry in Tanzania is concerned. The
Contractor caught up with the Honorary Secretary of the Tanzania Civil Engineering
Contractors Association (Taceca), Eng. Kazungu Magili who shared his views of
the industry fifty years back, now and what he sees as the future of the industry.
Looking back, Eng. Kazungu says the
industry has gone through different
phases through which he takes
us briefly. “At independence, the
country had no more than four local
engineers who were the first fruits
of independence to develop the
country’s construction industry,”
says Engineer Kazungu adding that
then, the education level was low and
hence low participation of locals in
construction projects.
says Eng. Kazungu.
That time, most construction works
such as roads were done by foreign
companies. Eng. Kazungu gives an
example of the Uhuru railway line
commonly known as Tazara which
was built by the Chinese. The only
local companies then were owned
by Tanzanians of Asia origin.
Engineer Kazungu appreciates CRB’s
efforts for promoting contractors
something he says has seen the
number of local contractors in the
country soaring up to more than
7000 registered contractors to date.
Eng. Kazungu then mentions the
period between the 1970s and early
1990s when the ministry of works
introduced the Integrated Roads
Project, a period during which the
industry started picking up slowly.
The Taceca official also talks of
the establishment of the board of
architects, quantity surveyors and
building contractors which did not
cover electrical, mechanical and
civil works contractors. He says an
association for building contractors
was also established during that time
to serve as a watchdog on building
materials prices but which eventually
died.
In 1997, the government saw the
impor tance of establishing an
independent board which is how
the Contractors Registration Board
(CRB) was born under the Contractors
Registration Act No. 17 of 1997.
“CRB has been registering and
promoting contractors through
various trainings and has ensured we
have a construction industry in place,”
36
Taceca was established in 1996
with the aim of uniting contractors
to safeguard their rights as well as
developing civil contractors in the
country among others.
“ We wo r k c l o s e l y w i t h o t h e r
stakeholders like local government
authorities, clients, Tanroads and
the works ministry in development
projects,” says Kazungu.
However, Eng. Kazungu expressed
concern over lack of uniformity
on the industry’s statistics given
by different bodies such as the
National Construction Council (NCC)
and CRB saying they have been
giving contradicting figures on the
percentage of local contractors
par ticipating in the countr y ’s
construction projects.
“NCC figures show that the percentage
of local contractors in terms of market
share is around twenty something
while CRB figures show that 40 per
cent local contractors participate in
construction projects.The percentage
of local contractors enjoying the
national cake is not clear,” says
Kazungu.
He is of the opinion that research
needs to be done by an independent
consultant to come up with the right
figures. He says CRB’s figures may not
be reliable given that they are based
on the annual returns. “We need to
harmonise data,” says Eng. Kazungu.
He called upon CRB to involve
independent consultants to do
the analysis starting from local
government projects to central
government projects.
Kazungu says the main challenge
facing the industry at the moment
is what he refers to as duplication
of institutions. He sees no reason to
have CRB, NCC, Engineers Registration
Board (ERB) and Architects and
Quantity Surveyors Registration
Board (AQRB), something he says
results into unreliable data on the
industry’s growth. While one might
think the construction industry in
the country is growing at a very
high rate given the high number
of new infrastructures coming up
now and then, Eng. Kazungu thinks
otherwise. He says growth is only in
terms of the number of registered
companies. He says this growth does
not reflect on local contractors who
watch helplessly as the largest share
of the national cake goes to foreign
companies.
He points an accusing finger to
people in government whose
mindsets he sees as a stumbling
block for they lack confidence in
local contractors. “They only advise
us to form joint ventures without
taking into account the fact that a
joint venture between poor people
cannot work.” Kazungu believes a
joint venture is like a marriage which
requires people to know each other
well. Joint ventures he says should
go hand in hand with empowerment
and that local contractors can do
wonders if deliberate measures to
empower them are put in place.
“We are capable of undertaking
construction projects if given
advance payment. We want to ensure
we own our economy as per vision
2025,” said Kazungu who has a bone
to pick with political leaders who
blame local companies for poor work;
“They need to know that poor work is
2011/08/18 11:46 AM
Sam Nujoma Road, Dar es Salaam: “We are capable of undertaking construction projects if given advance payment”
always a result of a number of issues
such as delayed payments,” said Eng.
Kazungu. According to him, foreign
companies do the same mistakes
as local contractors but its local
contractors who bear the brunt.
Eng. Kazungu says continuous claims
that local contractors can not perform
affects them psychologically in
the long run and makes them lack
confidence.
Lack of confidence in local contractors
has according to Eng. Kazungu seen
high value projects being granted
to foreign companies who are also
given advance payment regardless
of the capacity or fair prices tendered
by local companies. I t ’s when
foreign companies mess up that the
intervention of local companies is
sought.
He says foreign companies get
projects easily because they know
how to lobby government officials
who are not ready to help local
contractors grow.
He calls upon the works minister to
hold accountable all those who mess
up in construction projects rather
than just complain. “It’s time we
made use of the rule of law to have a
disciplined industry.”
On the other side of the coin, Kazungu
blames local contractors too.They lack
financial and business management
skills. However, this has been reduced
to some extent as Taceca conducts
financial management training for its
members whenever possible.
Eng. Kazungu says local contractors
are to blame for some of the problems
they are facing today such as financial
problems since they are too lenient
with the government which in most
cases fails to honour the contracts
it signs with contractors when it
comes to payment. Government
has for a long time been accused of
delayed payments something that
is said to affect the growth of local
contractors. Eng Kazungu calls upon
local contractors to wake up and take
contracts they sign with government
seriously. He suggests the use of
lawyers and associations to press
government to honour the contracts.
“We shall provide a two months
payment grace period or else we will
perish. When delayed payment leads
to late completion of work or even
substandard work, it’s the contractor
who bears the blame,” said Kazungu.
One of Taceca’s interventions on
financial problems include efforts to
stimulate the Construction Industry
Development Fund (CIDF) through
which Taceca as a member of the
Tanzania Private Sector Foundation
(TPSF) has started a dialogue with the
Prime Minister’s office responsible for
Investment and Empowerment. “We
want retention money to be put into
the CIDF so that it can be a revolving
fund to be used by contractors to get
advance payments.
Corruption is one major challenge
facing the industry today and Eng.
Kazungu says its widespread in
small projects especially those by
local governments and Tanroads. He
says Taceca is doing all it can in its
capacity to fight the vice. At the time
of this interview when The Contractor
caught up with Eng. Kazungu, he was
attending a seminar at the NCC office
on Construction Sector Transparency
Initiative (CoST) whose objective is to
fight corruption.
Taceca, through TPSF is a member
of the Business Action Against
Corruption ( Tanzania chapter), of
which Eng. Kazungu is chairman. This
is an initiative formed by common
wealth leaders in 2006. “We are
37
2011/08/18 11:46 AM
2011/08/18 11:46 AM
CRB Registrar: Compliance is increasing
The Registrar of the Contract Registration Board Eng. Boniface Muhegi, spoke
to The Contractor on a range of issues ahead of the Annual Consultative Meeting
2011 in Dodoma. Here is what he said
Q: Is the gap between local and foreign contractors in
terms of turnover and value of projects executed still as
wide as it was ten years back? If no, what has been the
secret behind the reduction and what is the projection
for five years?
No, there has been a gradual but steady improvement
of local contractor’s market share. In 1997, during
implementation of the Integrated Roads Programme,
when the local private civil contracting industry was then
emerging, foreign contractors who constituted 3.6% by
number were undertaking 90% of the works by value.
Today, 14 years later, we note that foreign contractors
who now constitute about 4% of Contractors in number
are undertaking about 60% of the works by value with
local contractors undertaking about 40% of the works.
The situation, though markedly improved is still tilted
in favour of the foreign contractors owing to the few
foreign contractors executing high value projects. The
reversal of this trend has been through various sustained
efforts aimed at addressing the public and contractors
concerns related to capacity and competence of the
local contractors together with the Board creating the
necessary facilitative environment for local contractors
to grow. These efforts which have been guided by the
Boards Strategic Plan while bearing fruits, still require
further concerted efforts by the various players in the
industry. With the anticipated take-off of the Programme
for the Deliberate Development of Selected Contractors,
which aims at developing a cadre of contractors who are
able toe execute higher value and complex works, and
based upon our Strategic Plan 2010 – 2014, we anticipate
increase of market share by local contractors to 60% by
2014.
Q: How has CRB been addressing problems facing
contractors in Tanzania in a bid to build a strong and
reliable contracting capacity?
Since inception, the Board has identified several problems
that pose setbacks to the development of the local
contracting industry, these include;
Benjamin William Mkapa Bridge: “.....based upon our Strategic Plan 2010 – 2014, we
anticipate increase of market share by local contractors to 60% by 2014”
39
2011/08/18 11:46 AM
y
y
y
y
y
y
y
y
Inadequate work opportunities
Lack of working capital
Poor knowledge and skills of the industry in
various facets e.g. financial management, project
management, corporate governance, tendering
procedures etc.
Shortage of appropriate plant and equipment
Inability or unwillingness to employ professionals
Poor safety measures at construction sites
Proliferation of un-registered contractors in the
industry
In overcoming these problems, the Board has carried out
several initiatives including:
y Putting in place instruments necessary for the
registration, regulation and promotion of contractors.
y Creating awareness to the Contractors Registration
Act No 17 (as amended 2008) and its Regulations so
that all people involved in the process of selection
and management of contractors and construction
projects are aware of the general provision of the Act.
y Dialogue with potential clients and donors on the
issue of work opportunities.
y Establishment of the Contractors Assistance Fund to
alleviate problems of small contractors in securing Bid
Bond and Advance Payment Guarantees.
y Support to the formation of Contractors Industry
Development Fund.
y Establishment of the Sustainable Structured Training
Programme in 2001 and provision of tailored courses
to bridge the skills gap and cater for industry needs.
y Dialogue with stakeholders on policy and industry
issues. These have been effective forums for coming
out with solutions to the challenges facing both
contractors and clients
y Conduc ted Studies on Plant & Equipment
Availability, OHS and Safety in Construction sites,
skills development etc. for the purpose addressing
issues encountered by contractors in execution of
construction works
y Promotion of a Unified Contractors Association to
spearhead contractors issues.
y Dissemination of information for the contracting
community through a quarterly newsletter “The
Contractor” and through a website.
y Consultations with contractors and other stakeholders,
on how best to promote the industry through Annual
Consultative Meetings.
y Enforcement of the Contractors Registration Act, 1997
and its By-laws
y Promotion of JV’s to provide a channel for contractors
effective participation in work opportunities that they
could not otherwise access alone.
40
Preparation of the Programme for the Deliberate
Development of Selected Contractors.
y Linking Contractors to best practices, technology,
networking through Study Tours.
Q: Give an overview of contactors performance in the
past two years
Project Registration trends, data collected through Annual
Return Forms and feedback from clients are indicative of
a marked improvement in the performance of contractors
over the last two years. Compliance is increasing,
though challenging with local contractors market share
increasing progressively. Problems registered with
contractors are also declining.
Q: During the 2002 ACM, former President Mkapa
give a directive that contractors be employed in all
publicly funded projects, whereby CRB proposed
to the government that all projects not exceeding
750,000,000/= be exclusively undertaken by local
contractors. Is this the case today?
The threshold for exclusive preference to local
contractors in public works has now been raised to TShs.
1,000,000,000/=. However, enforcement of the provision
is not being adhered to by procuring entities. We are
urging Contractors Associations to monitor and report
any anomalies to PPRA. Further, the Board in collaboration
with other stakeholders is calling for the raising of the
limit to TShs. 5,000,000,000/= to enable local contractors
participate effectively in work opportunities employing
local resources.
Q: Tell us about CRB’s plans to develop capacity and
competency of local Contractors
Plans for CRB to develop capacity and competence of local
Contractors are outlined in the Strategic Plan 2010 – 2014
and include the following:
y Implementing the long awaited Programme for
Deliberate Development of Selected Contractors
which aims at providing work opportunities, support
and mentorship to selected civil works contractors
to enable them acquire skills and experience in
implementing paved roads.
y
Implementing Recommendations of a Strategy
Report that seeks collaboration with VETA to address
skills constraints in the industry.
y
Addressing equipment and finance concerns in
collaboration with stakeholders.
y
Continue to provide targeted training to stakeholders
that meets the needs of the industry.
y
Continue exposing Contractors to best practices,
technology and innovation by linking them with
other construction industries through study tours
and other such forums.
y
Strengthen Contractors Associations to play an
effective role in advocacy, regulation and promotion
2011/08/18 11:46 AM
of the industry..
Q: It was recommended at one of the workshops that
the construction industry be given TIC incentives when
it comes to importation of plants/equipment. What is
the situation?
While import taxes on generic construction equipment
including VAT have been waived, the Board is still
following up with TIC to place construction as a priority
sector so as to benefit from further incentives. This
includes consideration to be given to equipment hirers
to enable equipment be readily available.
Q: Establishment of a contractors bank was one of the
recommendations made in 2008. What is the progress?
The Board’s core mandate is to register, regulate and
develop contractors. In the course of developing
contractors we seek to collaborate with the industry
to provide the necessary facilitative environment. In
addressing the challenge of accessing credit and as a gap
filling measure, the Board established CAF to provide bid
bonds and advance payment securities to Class IV – VII and
Class III Specialist Contractors. As a sustainable measure,
the Board collaborated with industry stakeholders in
the formation of the Construction Industry Fund which
was to address holistically the financial challenge facing
contractors. It is unfortunate, the CIDF has not yet been
operationalized. After realizing this, the Board organized a
Consultative Meeting specifically to address the financial
challenge issue. As a result of this it was expected for the
Contractors Associations to mobilize themselves to form
a bank. I have been informed that CATA has formed a
SACCOS and is seeking to establish a Contractors bank
in future.
Q: What is CRB doing about contractor’s complains
regarding delayed payments by clients?
CRB refrains from involving itself in contractual issues as
it is not a party to the contract, and only intervenes when
it is requested to do so. However, in response to your
question, the first thing that we advise the complainant
is to seek redress through the terms of the contract. In
the event there are no provisions, such as interest claims
then CRB advises accordingly. One thing to note is that
contractors either knowingly or unknowingly refrain from
instituting their rights and obligations under the contract
terms for fear of being blacklisted by clients.
Q: Comment on CRB’s performance in the past five years
The Board operations are guided by the Corporate
Strategic Plan. We thank Almighty God for enabling
the Board to achieve the targets set satisfactorily. We
have managed to carry out well our activities that aim
at enhancing compliance and conduct of contractors
and other stakeholders, capacity and competence of
contractors, occupational health, safety and environment
and improving CRB Organizational Performance.
However, we still have a number of challenges that we
seek to address and which require concerted efforts by
all stakeholders.
trying our best to kick out corruption
through good governance,
development of business ethics and
conduct and I am sure we will one
day get there,” says Eng. Kazungu.
Commenting on the effectiveness
of contractors associations in
fighting for contractors rights and
development, Eng. Kazungu had this
to say; “Any association can only be
strong if it gets members’ support.
Many associations are weak today
because they don’t get support
from their members, most who do
not see the importance of having
the associations in place,” lamented
Eng. Kazungu.
This he said is because such
contractors use corruption to win
tenders and therefore don’t feel the
pinch felt by those who do not. Eng.
Kazungu gives an example of his
association that has a membership of
only 397 companies despite the big
number of companies registered as
civil construction companies.
Eng. Kazungu sees a bright future
ahead for the industry but says this
will only be possible if measures
will be put in place to empower
local contractors. He urged the
government through the Prime
Minister’s Office responsible for
Investment and Empowerment to
facilitate the Construction Industry
Development Fund to be functional.
Eng. Kazungu said the government
should ensure construction contracts
are honoured and pointed a finger at
some government officials who treat
local contractors as beggars. “They
hate us for claiming our payments but
I believe all this will one day be history
if contractors decide so. Contractors
need to come together as one to
bring about change. We should unite
and make use of our associations,”
he said insisting that contractors’
development will be brought about
by contractors themselves.
He called upon CRB to let some
of its duties be undertaken by the
contractors’ associations saying
they are ‘mature enough’ to execute
those functions. According to him,
some of the functions which are
currently being undertaken by CRB
but which can be adequately handled
by associations include training as the
associations are better suited to know
what their members need.
“Fifty years of independence and
14 years of CRB’s existence are
enough. We are mature and know
the importance of improving our
members’ skills,” said Eng. Kazungu.
He is of the opinion that CRB which he
says has less than 50 staff countrywide
can not undertake enforcement
activities effectively and believes
contractors’ associations can do this
better if empowered.
Eng. Kazungu called upon CRB to see
contractors’ associations as major
stakeholders and cooperate with
them in formulating strategic plans
and in its board meetings to share
ideas.
41
2011/08/18 11:46 AM
Dar es Salaam City, 1950s (Photo by courtesy of Tanzania Information Services - Maelezo)
Construction of TAZARA (Photo by courtesy of Tanzania Information Services - Maelezo)
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2011/08/18 11:46 AM
2011/08/18 11:46 AM
2011/08/18 11:46 AM

BQ Contractors Limited

Transcription

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