Development of Local Contractors

Introduction

Development of local contractors is among the main functions of the Contractors Registration Board. The aim is to develop local contractors such that they can compete in both the local and global market. A number of activities and initiatives for development of local contractors are being undertaken by the Board as explained below.

1.0 Project Registration

Project registration aims at providing the Board and the Construction Industry at large with vital information which assists the Board in effective planning for contractors’ development initiatives. Moreover, project registration process ensures compliance of Contractors and Developers as the process assist the Board in its enforcement functions.

Project registration process requires every contractor who has been awarded a contract or subcontract with a value i.e. value for materials, labour, and all taxes worth from ten million Tanzanian shillings and above to register the project with the Board and issued with Project Registration number.

1.1 Salient Features of Project Registration.

1. Requirement and Eligibility:Registration of Projects is a Legal requirement enforceable through the CRB by laws. All Public and Private funded projects with the value of Tshs. 10m and above have to be registered.
2. Who is to register: The responsibility of registering a project with the board lies with the Contractor or Sub Contractor (both Nominated and Domestic) who has been awarded the project.
3. Submission of Application: A contractor is required to submit an online application through the project registration portal found in the Board website www.crb.go.tz not later than 21 days after being awarded a contract or after receiving a letter of Acceptance and before commencement of any works. The submitted application should be correct and authentic. After submission and approval, payment of the project processing fee should be done through the issued control number.
4. Processing: Processing of the application is done within 2 days of receipt of payments. Successful applicants are provided with a Project Registration Number to be painted on the Project Signboard.
5. Non-Approval for Registration: In the event that the application is not approved, the applicant shall be informed on the reasons for not being approved and the applicant will be required to rectify the shortfalls within 14 days from the day the application was rejected.
6. Painting of project registration number:It is a statutory requirement that the Project Registration number is painted on the Project signboard adjacent to the Contractor’s Name.
7. Updating of Information: On completion, extension, termination or suspension of the project, the Contractor shall inform the Board in writing by filling feedback forms to enable the Project Register to be updated. Forms for Project feedback are available at all CRB Offices and our website Downloads/Form https://www.crb.go.tz
8. Non –Compliance to Project Registration requirements:Failure to register a project attracts a penalty as stipulated in the bylaws. Failure to provide feedback to the Board on status of the Project i.e. Completion, Suspension, Termination, etc is also an offence attracting a penalty.
9. Guidelines:Detailed guidelines on Project Registration, and feedback forms are available on the Our website https://www.crb.go.tz

2.0 Contractors Assistance Fund

The Contractors Assistance Fund (CAF) was established in the year 2002 for the purpose of assisting contractors to access finance required for bid security or advance payment guarantee. This is after the Board realised that some contractors were not able to raise enough funds or collateral to secure bid securities or advance payment securities.

The Fund assists small and some medium contractors to access guarantees for bid security and advance payment security. To access the fund service, the contractor should apply for membership to the fund. Currently the Board operates the fund in collaboration with the CRDB Bank PLC.

2.1 Eligibility of Contractor

Currently the eligibility to CAF Membership is to all Local contractors. A Contractor shall apply for registration by filling in application form and pay a non- refundable fee of TZS 300,000/=.

The applicant shall submit passport size photos of two directors or partners who shall be dealing with CAF issues on behalf of the company. Attach letter of Authority/Board Resolution/ Power of Attorney to authorize the two directors.

To qualify for guarantee, the following additional conditions will apply:

1. The Contractor must be current on his obligations to CRB including payment of Annual Subscription fees, penalties or fines if any.
2. Have timely submitted annual return forms.
3. Have no unpaid penalties, pending default notice or pending court case with CRB.
4. Have not defaulted against previous guarantees.
5. Have participated in CRB Annual Consultative Meetings within the last two years.
6. For advance payment, the respective project must have been registered by the board.
7. Amount requested and purpose must be verified through supporting documents in form of bid conditions, stating the bid security amount or contract conditions and data stating provisions and the amount of advance payment requirements. For advance payment guarantee the member has to also submit a contract between the contractor and employer.
8. The contractor can only be guaranteed for one tender/contract at any time to maximum of TZS 100,000,000.00 (One Hundred Million) per guarantee subject to availability of funds.
9. Applicants shall pay to the bank’s commission applicable on the bond/advance payment guarantee. In addition the applicant shall pay to CRB a nominal commitment fee equal to 0.5% of the guarantee amount.

3.0 Research

The Board conducts research for the purpose of identifying factors that hinder local contractors’ growth. Applied research/studies are carried out in different areas of the Construction Industry such as availability of construction plant and equipment, safety in construction, availability of labour for contractors, etc. Recommendations from the research findings are implemented toward solving the identified challenges.

The Board also collects information through different forums such as Annual Consultative Meetings, Contractors training courses, Contractors’ Annual Return Forms and feedback forms from major Clients. Analysis of such information enables the Board to identify problem areas that need research.

4.0 Training of Contractors.

The Board conducts training for the purpose of enhancing contractors’ skill to enable them to undertake their business as contractors more efficiently. The Board conducts training to contractors through the following methods.

4.1 The Sustainable Structured Training Programme (SSTP)

The Board established the Sustainable Structured Training Programme (SSTP) in 2001. The main objective of SSTP is to equip contractors with necessary technical and management skills so as to make them more competitive in the local and regional markets. Appropriate Skills is among the fundamental requirements for the contractor to be competitive. It is said that skills enable people to do whatever they do more efficiently. Efficiency brings about competitiveness to contractors because among others, it minimises costs of doing construction works.

Under the SSTP, training focuses on contractors’ needs as it is demand driven. There are more than twenty (20) training modules under SSTP. The modules are derived from seven (7) basic subject areas as follows:-
Corporate Governance
Construction Pre contract practice
Resource management in construction sites
Contract management
Construction Planning, organisation and control
Equipment Management and
Occupational Health and safety (OHS) in Construction Sites.

The modules are administered in three (3) different levels based on categories of contractors as follows:-
Level I - Small Contractors (Class VI & VII general and Class III specialist)
Level II – Medium Contractors (Class III – V general and Class II
Level III – Large Contractors (Class I & II general and Class I specialist)

The targeted cadres in each group are the owners (Director/Partner), Management (Top Executives), and Supervisors (Technical).

The Board conducts the courses in different centres countrywide so as to reach contractors who are scattered in different locations of the country.

4.2 Courses on topical issues in the Construction Industry

Apart from the SSTP, the Board carries out other training on topical issues as they emerge in the construction industry. The purpose is to enable contractors to be up to date with issues that emerge such that they do not affect their performance in the contracting business or deny them the emerging opportunities. The Board conducts such training in inter alia the following areas:-
FIDIC Conditions of contract
Design – Build & Turnkey Contracts
Joint Venture Partnerships
Estimating & Tendering for Electrical Contractors
Application of Information Technology in Construction Practice
Avoiding Problems in Construction Contracts

The courses are being carried out by renowned resource persons from both outside and inside Tanzania and usually attracts, apart from contractors, other professionals such as consultants, bankers, lawyers, etc.

5.0 Annual Consultative Meetings, Seminars and Workshops

The Board conducts consultative meetings, seminars and workshops to accomplish various objectives for contractor development. Through seminars and workshops, creation of awareness and sensitization on different issues to contractors and identification of challenges facing contractors is done. These assist the Board to devise various initiatives to develop contractors.

6.0 Study Tours

The Board conducts study tours as a contractors development initiative since through Study Tours, contractors learn best practices from contractors and other industry practitioners in other countries with more developed construction industries. The Study Tours also enable contractors to network with fellow contractors or other construction industry stakeholders. Through study tours, contractors see what is being done by other contractors globally which complements what they do locally.

For every study tour that the Board organizes, it ensures that all or most of the following are covered:-
Learning and sharing ideas with construction practitioners on better practices being employed in the visited country.
Visiting and establishing linkages with plant and equipment suppliers, exporters and technology suppliers etc.
Meetings with construction industry professionals, associations and the business community to network and identify potential and strategic partners in contracting business and investment in plant and equipment hire pools.
Conducting site visits to interesting construction sites

7.0 Deliberate Development of Contractors Programme

In collaboration with the Ministry of works and other construction industry stakeholders, the Board prepared a Deliberate Development of Selected contractors Programme. This followed a study on “Capacity Building of the Construction Industry”, carried out by the Board. The study came up with several recommendations for improving capacity of Local Contractors and one of the major recommendations was that CRB should embark on a “Deliberate Programme to Develop Civil Works Contractors” to improve their capacity to execute high value paved roads projects. This was because it was identified that the unbalanced market share is mostly contributed by the local contractors’ inability to execute high value paved roads projects. The Programme proposes that a batch of fifteen (15) contractors competitively selected should be awarded high value road projects which will be executed under a closer supervision of the consultant. The consultant will be required to, apart from the normal contractual obligations, to conduct training and mentorship to contractors. By the time the contractor “graduates” from the programme, he has acquired adequate technical and managerial skills, adequate construction plant and equipment and adequate working capital for the next projects.