Factors Behind Deficient Participation of Local Civil Works Contractors in Carrying Out Bituminous Road Works in Tanzania

Abstract

Despite the huge investment made by Tanzania government in the road sector development, the participation of local civil works contractors in developing road infrastructure is not satisfactory and is reported to be less by value of the total works undertaken annually in the country. The extent to which local contractors participate in the development of road infrastructure in Tanzania leaves many questions behind, and the factors of their deficient participation are not well established. The objective of this study is to identify the significant factors of deficient participation of local civil works contractors in carrying out bituminous road works in Tanzania and suggest the appropriate means to improve their participation. The methodology used in this study includes critical review of literature, road project reports from Tanroads and discussions with road sector stakeholders. Results from forty four (44) randomly selected bituminous trunk road projects awarded by Tanroads between 2003 and 2012 shows that, only 16 % of all bituminous road projects were awarded to local civil works contractors and the remaining 84% were awarded to foreign contractors. Moreover, participation of local civil works contractors is less by 10% by value of the total works undertaken annually in the country. Further, the study revealed that, inadequate participation of local civil works contractors is predominantly associated with problems such as inadequate capital, low financial capacity, inadequate work opportunities, lack of appropriate construction equipment and plant, lack of skilled personnel and inadequate management skills. However, collective efforts by government and other construction industry stakeholders are needed to increase effective participation of local contractors in the development of road infrastructure in the country. The authors hope that the findings from the current study will increase the stakeholders’ awareness on the participation of local civil works contractors in executing bituminous road works in the country.

Enhanced Local Contractor Participation: Case of Zambia Water Supply and Sanitation Sub-Sector

“…They also reported the non-payment from clients as another common problem that further creates difficulties in financing the work to be completed during a construction contract. Similar observations were made on several studies in other countries: [5], [10], [13], [22], [32] These studies also suggest the need for specialized financial support to help sustain local contractors to effectively compete against their foreign counterparts. Therefore, governments can help to de-risk the local contractors by bridging the financial support to local contractors.…”

“…In Tanzania, limited participation in civil works [13] was attributed to capital shortages, few contract opportunities, inadequate equipment and skills, and substandard facilities.…”

“…Several studies [6], [7], [8], [9], [10], [11], [12], [13], [14] have aimed to highlight two main points: the significance of increased local involvement in developmental projects and the examination of obstacles hindering such participation. However, there appears to be minimal scholarly effort in uncovering the underlying phenomena, strategies, and mechanisms crucial for enhancing local contractor engagement in public sector projects.…”