NCC trains construction stakeholders on managing price fluctuations in construction contracts

ARUSHA: THE Government of the United Republic of Tanzania, through the National Construction Council (NCC), has continued to strengthen the country’s construction sector by building the capacity of industry stakeholders through Price Adjustment training construction contracts.

The training aims to improve project management efficiency and reduce contractual disputes arising from changes in construction costs.

Speaking in Arusha during the training, Engineer Dr Leonard Madaraka Chamuriho, one of the facilitators, said the programme was designed to ensure that construction stakeholders understand how to address cost variations in construction projects and adapt to changing market conditions throughout the project lifecycle.

“Challenges arising from price fluctuations, such as increases in fuel prices, are neither the fault of the project owner nor the contractor. Therefore, there must be contractual mechanisms in place to manage such changes.

We need to establish clear procedures and ensure that all stakeholders understand them so that there are no complaints of unfair treatment or financial loss,” said Dr. Chamuriho.

He further noted that NCC’s training programmes are important for all stakeholders in the construction industry because they provide practical solutions to areas facing challenges within the sector.

“The National Construction Council has a major responsibility to ensure that the construction sector operates effectively. By providing such training, it helps stakeholders understand and address challenges, including price fluctuations caused by market changes, wars, or natural disasters,” he added.

Participants also praised the training. Government Attorney Pascas Alexander Masoye from the Office of the Attorney General said the programme had reinforced key principles required in construction projects to prevent disputes during project implementation.

“The training has reminded us of the best ways to select indices before entering into a contract, ensuring that all parties agree on them and that they are reliable,” he said.

Engineer Samira Abubakar Mohamed from Zanzibar’s Ministry of Works and Transport said the training had enhanced participants’ knowledge of proper record-keeping regarding changes that occur in contracts.

“The most valuable lesson I have learned is the importance of maintaining proper records while managing contracts. Good records help us track changes, including price fluctuations, and identify exactly when those changes occurred,” she said.

Meanwhile, Assistant Coordinator for World Bank-funded projects at TARURA, Engineer Lwitiko Joel Mwandobo, urged NCC to continue organizing training programmes for construction stakeholders on areas such as contract preparation, contract management, and dispute resolution to ensure the successful completion of projects.

Through the training, participants gained practical knowledge on managing price fluctuation issues in construction contracts in accordance with professional standards, legal requirements, and established industry procedures.