Local contractors urged to form joint ventures

Local contractors urged to form joint ventures

LOCAL contractors have been urged to form joint venture companies, as an important tool in competing with foreign construction firms in tendering for mega projects.

The call was made yesterday in Dodoma by the Chairperson of Contractors Registration Board (CRB), Engineer Consolata Ngimbwa at the opening of three-day training for local contractors on construction precontract practice.

She said most of the big foreign companies have joined their resources and skills enabling them to meet the criteria required in tendering for mega projects like the Standard Gauge Railways (SGR) and Julius Nyerere Hydropower Project (JNHPP).

“Joint ventures seem to be new a tradition to us, but our counterparts from outside the country have been doing this for many years. We must change and avoid selfishness among ourselves because in coming years this will be mandatory and no one will be able to participate and win tender without joint venture,” she insisted.

Eng Ngimbwa urged the contractors to be open when they need to go for joint ventures, adding that experience shows that many of them fail because of lacking transparency, thus leading to conflicts during projects implementation.

“I know that sometimes there are challenges in joint ventures but those who resolved them are currently moving smoothly. If you enter in joint ventures and fail you should take it as a challenge which will make you stronger to move forward,” she said.

Either, Eng Ngimbwa commended the government for availing many construction projects and urged local contractors to tap the opportunities and implement the projects in a manner that will attract government and other private clients to work with them even more.

She said that currently the trend shows that there have been many construction projects that are advertised in different media like classrooms and roads construction, something she said was good news to local contractors.

Eng Ngimbwa noted that what is needed is for the contractors to ensure that they fill their tender documents carefully through Tanzania Electronic Procurement Systems (TANePS).

She said there is a tendency for some local contractors who delegate to their fellows to fill tender documents on their behalf; something she said jeopardizes their wellbeing in the construction industry.

“You can trust your fellows to fill on your behalf, but the individual you have trusted can betray you and put improper documents intentionally. Please take time and learn the system so that you can manage to fill on your own,” she said.

Eng Ngimbwa also reminded them of the importance of having one strong association to be their voice whenever they face challenges, adding that having many associations could not help them in any way. On his part, the Deputy CRB Registrar, Eng David Jere, said contractors must pay their annual fees on time, because it is mandatory and those who fail to do so will face stern measures as required by the law.

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