Construction Barometer magazine 2016

PRODUCTION TEAM MANAGING EDITOR Robert Barnes CONSULTING EDITOR Jimmy Swira PRODUCTION EDITOR Newton Mthethwa

CONTENTS CONSTRUCTION BAROMETER ISSUE NO. 1 4. COMMENT

WRITERS Beenie Nkulukusa, Don Barnes, Lindsay Wagner

6.

2015 REVIEW AND 2016 FORECAST

What lies ahead?

SALES & MARKETING Winnie Sentabire, Angeline Ntobeng, Nqobile Ndlovu, Christine Tamukedde, Shepherd Mthethwa, Mutale Pikes, Happy Mokoena

8.

GREEN BUILDING

Executing the duty

14.

REGULATION

Necessary checks and balances

16.

PUBLIC PROCUREMENT

Upholding Integrity

18.

SMALL AND MEDIUM CONTRACTORS

Nurturing Growth

20.

CITIZEN CAPACITY BUILDING

Putting the cart before the horse?

GRAPHIC DESIGN & LAYOUT Augustine Ombwa Karabelo Mollo (Assitant) ACCOUNTS & HUMAN RESOURCES Thuthukile Mhlanga TRAFFIC COORDINATOR Thuli Nkosi, Manoko Thusago PUBLISHERS College Publishers South Africa (trades as Group Africa Publishing in other African countries) South Africa Office College Publishers CC 1st Floor, 267 Oak Avenue, Oakfields, Randburg, Johannesburg Tel: +27 11 781 4253, Fax: +27 11 781 4287 Email: southafrica@groupafricapublishing.com Zambia Office Dayflex Limited, 4th. Floor Tazara House Dedan Kimathi Road, Lusaka, Zambia.

Tel: +260 211 230 529 / 977 756 663 Email: makukasue@mail.com, dayflex06@ gmail. com

The editor accepts letters and manuscripts for publication from readers all over the world. Include your name and address as a sign of good faith although you may request your name to be withheld from publication.

We reserve the right to edit any material submitted .

Copyright - Construction Barometer No part of this publication may be copied or reproduced without prior permission from the publisher

22. TECHNOLOGY

Enhancing Efficiency

26.

PROJECTS PROGRESS MONITOR

32.

CONSTRUCTION STAKEHOLDERS’ COMMENTS

34.

PROJECT RISK MANAGEMENT

Leaving Nothing to Chance

36.

SKILLS DEVELOPMENT & TRAINING

Addressing brick and mortar concerns

40.

OCCUPATIONAL HEALTH & SAFETY

Implementation shortcomings

42.

BUILDCON: Young, enthusiastic & Visionary

44.

HILLALDAM’S SLIDING DOORS

Creating Space Aesthetically and Functionally

Projects Completed: •

Fire & Ice Protea Hotel in Menlyn.

•

Protea Hotel in Sea Point.

•

Medi Clinic Centurion.

•

Baywest Shopping Mall in PE.

•

Melomed Hospital in Tokai.

•

Radisson Blue Hotels.

•

Christiaan Barnard Memorial Hospital, Cape Town.

FOR FURTHER INFORMATION: Telephone: (016) 360 6000 Facsimile: (016) 362 1167 Email: vaalsan@dawnltd.co.za • Web: www.vaalsan.co.za Sales Office: Cape Town, Durban and Port Elizabeth.

COMMENT

Optimism overrides adversity ..................................................................................................................................................................

T

he inaugural issue of Construction Barometer has been tailored to coincide with recent developments in the economy, which have a strong bearing on the course that the construction sector is taking. In the past twelve months, there has been an earth-shattering aboutface in the trajectory of events. After a phenomenal boom, mainly fueled by high copper prices and sound management, economic growth, which had been experienced in almost a decade, has slowed down. How fortunes can turn!

Those well-versed in economic matters put this down to two factors – depreciation of the Zambian Kwacha against the dollar (precisely more to do with the rebound of the dollar) and a sharp fall in global copper prices (of course other minerals were not spared). This is comprehensively analysed in this publication.

This is, as the old British saying goes “a double-whammy” has been a double blow to the economy, the construction industry in this context.

Power supply constraints have only aggravated the situation, judging from recent apathy.

The have hit the construction sector harder than a heavyweight boxer’s fist. Low commodity prices mean that mining companies’ revenue has been reduced, and simultaneously, their tax submissions to government.

Government with far less to spend on public projects, has had to revise its plans – a measure which included shelving some equally important projects. This has been noticed in the construction industry, according to some consultants.

As most building materials cannot be procured locally, with a weak kwacha, it now costs an arm and a leg to import input materials for construction projects. This has escalated project costs.

There have been power supply constraints, caused both by the lower generation capacity of the state-owned utility, Zesco, and aggravated by drought conditions. The impact of this on the construction sector, which is a power-intensive, has been telling. And cope with the situation, contractors 4

have resorted to utilising alternative sources like diesel, which has proved expensive and has hiked project implementation costs.

But there is justifiable cause to be cheerful. According to some industry dons, the challenges which some commentators have been making a fuss about are not a really train smash. In fact, a bullish mood courses through, stimulated by recent developments.

The government has not put a moratorium on public expenditure, as tenders on public infrastructure projects are still being issued. This implies it won’t be an entirely dry spell for competent construction companies at least in 2016 and the coming year.

On the power front, South Africa’s Eskom will be supplying 200 Megawatts to Zambia, according to a government in the beginning of the year. Also, there are some power generation projects which should be coming in stream. Thus, in the coming months, there is hope of a reliable supply of power for construction projects. Significantly, this should ease the burden of high project costs.

Another exciting development is the construction sector’s commitment to adopting sustainable building practices.

Noticeably, the migration towards green building has gained traction with the formation of the Zambian Green Building Association (ZGBA), which will be an overseer of standards.

Besides, there are concerted efforts in addressing the challenge of skills development by different industry stakeholders.

Last but not least, we would be unfitting if we do not extend our gratitude to the National Construction Council (NCC), without whose assistance we would not have compiled this publication.

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5

2015 REVIEW AND 2016 FORECAST

What lies ahead? ..................................................................................................................................................................

Zambia’s economic slowdown, following a boom which triggered massive infrastructure investment ever experienced in the last two decades, has elicited different views from commentators from a short-term perspective. However, Knight Frank Zambia, in its in-depth industry review, takes a medium and long-term view about prospects in 2016 and beyond.

A

gainst the backdrop of recent economic developments, Knight Frank Zambia’s analysis on Zambia’s Construction Sector renders a blow-by-blow account of each segment.

The property market The property market will face challenging short term concerns and uncertainty, however, a medium to long term focus or plan is needed to achieve success in the many property opportunities across Zambia. Knight Frank Zambia produces a research report, commenting on the Zambian property market. In its recent report, which can be downloaded from their website ( Knightfrank.com / Zambia Research Report, Q3 & Q4 2015), they have given commentary on economic update, highlighting how it affects / relates to the property market in Zambia. Among some issues highlighted is the depreciation of the Zambian kwacha since June 2015, which has contributed to the rise in inflation and higher rentals and operating costs in the property market.

Other issues highlighted are the power outages and decline in copper prices which have also contributed to the weakening of the local currency. Knight Frank Zambia noted that a stable exchange rate is key to the growth of the real estate industry, particularly as large amounts of building materials are imported Zambia’s infrastructure investment is growing, notably roads, retail, residential, industrial among other segments.

These have opened up new property nodes countrywide.

We are still likely to see the development of shopping malls as the one attached.

6

Demographic trends and urbanisations are some of the key drivers of growth and market expansion in all the major towns of the country.

Property transfer tax, paid by the seller, on the sale price has been reduced from 10% to 5% and was effected on 1 January 2016, this will likely increase the number of properties for sale on the market moving forward.

Withholding tax is at 10% on rental income.

Knight Frank Zambia, in their Q3 & Q4 2015 Research report has highlighted some of the important issues in the property market, by segments.

Retail There has been an increasing supply of new retail malls in Lusaka, which will result in competition between retailers and put pressure on retail rentals. There is approximately 275,000 sqm of existing retail mall space in Zambia, with 85% of this figure concentrated in Lusaka and Copperbelt.

As competition intensifies and the sector grows, developers will be looking outside Lusaka and Copperbelt. Crucial to the success of new schemes is selecting the right micro locations for developments. There is continued demand for retail space from South African and regional retails.

The sector needs structured economic support to grow, in light of the limited capacity for local retailers to expand out of Lusaka and the Copperbelt, into new provincial towns.

Office The Lusaka office market has moved from the CBD into new office nodes on Thabo Mbeki Road, Great East Road, Addis Ababa Roundabout and Embassy Triangle. The positive aspects of this move have been attributed to: • Decentralisation of the Central Business District • Supply of modern office place office space • De-congestion and better parking and • Support of the growth of the commerce in the local market.

The need has been necessitated by increasing demand from international corporates, financial banking sector and mobile phone sectors among others.

Demand for start-up economical office space from 50 to 200 square metres, in Lusaka is now spreading to other towns.

CONSTRUCTION BAROMETER ZAMBIA

Industrial As noted earlier, increasing infrastructure developments, notably roads have allowed for better access for expansion of industrial and warehouses around Lusaka. For example, the government promoted Multi Facility Economic Zones and private sector driven Roma Park and York Commercial Park.

Zambia continues to see an increasing demand for logistics and storage solutions to support the growing distribution businesses around the country such as mining, construction, retail and agricultural sectors.

Investment There has been an increase in high profile investment transactions recently, with notable investments including: Investor : Delta Africa Property / Property Type: Mukuba Mall, Kafubu Mall Location: Copperbelt Investor : A Corp (Old Mutual) Property / Property Type: EastParkMall,AcaciaPark,

Jarcaranda Mall Location: Lusaka and Copperbelt

Medical and Educational facilities There is still inadequate infrastructure, in both urban and rural Zambia for health facilities even with the increasing infrastructure over the last decade in urban areas. An opportunity for constructing new health infrastructure exists especially with a growing need from the young population for specialist services.

About Knight Frank Zambia Knight Frank Zambia is part of Knight Frank LLP, a leading independent global property consultancy. Headquartered in London, Knight Frank, together with its US alliance partner, Newmark Grubb Knight Frank, operate from 417 offices, in 58 countries, across six continents and has over 13,000 employees. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. It is a locally registered company based in Lusaka with corporate and individual membership with the Surveyors Institute of Zambia, Royal Institution of Chartered Surveyors, Valuation Surveyors Registration Board and the Zambia Institute of Estate Agents.

Investor : East African Investor Property / Property Type: Sale of Pangaea Office

Building Location: Lusaka Residential Zambia has a major housing deficit, estimated by UN – Habitat to be around 1.3 million units. The sector is dominated by selfbuild properties, and the high cost of borrowing is a major disadvantage for most developers. There is an increasing number of agricultural farms being subdivided into smaller plots, for sale with varying levels of sales and prices.

Access to adequate loan amounts for the lower and medium income groups, at reasonable rates is limited, however, this situation is comparable to other countries in the region, where there is a large affordability gap between housing costs and real incomes.

Other Markets Farms, estates and Agriculture Zambia offers some of the best wilderness and agricultural land in Africa, with a unique range of lodge and agricultural opportunities for private and commercial investors.

Most investors are looking for well-established farming areas with road access, infrastructure, soil, water and power and the main areas of interest are: Area

Price per acre (US$)

Mkushi Mazabuka Mpongwe Chisamba Choma / Kalomo

1,00 to 2,000 900 to 1,500 1,200 to 2,500 900 to 1,500 900 to 1,250

CONSTRUCTION BAROMETER ZAMBIA

7

GREEN BUILDING

Executing the duty ..................................................................................................................................................................

The Zambia Green Jobs Project (ZGJP) laid the firm foundation for the formation of the Zambia Green Building Association (ZGBA), an independent, non for profit, member-based organisation whose mission is to drive the sustainable transformation of the built environment.

C

limate change and other environmental risks caused by rapid industrialisation are a growing challenge, threatening poverty alleviation efforts and undercutting achievements in sustainable development. Cognisant of this, today governments across the globe are looking for ways to promote a green economy that will have far reaching benefits for a country and its people.

In 2013, Zambia decided to play a part by launchingthe Zambia Green Jobs Project (ZGJP) with the aim of providing technical and development assistance to enable Micro Small and Medium Scale Enterprise (MSMEs) enhance competitiveness and sustainable business in the construction industry. The programme is being implemented through five collaborating UN agencies five UN Agencies (International Labour Organisation, Food and Agriculture Organisation, United Nations Environment Programme, International Trade Centre, United Nations Conference on Trade and Development)in partnership with a broad cross section of Zambian organisations.

range of programme activities which includes facilitating the formation of the Zambia Green Building Association (ZGBA).

On 26th February 2015, ZGBA was subject of a one-day consultative conference initiated by the National Council for Construction, the National Association of Medium and SmallScale Contractors (NAMSSC), and Association for Building and Civil Engineering Contractors (ABCEC), in partnership with the Zambia Green Jobs Programme. Some of the participants of the conference included property developers, financial service providers, contractors, architects, Government institutions and agencies who exchanged ideas on how to promote and push forward the greening of the Zambian building construction industry. Representatives from Namibia, South Africa and Kenya were present to share their experiences and knowledge on establishing Green Building Associations. The local and international media frequented the event as well, with more than 30 journalists present. The ZGBA received its registration from the registrar of societies on the 2nd of December, 2015.

Background In October 2014, the National Council for Construction signed an implementation agreement with ILO to deliver a

Formation of the ZGBA founding group On the 2nd of April, 2015, a meeting was held at the International Labor Organisation (ILO) with different

Foxdale Court 8

CONSTRUCTION BAROMETER ZAMBIA

representatives from institutions in the construction sector to form the founding group. Fourteen (14) members were nominated and formed the initial founding group.

The mandate The Zambia Green Building Association (ZGBA) is an independent, non for profit, member-based organisation with the mission to drive the sustainable transformation of the built environment. Launched by Government and the private sector on 26th February 2015, it serves as a platform for the Zambian property and building construction industry to collectively create a community that champions the sustainable transformation of the built environment in Zambia.

Vital targets The Zambia Green Building Associations target is to green the whole construction industry through the following means: i. Green building governance This will be developed with strategic improvement for green building technology with informed decisions being made by its board of directors. ii. Education This is another important element which the association has embraced to spread the green buildings concept through technical trainings and distribution of awareness materials. iii. Advocacy and Green building certification scheme The association will collaborate with Government to come up with green building policies and minimum standards for the provision of a localised green building rating scheme to recognise the attributes of buildings that are green.

The synergies i. First East Africa Green Building Conference The ZGBA has made a number of key working relationship links since its inception. One of such links has been created with the Tanzania Green Building Council at the first East Africa Green Building Conference which took place from the 19th to 20th March 2015 in Arusha, Tanzania. The convention was attended by one ZGBA committee member. ii. Green Building Council Namibia 2nd Annual Convention The ZGBA participated in the 2nd Annual Green Building Council Namibia Convention which took place from 23rd to 24th April, 2015 in Windhoek, Namibia. The two-day event, titled “Thinking BIG! Sustainable Building, Waste not� drew together many pertinent industry topics including global visions of future sustainable city development, a case study in green community engagement and the latest developments in Green Building rating systems from both the Africa region as well as internationally. The conference was attended by one ZGBA committee member, secretary and the Australian Green Buildings Technologies coach. iii. World Green Buildings Conference (WGBC) It is important to mention that the ZGBA received its registration with the WGBC in October, 2015. This marked the genesis of a formal link between the ZGBA and the

Representatives of the Zambia's green building initiative.

WGBC. The ZGBA is keen to strengthen the relationship with the WGBC and had high level representation in the World Green Building Convention which ran from the 27th to 31st October, 2015 in Hong Kong, China. The essence of the convention was to unveil the green buildings technologies practiced by the WGBC as well as other green buildings councils and share ideas on how the councils across the world can be developed. The chairperson for the ZGBA, the Australian Green Buildings Technologies coach and the ZGBA secretary, who is also the Zambia Green Jobs Project Manager represented Zambia. iv. South African Green Building Council Annual Convention (SAGBCC) Later the following month, the ZGBA reaffirmed another firm link with the South African Green Buildings Council by attending the South African Green Building Council Annual Convention from 3th - 5th November, 2015 in Cape Town, South Africa. The convention was attended by the ZGBA communications leader and one committee member.

The representatives made connections with conference delegates as well as members of the SAGBC. The SAGBC members indicated to the ZGBA representatives that the council was open for any assistance the ZGBA would need especially in terms of information/Literature. v. US Embassy in Zambia and Foxdale Court Within the country, the ZGBA has established working relationships with two existing green buildings in Lusaka. The American Embassy is one of only two buildings in Zambia that have been certified under the internationally recognised Leadership in Energy & Environmental Design (LEED) Green Building rating system. The ZGBA undertook a green building tour on 16th April, 2015 to learn about the green buildings attributes of the US Embassy. The tour was attended by 17 participants representing a mix of public and private organisation/institutions. The American Embassy has achieved a 31% reduction in water consumption and saving, a 14.5%Energy saving and ensured 75%of their Construction waste was diverted from incinerator and landfill.

The association is also linked with Foxdale Court. The building is well known for its water efficiency and rain water harvesting systems, an efficient waste management and recent Energy efficiency systems all of which help to promote the improved working conditions for all its tenants.

CONSTRUCTION BAROMETER ZAMBIA

9

GREEN BUILDING Critical focus areas As a supporter of sustainable practices approved by relevant regulators, the ZGBA will assist to encourage the adoption of standards across the sector. The ZGBA will focus on various areas of sustainable practices which include water and energy efficiency, waste management, and Indoor Air Quality. i. Water and energy efficiency Bearing in mind that water is a resource man cannot do without, it is supposed to be used prudently. The strategies of buildings to use water efficiently differ. Others may adopt rain or grey water harvesting solutions while others may use water leakage sensors. It will be up to the managers of buildings to choose which strategy is the best fit for their premises.

Zambia is facing a severe crisis with reduced power production and supply. Consequently, the role of the ZGBA will be very significant as it will assist to promote sustainable energy sources like solar and other energy efficiency solutions.

The sustainable use of our limited hydroelectric power, the use of LED bulbs and the use of motion sensors in the lighting systems will also support best practice implementation. ii. Waste management disposal Waste management disposal and designed areas are best implemented during the construction phase, as after operations of the building commence it can be more expensive to implement. Therefore, building operators must always aim at reducing waste going to landfill or for incineration and making sure waste is always in its designated area. iii. Good indoor air quality Good Indoor air quality is another critical element for any

10

This facility turns food waste into compost within weeks

green building to have. The ZGBA will ensure that buildings are designed in a manner that enhances good indoor and outdoor air quality.

The ZGBA will also monitor buildings in terms of their effluentsto ensure that measures are put in place by building managers to avoid or minimise environmental impacts. It should however be mentioned that the association will not be limited to the above mentioned areas. As it continues with its operations, other areas may be identified.

Envisaged benefits There are several benefits of green buildings practiced in Zambia some of which will be discussed below. i. Green buildings are energy efficient This aspect reduces on costs as less or no money may be used on hydroelectricity bills. For instance, Foxdale court (commercial green building) is energy efficient. 15watt energy saving light tubes as opposed to standard 46watt florescent tubes are used. Motion sensors are also used in the lighting system to ensure there is only lighting when it is needed. Solar Geysers have been installed in the building.

As a result, less is spent on hydroelectricity. Using sustainable energies like solar or biogas is very beneficial as there is little or no dependence on hydroelectricity. In other words, where hydroelectricity cannot be supplied, power would still be supplied by alternative greener energy sources.

With the current problem of load shedding in Zambia, greener sources of energy like solar are fast becoming preferred alternatives for both commercial and residential homes. Efficient buildings exert less demand on the local power grid and water supply, stretching the capacity of local infrastructure.

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GREEN BUILDING ii. Water Efficiency Water is essential for numerous elements of our lives such as for sanitation, drinking, washing, cooking and so forth.

When water is efficiently used, there is greater assurance of its availability in the long term, making it important sustainable practice for adoption. In water efficient buildings, less is spent on water bills as sustainable sources are used.

For instance, Foxdale Court practices rain water harvesting which feeds into its irrigation and toilets for flushing instead of using potable water. The US Embassy has its own water treatment system which recycles water from the building, feeding it back into the toilets for flushing and its irrigation system. iii. Waste Reduction Sound waste management practices reduce spread of diseases and create a healthier environment. Green buildings consider the aspect of waste management and reduction of waste to landfill. One important phase during construction diverts waste from landfill through recycling and reuse of construction materials in the building process. For instance, during the construction of the US Embassy, 75% of waste was diverted from the landfill and incinerator. Waste can also be managed during the operation of the building by recycling, reusing, reducing and composting.

At Foxdale Court, waste is separated from the source.

All tenants are mandated to dispose waste in classified bins (paper/plastic/food waste); Paper is collected and recycled into new paper products by a company called Zambezi Paper Mills. Plastics are collected and recycled by Habib Enterprises into plastic bottles. Food waste is composted using JoraKompost food composting units located on site and then used as fertilizer in the lawns and gardens of the property. Printer ink cartridges are collected by Green Cartridge Enterprises to be reused for ink printer cartridges.

As a result, the environment is significantly litter free with nominal waste going to landfill.

iv. Improved Health Poor indoor environmental quality (IEQ) resulting from insufficient air circulation, poor lighting, mould build up, temperature variances, carpeting and furniture materials, pesticides, toxic adhesives and paints, and high concentration of pollutants contribute widely to respiratory problems, allergies, nausea, headaches, and skin rashes.

A Green building emphasises good ventilation with nontoxic, low emitting materials that create healthier and more comfortable living and working environments. Employees and visitors to the US Embassy benefit from a superiorIndoor Environment Quality by monitoring carbon dioxide levels, optimal amounts of fresh air are provided to the occupants.

Outside air is filtered with HEPA and carbon filters. Low emitting materials were selected in the building to reduce potential off gassing after installation. v. Maximising the use of local materials and labour An example of materials that utilise local materials are stabilised earth bricks because they can be made out of ordinary soil or clay. This means one does not have to travel to specific places to collect sand but rather use soil or sand within their residence to construct a building. There is also need to utilise local contractors to do construction tasks. The use of local materials and labour reduces cost.

Conventional building methods do not consider the use of local resources and labour therefore transport is used to collect building resources. This increases costs as well as pollution due to use of transport.

Doing the spadework In earnest, the ZGBA is still in the process of establishment and development. Currently, the secretariat of the ZGBA lies at the National Council for Construction (NCC). At the moment, the association has engaged consultants to work on its corporate identity, website and business plan. When all is finalised, its inauguration conference will be held and that will mark the genesis of its operations as an independent body.

It is envisaged that the industry response will be significant after its inauguration.

Marching towards a greener Zambia The Zambia Green Building Association continues with the vision towards a greener Zambia. Education, advocacy, green building governance and green building certification will be used as its tools to support greening the construction industry value chain. The association, through its operations and working collaborative links, has accrued benefits like capacity building among founding group members as well as networking with local and international governmental/ private bodies. This element has contributed to the enrichment of founding memberâ&#x20AC;&#x2122;s knowledge and expertise on green buildings technologies. As the association awaits its inauguration, it is keen to maximise every opportunity that may come along to make the Zambian construction industry an environmentally sustainable one.

A meeting of the country's top 'green' building minds 12

Article was produced by the Zambia Green Building Association (ZGBA), in association with the Zambian Green Jobs Project, a National Construction Council (NCC) initiative.

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13

REGULATION

Necessary checks and balances ..................................................................................................................................................................

While it has emerged that the NCC Act is due for a review, by and large it has created a conducive environment for those willing to invest in Zambia’s construction sector, observes BEENE NKULUKUSA.

G

iven the importance ofthe construction industryto Zambia’s economy, there is need for checks and balances to ensure that excesses are avoided and all organis ations uphold sound business practices. The National Council of Construction (NNC) assumes this role. In no doubt, a study done by the University Of Zambia - School 0f Engineering, dubbed Construction skills requirement issues in Zambia underlines the NCC’s relevance eloquently: “The Zambian construction industry deals with the delivery and maintenance of buildings and infrastructure such as roads, railways, airports, bridges, dams and power stations.

The production process that facilitates the construction industry involves legal and institutional relationships among clients, architects, engineers, surveyors, planners, contractors, manufacturers and material suppliers.”

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An enabling environment Additionally, highlighting the need for regulation, the study refers to the National Policy on Construction Industry (1996) is aimed at creating an enabling environment that would stimulate the construction industry’s growth. The policy defines specific objectives and strategies on capacity building in the industry in terms of institutional framework, human resource development and regulatory framework.

Most importantly, in terms of institutional framework, the policy calls for establishment of the National Construction Council (NCC). The NCC was therefore established to, specifically,review and modify standards and legislation for the construction industry, as well as to monitor the development of the industry construction skills in Zambia.

CONSTRUCTION BAROMETER ZAMBIA

Monitoring and regulating NCC Public Relations Officer, Chama Mwansa, says the NCC is mandated to monitor and regulate all construction activities in the country through registration, affiliation of contractors and professional bodies, capacity building and monitoring of the construction industry, which constitutes sub-sectors such as design, assembly, manufacturing, supply and clientele. The NCC Act gives confidence to investors that there is control in the sector, Mwansa explains.

“Adequate legislationin the construction sector gives confidence to investors that their investment will be safe as there are systems in place.”

Legislation also assures an investor about well-regulated players with adequate capacity and experience to undertake construction works as they require, above and beyond providing a platform where they can get free advice before they invest in the sector to guide investment and development.

Associated reforms Furthermore, reforms that Zambia undertook in order to make doing business easier, have benefitted the construction industry tremendously. According to the Highlights of the Policy Framework for Investment in Zambia, these include abolition of price controls, liberalization of interest rates, abolition of exchange rate controls, 100% repatriation of profits, free entry investment in virtually all sectors of the economy, trade reforms aimed at simplifying and harmonizing the tariff structure, and removal of quantitative restrictions on imports.

Besides, theyhave shortened the turnaround time for companyregistration from 21 days to 3 days and property registration virtually by half. Notable progress has also been made in strengthening legal rights and making it easier for companies to hire workers.

The result of the sound, investor-friendly policy has been reflected in improvement in Zambia’s ranking in terms of the Doing Business Index, from 90 in 2009 to 76 in 2010.

Due for a review While the aforementioned reforms have complemented the NCC Act to a degree, according to Mwansa, the NCC feels, some elements need to be introduced to the NCC Act, as the Act seems to be overtaken by events in the econmy, creating unnecessary impediments to investors.

“From an NCC point of view and through public consultations, it is our considered view that the NCC Act should be strengthened so that it can supersede all other laws enforced by professional bodies related to the construction sector. In addition, NCC should have input when granting planning permission to developers. NCC should be fully involved with procuring entities to ensure that standard contract documents for construction are prepared.”

CONSTRUCTION BAROMETER ZAMBIA

15

PUBLIC PROCUREMENT

Upholding Integrity ..................................................................................................................................................................

Infrastructure development projects, translated in billions of kwacha, can only be meaningful with a transparent and equitable procurement process.

I

John Chipandwe, ZPPA’s Principal Officer Public Relations

t is by far less costly to forestall a fraudulent activity in the public procurement system than manage its consequences. And as the overseer of public procurement processes, the Zambia Public Procurement Authority (ZPPA) is mandated to ensure that the government procurement of public services is carried out fairly, following best practice. Despite the devotion of ZPPA and other stakeholders,John Chipandwe, the ZPPA’s Principal Officer - Public Relations Officer, saysmalpractices surface where contractors would do anything to secure a project. To date,there are six most common malpractices.

1. Not adhering to contractual obligations If a contract is awarded, it has been noticed that most Zambian contractors do not adhere to the requirements stipulated in the contract. Sadly, it has been discovered that the contractors spend the first payment or the initial instalment on themselves,instead of utilising the money on the project, Chipandwe reveals.” Some contractors buy a car or go for holiday to an exotic destination or buy anything that they have been longing for a long time” In most cases, the effect has been that the project is not commenced on time,delaying completion, Chipandwe laments. Due to this scenario, as people are deprived of basic services, a country’s development is hindered, he adds.

2. Substandard materials Chipandwe mentions the use of substandard materials is another

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common malpractice prevalent in the construction sector. Specifically, contractors use cheap materials for some projects to maximise profit and reserve money for other projects. “The effects of using substandard materials only surface after a project is finalised, just after only a few months or years, the road will start developing potholes, or if it is a buildingcracks will start developing,” notes Chipandwe. “It is only after a critical assessment is conducted later that it is discovered that the materials used were substandard or the combination of materials was not correct.”

3. Forging qualifications for key personnel In recent years, some contractors have been suspended and debarred from participating in public procurement because of submitting fake qualifications for key personnel i.e. civil engineers or buildings engineers, reveals Chipandwe.“Falsifying qualifications is done when a contractor really wants to win a tender. Fellow contractors, who feel that an injustice was done, will appeal or report the anomaly after some time to the procuring entity and later to ZPPA.” 4. False information Contractors have a tendency to provide false information in a bid or any other document submitted to a procuring entity in connection with a procurement process or contract.

5. Refusal to furnish performance security and bid securing declaration CONSTRUCTION BAROMETER ZAMBIA

It is not uncommon to encounter a situation where contractors refuse to sign a contract or to furnish a performance security in accordance with the terms of the solicitation document and bid, if required to do so.In addition, they fail to comply with a bid securing declaration.

6. Nepotism, favouritism and bribery There are situations where corruption in the form of nepotism, favouritism and bribery occurs.

Normally, briberyinvolvescontractors offering huge sums of money to officers in procuring entities running a tender with the hope of persuading the officer to award the tender to them.

Conditions which corruption thrives In its study of cases, the ZPPA has identified two main factors which breed corruption.

1. Officer-supplier familiarity The current public procurement system is 100 per cent manual, whichallows corruption to thrive as there is frequent physical interaction between suppliers and procuring officers. The frequent interaction between suppliers and procuring entities develops into friendship in the end, Chipandwe observes.

“This relationship brings biases, undermining fairness and professionalism, in the way a professional procuring officer analyses and handles procurement documents for that contractor or friend. Eventually, it is the project and the nation that bears the burden.”

2. Contractor greed Moreover, the greed of some contractors who want to win all construction tenders breeds corruption, Chipandwe says. They go as far as bribing procurement professionals and controlling officers just for them to win contracts.

Plugging the loopholes.

The ZambianGovernment, through the ZPPA,is taking a proactiverather than a reactive approach to curb malpractices in the public procurement system, involving, but not limited to, introduction of the electronic Government Procurement System (e-GP)and the Code of Conduct. i. e-Government Procurement System (e-GP) The ZPPA is introducing the electronic Government Procurement System (e-GP), which has been finalised and is scheduled to be launched on17 June, 2016. The pilot exercise will be done in seven (07) public institutions namely: ZPPA, Ministry of Works, Ministry of Health, Ministry of General Education, Workers Compensation Fund Control Board, Muchinga Provincial Administration and Ndola City Council.

The exercise will last for six (06) months after which full roll out or implementation to all government institutions will follow starting in January 2017.

ii. Code of Conduct ZPPA has also developed a Code of Conduct for suppliers, procurement professionals, contractors and bidders aimed at compelling all public procurement players to exercise professionalism in their conduct.

The document was signed by the Republican President, H.E Edgar Chagwa Lungu and includes punitive measures for anyone flouting the terms of the Code of Conduct. iii.nElectronic public payment transactions To keep abreast of international trends, Zambia has adopted the e-Policy aimed at encouraging all government organisations to transform their processes or transactions from manual to electronic. And as part of this initiative, an effective revenue collection system is being introduced.

Through the e-GP system, which the ZPPA has introduced, public payment transactions will be done electronically using the system which is web based application.

“It is envisaged that once e-GP is introduced, there will be an effective revenue collection system as all payments will be going to the bank. There will be no handling of cash by government workers and this will enable government to collect the much needed revenue for developmental projects,” explains Chipandwe. The e-GP has proved to be a very effective tool in the fight against corruption.

Economies of Kenya, Greece, Bangladeshi, where e-GP has been introduced, are reported to shown considerable growth levels.

Low corruption, high development It is not by default that the world’s most developed economies have low levels of corruption. This indicates that for Zambia to develop quality infrastructure for its people, all institutions involved in procurement, both public and private, have to uphold integrity in the adjudication of project contracts. Indeed, any country faces the risk of corruption, but how it elects to manage the situation defines how whether it takes the path of progress or stagnation.

It is envisaged that once e-GP is introduced, there will be an effective revenue collection system as all payments will be going to the bank. There will be no handling of cash by government workers and this will enable government to collect the much needed revenue for developmental projects

CONSTRUCTION BAROMETER ZAMBIA

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SMALL AND MEDIUM CONTRACTORS

Nurturing Growth ..................................................................................................................................................................

With an organisation addressing their needs on their side, notwithstanding challenges confronting them daily as they embark on projects, small and medium contractors should flourish, BEENE NKULUKUSA notes.

Z

ambia, just like other countries in Africa (and indeed the world), depends on its Small Medium Enterprises (SMEs), as a catalyst for economic growth. In recent years, its construction industry has grown in leaps and bounds, creating opportunities for SMEs to play a part. Now, small and medium scale contractors in the construction sector are thriving.

However, small and medium contractors, despite becoming pivotal in the construction sector, face numerous challenges, according toNational Association for Medium and Small Scale Contractors (NAMSSC) General Secretary, Danny Simumba. Simumba cites the main challenges as: lack of specialisedlabour force, lack of consistent public contracts to small and medium scale contractors (as only 20 per cent of totals contracts are allocated), obsolete equipment, contractors desperately underpricing (way below

market rate) to win tenders, in addition to erratic payments from clients to contractors. NAMSSC is a representative body which servesthe interests of small and medium scale contractors, a category of the industry has been identified as a potential driver of economic growth. The organisation’s committed to addressing challenges which contractors face.

NAMSSC was formed thirteen years ago under the National Council for Construction (NCC) Act. Currently, through NAMSSC’s involvement, more small and medium contractors are involved in construction. So far, the organisation has about 900 paid up members “As the NAMSCC, our duty is to engage and lobby government to come up with policies that are favourable to small and medium scale contractors and are committed to addressing some of challenges that our members face,” saysSimumba.

With the the right resources, small contractors can play a pivotal role in the flourishing shopping mall project sector.

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CONSTRUCTION BAROMETER ZAMBIA

Small contractors have to sharpen their basic project competencies.

Clarifying further, NAMSSC President, Mutale Mpepo, says: “We are a voice of the medium and Small Scale contractors in Zambia. Government cannot to afford to deal with Individual Construction Companies. As an association, we also try by all means to attract medium and small scale contractors as we see it as a way in which we can contribute to combating poverty through employment creation.”

Initiatives NAMSSCC has taken a number of initiatives to address the concerns of its constituents. i. Government projects for local contractors To help alleviate the burden of the competitive market on small and medium contractors, NAMSSC initially advocated that a bill be drafted by the Minister of Transport, Supply, Works and Communication so that 20 per cent of all government construction contracts are awarded to local MSME contractors. Now, the organisation is advocating for the increase of the existing 20 per cent subcontracting pronouncement for road construction projects. ii. Capacity building (skills development) Mpepo explains that, to build the contractor capacity, NCC offers training to Contractors that are subsidised by Government. These courses are aimed at beginners in order to give them the basics of construction and that to compliment Government efforts NAMSSC is currently in partnership with the Government of Netherlands and running training in all Provinces. iii. Financial assistance The NAMSSC, together with the Government, have come up with an initiative called the Construction Finance Initiative (CFI), which provides contactors with financial assistance the purchase of equipment, states Simumba. However, he says the CFI is still in its infancy, being refined, but as soon as it is concluded, contractors will start accessing it. “We believe that, through this initiative, contractors will be able deliver projects to the expected standards.”

iv. Green building practices Cognisant about the construction sector’s obligation to reduce its carbon footprint, the NAMSSC has partnered with Zambia Green Jobs Programme (ZGJP), which is a collaboration of the International Labour Organisation (ILO) Office for Zambia, on behalf of five UN Agencies and the Government of Finland, finance the implementation of a joint programme aimed at enhancing competitiveness and sustainable business among Micro, Small and Medium Enterprises (MSMEs) in the Zambian building construction industry. The five UN Agencies are International Labour Organisation, Food and Agriculture Organisation, United Nations Environment Programme, International Trade Centre, United Nations Conference on Trade and Development) the Government of Finland.

Zambia Green Jobs Programme (ZGJP) aims at creating Green Jobs and to encouraging contractors to adopt green methods and technologies of construction. The idea was to have members who can be actively involved in green construction business of all forms in the country by 2017. Underlining the significance of “the going green” initiative, Simumba says: “This direction needs to be taken if the environment has to be safeguarded for the future generation. We are, therefore, encouraging our members to adopt green construction methods as these methods are sustainable and efficient.”

Promoting excellence In spite of its efforts, NAMSSC is aware that,if the small and medium scale contractors are to reach their full potential, they have to be encouraged to aim for high quality standards, says Simumba. It is concerned about the general concerns within the broad construction industry about the competence of small and medium contractors, it implores government and other clients to be patient.

On the other hand, it calls upon government and other clients to be wary about the shady people who masquerade as contractors.

CONSTRUCTION BAROMETER ZAMBIA

19

CITIZEN CAPACITY BUILDING

Putting the cart before the horse? ..................................................................................................................................................................

The Road Development Agency (RDA)’s provision for 20% subcontracting of construction projects to be reserved for Zambian-citizen-owned businesses might be benefitting small owned businesses, but, harshly, challenges have surfaced.

Was it hastily implemented perhaps? Construction Barometer finds out from Buidcom, a leading contracting firm.

T

he RDA’s Modalities and Guidelines on 20% subcontracting unambiguously state: “It is now Government policy that a minimum of 20% of all road contracts awarded by the Road Development Agency (RDA) would be executed

by Zambian-owned companies in line with the shareholding structure specified in the Citizens Economic Empowerment Act No. 9 of 2006 whose overall goal is to contribute to sustainable economic development, by building capacity in Zambian-owned companies.” In essence, the policy aims to meet the following objectives: Empower local contractors, Create jobs for Zambian citizens, 20

Create sustainable local contracting capacity, and Upgrade local contractors from grade six through to grade one.

Eligible beneficiaries for the 20% subcontracting policy have to meet the following criterion: a. be Zambian citizen-owned company where at least fifty point one percent of its equity is owned by citizens and in which citizens have significant control of the management of the company; and b. be contractors registered with the National Council for Construction (NCC) from grades one (1) to six (6) in the applicable category depending on works to be sub-contracted.

CONSTRUCTION BAROMETER ZAMBIA

There are two main clauses worth highlighting that are of contractors’ interest, which are: the main contractors shall select the sub-contractors that are registered with NCC in the appropriate grades and categories subject to obtaining a “NoObjection” from RDA, and the sub-contract shall be treated as part of the main contract and the main contractor shall be responsible for all of the works.

Moreover, the Agency shall provide a standard form of agreement between the main contractor and sub-contractor which shall be part of the solicitation document.

Meeting objectives?

Its three years since the subcontracting policy was passed, and as you would expect, it is quite natural for the following questions about the initiative to be raised: What impact has it had on contractors’ ability to manage a project? Are the intended beneficiaries making the most of the opportunities?

What could be holding them back?

Antony Chongo, as the contracts engineer for Buildcon, a company that has been involved in a number of major road construction projects in the country, has dealt with several subcontractors who have been engaged under the subcontracting policy since its inception, and has been monitoring their progress. To date, speaking on behalf of Buildcon, he observes, the programme has brought forth mixed results. “As with any well-meaning initiative in its early phase of implementation, from assessing the performance of subcontractors, some oversights are emerging which might have been overlooked when the policy was being drafted.”

While the subcontracting policy is meant to build small business capacity, it does not accommodate the reality that small businesses still need the right competencies and operating capital to effectively play their part in the projects.

Chongo has noticed that, while there are some subcontractors who deliver what they are assigned to do on time, within the required budget, and to the specified quality standards, pitifully, others fail to meet what is expected of them. “There are three scenarios that a contractor encounters: a subcontractor with all the necessary skills but is short of operating capital, has access to capital but does not have the necessary skills, and neither has the necessary skills nor the required capital,” says Buildcon.

Limited financial resources Given that subcontractors have limited financial resources, subcontractors’ plight worsened by late payments. For a small business, a payment is the difference between staying in business and folding up, and any delay can indeed be very costly, reasons Chongo. On the other hand, big contractors that

have been in the game for a long time have the luxury of waiting for an invoice to be remitted even after ninety days as they have huge cash reserves to keep operations going, he adds.

Recently, echoing these sentiments, the National Association for Medium and SmallScale Contractors (NAMSSC) General Secretary, Danny Simumba, underlined how limited financial resources impacted on a small business’ ability to deliver. “Lack of sound capital base is one of the major challenges that have led to poor investment in acquiring sophisticated heavy-duty equipment required for undertaking major and specialised construction works,” he said.

Inadequate skills There are some projects which require special skills, which subcontractors usually bring. However, sometimes it turns out that the preferred subcontractor does not have the required competency. This stalls progress as a contractor cannot seek for an alternative service provider, as they would be flouting the terms and conditions of the project.

Subcontractor liability Due to the following terms of 20% subcontracting: “……and the sub-contract shall be treated as part of the main contract and the main contractor shall be responsible for all of the works”, the main contractor bears all the burden of the liability which the subcontractor brings to the project. This, Chongo believes, is too much for the contractor. “In a way the subcontractor is exonerated, and, to a large extent, is not obliged to the project.”

Secondly, what puts contractors in a pickle is that they are given a prescribed list of subcontractors who selected by the RDA. The drawback comes when the subcontractors do not have the specific competencies which the contractors would deem requisite for a project.

Addressing challenges Due to the inability to address the common problems of lack of capital and inadequate level of skills, citizen companies might not make the most of the 20% subcontracting provision, Chongo fears. He believes the challenges can be addressed, with the right commitment. “There is need for more investment in skills development and ensuring prompt payment of invoices of jobs which small businesses successfully complete. If we are serious about building the capacity of small businesses, which we often say are the engines for growth this is the step we should follow.”

CONSTRUCTION BAROMETER ZAMBIA

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TECHNOLOGY

Enhancing Efficiency

..................................................................................................................................................................

Just like CAD dramatically changed the architectural and construction industry, so has Building Information Modelling (BIM).

This technology is not reserved for certain regions or countries and the sooner Zambian firms embrace it the faster they will reap the benefits, Ideate Technologies Greater Africaâ&#x20AC;&#x2122;s Technical Teamcontends.

A

ccording to the BBC, a common complaint in the Zambian construction, amongst local construction companies in particular, is that most construction projects are being awarded to foreign companies. This is because some of these companies are still constrained in the way they work.

However, one of the ways which could increase their capacity and chances of landing projects is investing in BIM (Building Information Modelling). In an age where major technological advances are happening at a breakneck speed, it is often exceptionally difficult as a professional, (who is faced with daily pressures and deadlines) to keep up to date.

This would apply to a country like Zambia, where companies are generally slower to adopt leading edge technology. As you would expect, the closing of deals is becoming more and more reliant on technology. Giving the client as much information as possible conveniently is absolutely vital - doing this better than your competition may just swing the deal in your favour.

Highly detailed photorealistic three dimension (3D) models have changed the game and given those who had adopted early an edge over their competitors.

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Game-changer There is now have another game changer â&#x20AC;&#x201C; BIM, a way to design, construct and operate buildings that involves creating and using intelligent 3D models. Compared to traditional 2D drawings, these models give all stakeholders a better understanding of the project, leading to better, more predictable building outcomes.

Is BIM any different from CAD? BIM is more than simply 3D CAD and certainly not just a 3D model of a building. BIM solutions use advanced technology to embed information and relationships into models, creating "intelligent" models. This allows for collaboration and interaction throughout the designing, planning and costing phases by architects, lighting specialistsâ&#x20AC;&#x2122; engineers etc. this not only ensures a huge saving in time but also in accuracy and ensures a reduction in errors. But more importantly is the fact that each element has exceptionally detailed data and even pricing embedded.

It also immediately allows for analysis on the interaction of these various elements such as the amount of natural light vs. artificial light and the impact this will have on the CONSTRUCTION BAROMETER ZAMBIA

TECHNOLOGY temperature allowing for detailed data on where the air conditioning needs to be situated.

Building engineers and construction companies face constant challenges of limited manpower, tight budgets, conflicting requests, and accelerated schedules. BIM helps these professionals detect issues in the early stages and identify the exact location of discrepancies. Some companies have begun developing BIMs in various detail levels, depending on the BIM application. BIM is also used to bridge the information loss gap between the design team, the construction team, and the building owner, allowing all parties to be on the same page at all times.

Benefits One of the biggest benefits to the construction industry, especially in Zambia, will be the speed and accuracy of

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costing projects and calculating bill of materials and then setting time frames through accurate project plans. With an integrated BIM solution, companies should be able to do this more proficiently and at a fraction of the time ensuring the projects and tenders are won.

Just like CAD dramatically changed the architectural and construction industry, so has Building Information Modelling (BIM). This technology is not reserved for certain regions or countries and the sooner Zambian firms embrace it the faster they will reap the benefits. BIM has already been adopted by the leading firms across Europe and the USA and is now seen as the norm rather than the exception. Definitely, the Zambiaâ&#x20AC;&#x2122;s construction future is in BIM!

CONSTRUCTION BAROMETER ZAMBIA

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Completed projects

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AGCO’S AFRICAN HEADQUARTERS AND LEARNING CENTRE

Silos at the Future Farm

AGCO is a worldwide manufacturer and distributor of agricultural equipment. AGCO’s African Headquarters and Learning Center in Lusaka, Future Farm, was launched a few weeks ago. It is will provide agricultural solutions for all African farmers.

Future Farm will help to empower local communities to develop a sustainable food production system and to increase farm productivity by implementing modern farming techniques. Its vision is to support sustainable food production systems and increase farm output by using agricultural resources more efficiently.

The 150-hectare farm is divided into a wide range of demonstration crop areas all cultivated, planted and harvested using AGCO’s full-line of agricultural equipment, and with support from commercial and not for profit partners from across the value chain. Its facilities include a state-ofthe-art Mechanization Learning Center as well as a Grain and Poultry Learning Center. It is widely believed that it is the first of its kind for Africa.

Project information – AGCO (client), Liege Africa (developer)

AGCO officials during the launch of Future Farm 26

CONSTRUCTION BAROMETER ZAMBIA

retail business in Southern Africa such as Shoprite, Edgars, Game Stores, Pep, Mr. Price, as well as high profile banks amongst a host of others. The most important milestone was reached during its construction, which took 18 months. It completion on on time, within budget and to client’s expectation was hailed as “remarkable”.

Herriot Properties, the Cosmopolitan’s developer, is also working on Mukuba Mall in Kitwe and Kafubu Mall in Ndola, the Solwezi Mall in North-Western Province.

COSMOPOLITAN SHOPPING MALL News of the development of Cosmopolitan Shopping Mall had raised consumer expectations. Now, lock, stock and barrel, the Mall has lived up

to its billing since its unveiling. Funded

by Stanbic Bank to the tune of $26 million, Cosmopolitan Shopping Mall is located on Kafue Road, Chawama area in Lusaka. It houses such big names in

Consultants - Herriot Properties (developers), QS TWO Quantity Surveyors, Thor Development, Zambia Environmental Management Agency (Environmental Impact Assessment)

The facade of Embassy Shopping Mall

President Edgar Lungu officially opening the Embassy Shopping Mall

EMBASSY SHOPPING MALL The upgrade of the 109 Mumbwa-Itezhi Tezhi Road includes 2.2km of the Ikonkaile to Itezhi Tezhi Boma Access Road. At the cost of at the US $23.52m, the project’s construction was commissioned in August 2014 The Road Development Agency (RDA) commissioned the project’s construction under the Link Zambia 8000 road projects in August 2014.

In due course, immense economic and social benefits are

The Link Zambia 8000 initiative aims at improving road infrastructure countrywide through opening of new road links to the province and districts in the country.

envisaged from the upgrade. The Mumbwa- Itezhi Tezhi Road will create investment opportunities while at the same time ease movement. For the motorist, it will drastically reduce travel time and vehicle operation costs.

Consultants - Build Trust Construction Limited, in a joint venture with Powerflex (Project manager), Zulu Burrow Development Consultants (project managers)

CONSTRUCTION BAROMETER ZAMBIA

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PROJECT PROGRESS MONITOR UPGRADE OF THE MUMBWA-ITEZHI TEZHI ROAD The upgrade of the 109 Mumbwa-Itezhi Tezhi Road includes 2.2km of the Ikonkaile to Itezhi Tezhi Boma Access Road. At the cost of at the US $23.52m, the project’s construction was commissioned in August 2014 The Road Development Agency (RDA) commissioned the project’s construction under the Link Zambia 8000 road projects in August 2014.

The Link Zambia 8000 initiative aims at improving road infrastructure countrywide through opening of new road links to the province and districts in the country.

The upgraded Mumbwa-Itezhi Tezhi Road

In due course, immense economic and social benefits are envisaged from the upgrade. The Mumbwa- Itezhi Tezhi Road will create investment opportunities while at the same time ease movement. For the motorist, it will drastically reduce travel time and vehicle operation costs.

Consultants - Build Trust Construction Limited, in a joint venture with Powerflex (Project manager), Zulu Burrow Development Consultants (project managers)

EAST PARK MALL LUSAKA East Park Mall is located at the corner of Thabo Mbeki and Great East Roads on UNZA grounds. The East Park Mall in Lusaka is a new luxury shopping outlet and home to over 80 International Retailers. Outstandingly, amongst other Hillaldam’s Stackaway 150 and Straightaway 600 systems were used and a custom made 145m aluminium cover plate was designed to ensure the seamless finish for all the sliding and stacking doors in this luxury mall.

Contractors – Graduare Property Development (client), Above and below - Three perspectives of East Park Mall

K Steel Structures and Civils (steel structure), Hillal Dam (sliding doors)

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CONSTRUCTION BAROMETER ZAMBIA

In Safe Hands

PROJECT PROGRESS MONITOR

The power station in full throttle shambalodge-ad.pdf

1

26-Apr-16

President Edgar Lungu, launching the power station

2:57:45 PM

120 MW ITEZHI TEZHI POWER STATION TSituated on the Itezhi Tezhi Dam, The Itezhi tezhi Hydro Power Station, which was recently commissioned by President Edgar Lungu, will go a long way in addressing the current shortfall in the supply of electricity to the country to businesses and households. To significantly reduce the loadshedding, consumers are experiencing President Lungu admitted that country had to do more.

In due course, the capacity from the Itezhi tezhi Hydro Power Station will be complemented by purchase agreements with companies that have expressed interest in investing in solar energy.

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The first of its kind the public private partnership (PPP) in the power sector in Zambia, Itezhi tezhi Hydro Power Station is currently owned by Tata Power and ZESCO on a 50:50 basis on a 25 year BOOT (Build-Own-Operate-Transfer) concession term. ZESCO is the sole off-taker of power from the ITT power plant.

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Consultants - ITEZHI TEZHI Power Corporation (A TATA / ZESCO JV Co.) Financing - EXIM Bank of India, African Development Bank (AFDB) 30

CONSTRUCTION BAROMETER ZAMBIA

CONSTRUCTION BAROMETER ZAMBIA

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CONSTRUCTION STAKEHOLDERS' COMMENTS Ideate Technologies Greater Africa’s Technical Team “As you would expect, the closing of deals is becoming more and more reliant on technology. Giving the client as much information as possible conveniently is absolutely vital - doing this better than your competition may just swing the deal in your favour. Highly detailed photorealistic three dimension (3D) models have changed the game and given those who had adopted early an edge over their competitors.”

Deputy Minister of Labour and Social Security, Alfredah Kansembe “Building and maintaining a preventative safety and health culture requires making use of all available means to increase general awareness, knowledge and understanding of the concepts of hazards and risks, and how they may be prevented or controlled.”

Zambia Public Procurement Authority (ZPPA), Principal Officer - Public Relations, John Chipandwe “The effects of using substandard materials only surface after a project is finalised, just after only a few months or years, the road or building will start developing potholes, or if it is a building cracks will start developing. It is only after a critical assessment is conducted later that it is discovered that the materials used were substandard or the combination of materials was not correct.”

Veteran valuation surveyor and former Chairperson of the Valuation Chapter of the Surveyors Institute of Zambia, Joseph Chikonde “Risk Management has recently taken centre stage in most ventures especially investment projects that involve large financial outlays.”

Knight Frank Zambia Managing Director, Tim Ware “The property market will face challenging short term concerns and uncertainty, however, a medium to long term focus or plan is needed to achieve success in the many property opportunities across Zambia”

National Construction Council (NCC) Public Relations Officer, Chama Mwansa “Adequate legislation in the construction sector gives confidence to investors that their investment will be safe as there are systems in place.”

National Association for Medium and Small Scale Contractors (NAMSSC) General Secretary, Danny Simumba “This direction needs to be taken if the environment has to be safeguarded for the future generation. We are, therefore, encouraging our members to adopt green construction methods as these methods are sustainable and efficient.”

THE HUT ADVERT

PROJECT RISK MANAGEMENT

Leaving Nothing to Chance

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Joseph Chikonde, veteran valuation surveyor and former Chairperson of the Valuation Chapter of the Surveyors Institute of Zambia advises construction project financiers and their professional teams in Zambia to adopt contemporary methods of project risk management.

I

n a depressed world economy, Zambia’s construction sector has been somewhat fortunate to still have comparatively better project financial outlay than other countries in Southern Africa. But with this relatively fortunate position, the nitty-gritties that ensure that projects are wellmanaged from conception to inception, implementation to delivery, can easily be overlooked.

Project risk management consultant and former chairperson of the Valuation Chapter of the Surveyors Institute of Zambia, Joseph Chikonde, has spotted oversights in the managementof potential risks in projects, which have become more prominent in the past decade. Deplorably, he points out that risk analysis and measurement of its impact ona project has been on a minimal scale when it should be highly prioritised.

In view of that, Chikonde urges the Zambian construction industry to embrace a comprehensive approach to risk management, which entails, above and beyond identification of risks, a rigorous quantitative analysis and measurement of impact on a project.

“Risk Management has recently taken centre stage in most ventures especially investment projects that involve large financial outlays,” he notes, adding that it is vital in quantifying the impact of the identified risks on financial returns.

Out of a number of benchmarks employed in project risk management worldwide, Chikonde considers concepts in a process known asRisk Analysis and Management for Projects (RAMP),asmost convenient and suitable for the demands of Zambia’s 34

comprehensive risk management does have to be overstated. Actually, it is for a developer’s ultimate benefit to ensure that the project team adheresto contemporary standards in risk management, Chikonde contends, citing four main factors.

Joseph Chikonde - Project risk management consultant and former chairperson of the Valuation Chapter of the Surveyors Institute of Surveyors.

construction industry. RAMP is the brainchild of the Institute of Civil Engineers and the Actuarial profession in the United Kingdom since 1998 and is on-going. (Chikonde happens to be a member of the Risk Management Group of the Institute and Faculty of Actuaries of the United Kingdom) What’s the fuss?

There is a flawed approachin construction circles that: “If it’s not broken, why fix it?” That is:as long as a particular risk management approach is believed to be working, then it won’t be necessary for new elements to be accommodated. However, Chikonde warns that this is in itself a risk.

Considering that there are many projects with a huge financial outlay in Zambia, evidently, the need for

1. Corporate governance reporting requirement Worldwide, there is an obligation for organisations listed on some stock exchanges, which manage billions worth of assets, to uphold highest possible reporting standards on risk management practices and processes.

Thus, organisations in emerging countries have to keep abreast.

2. Risk-based decision making An organisation must adapt an integrated and flexible risk management system that enableson-going evaluation of risks, risk based decision–making and accountability for critical risks which may affect its ability to deliver a business strategy.

3. Comprehensive risk analysis It is important not to underestimate the level of risk, irrespective of a project’s magnitude. This is because all projects or business ventures involve various kinds of risks, from the smallest domestic project such as a garden shed to motorways and airports.

4. Good risk management translates into success A project’s success does not lie in ignoring or getting intimidated by risk butby analysing and managing it effectively.

CONSTRUCTION BAROMETER ZAMBIA

Where does the risk lie?

Effective risk management lies in identifying as many potential risks that a project is exposed to as possible, says Chikonde, highlighting main critical steps.

1. High level preliminary risk analysis Conducting a high level preliminary risk analysis could establish whether the risk in a project is worth analysing further or not.For instance, in project in which the chances of not finding water when sinking a borehole are 90 per cent, then the project is not worth pursuing.

2. A brainstorming with experts Experts in a field in which the project is being undertaken should brainstorm, suggests Chikonde. In case of a construction project, engineers, civil engineers, architects, contractors and other internal and external stakeholders who are long term strategic thinkers like risk consultants and trend analysts should be involved.

“The session is held to identify risks, discuss risks and identify any interdependencies among risks so as to have an initial broad evaluation of each risk in terms of frequency of occurrence and the probable consequences. The idea is to generate and briefly discuss initial mitigation options. This shows that risk identification is a team activity and team work helps broaden the risk identification exercise,” he explains.

3. Desktop analysis A desktop analysis identifies further risks/mitigation options, supplementing the brainstorming session results. Chikonde clarifies: “The purpose of this step is to research similar projects in order to ascertain the frequency of risks and their impact, to get considered opinions of experts familiar with details of the project, as well as to outline plans of financing the project.”

Eventually, the identified risks and mitigation options should be summarised in what is called a risk matrix, a standard risk analysis structure which should cover both downside and upside risks adequately. A risk matrix includes generic categories and sub-categories of risks, causes and characteristic and importance.

The project team’s task is to ascertain the frequency of occurrence of risk and consequences if the risk occurs.

The decision to proceed with the project would hinge on the possibility of getting better outcomes.

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Classifying risk dimensions Chikonde lists five main risk classification dimensions, including: • Frequency of occurrence/risk level: This deals with the perceived likelihood of the risk occurring. Categories used include, very likely > 50% to very unlikely, < 0.01%.

• The impact can be categorised as: major negative impact, which implies cancellation of the project or slight impact, for instance, a short delay though project proceeds.

• Degree of dependences, which can be identified as very high degree to very low degree.

• Controllability: the extent to which the impact can be mitigated or managed. The classification can be completely mitigated to very uncontrollable.

Each of the above-mentioned dimensions results in awarding a score for each cell in the matrix, Chikonde says.

A guide to frequency is obtained by consulting experts in the field like civil engineers, quantity surveyors, architects, contractors, property consultants and others.

A valuable obligation It might seem a cumbersome, or superfluous exercise, but where there are billions of kwacha, involved it is better to invest resources in minimising the probability of project failure than rush and rue the incalculable financial loss which results in loss of clients’ confidence. All the more, considering that most of the projects are for developing infrastructure which is critical to national development, there is more at stake.

Description of Risk

Frequency

Design faults (inadequate detail) 30% Planning approval delay 40% Construction completion delay 75% Cost overrun 95% Diagram 3: Construction Risk Frequency in Zambia (Information credit: MLN Quantity Surveyors)

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SKILLS DEVELOPMENT & TRAINING

Addressing ‘Brick And Mortar’ Concerns

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Workers with handy technical skills are just as critical as ‘white-collar” professionals who manage projects.

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he adverts of companies looking for plumbers, electricians and fabricators which are placed daily in print and online media outlets provide a better understanding of the severity of the skills shortage the burgeoning Zambian construction industry is experiencing. It also demonstrates that it is not only the “sophisticated” skills that the country’s needs, contrary to opinion.

This is what the Thorn Park Construction Training Centre is mandated to address. But is it meeting industry demand in terms of quantity and relevance? Construction Barometer finds out from Thorn Park’s spokesperson, Beenzu Chitenge.

Thorn Park has two forms of training: mainline regular training and competency based modular system of training.

Mainline regular training is a formal form of training where school leavers apply to be enrolled, with minimum required entry results. The courses offered are construction based, focusing on: Bricklaying and plastering, Carpentry and joinery, Power electrical and Plumbing and sheet metal.

“Under this model of training, the highest qualification is craft certificate, whose duration is 2 years, followed by trade testing level 1, with the duration of 1 year, trade testing level 2, for 6 months.”

Under the competence based modular system of training (CBMT), emphasis is put on the acquisition of competence in performing a skill. It is designed to meet the demands of industry and of an individual trainee. It involves training people to be able to perform to the standard required in employment, in various contexts, repeatedly over time, with the targeted group of trainees being the following categories: the educated, people from the informal sector, those from

Practical training to real world situation is the cornerstone of training at Thorn 36

the formal sector, retirees and retrenches, people who have never been to school, various workers from the industry, etc.

Chitenge mentions the following characteristics for form of training: • It is individualised: learning is student-centred and the role of the trainer changes to that of consultant and facilitator.

• It is flexible, not time-based – learners progress through units/elements at their own pace.

• It encourages specialisation – Students can concentrate on the skills they are confident of mastering.

• Outcome-based – emphasis is put on the product and not the process; it reflects the expectations of performance in the workplace.

• Employment-led – standards are set by the concerned industrial sector.

• No entry restrictions – anyone can apply for a programme as long as they have the ability to follow instructions.

There are no set entry qualifications or age limits.

• Training is fragmented – work is broken down into learnable units/elements of competence.

According to Chitenge, courses falling in the category of the Competence Based Modular Training (CBMT), bear the maximum duration of six months and minimum duration of two weeks. On whether the courses meets specific industry requirements, he says, in all training models being offered, Thorn Park Construction Training Centre values the need to partner with the industry key stakeholders within the construction sector, for the purpose of apprenticeship and industrial attachments.

For the past 3 years, partnerships with industry key stakeholders and Associations like Lafarge, EML, ZESCO, Association of Building and Civil Engineering Contractors (ABCEC), ILO, Zambia Association of Manufacturers (ZAM), have helped TCTC benefit in the following arrears: Apprenticeship, Industrial attachments, and employment for Thorn Park graduate students.

“We have also gained through research and development of cheap, sustainable and environmentally friendly technologies within the construction sector (e.g. Renewable energy solutions through the Zambia Green Jobs Project of the International Labour Organization). In addition, we have access to privileged of information on the exiting trends and technologies within the construction sector. Indeed, this has contributed to effective and efficient training."

CONSTRUCTION BAROMETER ZAMBIA

Bridging the industry-training gap The recent funding opportunity by the Finish Ministry of foreign Affairs on a two year project known as ECO-LUSAKA project has contributed to the institutions’ facelift. The project was aimed at bridging the industrial gap between the industry and training. It started with upgrading the existing structures, as well as introducing training courses that are industry driven.

The benefit of this project has been immense, says Chitenge. “This project scored huge success in putting Thorn Park on the map, hence, now an increase in enrolment levels, as well as an increased level partnership with industry stakeholders.”

Nevertheless, despite the abovementioned strides,the TCTC still faces challenges, mainlylack of proper training materials and equipment befitting the fast moving industrial innovations, the training curriculum is not revised regularly, hence not always industry specific, and delayed grant funding.

According to Chitenge, TCTC is addressing the challenge of lack of proper training and equipment through creating more strategic partnerships with companies that are able to provide some of the equipment to be used as teaching aids at the training institution.

“The issue of the unrevised curriculum can be addressed through engagement with the training institution regulatory body TEVETA.The issue of delayed grant has been bypassed through massive advertisement for higher enrolments.”

Adapting to new demands?

To meet the contemporary demands of the rapidly evolving construction landscape, Thorn Pak Construction is introducing new course, which include: Occupation Safety and Health, Auto Cad, Entrepreneurship & Business management, PV Solar Panel production, installation and maintenance.

Collective responsibility There are no one-size-fits all solutions to addressing the skills shortage challenges in Zambia, and no institution can claim monopoly of the solution. Institutions complement each other.

For instance, the courses at universities and institutions may be different but would be for a particular critical task in a project.

FOLDING DOORS / WINDOWS

CURTAIN WALLING

Trainees are well-gender balanced

Proactive or reactive approach?

Construction companies with the right skill numbers are able to deliver project demands efficiently. But, pitifully, those are only the privileged few in Zambia. During the 2015 Zambia Institute of Architects Convention one contributor likened the agony of looking for skills in the Zambian construction market to searching for a needle in a haystack. And he was spot on.

In projects, there is always the situation of too many projects with too few skills available to manage them – a situation endemic in most developing countries with a huge infrastructure backlog to address. As one would expect, due to limited resources, this challenge is common amongst local contractors. Under intense pressure from clients to meet project contractual obligations, bereft of the right calibre of personnel, pressed for time, at times, local contractors find themselves settling for, not the best, but convenient.

The upshot is that inadequate skills or lack thereof continue to severely compromise the ability of contractors to deliver a project according to the stipulated level of standards.

A contractor, Moses Mubanga, a director of Buildcon Investments Limited, a reputable construction company, echoes this in a section in this publication.

In general, the main concern is whether the construction sector is collectively taking a proactive approach to addressing this challenge or conveniently only reacts to a crisis. If the intervention is provision of training, is the training only offered to address a crisis belatedly or as to preempt one?

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OCCUPATIONAL HEALTH & SAFETY

Implementation shortcomings

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Loopholes in legislation, which governs occupational health and safety in various sectors, have created conditions for noncompliance, making effective monitoring complicated. Noticeably, current guidelines have been overtaken by events and have become obsolete, hence are due for review.

D

irectly or indirectly, various pieces of legislation underline the significance of sound occupational health and safety in the construction sector in Zambia. The main concern, though, is the level of contractors’ commitment to compliance in their operations.

Part three of the Constitution underscores “Protection of the Fundamental Rights and Freedoms of the Individual”, and addresses issues of public health and public safety in general terms. There are also regulations under the Factories Act Chapter 441 that cover safety and health in the construction sector, electrical installations and woodworking machinery among others.

The Occupational Health and Safety Act (2010) calls for a safe working environment through the following 38

means: safe clothing, head gear and footwear, adequate ventilation, prevention of overcrowding, first aid, lighting, sanitation facilities, basic training on safety and health and fire extinguishers and hydrants. Moreover, (parts III and IV of the Occupation and Safety Act) place the obligation on both employers and employees.

The Industrial and Labour Relations Act Chapter 269 addresses OHS matters in the labour market. Besides, seven of the 39 Ratified ILO Conventions on OSH and OSH-Related Issues Zambia has ratified are related to OHS. Palpably, the issue of OHS issues in the construction sector is catered for under various guidelines that different bodies have published. The Occupational Safety and Health Services Department (OSHSD), which falls under the Ministry CONSTRUCTION BAROMETER ZAMBIA

of Labour and Social Security, is mandated to oversee implementation of legislation.

Risks: real or exaggerated?

If it safe for contractors to regard construction sites on which they do projects as high accident prone. According to an International Labour Organisation (ILO) Country Report on Occupational Health and Safety (OHS) in Zambia compiled by George Mwiya Mukosiku, the construction sector has one of the highest levels of disablement, averaging 57%.

Corroborating this fact, the Ministry of Labour and Social Security acknowledges that workers in the construction sector are highly susceptible to high safety risks at all times, as in heavy industry, mining, energy, and agriculture are most vulnerable. Moreover, it is workers down the skills ladder that are more susceptible. In particular, they face the risk of physical and chemical injury due to the areas in which they work and the equipment they use.

The ILO highlights the practice of organisations underreporting incidents: “Underreporting of accidents to both Occupational Safety and Health Services Department (OSHSD) and Mines Safety Department (MSD) appears high in comparison to the number of accident reports often sent to Workers’ Compensation Fund Control Board (WCFCB).

Accident reports sent to both OSHSD and MSD are fewer than the actual occurrences due to perceptions, on the part of most employers, that such reports may subject them to punitive measures from the enforcement authorities. On the other hand, a lot of employers report accident occurrences in their workplaces to WCFCB because of the motivation for compensation.” Undoubtedly, the fact that organisations underreport accidents is in itself a risk as the OSHSD and other stakeholders can underestimate the extent of the problem and commit fewer resources.

Compliance connundrum An International Labour Organisation (ILO) Country Report on Occupational Health and Safety (OHS) in Zambia compiled

by George Mwiya Mukosiku might provide a valid explanation on low compliance which has been generally observed in the country, not least in the construction sector.

The unfortunate fact that some of the guidelines have been overtaken by events, in particular “they are very old and have not been reviewed in a long time” can be a major factor in low compliance.

Factors such as lack of tough laws to impose fines on factories that violate health and safety laws, lack of monitoring channels to prohibit the employment of people whose safety and health are at risk, and lack of proper accident reporting systems contribute to lower compliance.

Third, due little or no publicity in some circumstances most of the new enterprises, in this context, small and medium contractors, are barely aware of the existence of guidelines.

This corresponds with what OSHS Department has observed: “There is lack of sensitization about occupational health and safety in various sectors of the economy, which is exacerbated by lack of funding.

There is likely to be low compliance from small and medium contractors than large corporate organisations

due to financial limitations. The latter, as the ILO notes, have sufficient financial resources to develop their own in-house, industry specific management systems while the former rely on the Factories Act and the Mines and Minerals Act’s Mining Regulations in managing occupational safety and health issues in their respective enterprises.

Better commitment In view of the abovementioned scenario, significant reduction of accident levels requires a commitment to the following, according to both the Ministry of Labour and Social Security and the ILO: • Implementing massive media sensitisation, through organisation stakeholder forums; • Improvement of monitoring systems that ensure that employers implement health and safety rules; • Limiting the hours of employment of all persons whose work poses safety and health risk; and • The various pieces of legislation dealing with OSH should be harmonised in order to provide clear guidance and avoid ambiguity.

What should add impetus to current efforts to promote compliance is that, to ensure that OHS is part of the construction worker’s mandate, the training curriculum for construction-related courses at Thorn Park Construction Training Centre (TPCTC) is being updated to include OSH. This is being carried out in conjunction with stakeholders such as the Ministry of Labour and Social Security’s Department of Occupational Safety and Health, the National Council for Construction and the EcoLusaka Project, which falls under the VTT Technical Research Centre of Finland. The OSH Training Manual on Construction Safety will serve as a guide for small- and medium-scale contractors.

Progress or stagnation?

The mere fact that accident statistics are being recorded is not good enough; one fatality is one too many. Nonetheless, if statistics from the Ministry of Labour and Social Security are anything to go by, there has been significant decrease in the past three years - from 878 in 2013 to 574 in 2014 in occupational accidents; from 99 deaths in 2013 to 66 in 2014; and from 152 deaths in 2013 to 107 in 2014.

The Ministry of Labour and Social Security credits this trend to interventions in scaling up occupational safety and health inspections and awareness.

As it stands, there is a long list of matters to be addressed yet, as Deputy Minister of Labour and Social Security, Alfredah Kansembe, stressed last year when assessing the state of OHS. “Building and maintaining a preventative safety and health culture requires making use of all available means to increase general awareness, knowledge and understanding of the concepts of hazards and risks, and how they may be prevented or controlled.”

CONSTRUCTION BAROMETER ZAMBIA

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CONSTRUCTION BAROMETER ZAMBIA

CONSTRUCTION BAROMETER ZAMBIA

41

SLIDING DOORS

Creating Space Aesthetically and Functionally

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The performance of sliding doors is as good as their quality. Hence, it is important for customers in Zambian construction to ensure they are aware of the specific product needs, says Martin Kennard, the managing director of Hillaldam.

Hillaldam's sliding doors at Eastpark Shopping Mall in Zambia are quite prominent

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ssues of sliding doors being installed wrongly or installed in wrong areas have been occurring frequently, and, worryingly, to address this problem, the contractor ends up incurring three or four timesthe initial cost. But this can be avoided in the first place, with the right decision, says Martin Kennard, Export Director of Hillaldam, a globally recognised industry leader in sliding door hardware.

The right decision can only be made with the right information in terms of applications, says Kennard, adding that Hillaldam ensures that it furnishes its customers with the right advice on the products specifically required.

“In Zambia, we have a highly qualified technical team, who can advise architects, engineers, quantity surveyors and their

Hillaldam's sliding doors at Edgars shop in Zambia.

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clients on what is best for their specific design requirements.

Furthermore, on-site technical assistance is included for the benefit of construction contractors and their clients.”

In Zambia, Kennardadds, Hillaldam has experienced aluminium and timber door manufacturers, in addition to a dedicated hardware distributor. Hillaldam has the following solutions for customers: domestic internal doors, Vistafold external weatherproof folding doors, large shopping centrestacking doors or large industrial warehouses and aircraft hangars. The company’s sliding doors are a popular choice in various construction projects in Zambia, says Kennard.“Our specialisedstacking systems including the latest frameless glass sliding hardware have been utilised at shopping centres of Lusaka, Manda Hill, Arcades, Levi Junction and East Park.”

Dispelling the perception that sliding doors are a luxury, Kennard contends that sliding doors are a necessity to a

In Zambia, we have a highly qualified technical team, who can advise architects, engineers, quantity surveyors and their clients on what is best for their specific design requirements. Furthermore, on-site technical assistance is included for the benefit of construction contractors and their clients.”

building. “Sliding doors offer a large saving of space, whether straight sliding or folding and stacking. Specifically, the latter two systems have additional benefits in opening up large areas which can be aesthetically pleasing and practically very functional.”

Kennard believes that Hilladam’s track record gives customers confidence. “Since 1958, we have become recognised as market leader in sliding door hardware, a name synonymous with quality design and innovation.”

In 2016 and beyond Hillaldam will continue serving the Zambia construction sector with the best possible sliding door technology to serve their specific needs, assures Kennard.

CONSTRUCTION BAROMETER ZAMBIA

The link between business performance and access to Social Protection The link between access to social protection and reducing poverty, containing inequality and sustaining equitable economic growth is well acknowledged globally (ILO 2011). According to the Zambia Labour Force Survey (2012) almost 90 % of the workers in the construction sector are informally employed. Without adequate social protection combined with the high fatality and injury risks of the sector, these workers become vulnerable and exposed to poverty.

Furthermore, a lack of social protection coverage results in decreased productivity among MSMEs and has direct cost implications to the business owner in the form of out of pocket compensation for workersâ&#x20AC;&#x2122; disabilities; hiring temporary employees; overtime pay for workers performing extra duties on behalf of injured colleagues; loss of production time; legal costs; penalties; and loss of contracts due to delayed deliveries. With proper social protection coverage, these expenditures could be avoided and finances channelled for business investments and growth.

However, notwithstanding the productivity and cost arguments outlined above, many business operators in the Zambian construction industry still view social protection as a cost to business, rather than an investment in human capital. In addition, new trends and practices such as project-based work and temporary labour agreements demand for new types of social protection packages, a demand which current schemes do not meet.

In efforts to find creative and innovative ways to achieve this, the Zambia Green Jobs Programme (ZGJP), a joint UN Programme led by the ILO, has joined hands with the National Pension Scheme Authority (NAPSA) and Workers Compensation Fund Control Board (WCFCB) to support the promotion of productivity and working conditions through innovative work injury and pension schemes designed specifically to cover MSMEs in the building construction sector.

Registering your workers with social security schemes will not only promote decent working conditions, it will also improve the quality, productivity of your workers and enhance business growth.

Patience Matandiko, ILO Green Jobs Social Security Officer matandiko@ilo.org www.zambiagreenjobs.org

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