Professional Documents
Culture Documents
January 2010
FOREWORD
The National Construction Industry (NCI), comprising both the building and civil
engineering sectors, performs an indispensable role in the economy of Uganda and in
the region as a whole. It delivers the physical infrastructure that is central to the
countrys economic development. Its activities create business to suppliers,
manufacturers and offer employment to professionals, skilled and unskilled labour. It
transforms private and public plans for capital formation and renewals from paper to
reality.
Over the years Government has increasingly realized that the management of the
countrys physical infrastructure requires collaboration of the public and private
sector. Government is also increasingly divesting itself of direct service delivery in
order to improve the efficiency and effectiveness of public services. It is, therefore, a
duty and an imperative of Government to ensure that there is a well-developed NCI
to implement physical infrastructure projects.
However, the NCI is generally fragmented and unsupported due to lack of both a
definitive Government policy and a strong institutional framework. Without a strong
NCI the development and maintenance of physical infrastructure will remain a
nightmare. The growth and development of the economy will be retarded.
Initiatives have been taken in the past to train local contractors and also create an
enabling environment, especially in the road sector, to ensure increased participation
of the local firms in physical infrastructure development and management. Although
tremendous achievements have been realised, the past initiatives to develop local
firms were not backed by appropriate Government policies and strategies to sustain
the continued growth of the construction industry.
In order to complement other Government policies for public sector reform,
privatisation, decentralisation and capacity building, my Ministry has found it
imperative to evolve a deliberate national construction industry policy. The new
Policy and Strategy aim to improve coordination, regulation and development of the
construction industry. The Policy and Strategy further aim to put in place an effective
institutional framework to address the current weaknesses in the construction
industry so that the private sector can efficiently and effectively participate and
(i)
(ii)
TABLE OF CONTENTS
Page
FOREWORD ................................................................................................................................................................. i
TABLE OF CONTENTS ......................................................................................................................................... iii
ABBREVIATIONS AND ACRONYMS .............................................................................................................. vi
GLOSSARY ............................................................................................................................................................... viii
EXECUTIVE SUMMARY ........................................................................................................................................ ix
PREAMBLE................................................................................................................................................................ xiii
1.0
INTRODUCTION ....................................................................................................................... 1
1.1
1.2
1.3
1.4
Background ........................................................................................................... 1
The Vision for the National Construction Industry ............................................... 2
Policy Context and Justification ............................................................................ 2
Policy Development Process.................................................................................. 3
2.0
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.1.7
2.1.8
2.1.9
2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.2.6
3.0
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.2
3.2.1
3.2.2
3.2.3
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.4
3.4.1
3.4.2
(iii)
3.4.3
3.5
4.0
4.1
4.1.1
4.1.2
4.1.3
4.2
4.2.1
4.2.2
4.3
4.3.1
4.3.2
4.4
4.4.1
4.4.2
5.0
5.1
5.1.1
5.1.2
5.1.3
Harmonise Roles and Responsibilities of the Public and Private Sector .............. 26
Training and Capacity Building ................................................................................... 26
Strengthening Public Institutions ................................................................................ 27
Improving Service Delivery by Private Sector ............................................................... 27
5.2
5.2.1
5.2.2
5.3
5.3.1
5.3.2
5.3.3
5.4
5.4.1
5.4.2
5.4.3
5.4.4
5.4.5
5.5
5.5.1
5.5.4
5.6
5.6.1
5.6.2
5.7
5.7.1
5.7.2
5.7.3
6.0
6.1
6.1.1
(iv)
6.1.2
6.1.3
6.2
6.2.1
6.2.2
6.3
6.3.1
6.3.2
6.3.3
6.4
6.4.1
6.4.2
6.4.3
6.4.4
6.4.5
6.5
6.5.1
6.5.2
6.6
6.6.1
6.6.2
6.7
6.7.1
6.7.2
6.7.3
7.0
7.1
7.2
7.2.1
7.2.2
7.2.3
7.2.4
7.2.5
7.2.6
7.2.7
7.2.8
7.2.9
7.3
7.3.1
7.3.2
8.0
CONCLUSION ........................................................................................................................... 51
(v)
ARB
DANIDA
DFID
DUR
ERB
EURMP
FEACO
FIDIC
GAMA
GDP
GTZ
IFAD
ILO
ISU
JICA
MELTC
MoWT
NCI
OHSE
PPDA
PWTC
SRB
SWURMP
THP
TRP
UACE
UCICO
UIPE
UMI
UNDP
UPK
USA
UTRP
VAT
(vii)
GLOSSARY
Appropriate Technology: Technology that is most suitable for the environment
and culture it is intended to support.
Construction Industry: An industry that builds physical infrastructure and
comprises the regulators, professionals, contractors, consultants, manufacturers and
suppliers.
Construction: The act of building/constructing something.
Consultant: Any firm, or individual, joint venture or team of firms and/or individuals
engaged to give professional advice or service at a fee, but not as an employee of
the party that engages it, him or her.
Contractor: Any person(s) or firm or entity named in a contract agreement to
execute the works.
Physical infrastructure: A countrys fundamental system of transportation (roads,
rails, water, etc), communication and other aspects of its physical capabilities.
Labour-based Technology: Is defined as the economically efficient employment of
as great a proportion of labour as is technically feasible, to produce as high a
standard of the physical infrastructure as demanded by the specification and allowed
by the funding available.
Policy: Course of action that has been officially chosen and agreed upon by
Government or an organisation.
Strategy: A planned series of actions for achieving something.
Sub-Contractor: Any person(s) or firm or entity named in a contract agreement to
execute part of the works.
Technology: Is knowledge about scientific or industrial methods and their
application, including machinery and equipment developed as a result of this
knowledge.
(viii)
EXECUTIVE SUMMARY
Background
The National Construction Industry (NCI), comprising both the building and civil
engineering sectors, performs an indispensable role in the economy of Uganda and in
the region as a whole. It delivers the physical infrastructure that is central to the
countrys economic development. Its activities create business to suppliers,
manufacturers and offer employment to professionals, skilled and unskilled labour. It
transforms private and public plans for capital formation and renewals from paper to
reality.
Over the years Government has increasingly realized that the management of the
countrys physical infrastructure requires collaboration of the public and private
sector. Government is also increasingly divesting itself of direct service delivery in
order to improve the efficiency and effectiveness of public services. It is, therefore, a
duty and an imperative of Government to ensure that there is a well-developed NCI
to implement physical infrastructure projects.
Government evolved this deliberate Policy aimed at restructuring development and
strengthening the NCI. In preparing the Policy, consultations were made locally and
with corresponding government institutions in the United Republic of Tanzania,
Republic of South Africa and the Republic of Sri-Lanka.
Government will promote open dialogue amongst stakeholders in the NCI to ensure
that issues affecting the industry, identified in this Policy, are discussed and resolved.
Purpose of the Policy
The Policy aims to improve coordination, regulation and development of the
construction industry. It further aims to put in place an effective institutional
framework to address the current weaknesses in the construction industry so that
the private sector can efficiently and effectively participate and perform its crucial
role in development and maintenance of the physical infrastructure.
Policy Objectives and Strategies
The goal of the NCI Policy is to enhance delivery, stability, improved performance,
and growth of the local businesses and professions within an organised and
(ix)
Bodies
and
Business
Associations,
strengthening
research
and
(xi)
(xii)
PREAMBLE
Recognising the need to have in place a clear, well-focused and people centred
National Construction Industry Policy;
Appreciating the important role the construction industry plays in the socioeconomic development of Uganda; and
Bearing in mind the commitment of the Government to economic and public sector
reforms for the countrys development;
Now therefore, the Government of Uganda has formulated this National
Construction Industry Policy to support the emergence and establishment of an
effective and sustainable national construction industry. The NCI Policy intends to
promote the growth and development of the construction industry in which both the
public and private sector are informed, conscious and actively involved in decisionmaking on matters that affect them. The Policy is in line with the Constitution,
National Vision 2035, PEAP, and the National Development Policy.
(xiii)
1.0 INTRODUCTION
Uganda has registered high achievements in all sectors of the economy since 1986,
with a consistent growth of GDP greater than 5% per annum. The economic success
has been achieved through deliberate reforms implemented by the Government, with
the support of international financing institutions and donor agencies. This
performance has resulted into the expansion of the countrys physical infrastructure
in all sectors i.e. transport and communications; housing and buildings; water and
sanitation; energy; health; education; and agriculture.
1.1
Background
The construction industry which comprises which comprises the building, civil
engineering water, sewerage, power, telecommunications and other physical
infrastructure works, plays a significant role in the socio-economic development of
the nation. It directly offers employment to many households. With easy access to
the markets and the farms assured through the provision of the transport physical
infrastructure, agricultural production is stimulated leading to improved welfare of
the population. Through employment offered by new work, rehabilitation and
maintenance, the industry contributes significantly towards the countrys GDP.
In the global context, construction is one of the industries that are of most common
socio-economic and political significance. Its role cuts across the different resource
endowments, social policies and existing levels of development. Its wide range of
outputs often sets the nations political agenda and provides the basis for social and
economic development as well. However, in Uganda it has remained weak, largely
undeveloped and in need of a policy, strategies and actions to promote its
sustainable growth. Development of a strong construction industry will yield the
following main benefits for the country:
a) A skilled work force together with a strengthened public sector for contract
sector
for
the
sustainable
development
of
the
countrys
physical
infrastructure.
The Vision for the National Construction Industry is to have an effective, efficient and
sustainable construction industry in which both the public and private sector are
informed, conscious and actively involved in decision-making on matters that affect
them.
1.3 Policy Context and Justification
The Government is obliged by the Constitution to institute focused macro-economic
policies, strategies and programmes to provide a conducive environment for
investment into the various sectors of the economy, including the construction
industry, and thus promote national development. For the national construction
industry there ought to be adequate numbers of professionals, semi-professionals
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Development and Strengthening the National Construction Industry
guarantees;
d) Underdeveloped human resource in the public and private sector;
e) Unfavourable conditionality for accessing donor credit;
f) Lack of a database of performance indicators in the industry and
g) Construction of substandard / weak physical structures that later collapse and
The
study
established
the
necessary
measures
and
made
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Development and Strengthening the National Construction Industry
Following the recommendations of the study, a Task Force, comprising senior officers
in the Ministry of Works and Transport was established in October 2000 to prepare a
Policy Framework, Strategies and a comprehensive Action Plan aimed at the
development and strengthening of the LCI.
As a matter of procedure, Government must widely consult the people during policy
formulation process. The Task Force therefore, carried out consultations locally with
key stakeholders which included contractors, consultants, academia, professional
bodies, and line ministries, among others. The Task Force submitted a first draft
Policy document in June 2001 which was discussed internally in the Ministry of Works
and Transport.
As a means of enriching the document, a team of selected members of the Ministry
of Works and Transport and representatives of Uganda National Association of
Building and Civil Engineering Contractors (UNABCEC), Uganda Association of
Consulting Engineers (UACE) and Uganda Institution of Professional Engineers (UIPE)
visited the Republic of South Africa, Tanzania in August 2001 and Sri Lanka in 2003
to share experiences. The three countries were selected for the study tours on
account of their having strong and well-established Construction Industries that were
developed in the past through affirmative and enabling Government policies and
strategies.
A second draft Policy document was prepared and presented at the first national
consultative workshop of key stakeholders held in Kampala on 17 February, 2005. A
Consultant (M/S MBW Consulting Engineers) was engaged to harmonise the report of
the Task Force with other related studies, incorporate comments of the workshop
and come up with a Draft Policy Framework, Strategies and a comprehensive Action
Plan detailing the Technical, Financial, Administrative and Human resource
requirements to support the development and strengthening of the local construction
industry.
The third draft Policy document was prepared and presented at a second
stakeholders workshop held in Kampala on 30 August, 2007. The Task Force
accordingly incorporated comments of the workshop and prepared a final Policy
document which was subsequently submitted for approval in September 2009.
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Development and Strengthening the National Construction Industry
services rendered;
e) Facilitate local firms to access credit, secure adequate work and increase
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Development and Strengthening the National Construction Industry
Most public works, in the past, used to be executed by Government direct labour
units (force account) situated in districts. Over the years this method proved
inefficient and wasteful, resulting in extensive deterioration of physical infrastructure.
Government has consequently adopted a policy of divesting itself from direct labour
units to increasing use of the private sector with the objective of improving the
effectiveness, efficiency and sustainability of service delivery. The policies,
programmes and past initiatives aimed at growth of the construction industry are
discussed in this chapter.
2.1 Related Policies and Programmes
2.1.1 Poverty Eradication Action Plan
Eradication of poverty is top priority on Governments agenda for national
development. All Government policies are geared towards eradication of poverty and
improvement of the livelihood of its population. The Government Poverty Eradication
Action Plan (PEAP) is the overall planning and budgeting framework which guides
public action in eradicating poverty defined as, low incomes; limited human
development; and powerlessness. PEAP provides the guidance in the identification of
priorities, allocation of resources, as well as the assessment of progress and impacts
of Government development programmes, with respect to poverty reduction.
PEAP is premised on four pillars and priority areas namely: Economic management;
Production, competitiveness and incomes; Security, conflict-resolution and disastermanagement; Good governance; and Human development. The core challenges
therefore, that are identified by PEAP include, enhancing income, reducing inequality,
removal of constraints to agricultural sector, ending insecurity and improvement of
quality of lives of the poor, among others.
Under the Highly Indebted Poor Countries Initiative, the Development Partners have
supported PEAP by writing off substantial interest accruing on loans that Government
has acquired over the years. The funds thus realised are being invested by the
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Development and Strengthening the National Construction Industry
industry
design,
procurement
of
goods
and
services,
project
a) Central or National
b) District Local Council (LC V)
c) Municipal Local Council (LCIV)
d) Sub county or Town Council or Division of a City (LC III)
Lower local governments are encouraged to pursue policies and strategies that are
crucial to the fulfilment of national goals. The decentralisation policy favours growth
of local contractors in all parts of the country.
2.1.5 Plan for Modernisation of Agriculture (PMA)
The Plan for Modernisation of Agriculture (PMA) is a policy framework for
operationalising PEAP Pillar 2- enhancing production, competitiveness and incomes.
It aims at eradicating poverty by transforming the livelihoods of subsistence farmers
through seven pillars, among them is supporting physical infrastructure. The
programme was launched for national implementation in mid 2000.
The physical infrastructure development and maintenance leading to improved
accessibility to farmers necessitates the construction industry to take a lead
consistent with the PMA objectives.
2.1.6 Road Sector Development Programme
The Road Sector Development Programme (RSDP) was initially formulated for only
National Roads and agreed with Development Partners in 1996 for the period
covering 1996/97 2005/06 at an estimated cost of US$ 1.5 billion dollars. This
programme was subsequently revised in 2002 to include District, Urban and
Community Access roads and placed on a rolling framework. The RSDP (2001/02
2010/11) has been estimated to cost USD 2.3 billion and will be updated on a rolling
framework every 5 years. The major objectives of this programme are to:
a) provide an efficient, safe and sustainable road network in support of market
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Development and Strengthening the National Construction Industry
investment plan for each of the rural districts and rural growth centres; and the
urban and peri-urban areas respectively. The investment plan, to be implemented in
a 15 year horizon effective from FY 2000/2001 complete with the financial and
physical resources required together with the proposed institutional and human
resource development plans, is being supported by the Development Partners.
Foreign contractors are involved in the construction of boreholes and pump
installation, construction of sanitary facilities in public institutions, water pipeline
network laying and bulk storage construction. The local contactors are mainly
engaged in construction of water point sources, production of sanplats and as sub
contractors and suppliers.
2.2 Past Initiatives
2.2.1 National Roads Development and Maintenance
Since 1988 to-date Government, supported by the World Bank, German Government,
British Government and European Union, DANIDA, African Development Bank, JICA,
IFAD and ILO has undertaken a number of projects on the national roads that has
had sub-components specifically targeting the local contractors in the road sector.
Implementation of the road projects has contributed to achievements in development
of the national construction industry.
However, because the NCI was so much retarded in the 1980s and early 1990s the
impact has so far been limited and only felt in the following areas:
a) Training of Contractors through both class room and on-the-job programmes;
b) Availing of contract jobs albeit on an irregular basis;
c) Introduction of relatively quicker payment mechanisms;
d) Promotion of labour based contracting;
e) Equipping of contractors through more manageable plant hire arrangements by
10
unit rates;
e) As an affirmative action, Government allowed contractors to hire idle equipment
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Development and Strengthening the National Construction Industry
11
districts;
b) GTZ, targeting the districts of Kabarole, Bundibugyo, Kasese and Hoima;
c) JICA I-III in the districts of Jinja, Iganga and Kamuli;
d) DANIDA Road Sector Programme Support (1998-2002) in the districts of Lira,
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Development and Strengthening the National Construction Industry
12
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Development and Strengthening the National Construction Industry
13
Physical infrastructures such as roads, railways, the built environment, water sources
and supply systems, dams, power transmission lines, and telecommunications that
are constructed and maintained by the construction industry play a crucial role in the
social and economic development of the country. They facilitate the movement of
passengers and goods, communication between distant places, provide shelter and
accommodation at work places, homes and manufacturing facilities among others.
The key stakeholders in the national construction industry are the Government,
Donors,
private
investors,
consultants
and
contractors.
The
core
support
14
l)
The key role of the above Ministries in relation to the construction industry is policy
formulation, strategic planning, setting standards, monitoring and evaluation.
Physical infrastructure development and maintenance works is executed by
contractors and supervised by consultants. Contractors and service providers are
procured by the respective ministries on a competitive basis to undertake the works.
Justice, law and order plays a central role in the construction industry by ensuring
safety of the constructed physical infrastructure and security of people who construct
the works and those that use them particularly those in the conflict infested areas of
the country. The rights of the people, peace, law and order during construction of
works are ensured by the sector.
The conflicts between parties that arise in the construction industry are handled
through arbitration or appropriate courts of law which restore thereby improving
contract management in the construction industry.
3.1.2 Public Procurement and Disposal of Public Assets Authority
The Public Procurement and Disposal of Public Assets Act, 2003 established the
Public Procurement and Disposal of Public Assets Authority. The Authority formulates
policies and regulates practices in respect of public procurement and disposal
activities and other connected matters.
The objectives of the authority are to:
a) ensure the application of fair, competitive, transparent, non-discriminatory and
15
national roads i.e. both maintenance and development. UNRA is expected to improve
efficiency and effectiveness in management of national roads. It will also provide
technical advice and assistance to Central Government and Local Governments.
3.1.4 Other Agencies
The Agencies and other institutions include National Housing and Construction
Corporation, Uganda Clays Ltd, Housing Finance Company of Uganda, National Social
Security Fund and National Water and Sewerage Corporation, UNRA, NEMA, CAA.
3.2 Business Development Organisations
Currently there are only three business development organisations among the
professions in the construction industry: Uganda Association of Consulting Engineers
(UACE), Federation of Uganda Consultants (FUCO), and Uganda National Association
of Building and Civil Engineering Contractors (UNABCEC). These organisations are
further described below.
3.2.1 Uganda Association of Consulting Engineers
UACE was set up in 1994 by a steering committee of seven consulting companies
and was subsequently officially recognised by Government as the sole organisation
responsible for the promotion of interests of consulting engineers in the country. It is
affiliated to the International Federation of Consulting Engineers (FIDIC). Its
membership stands at 20 out of about 50 albeit small size consulting firms,
companies and individuals. The most likely reason that the majority are not members
is the relatively high annual membership fees of US$800 for small firms and US$1200
for large firms.
The organisation runs seminars and lunchtime meetings with guest speakers
covering topics of interest to its members; networks with other national associations
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Development and Strengthening the National Construction Industry
16
17
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Development and Strengthening the National Construction Industry
18
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Development and Strengthening the National Construction Industry
19
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Development and Strengthening the National Construction Industry
20
The NCI generally remains fragmented, unsupported due, in part, to lack of both a
definitive Government policy and a strong institutional framework. This has
increasingly encouraged the informal sector mentality approach to business in the
industry with no long term view on work continuity on the part of local contractors
and consultants. The full potential of employment generation and the accompanying
multiplier effect based on local capacity have thus not been exploited. Consequently,
the national construction industry tends to heavily rely on the services of foreign
contractors and consultants, even for repair and maintenance works that could
otherwise be more economically handled by local players. The implications on the
economy resulting from the capital flight emanating from this arrangement are
considerable.
The development of the construction industry is in line with Government policy of
local capacity building and privatisation. In order to ensure sustainability in service
delivery, Government will continue to strengthen and facilitate local contractors and
consultants up to a point when they can handle work currently being executed by
multi-national firms. However, previous studies and seminars aimed at promoting
NCI growth have identified the core problems discussed in this Chapter.
4.1 Contracting Issues
The following issues and constraints affecting development of the NCI have been
identified during recent studies in Uganda.
4.1.1 Limited Capacity
The majority of big constructions are being executed solely by a few international
firms. Only a small percentage of the local firms are able to compete against, or work
in joint-venture with international firms. Consequently, small firms are unable to
develop their capacity and expand their market share to develop into medium-size or
large-scale companies. The small firms are confined, due to their limited size and
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Development and Strengthening the National Construction Industry
21
resources, to undertaking only small building and occasionally minor civil engineering
works.
Limited management capacity and business acumen within the contracting sector is
exacerbated by the vicious circle of: no experience no job no experience
Restricted access to equipment leads to poor performance and yet equipment
enhances performance and is one of the criteria for registration and classification of
contractors.
4.1.2 Limited Access to Credit
Limited access to credit and loan facilities for short term bridging finance required for
project implementation, and long term capital to cover the cost of business
establishment and growth is a serious barrier to the development of the capacity of
private firms.
4.1.3 Limited Work Continuity
Limited work continuity due to absence of adequate workload offered by the public
sector wipes out any gains the NCI may have registered from occasional contracts.
To ensure increasing effective participation of local entities in the construction
industry, which will facilitate their growth, measures need to be put in place to
continuously generate work for the contractors.
4.2 Consulting Issues
4.2.1 Informal Sector Practices
The number of registered consulting firms or consultants is quite small. The
inference is that there exists in the consultancy industry an informal sector to cope
with the net demand for design and supervision of construction projects. This may
be attributed to practical difficulties faced by the respective registration boards in
enforcing their mandate.
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Development and Strengthening the National Construction Industry
22
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Development and Strengthening the National Construction Industry
23
ii)
leads to too many claims, which are often cumbersome to evaluate and
agree upon;
iii)
iv)
public procurement. However, there are cases where there are few providers e.g
construction and maintenance of bitumen roads. This often encourages formation
of cartels among bidders, resulting in high prices. The use of competition is not
practical in emergency situations.
c) Joint Ventures and Mandatory Sub-Contracting - Most of the construction works,
particularly in the road and water sectors, are funded by development partners.
None of our local providers are able to compete in an International Competitive
Bidding and win a bid on their own. The PPDA Regulations needs a section which
compels foreign companies to form joint ventures or associate with local firms or
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Development and Strengthening the National Construction Industry
24
No cost variations are allowed on maintenance contracts and yet the cost of
some inputs like fuel is erratic.
ii)
Bid Security and Advance Payment Guarantee too harsh for most providers
due to the current requirement of Bank Guarantees.
ii)
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Development and Strengthening the National Construction Industry
25
The goal of the National Construction Industry Policy is to enhance delivery, stability,
improved performance, and the growth of the local businesses and professions
within an organised and continuously improving institutional framework. The Policy is
premised on the provisions of the Constitution of Uganda (1995), Vision 2035,
Poverty Eradication Action Plan (PEAP), National Development Policy and Divesture
Policy.
It is Governments strategic objective that 80% of all services, in monetary terms, in
the construction industry be provided by the private sector by June 2014. In order
to address the key issues in the development of the NCI the Government policy
objectives shall be to:
a) Harmonise roles and responsibilities of the public and private sector for effective
NCI management;
b) Regulate activities of the stakeholders and co-ordinate public and private sector
consultants;
e) Promote use of new and appropriate technologies;
f) Remove Restrictive Practices to Participation of Marginalised Groups; and
g) Ensure that NCI supports sustainable national economic and social development.
5.1 Harmonise Roles and Responsibilities of the Public and Private Sector
Government shall decrease involvement of the public sector in actual service delivery
and
effectively
disengage
from
implementation
of
physical
infrastructure
26
will enhance delivery, performance and value for money, profitability and the
industrys long-term survival in the global context;
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Development and Strengthening the National Construction Industry
27
b) Provide a focal point for co-ordination, stimulation and promotion of research and
and
manufacturers
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Development and Strengthening the National Construction Industry
28
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29
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Development and Strengthening the National Construction Industry
30
different
approaches.
The
choice
of
technology
in
physical
infrastructure
31
Government will ensure that concerns of the marginalised groups are addressed in
the design and execution of physical infrastructure works.
5.7 Promote Sustainable Economic and Social Development
Government shall ensure that the National Construction Industry supports
sustainable national economic and social development. Strategies for implementation
of this policy objective shall include:
5.7.1 Protecting the Environment
Government will ensure that the environment is protected in the process of planning,
design, development and maintenance of physical infrastructure facilities.
5.7.2 Promoting Occupational Health and Safety at Work
Government will ensure contractors and consultants promote occupational health and
safety of workers in provision and maintenance of physical infrastructure facilities.
5.7.3 Providing Security to Service Providers in Insecure Areas
Government will ensure that construction industry promotes safety of the
constructed physical infrastructure and security of the providers.
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Development and Strengthening the National Construction Industry
32
The proposed timeframe for the NCI development strategy is estimated to be 5 years
effective from FY 2009/10. The policy objectives and strategies outlined in the
outgoing sections shall be supported through a number of action plans described in
the following sections.
6.1 Strengthening of Public and Private Sector
Government departments, institutions and private sector will be strengthened to
ensure that their roles and responsibilities are harmonised for effective and efficient
delivery of services in the construction industry. The key actions will include training
of personnel and capacity building of Government departments, supporting training
centres and institutions and improving implementation of works and service delivery
mechanisms.
6.1.1 Training and Capacity Building of Government Staff
Government shall build capacity of the departmental staff to enable them take on the
roles of policy formulation, strategic planning, setting standards, monitoring and
evaluation of the construction industry. The central and local government staff shall
be required to administer contracts effectively and efficiently. This will require the
provision of appropriate training to public servants to enable them improve their
performance at work. In the first year of policy implementation, technical staff from
Government
shall
undergo
training
in
tendering
procedures
and
contract
33
Institutions, to ensure that they are well staffed, have well designed courses for
managers and artisans and undertake regular review / standardisation of their
curricula. This is to be accomplished in a period of two years after the Policy is
adopted;
b) Divest and grant semi-autonomous status to the existing Training Centres.
Courses conducted at these centres will be paid for by public and private clients
at commercial rates. Institutions of higher learning will be linked to the Training
Centres; and
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Development and Strengthening the National Construction Industry
34
private sector from the current level of 70% to 90% by June 2013;
b) Increase skilled manpower at all levels in the construction industry by June 2013;
c) Ensure that local contractors and consultants have the necessary technical and
management capabilities; and
d) Support the emerging consultancy firms and the development of small-scale
contractors.
6.2 Regulation of the Construction Industry
The Ministry in charge of Public Works will be responsible for policy implementation,
oversight on UCICO and the regulatory bodies and for coordination of the line
ministries and other stakeholders. The key actions will include establishment of a
Uganda Construction Industry Commission for effective coordination of key
stakeholders in the construction industry and strengthening of Regulatory Bodies and
Professional Societies for regulating the construction industry.
6.2.1 Regulating the Construction Industry
Government will regulate the stakeholders in the construction industry through the
Uganda Construction Industry Commission (UCICO). UCICO will be legally
established as a regulator of the construction industry. It will be established as a
semi-autonomous and self-accounting body through an Act of Parliament by the FY
2010/11.
The Commission will undertake the following measures:
a) Periodically review strategic issues that are crucial to the development of the
35
costs, propose cost control measures and advise Government on demand and
public sector measures to level spending into the sector in case of elasticity in
demand;
c) Register, classify, monitor and evaluate performance of contractors, consultants,
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Development and Strengthening the National Construction Industry
36
three regulatory bodies to render them supportive of the objectives of this Policy
and any amendments necessary will be placed before the Legislature for
enactment;
c) Periodically review Professional Ethics and Codes of conduct for members of each
professional bodies, which aim at supporting this Policy or any other policies,
programmes and statutes for the better running of the national construction
industry.
6.3 Strengthening Participation of the Local Entities
Government will institute measures to ensure effective participation of the local
contractors and consultants within the five-year phase 2008/09-2012/13. A database
of local contractors, consultants, manufacturers and suppliers on areas where they
need assistance will be established to ensure their participation. The key actions will
include support to UNABCEC, UACE and other Business Associations.
6.3.1Strengthening the Contractors Association (UNABCEC)
Government will give support to UNABCEC to strengthen it to provide the needed
services to its members and develop its membership base. UNABCEC will as soon as
possible prioritise the activities under its mandate based on members needs. It will
initially deliver a range of core services and then expand as its resources and
demands from the membership increase. Government and donor support will be
provided in the form of technical assistance to deliver the initial core services within
the first three years following the adoption of this Policy.
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Development and Strengthening the National Construction Industry
37
UCICO.
6.3.2 Supporting the UACE
Government measures will be to:
a) Facilitate capacity building aimed at specific training needs;
b) Provide technical assistance where it is critically needed for the development of
work in the public sector including packaging projects strategically with the aim of
focusing on the involvement of the local consultants; and
e) Monitor the performance of the consulting engineers on public sector contracts
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Development and Strengthening the National Construction Industry
38
Allow for raising advance payments to a maximum of 30% for both contractors
and consultants on a case-by-case basis;
b)
c)
d)
e)
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Development and Strengthening the National Construction Industry
39
and
c) Introduce a Clause in contract agreements by June 2010 compelling contractors
10% leaving the 90% of all work funded by Government for the private sector by
June 2013;
b) Increasingly contract out physical infrastructure maintenance works funded by
and performance.
6.4.5 Mandatory Sub-contracting
Government measures will be to formulate a Reservation Scheme for construction
contracts in line with the Public Procurement and Disposal of Public Assets
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Development and Strengthening the National Construction Industry
40
- 10%
- 50%
Buildings
- 50%
- 30%
41
the needs of the marginalised groups in the construction industry and identify
gaps that should be addressed;
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Development and Strengthening the National Construction Industry
42
planners will draw to design efficient and effective interventions that will respond
to the needs of the marginalised groups in the construction industry;
c) Disseminate guidelines to stakeholders aimed at achieving fairness in resource
manuals, tender documents and guidelines for physical infrastructure works; and
b) Periodically provide training and sensitisation of all stakeholders on issues and
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Development and Strengthening the National Construction Industry
43
and services with gender sensitive health schemes which take into account all
people including the marginalised groups such as women and youths. The
maternity and paternity concerns will be given due consideration; and
c) Sensitise contractors, consultants and other stakeholders on the importance of
withstand the negative impact of both natural and unforeseen disasters; and
b) Provide security for the contractors and consultants operating in insecure areas of
the country.
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Development and Strengthening the National Construction Industry
44
7.1
Implementation Strategy
and
surveyors,
UNABCEC,
UACE,
training
institutions
and
the
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Development and Strengthening the National Construction Industry
45
Financing Plan
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Development and Strengthening the National Construction Industry
46
6
7
8
9
Description
Review of Government
Policies and Strategies
Facilitate training functions
of client organisations
Establish UCICO
Support Secretariats of
Regulatory Bodies
Support UNABCEC, UACE
and other business
Associations
Facilitate establishment of a
Construction Levy managed
by UCICO
Strengthen and facilitate
MELTC
Strengthen research and
Development
Awareness training on crosscutting issues
Grand Total
1 US$ = Ushs 2,000
2010/11
2011/12
2012/13
2013/14
2014/15
Total
120
120
240
120
120
120
90
90
540
60
30
90
250
90
90
90
90
610
270
380
120
60
60
890
60
280
180
520
95
100
100
110
110
515
60
90
90
90
90
420
35
35
35
35
35
175
1,070
1,245
735
475
475
4000
47
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Development and Strengthening the National Construction Industry
48
Sources of Funding
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Development and Strengthening the National Construction Industry
49
will
seek
additional
funds
from
Development
Partners
for
implementation of programmes and projects arising out of this Policy. The World
Bank, EU, DFID and Danida have already indicated willingness to finance the
component of Capacity Building of Professional Associations, Business Associations
and MOWT staff.
The funding by World Bank and DFID under the Transport Sector Development
Project is estimated at US$ 1.6 million for Policy and Institutional Reforms for five
years (2010 2015).
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Development and Strengthening the National Construction Industry
50
8.0 CONCLUSION
The need to develop and support the national construction industry has for the last
decade been a priority item on the national development agenda. Implementation
this NCI Policy shall greatly contribute to the Governments efforts in addressing the
need for sustainable development based on effective public/private sector
partnership.
The phased implementation of the NCI Policy, strategies and action plans will offer
the Government and all the stakeholders including the Development Partners an
opportunity to participate right from the start in developing, testing, monitoring and
refining a robust institutional framework. However, the success will largely depend
on meaningful cooperation and clear interrelationship amongst the Government,
Development Partners, and the private sector.
Since the Policy is based on development-focus derivatives of the Constitution of
Uganda 1995 as well as on existing policies and strategies that have been well
supported by the Development Partners, the outcomes of a well developed national
construction industry shall positively uphold the national aspirations for the
sustainable development of the country.
The planned eventual elimination of Force Account as a tool for service delivery by
the public sector will effectively lead to a changed role of the public sector from an
implementer to being responsible for policy formulation, setting and monitoring
standards, regulation, public procurement, and project management. Therefore the
client organisations shall identify personnel for training under this Policy, to assume
the responsibilities under the changed roles.
There is a wide scope for donor and Development Partner support to make this NCI
Policy a reality. The reforms that will be introduced in the operationalisation of this
Policy shall need to be supported by the stakeholders including donors and
Development Partners. A total budget of US$ 4.0 million (Ushs 8.0 billion) will be
required for developing and strengthening the NCI in the five-year period following
adoption of this Policy.
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Development and Strengthening the National Construction Industry
51
However, further funding shall be required for setting up the physical infrastructure
for the UCICO upon a successful review in the fourth year. Also technical assistance
shall be needed to address the critical areas of training of trainers with respect to
imparting of managerial and technical skills to contractors. Government shall
therefore seek support from Development Partners to fund programmes and projects
resulting from implementation of this Policy.
It is therefore imperative that MOWT will open dialogue with all key actors of the
construction industry and work closely with all donors and other stakeholders in the
development of the national construction industry. The action plans only provide an
operational framework and when need arises, reviews will be undertaken to ensure
success of the stated strategies.
The existence of strong leadership and motivated staff in the business development
bodies, regulatory boards, and professional associations, commitment of Government
ministries to use of local contractors and consultants and positive assistance from all
support organisations to the industry will lead to the ultimate goal of a developed
national construction industry by the year 2015.
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Development and Strengthening the National Construction Industry
52