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Despite various trainings to build the capacity of local contractors to participate and
undertake infrastructure projects in the country, still, most public competition ventures
for local and international bidders normally end up with contracts being awarded to
foreign contractors. So the main objective of this study was to explore the challenges
facing local contractors when bidding for large works projects for the period from
2006/07 to 2011/12.
The researcher applied survey research design by involving 21 respondents from the
contractors registered in civil works class 1, 2, 3 and 4 and 8 TANROADS staff.
Through primary and secondary data, the study was able to reveal that local contractors
faced many challenges when they bid for large works projects. These challenges were
mainly due to inability to provide bid securities, inadequate technical and managerial
skills, lack of experience, stiff competition within contractors and presence of foreign
bidders, inadequate access to credit and high financing cost and failure to meet the
turnover requirement.
Some of the proposed measures to address these challenges were formation of joint
ventures, employment of skilled labour, use of bid securing declaration, training,
reducing interest on loans or credits, improving preparation of responsive bids,
improvement of fair competition and avoiding corruption practices, etc.
Basically the output of the research study entails the practical alleviation of all
unsuccessful factors hindering local contractor from successful bidding process through
training, modification of policies and laws, adoption of transparent procurement systems
and developing Contractor’s performance framework for monitoring of the performance
of local firms in various aspects related to tendering, number of won tender by each
active member of the CRB per calendar year, problems encountered, list of Contractors
with exceptional good performance, etc. |
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