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A F R I C A

Community Contracting and Organisational Practices in Rural Areas

A Case Study of Zambia Draft Report

November 2005

ASIST

Tel: 260 1 293529 Fax: 260 1 295178 Email: [email protected] Website: www.ruralnet.co.za

P. O. Box 51311 Plot 6465 Libala Road Kalundu, Lusaka, Zambia

Community Contracting and Organisational Practices in Zambia and Malawi A case study of Zambia

Table of Contents

Acronyms ....................................................................................................................................................... 4 1.0 INTRODUCTION ................................................................................................................................ 5

1.1 Background to the Study ................................................................................................................ 5 1.2 Justification for the Study ............................................................................................................... 5 1.3 Study Objectives ............................................................................................................................ 6 1.4 Study Methodology......................................................................................................................... 6

2.0 TYPES & NATURE OF EXISTING ORGANISATION MODALITIES................................................ 7 2.1 Project committees......................................................................................................................... 7 2.2 Petty contractors ............................................................................................................................ 7 2.3 Co-operatives ................................................................................................................................. 8 2.4 Other community structures ........................................................................................................... 8

2.4.1 Project management boards........................................................................................................ 8 2.4.2 Resident development committees.............................................................................................. 8

2.5 Emerging issues for guidelines ...................................................................................................... 9 3.0 CONTEXTUAL, INSTITUTIONAL & LEGAL FRAMEWORKS....................................................... 11

3.1 Community contracts.................................................................................................................... 11 3.2 Procurement systems and regulations.............................................................................................. 13

3.2.1 Procurement at national level .................................................................................................... 13 3.2.2 Procurement at community level................................................................................................ 14 3.2.3 Registration process of contractors ........................................................................................... 15

3.3 Constraints and opportunities....................................................................................................... 16 3.3.1 Constraints ................................................................................................................................. 16 3.3.2 Opportunities................................................................................................................................ 17

3.4 Emerging issues for guidelines .................................................................................................... 17 4.0 OPERATIONAL PROCEDURES AND FRAMEWORKS ................................................................ 18

4.1 Mobilization process..................................................................................................................... 18 4.2 Contract sums .............................................................................................................................. 19 4.3 Negotiations and terms ................................................................................................................ 19 4.4 Recruitment criteria and procedures ............................................................................................ 20 4.5 Standards and productivity norms................................................................................................ 22 4.6 Payment systems/procedures...................................................................................................... 23 4.7 Contract management.................................................................................................................. 24 4.8 Capacity building skills development ........................................................................................... 25 4.9 Gender Considerations ................................................................................................................ 25 4.10 Emerging issues for guidelines .................................................................................................... 26

5.0 PERCEPTIONS ON INCENTIVES AND SHARED BENEFITS....................................................... 30 5.1 Between communities and contracting parties............................................................................. 30 5.2 Between community contractors and the beneficiary community ................................................ 31 5.3 Emerging issues for Guidelines ................................................................................................... 31

6.0 ASSESSMENT OF KEY ISSUES .................................................................................................... 32 6.1 Existing potential .......................................................................................................................... 32 6.2 Constraints ................................................................................................................................... 32 6.3 Opportunities ................................................................................................................................ 33 6.4 Emerging issues for guidelines .................................................................................................... 34

References ................................................................................................................................................... 35 Appendices .................................................................................................................................................. 36

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Appendix 1a: List of organisations consulted.......................................................................................... 37 Appendix 1b: List of Participants at community level............................................................................. 38 Appendix 2: National Council for Construction -Fee Structure (US $) .................................................. 40 Appendix 3: Decision Making Checklist.................................................................................................... 41 Appendix 4: Lessons learnt, benefits and perception on community contracts.................................. 42


Acronyms

ADC Area Development Committee CBO Community Based Organisation CCF Christian Children’s Fund EIIP Employment Intensive-Investment Programme ILO International Labour Organisation JICA Japan International Cooperation Agency NGO Non-Governmental Organisation PRA Participatory Rural Appraisal PTA Parents Teachers Association RDC Resident Development Committee RIF Rural Investment Fund VDC Village Development Committees ZAMSIF Zambia Social Investment Fund ZDC Zone Development Committee

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1.0 INTRODUCTION

1.1 Background to the Study The global Employment Intensive-Investment Programme (EIIP) of the ILO promotes and supports the generation of productive and decent employment through local resource-based investment policies and programmes in infrastructure to contribute to poverty reduction, economic development and social progress. ASIST Africa (Advisory Support, Information Services and Training) has held the role of the delivery mechanism for EIIP in Eastern and Southern Africa. The programme has been considered fairly successful and is believed to have had significant impact, particularly when it comes to the delivery of infrastructure and services using the labour-based technology through small and micro-enterprises. Nevertheless, some work has still to be done to ensure effective participation of the local communities in decision making and implementation of interventions to improve their livelihoods. The ongoing decentralisation reforms in several countries in the region calls for the need to match the transfer of development responsibilities to the local authorities and communities with adequate responsive measures to strengthen capacities for beneficiary involvement at local level. Community empowerment e.g. through training, employment creation, social dialogue, etc. forms an important part of this process. Community contracting is one of the very encompassing tools for community empowerment which combines technical, institutional and socio-political aspects of development. Community contracting is one area that ILO has been involved with in the recent past, but needs further exploring to be able to scale-up and mainstream the approach in the development processes as a core strategy for community empowerment and poverty reduction. Community contracting involves a contract between a client (e.g. the local authority) and the community, for a remunerated employment package. It is a people-centred approach for infrastructure and service delivery where both or all parties to development recognise the benefits. Community contracting for physical implementation of works of which they are the direct beneficiaries helps to retain substantial portion of any external funding into their hands as well as helping to build their self-esteem. Community groups are also best involved in project identification, priority setting and formulation, which in effect reinforce the ownership aspect. The community contracting approach responds to the needs of the community on a longer - term period through emphasis on optimisation of local resources, better organisation, accountability and ownership at local level. This is unlike conventional approaches which may have more benefits to service providers.

1.2 Justification for the Study A body of knowledge already exists in ILO with regard to community contracting. However, this is mainly from the urban context where most of the recent projects have been or are being implemented, and hence the justification for this rural-based study. In this regard, the following issues are worth noting:

To address increasing demand: - Owing to the need for development approaches and interventions that directly address poverty at local level, there is an increasingly high demand for community contracting information, procedures and/or guidelines by practitioners in the region to facilitate effective community organization for development work in both urban and rural areas.

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To fill the knowledge gap: - Community contracting is a slightly new concept which needs further development based on the existing practical experiences. Consequently there is paucity of comprehensive knowledge and documented practical examples and case studies in relation to the rural contexts of Sub-Saharan Africa.

To promote a standardized and acceptable implementation system for public

infrastructure works at community level: - This is intended to substitute or complement provision of voluntary (unpaid) labour which is often a requirement in most community infrastructure works receiving external support. This pre-condition is usually set as a contribution in-kind of voluntary unskilled labour and locally available materials like sand, gravel, etc. In most cases, the pre-condition is unwelcome by the beneficiary communities who see themselves as poor and yet required to work for free. Furthermore, where the community provides voluntary labour, it is usually the poorest members and especially women who end up contributing free labour. The problem of unpaid labour in public infrastructure works like roads and community access is compounded by the undefined nature of ownership and responsibility in this category of infrastructure and the fact that the asset may serve/benefit a wider community than those actually involved in its development. This is opposed to buildings or irrigation type of infrastructure with a more defined group of owners and beneficiaries.

1.3 Study Objectives (i) To identify and document prominent examples and lessons from the past and ongoing

community contracting practices and community organization modalities for public works development initiatives in rural areas of selected study countries.

(ii) To develop draft guidelines and test strategies that will provide applicable solutions in different rural contexts and open to adaptations to local conditions. These will be based on the examples of good practices and lessons for improvement. The guidelines will enable practitioners and communities to design and incorporate community contracting system into public development projects, and also serve as training materials.

(iii) To promote and advocate the benefits of community contracting as a potential tool for local community empowerment, poverty reduction and sustainable development, e.g. through employment creation, enhancing social dialogue, social security, transparency, accountability and ownership.

1.4 Study Methodology The methodology used in the study encompassed a desk-work study of key/available information on community contracting. In addition, a fieldwork study was conducted with the aim to cover a survey of past and ongoing initiatives so as to extract and document practices and lessons. During the fieldwork study the following were undertaken: (i) Semi-structured interviews with key players involved in funding and giving contracts to urban and rural areas; and, (ii) case studies of selected communities involved in community contracting. Exploratory visits together with semi-structured interviews and focus group discussions were held with key community groupings, project committees undertaking community investment programmes and petty contractors. Appendix 1a and 1b provides a list of all organisations and community key players consulted in this study.

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2.0 TYPES & NATURE OF EXISTING ORGANISATION MODALITIES

Current organisations involved in community contracting in rural areas of Zambia use various forms of modalities/structures. The study identified such modalities used for community contracting and these are listed below:

1) Project committees; 2) Petty contractors; 3) Cooperatives; 4) Other community groupings.

The identified modalities are each discussed in turn and their status is summarized in Table 1.

2.1 Project committees Committees were the most common structures for community contracting being used by the organisations assessed. These committees include the following four;

• Project Committee, • Project Management Committee, • Works Committee and, • Resident Development Committee (RDC).

Project committees are informal groups, with no legal status. The committees consist of 10 to 12 members who are democratically elected by the community. All the project committees visited indicated that at least 50% of the members are women. In all cases reviewed, each committee has a chairperson, secretary and treasurer who in most cases act jointly as bank signatories. All the elected members work in a voluntary capacity. The project committee is ad hoc, set up specifically for the project at hand, with in-built flexibility in its functions. Because the committees are not permanent and lack a legal status, inconsistencies are likely to arise in the way activities are conducted.

2.2 Petty contractors

Petty contractors were not common in the sampled communities. Kabile school construction, a project under Christian Children’s Fund in Mumbwa District, was the only case where a petty contractor was hired within the community. This was not a situation where the contracting organisation contracted directly but rather, a situation where the project committee subcontracted the local contractor. The general feeling by some of the communities visited as to why petty contractors are not used was that skills are usually not available locally and so they have to contract out.

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2.3 Co-operatives Programmes implemented under the Ministry of Agriculture and Cooperatives (MACO) use this structure. Cooperatives by their nature are formal groups with a legal status. Among the organizations visited, only the Japanese International Cooperative Agency (JICA) and the Rural Investment Fund (RIF) use this structure. RIF has set it as a condition to only fund co-operatives that are registered with the Registrar of Cooperatives under the Ministry of Agriculture and Cooperatives. When an organisation is dealing with agricultural based pubic works, a cooperative is one of the best structures to use because members are likely to have specialised skills. However, the danger in using this structure is that the cooperative may be seen as an elite group having a monopoly over subprojects related to agriculture.

2.4 Other community structures

2.4.1 Project management boards The Project management boards are community based and used by CCF Zambia. These are made up of representatives from the target community and members of the contracting organisation based at the community level. The project management board is responsible for community contracting and is in charge of planning, budgeting, implementation, hiring skilled labour, monitoring and evaluation. Unlike the project committee, the project management board is a permanent structure and tends to be there as long as the contracting organisation is operating within the community.

2.4.2 Resident development committees The Resident Development Committees (RDCs) consist of community representatives in given peri urban communities. The RDCs have the responsibility of coordinating as well as fostering development in an area. Some organisations working in peri-urban areas use RDCs in community contracting because these provide a framework for coordination and for the participation of many stakeholders. Identified organisations who have used this structure are Plan Zambia and Development Cooperation Ireland. Table 1 below summarizes the existing organizational modalities and status and status at community level.

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Table 1: Modalities/structures used in community contracting

Modality/ Structure

Legal status Organisation that has used such modalities/

structures Project committees/ Project management committees

Informal group No legal status, but there is need for minutes which report the formation of a committee thereby forming the basis for gaining legal status,

Japanese International Cooperation Agency

Zambia Social Investment Fund

Christian Children’s Fund (CCF)

Resident development committees

Informal group with no legal status Development Cooperation Ireland

Plan International Cooperatives The cooperative is officially registered under the

Registrar of Cooperatives under the Ministry of Agriculture and Cooperatives

Rural Investment Fund,

JICA Project management boards

The board is not a registered group. It is governed by a set of guidelines and constitution

CCF

Works committees

These are informal committees often made up of other committees/structures in the community such as the Neighbourhood Health Committee, the Parents Teachers Association (PTA), etc.

Plan Zambia

2.5 Emerging issues for guidelines

Nature of existing modalities: It has emerged that most organisations using community contracting use ad hoc committees such as the project committee. The advantage of using this kind of arrangement is that it is representative of the community and allows for flexibility. In addition, it is fairly easy to establish. However, the disadvantage is that it is not sustainable and usually leads to confused responsibilities. For instance, in one community visited (Chipindani community), it was observed that there were different project committees dealing with different projects under ZAMSIF, CCF and JICA. The problem with this as was observed, is that one of the project committees seemed to have placed itself as an elite group in the community. To avoid this, the issue then becomes the need to establish a permanent group within the communities which can act as a representative body for voicing opinions and advocating community contracting as a tool for community empowerment.

It would be beneficial to use existing permanent structures such as the Area Development Committees (ADCs) to coordinate community contracting to avoid potential conflict.

Supportive government policy framework: If community contracting is to be used as a tool for community empowerment, there is need for the formulation of supportive Government policies. After the adoption of the Decentralisation Policy in 2002 which seeks to transfer power to the grassroot levels for development planning and implementation, the ADC in each ward was to be established. The ADC is the lowest permanent sub-district structure. In the example given above if all the different projects had come under one permanent structure such as the ADC, the different players would have been able to complement each other, thereby creating a synergy for community development. The ADC which is equivalent to RDCs but is more rural based, is a committee of community representatives in a given ward and has the responsibility of coordinating development in the area.

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The community representatives that form the ADC are leaders of the various committees existing at the ward and sub-ward level. An ADC is further sub-divided into zones. Each zone has a Zone Development Committee (ZDC). Like the ADC, this is a committee of representatives which in turn consists of community leaders drawn from Village Development Committees (VDCs) in the zone. Affiliated to the VDC are community based committees formed around areas of specific interest such as the Village Water and Sanitation Health Education committee (V-WASHE), Neighbourhood Health Committee (NHC) and Parents Teachers Association (PTA). The Government has recognized that the ADC will increasingly play a prominent role in facilitating development at grassroot level. With the government’s deliberate drive towards decentralization, the typical direction in which ADCs appear to be evolving could play a leading role in community contracting. As permanent structures, ADCs have the advantage of serving as a reservoir for community contracting experience.

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3.0 CONTEXTUAL, INSTITUTIONAL & LEGAL FRAMEWORKS

3.1 Community contracts The type of community contracts used by the various community structures were assessed using the following definitions provided by ILO1.

a. Labour- only contracts: The community is only responsible for the provision and organisation of the labour input. The contracting authority or external assistance group is responsible for the timely provision of materials and equipment in sufficient quantity and quality.

b. Labour and material contracts: The community is responsible for both the labour and

materials input for a certain construction activity.

c. Full contract: Under a full contract the community provides the labour, materials and the necessary equipment, and is also responsible for overall management, sub-contracts etc. The local government or contracting organisation provides technical assistance.

An assessment of the types of community contracts used for different public works development initiatives in rural areas revealed the existence of different types of contracts. Table 2 illustrates the type of contracts and contractors and processes used in selecting a community contractor.

Table 2: Community contracting models

Public works

development initiatives Contracting organisation

Type of contract

Contractor

Selection process of contractor

Grinding mill, wells & health post

JICA Full contract Project committee Community consensus

Lunywa dam ZAMSIF Labour & material Sub-contractor Bidding Ndeke Community school & centre

Irish Aid Labour only Private contractor Recommended by contracting organisation

Ndeke Road rehabilitation

Irish Aid Full contract Resident Representatives

Community consensus

Ndeke Water piping Plan Zambia Full contract Resident Representatives

Community consensus

Malundu Rural Health centre

ZAMSIF Labour and material

Project committee Community consensus

Chipindani Water and sanitation project

ZAMSIF Full contract Project committee Community consensus

Butinti dam & Fish Ponds

RIF Labour and material

Sub-contractor Recommended by contracting organisation

Chaminukwala Bridge ZAMSIF Full contract Project committee Community consensus

Kabile CCF project office CCF Labour & material Project management board

Community consensus

Kabile CCF School CCF Full contract Project committee Local contractor

Community consensus

Mushikile Storage shed RIF Labour & material Sub-contractor Bidding 1 ILO ASIST Africa Regional Programme, Tournée J., van Esch W. Community contracts in urban infrastructure works; pg 29; Geneva, International Labour Office, 2001.

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Generally, it was observed that community contracts were either provided directly to the community or were provided to a sub-contractor contracted by the community. The former which involves channeling of funds to be managed entirely by the community was the most common. However, in situations where more complex technological project deigns are chosen (such as construction of a dam as in the case of the Lunywa dam, a ZAMSIF sub-project), the latter is the preferred approach. Here the community enters into a contract with the sub-contractor using a financing agreement drawn up by the contracting organisation. There was only one isolated case involving the construction of a community school and centre, where a labour only contract was used. Some organisations like ZAMSIF (Zambia Social Investment Fund) and RIF (Rural Investment Fund) use a combination of contracts. This depends on the project type as well as the institutional capacity of the communities. Organisations were also assessed in terms of the form of contracts they use. Only ZAMSIF and RIF had the practice of drawing up simple standard community contracts. In all cases, these contracts were not legally binding. Other organisations use financial agreements as contracts. An assessment of the type of contracts communities prefer was carried out with the aim of conducting a comparative analysis of the pros and cons of the 3 types of contracts. Out of the 9 communities visited, only 1 community expressed its preference of the labour and material contract, the remaining 8 indicated they would prefer the full contract approach (see Appendix 4). Reason provided for the preference of labour and material contract was based on the need to have technical expertise to carry out complex technological projects. The advantage of this type of contract is that it provides communities with an opportunity to manage human and material resources. This ultimately enhances their management skills which are necessary for providing sustainability. However, the presence of external contractors and technical experts in this type of contract robs the communities the opportunity to enhance their skills in the full management of projects. Reasons provided for preference of a full contract were similar in most cases, the major ones including:

It builds capacity It equips communities with skills particularly in financial, technical and administration management

It provides a sense of ownership It creates employment

Some communities were, however, quick to add that the full contract should consider the involvement of a technical supervisor coming from the local government or from the contracting organisation. As they observed, a technical supervisor is important especially when the community lacks skills or technical knowledge to manage the implementation of an infrastructure project. Clearly this is also true in situations where a community is undertaking public works for the first time. On the other hand due to the involvement of the technical staff, communities may be constrained in fully participating in the management of the contract and undertaking project activities. The labour only contract was the least preferred contract model because it does little to promote skills and capacity which are essential for sustainability of projects. However, one advantage of this type of contract is that it frees the community of the burden of providing materials, resources and technical skill especially where capacity building has not been undertaken.

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3.2 Procurement systems and regulations

3.2.1 Procurement at national level The procurement of works at country level, which is undertaken by the Zambia Tender Board, are concerned with Civil Engineering, Construction and the Supply and installation of Plant and Equipment. Examples include the following:

a. Construction of schools or office blocks; b. Construction of roads; c. Construction of sewerage works; d. Construction and installation of plant and equipment; e. Renovations and refurbishment of hospitals; f. Construction and installation of telephone exchanges; and, g. Construction of bridges.

The Board has set thresholds, where the estimated minimum value of the procurement is $1,100 but does not exceed $3,300. This is set for informal tenders who are invited, evaluated and authorised for acceptance by the District Tender committees. Procurement above $3,300 is authorised by the Central Tender Committee. In the public sector, the procurement of works is undertaken when the concerned institution identifies the need to provide infrastructure that is intended to enhance the operating efficiency of the user institutions. The procedure that is taken for the procurement of works is further elaborated in Box 1. Procurement processes are regulated by the Zambia National Tender Board Act, 1982, Section 27.

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Among the procurement The bulk of managed difengaging qunot complexthese utilising Where a comadvertising foon the basis

Governneed. Works tender

a.

b.

c.

d.

e.

f.

g.

Box 1: Procedure for the procurement of works at Country level

ment institution identifies the need. Then it informs the Ministry of works and Supply of their Government institution sub warrants the funds to Ministry of Works and Supply. Ministry of and Supply prepares the technical specifications. Ministry of Works and Supply prepares documents.

Pre-qualify contractors/call for bids Prepare prequalification document (dossier) Invite statement of capability Evaluate the experiences of capacity Obtain authority to shortlist

Invite tenders Invitation to tender notice General instruction to tenders Special instructions to tenders General Conditions of Contract Special Conditions of Contract Specifications Drawing Bills of Quantities Sample Forms

Site visits To assess site conditions Incorporate resultant data into tender Optional or mandatory

Tender closing and opening Receipt of offers

Evaluation 1. Preliminary 2. Technical 3. Commercial

Award of contract Lowest evaluated bidder awarded contract

Contract management Sign contract Contract submits performance Bond Release Bid Bond Monitor Contract

3.2.2 Procurement at community level

organisations visited, ZAMSIF has the most comprehensive, well structured system laid out for the community level. Box 2 gives a description of this system.

the works procured at the community level consist of minor works. These are ferently as was observed. The most preferred approach used by communities is alified and skilled labourers within the community. As works at community level are in nature and are small in size and value, most communities prefer to implement this approach.

munity subcontracts, the contracting organisation or the district council assists in r contractors. It was a common practice among organisations to engage contractors

of quotations obtained in response to a written invitation. The group or committee,

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with the guidance from the district officers or contracting organisation, evaluates and awards the work on the basis of qualification, experience and the least cost.

3.2.3 Registrati In Zambia, the registration of contractors i(NCC). The NCC is an advisory body, afprofessional bodies within the Zambian con The NCC ACT No. 13 of 2003 was establisto register and regulate all contractors and NCC runs a registration scheme for all cactivities in Zambia. Box 3 provides the rego through. The processes include the cost The advantage of the NCC is that it facaccording to their category and capacity.capacity building programmes.

Box 2: Procedure for the procure The responsibility for procurement at thcommunities’ Project Committees. These aimplementation of the sub-projects. In situacost efficiency and durability, procuremManagement Unit (MU). Procurement forms used by the communitieinto with the communities by ZAMSIF MUproject is maintained either by the communit Potential bidders may be procured on the badomestic contractors in response to a writteweek to submit their quotation. The Commiand the name of the bidders and the price awarded a contract on the basis of qualificat In some cases, the workers hired will requitechnical person. The selection of the technand experience. ZAMSIF’s experience inequivalent of US$1,500 per contract. Threference for the Technical Supervisor Responsibility for selection rests with endorsement by the District.

2 Costs are provided in US dollars at the prevail

ment of works – ZAMSIF approach

e community level mainly rests with the re trained in procurement prior to and during tions where ZAMSIF wants to ensure quality, ent is undertaken centrally by ZAMSIF

s are part of the Financing Agreement entered . All tender documentation related to a sub-y or/ and ZAMSIF MU.

sis of quotations obtained from three qualified n invitation. The bidders are at least given one ttee or group opens the bids in a public forum are read out. The qualifying contractor is then ion, experience and the least cost.

re supervision by a qualified and experienced ical supervisor is on the basis of qualification dicates that these typically amount to the e Project Committee will prepare terms of and will solicit at least three quotations. the Project Committee, and will require

on process of contractors

s carried out by the National Council for Construction filiating and representing all trade organisations and struction industry.

hed to empower the National Council for Construction consultants in the Zambian construction industry. The ontractors and consultants engaged in construction

gistration process potential contractors are required to s2 and time taken for registration.

ilitates the creation of opportunities for contractors It also provides a basis for focused and effective

ing exchange rate. 15


Box 3: Registration process

The NCC Registration form can be obtained at a fee of US$ 4.4 The form is returned with complete details of all requirements for the category in which the

contractor wishes to register, and pays the relevant initial scrutiny fee as indicated in Appendix 2.

The application form is reviewed by the Provincial Registration Committee and physical verifications are undertaken for the office premises and plant and equipment. All referees are contacted.

The relevant fees are paid as follows: Registration form- US$ 4.4 Initial scrutiny according to classification grade applied for. Registration fee - to be paid upon acceptance of application by the NCC.

The time it takes to obtain formal registration, is 3 weeks.

3.3 Constraints and opportunities

3.3.1 Constraints

Institutional frameworks There are insufficient institutional arrangements for community contracting with respect to planning and operational modalities. Structures to support community contracting are not fully developed such that integration of the different aspects of community contracting, particularly procurement processes, is still weak. To a large extent this situation can be attributed to the inadequate administrative decentralization as well as the low capacity of local government to enter into community level contracts. In Zambia, these processes are still evolving.

Unfavorable Government policies The formulation of national government policies still favours urban areas. For example, the country’s procurement system does not cover small local organisations based in rural areas. Therefore, decisions on procurement and general contracting issues are influenced by the contracting organisations which isolate the local groups and organisations from the process. Ideally, the contracting organisation should only act in an advisory capacity and the final decisions on contracting should be made by the community. Consequently, there is need to develop policies that suit rural communities in community contracting procedures.

The legal status of the target group Presently, most groups involved in community contracting are not registered as associations, CBOs or contractors. The lack of legal status for the committees and other groups entails that they are not protected from unfavorable conditions that might be imposed upon them by various actors such as the contracting organisation, local government, private contractors and suppliers of goods and services.

Lack of Information Information is generally lacking on issues such as procurement, registration and managing of contracts at the community level. Communities have no knowledge on how much time and costs go into registration. In addition, communities lack awareness on training and credit facilities that

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could be available for them. It is critical that information is made available to the communities to facilitate their effective participation.

Poor enabling environment

There is lack of training facilities to assist community groups and committees to acquire skills necessary to carryout contractual arrangements with the contracting organisations or local government departments. Communities need to have a thorough understanding of the stages involved in community contracting. Lack of training has implications on the extent to which community groups can effectively participate in the various stages of community contracting.

3.3.2 Opportunities

Existing Partnerships A number of organisations have started using direct project support and have also been building their own participatory structures at the community level. This approach provides an opportunity for communities to independently undertake community contracting especially when investment funds are solely managed by the community, committee or group.

Social and political recognition of Community Based Organisations (CBOs) Due to the drive towards decentralisation, CBOs are now being recognized as key players in the development process. This is seen as an opportunity for CBOs to slowly be integrated into the institutional framework for public procurement of works at community level.


Developing community level procurement procedures: The development of procurement procedures has to support the principles of community contracting, that is, contracts can be issued to small local contractors or to community groups. In addition, the procurement guidelines of the Zambia National Tender Board need to be adopted and tailored to suit the local communities.

Legal environment for community contracting: The creation of a legal association or CBO can act as a formal link with government public procurement system, as this would eventually manage collective funds, and award or execute contracts. Establishing a legal environment also serves the community as well as the contracting organisation a reference point with regards to activities undertaken.

Tailor-made contracts: Contracts should be awarded after an assessment of the capacity and skills of a community contracting group. The contracts drawn should not only be simple but comprehensive, including areas that will promote the broader objectives and purposes. They should not only be limited to responsibilities, conditions on contributions, work to be undertaken, or disbursement arrangements, but should also include issues such as legal obligations etc.

Information and training: Mechanisms should be provided which allow communities to access information on public procurement works. Access to training should also be considered and provided for the communities.

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4.0 OPERATIONAL PROCEDURES AND FRAMEWORKS

4.1 Mobilization process The mobilization process was identified in the study as occurring at two levels. Level 1: Through key leaders, the community is mobilized with the view to identifying projects which follow an examination of community problems by communities themselves. A group is identified or a committee is elected to oversee the project. The group or project committee is responsible for making an application. Application forms are then submitted to the relevant local government department. Once a proposal is approved, the contracting organisation makes all contractual arrangements with the community group or project committee. Level 2: The contracting organisation visits selected communities and makes contacts with individuals and representatives of local social and cultural groups. Through district and sub-district staff, councilors, church, CBOs and other community groups, communities are informed of the opportunities made available. The group’s influence is used to mobilize the community. Certain communities already have an active community group. The contracting organisation will introduce the infrastructure programme to the community group and assess their interest in such a programme. Box 4 provides common stages in the mobilisation process that are undertaken by communities assessed in this study.

Box 4: Stages related to mobilisation

⇒ Identification: Local authorities call meetings to discuss problems in the

community. Needs and priority areas of interventions are identified with the consensus of the community. In some cases, the contracting organisation conducts PRAs, with the full participation of the wider community to assist communities select priority areas of intervention.

⇒ Establishment of a group or committee: A group is identified to handle all the issues. This process varies from community to community and invariably some procedures are more democratic than others. In the case of a project committee,membership size is 10 to 12 and in most cases they consist of an equal number of men and women.

⇒ Collection of community funds: This step does not apply to all cases but is common with ZAMSIF CIP projects. Community funds are required for the payment of their share of the project costs as well as the operation and maintenance facilities.

⇒ Application process: An application is made by the community. The application is community driven. The contracting organisation and in some cases the council or local government department conducts a desk appraisal and a field appraisal of the project. Projects which meet the requirements are approved and funds provided for.

⇒ Capacity building: In the case of ZAMSIF, the committees are taken through a two days workshop looking at simple book-keeping, banking systems, gender issues etc.

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4.2 Contract sums The study has revealed that, contract sums are based on rates determined by each contracting organisation. The financial analyst or accountant prepares a financing plan or a bill of quantity. This provides very detailed unit costs of materials and labour required. Table 3 shows the contract sums for various public works development initiatives reviewed. In all the communities sampled, there were no groups that had been involved in determining the contract sum and this was attributed to the lack of technical skills to undertake an accurate cost assessment of the project.

Table 3: Contract sums for various Public works development initiatives

Public works development initiatives Average value (US$) Hammer mill, wells and health post- Lukoshi camp 11,400 Lunywa dam 86,200 Community school/centre –Ndeke RDC Road rehabilitation –Ndeke RDC 6,000 Water piping – RDCs 4,500 Malundu Rural Health centre 69,759 Chipindani Water and sanitation projects 55,802 Butinti dam/Fish Ponds – Kibbo cooperative society 28,300 Chaminkuwla Bridge- Chibombo 88,704 Storage shed - Mushikile Co-operative 5,600

4.3 Negotiations and terms It was evident that negotiation was absent in the projects looked at. None of these communities have reached such a stage where they can negotiate for themselves. The study, firstly, revealed that contracting organisations seemed to be rigid. Secondly, the negotiation process is not well organized and only provides communities with an opportunity to engage in negotiations related only to their social interests. Thus, communities were only involved in the negotiation process during the identification of the project. This varied among the communities. They were those communities who would be approached by the contracting organisation (in the case of Kabile school construction and Ndeke water piping). Through participatory rural appraisal (PRA) activities, the communities are provided with an opportunity to negotiate for the type of intervention they need. In other instances, communities would identify their need and then approach the contracting organisation or the district council to explain their project to them. This gives again communities the chance to negotiate for what they want. However, it is imperative that the negotiation process should extend to other aspects such as contract sums, conditions and implementation processes e.t.c. This is important in changing the status of the poor and empowering them to be actors in development. These communities fall short of participatory meetings where all the stakeholders can be provided with the opportunity to participate in discussing the contract. The danger in failing to achieve this is that people make their own conclusions and interpretations which can lead to confused roles and responsibilities. Apart from the identification of an intervention, the negotiation of terms is another critical stage that sets out whether the informal group or committee will get funding. The terms and conditions

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under which funds would be made available varied in some cases under this study. The main issues pointed out by the communities visited were mainly contributions, responsibilities, timing of construction and maintenance. The most common issue for present funding in most of the communities sampled is based on a 25% contribution by the community, with the remaining 75% provided by the contracting agency. Other terms are that a community has to demonstrate its commitment to the project by providing their share of the first batch of the works before building can start. Cost sharing arrangements is a condition that ZAMSIF has usually demanded for. A community is expected to have contributed about 15% of labour and locally available materials to the project and should demonstrate the existence of self reliance. Communities felt this condition was unfair because it limited their level of involvement in the process of development. Communities who have been involved in this process complained of the difficulty to fulfill this condition because not everyone in the community was willing to contribute. This would in most cases delay the application process.

4.4 Recruitment criteria and procedures The recruitment processes and criteria used among the communities varied depending on the staff required and type of contract approach used. It was generally observed that most contracting organisations strive to create an opportunity for small local contractors or individual labourers within the community to be involved in public works contacts. The recruitment process will, therefore, be assessed in light of the contract approach used by the various contracting organisations, community groups and committees.

4.4.1 Technical supervisor Contracting for technical and more sophisticated services, such as the construction of overhead tanks, dams and drilling boreholes largely used contractors outside a community. All communities visited, which have used a technical supervisor, stated that where they see an absence of skills locally, they opt to go for an outside registered private contractor. This type of contracting is mostly done by the districts or the contracting organisation with minimal involvement of the community group or project committee. The technical supervisor is in most cases recommend by the contracting organisation or by the local government department involved in the project. There was only one community among those sampled, where the project committee had insisted on recruiting a technical supervisor from within the community. This was Chipindani community where ZAMSIF had approved funding for an improvement in their water and sanitation. The project committee felt that there was readily available skilled manpower within the community to take on the role of a technical supervisor. The project committee called for community members with potential in technical supervision to attend interviews. The person selected was the one who had the best references. The advantage with this approach is that it empowered the community and provided employment. However, this approach does not ensure quality of work. But in the example given the community were happy with the quality of the construction of the bathrooms and toilets. Figure 1 shows the toilet and bathrooms constructed.

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Figure 1: Example of type of bathrooms & VIP toilets constructed in Chipindani community

4.4.2 Skilled labour The study revealed that, contracting for skilled services, such as bricklaying, carpenters, fitters, plumbers and masons is mainly done at the community level by the committee or group in charge. As opposed to the urban set up, recruitment of skilled labour in rural areas mostly involves a verbal agreement. When the community decides to hire skilled labour from within itself, invitations are made either directly to individuals in the community who are known to possess such skills and at other times invitations would be made during community meetings. Those who then feel they posses the required skills would go before the group or committee in charge to be assessed. The advantage of using local skills is that it generates local employment. Apart from the generation of local employment, it also enhances the already available skills as well as provides a sense of ownership. This approach also provides the community with greater control on expenditures.

4.4.3 Sub contractor It was generally observed that similar formal contracting processes are used across the organisations and communities sampled, when it came to sub-contracting. The contracting organisation and the districts especially, play a proactive role in this kind of contracting to help groups or committees identify and select the right contractors. When the community decides to sub contract, formal contracting processes are used, which usually include inviting bids and awarding contracts on the basis of quality and price. The contracts are awarded on the basis of at least three quotations obtained from qualified local or private contractors in response to a written invitation. The invitations mostly include a detailed description of the works, relevant drawings in some cases, including basic specifications, required completion date, a contract format which has been cleared and agreed to by contracting organization. The award is made to the contractor who offers the lowest price quotation for the required work. In some cases as it was noted, the district officers also look at the contractor that has the necessary experience and resources to successfully complete the contract.

Bathroom

VIP toilet

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In all cases looked at, it was noted that contractors are encouraged or obliged to employ local people as labour wherever possible. The advantage also in this is that those involved in building will benefit directly from the completed works. Apart from employment creation, quality in construction is expected to be achieved when a private contractor is used. This approach, however, robs the community of much needed experience.

4.5 Standards and productivity norms Field assessment revealed that most of the projects visited have safeguards to ensure quality in the services provided, materials procured and implementation of each particular project. Active participation of district officers as well as the provision of a technical supervisor plays an important role in guiding communities in the processes of labour provision within the community, procurement of materials and construction. Two areas where achieving standards is critical is the procurement of materials and the construction process. In all the project areas visited, it was revealed that district officers, technical supervisors or contracting organisations guide the group or committee to identify and select the right materials for construction. Where procurement of materials is done by the community, the community group or project committee members decide on the materials to be purchased and nominate two to four representatives to be involved in the purchase of these materials. In some cases like RIF, the agriculture extension camp officer is also a member of the procurement committee. In case of other organisations such as ZAMSIF, the technical supervisor is the key person. The committee conducts a market survey of manufacturers and authorized dealers stocking materials needed and collects quotations from them. The approval process of collecting the quotations varied among the projects, but were mostly at three levels, namely:

(i) Approval by the contracting organisation or the concerned district department; (ii) Approval by the technical supervisor; and, (iii) Approval by the group or project committee.

The district, contracting organisation or committee verifies the costs on the basis of the market prices. ZAMSIF ensures that before the materials are dispatched from the dealer or supplier to the community, the technical supervisor samples and looks at the quality of the material being dispatched. Lessons drawn from the field assessment reveal that the key to achieving high standard and productivity norms lies in the following:

• Capacity building of community groups or committee • Effective monitoring and supervision of procurement of materials as well as services • Adequately qualified skilled labour

ZAMSIF was noted among all the organisations assessed to have high quality building constructions undertaken by the communities themselves (see Figure 2 for a rural health centre constructed by skilled labourers obtained within the community).

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Figure 2: Malundu Rural Health centre constructed by Malundu Community

4.6 Payment systems/procedures Payment procedures across the organisations involved in these projects had slight variations and these related to the contract approach used, i.e. whether it involved skilled labour within the community or a private sub-contractor. Table 4 presents payment systems used by the organisations sampled.

Table 4: Payment systems

Organisation Payment systems ZAMSIF The disbursement of funds normally is made in four installments:

– an advance equivalent to 36% of the ZAMSIF contribution; – second and third allocations each of 24% of the total ZAMSIF contribution; – A final payment of the balance of 16%. Each successive installment is paid only after justification of 75 % of the previous installment and 100% of all installments before that. Where a contractor is used, disbursements follow certification of works and a retention fee is held until the end of the project.

JICA Funds are disbursed at a go, once the contract and financial agreement has been signed by the project committee.

RIF Uses two approaches – First approach: RIF deposits funds directly into the cooperatives account. This

can either be in installments or a one time deposit. – Second approach: RIF disburses operational funds to the Ministry of agriculture,

while the contactor is paid directly by RIF Christian Children’s Fund

CCF national office allocates money for the project. CCF then deposits a subsidy check in the project account

Plan International Funds are given out in installments after the works committee in charge of supervising, makes a recommendation based on the progress of the contractor.

Development Cooperation Ireland

Funds were given in installments

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Funding in most cases commenced once the project committee or group has opened a bank account, solely for the project's use, and a copy of the relevant Financing Agreement, signed by all parties concerned, has been received by the contracting organisation. It was established in the study that some organisations disburse funds directly to the beneficiary community project bank account. Others use the district which disburses funds. The main area of concern with the communities was not the channel used for disbursement but rather, the procedures and time taken to disburse the funds. Among the projects assessed, RIF and JICA were the only two organisations who disburse funds in one lump sum. Other organisations would disburse funds in installments. For instance, ZAMSIF would advance an initial 36% of funds to the community project bank account. Thereafter, each successive installment would be paid only after justification of 75 % of the previous installment and 100% of all installments before that. Where a contractor is used, disbursements follow certification of works and a retention fee is held until the end of the project. Communities visited generally expressed a lot of negative than positive elements to the installment payment systems. The major complaints noted were: • There were delays in releasing funds in most cases. This often slowed down the

implementation process and the delay would at times be for long periods of time. The implications of this are that the skilled labour hired or sub- contractor would lose interest as well as money.

• Due to the delay in the release of funds, prices of materials would be higher than what is in

the bill of quantities due to high Inflation. This is also more likely to affect the pace at which the project is implemented.

However, paying out money in installments can have positive elements. For example, it allows groups or committees to gradually build their expertise in handling large sums of money.

4.7 Contract management Contract management, includes looking at the responsibility and contract requirements related to activities that groups and project committees are obligated to perform. Contract management hinges on the capacity of the group involved in community contracting. Except for ZAMSIF funded projects, the other projects assessed lacked capacity building. An important issue to consider in contract management is accountability. Accountability is key in the management of contacts. In all cases, the groups or committees were accountable to the community in all aspects of the projects. However, communities were not obliged to be accountable. There is, therefore, need to work out modalities that would make communities accountable also, perhaps to the contracting organizations. Financial control is another aspect to be considered. The committees have to bear financial management, especially in relation to procurement of goods. If therefore, they lack capacity in this area, financial management becomes a struggle. This is clearly so when the group is managing a contract for the first time. All groups and committees talked to, except the RDCs, indicated that it was their first time to handle a contract. Experience by the RDCs in Ndeke community shows that, with time they have gained experience in the management of contracts.

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4.8 Capacity building skills development One of the key assumptions when adopting a community contracting model in project implementation is that along with the responsibility of the contracting agency, the community must have the capacity to undertake community contracting. Among the organisations visited, only ZAMSIF had a deliberate focus on building the capacity of the project committees. ZAMSIF, through the Regional Facilitators and district officers, train committees implementing projects. Capacity building is done in the following areas: training in simple project management, bookkeeping, banking systems, gender issues, monitoring and evaluation. A Project Implementation Manual is made available to all beneficiary communities. Training is also provided to the technical supervisors. Other organisations hold orientation sessions with the group or committee contracted to explain the details of the contract or financial agreement and the roles and responsibilities of each member. Other organisations, like Plan Zambia and CCF train the beneficiary communities in PRA methodologies to assist them in the identification process of their projects. It was clearly evident that communities who have not undertaken capacity building had struggles in issues of contract management. For example, the case of Kabile school project led to procurement of low quality materials due to lack of training in procurement processes and financial management (see Box 5). The issue then is that, if responsibilities specified in the community contracts have to be managed effectively, there is need to build the strength and internal capacity of the community contractors in all key areas.

The project committee wimplementing, monitoring project, the project commwould be. This, however, d When it came to procuspecifically responsible. Tcould get. The main reascheapest quotation was procured but were of veryschool building was of vetime they realized that the

4 To determine the level of genexercise was carried out in sowere split into two groups, ogroups were then each askeshare in the activities of comm According to the findings of there was gender balance Appendix 3). However, wo

Box 5: Kabile school project

as contracted and was in charge of mobilizing, procuring, and supervising the various activities. Prior to the start of the ittee had only been oriented to what their responsibilities id not involve any capacity building.

ring materials the treasurer, secretary & chairman were he three got quotations based on the cheapest materials they on for this was that they were trying to make savings. The approved by the project committee. Materials were then inferior quality. Because of the low quality of materials, the

ry low standards. The community was initially happy but with work was of poor quality.

.9 Gender Considerations

der considerations in the various steps of community contracting, an me communities. Using a decision making checklist, the participants ne comprising of women only and the other of men only. The two

d to distribute 10 points between women and men according to their unity contracting.

the 6 groups (3 groups of women and 3 groups of men) assessed, in a number of processes relating to community contracting (see men’s participation was inadequate during the negotiation and

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procurement processes. With regards to contributions, 5 out of the 6 groups revealed that women made greater contributions to the carrying of sand, stones, while men’s involvement would only be limited to moulding bricks. Of the 6 groups, 5 stated that men were more responsible for community contracting than women. Related to this, it was pointed out by the 6 groups that men were the ones involved in the signing of contracts. It was further revealed that, men were more involved in maintenance work than women.

Areas that had equal participation by men and women: Identification of subprojects, training, bank signatories, keeping funds and hiring of labour. Although there was equal participation between men and women with respect to hiring of labour, one community felt this area should be left to men because men are the only ones who are hired for skilled labour.

If community contracting is going to contribute to employment creation and sustainable livelihoods, there should be an active involvement of women at all stages from the identification of project to implementation and maintenance. There are a number of reasons justifying the incorporation of gender considerations in community contracting approaches. These include the following two;

There is evidence that women are often more disadvantaged than men and, therefore, should benefit more from direct support programmes. This point cannot be over-emphasized in low income countries which tend to be characterized by, among other things, inequality against women with respect to accessibility to productive resources (including credit and land).

Programmes that take into account the gender dimension of transfer programmes tend to

benefit more household members due to the critical position women occupy in household welfare. There is evidence that putting more resources under women’s control has a more positive impact on household well-being.


Mobilization process

The process by which communities identify, plan and manage subprojects should be evaluated. There should be evidence of widespread support and participation within the community. This is particularly important in projects with the specific objective of empowering the community.

Key organisations identified with potential to support community contracting should be tasked to ensure that common interest of the wider community and other groupings or associations are synergized.

Negotiations and terms

There should be a gradual move towards facilitating communities to negotiate contract sums. This would allow committees to eventually build expertise in negotiation and other relevant skills, including the capacity to handle large sums of money.

There is need to have a more participatory approach towards negotiations. Participation of the wider community was inadequate and only undertaken during project identification. Participation of the marginalized groups should also be considered. It is important to identify

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the views of the most vulnerable in the communities to ensure that they are represented during the negotiation process.

Community involvement in negotiation processes is critical in their strengthening. The study revealed that communities are not in a strong position to negotiate for their needs because they lack knowledge in what goes in the processes. Orientation and training should, therefore, be a critical element if this is to be achieved.

A simple but comprehensive framework should be created for negotiation to guide both the contracting organisation and community based organisations in contracting processes. Guidelines of negotiating and contracting should be developed and applied:

– between the contracting organisation and the community; – between the community and the local government; and; – between the contracting community and the sub contractor.

Recruitment criteria and procedures

The study revealed that groups and project committees recruit skilled labour through verbal communication. Contracting organisations should assist communities design simple standard contracts for hiring of skilled labour. Contracts should be simple but comprehensive, targeting among others, the following areas:

– Description of the work – Time period it will take – Wage rates – Payment schedules

It was indicated by communities assessed that they prefer to recruit locally. Communities should, therefore, be encouraged to recruit locally to avail them greater choice and bargaining. While some organizations have made an effort to enforce this, it is not the case in most organizations.

Reliance on unpaid volunteer labor for public works initiative is not sustainable and leads to confused responsibilities. The issue then is that contracting agencies should allow communities to pay hired skill market value prices and not those determined by the contracting organisations.

Standards and productivity norms

A quality assurance system needs to be put in place and well developed for public works development initiatives.

Quality control should be maintained through external supervision. The ZAMSIF approach on making a spot quality check of material reaching the community should be adopted in the procurement of goods. Sub-standard materials should be rejected and the suppliers should take responsibility for replacing them.

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Payment systems/procedures

According to the review, most of the organization’s financial procedures affected the releases and resulted in delays in disbursements of funds to beneficiary communities. It may be useful to negotiate with communities different financing packages that can be tailored to their capacities to implement projects.

Contracting organisations should take issues of timely disbursements seriously. For instance, the approval process for funding should be shortened. In addition, every effort should be made to ensure timely allocation and disbursement of budgeted resources. Disbursed funds should be reduced to at the most two installments.

Contract management

Contracting processes need to be simplified and improved upon for the committees and groups to manage.

There should be clear roles and responsibilities for those involved in contract management.

There should be rules regarding the groups’ and committees’ accountability to the community to make them more responsible for contract management.

It is important to provide information to communities on contract management in areas where communities are deficient such as:

– recruiting, – managing contractors, – procedures for community management, and – rights and obligations that communities have to fulfill.

Capacity building skills development

One training model may not suit all community groups and project committees. Therefore, considerations should be made to design training programs that are based on the assessment of the community’s capacity.

Gender Considerations

There should be need to identify and enforce specific roles for women in community contracting. This process should include enhancing women’s involvement in negotiation processes.

Community contracting should be made to accommodate the needs of participating women, for instance, by targeting periods they would be most free to participate in project activities and by ensuring availability of technologies that are friendly to women.

Most importantly, the development of a gender policy for community contracting should be given much attention. This would provide a platform for local government and community groups to incorporate gender concerns in community contracting.

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5.0 PERCEPTIONS ON INCENTIVES AND SHARED BENEFITS

5.1 Between communities and contracting parties

5.1.1 Cost effectiveness

The general findings from the study indicate that when community skilled labour is hired directly, contracting organisations tend to largely reduce the cost of administration. In other words, the cost of administering support becomes minimal when community contracting is channelled through established community structures, such as the project committee. For instance, costs going towards paying direct skilled labour from the community tend to be lower compared to fees paid to a hired private contractor. On the other hand, the active involvement of community groups or project committees in community contracting as opposed to partial labour or food-for-work/asset approaches, has positive implications on enhancement of ownership leading to improved sustainability.

5.1.2 Incentive costs The participation of local communities in community contracting usually requires incentives aimed at encouraging their participation. As an incentive, funds that are not utilised from the contract sum should be given to the community to be utilised for other identified areas of need. This approach provides the financing institution greater capacity to finance more projects because of the savings that will have been made. This in turn leads to greater benefits accruing to the community. From the study, communities who were allowed to retain the unutilized funds were able to put the money to good use, thereby benefiting the wider community. For instance, the Lukoshi camp (a JICA funded community) managed the contract strictly resulting in savings which were used to buy small livestock as an income generating activity. With the money generated, the project committee was able to commit savings towards the improvement of community livelihood. For instance, input and output marketing was supported by such a facility that was established.

5.1.3 Sustainability Full participation of the community in the design and planning of public works development initiatives provides an incentive to the community. It builds a deep sense of ownership which leads to sustainability. Community contracting enhances the use of local skills to the benefit of the whole local community. It eventually leads to enhanced technical, administration and management skills, critical for sustainable development. This will also benefit the local government in the sense that skilled manpower will be readily available for future development initiatives.

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5.2 Between community contractors and the beneficiary community

5.2.1 Income generation One of the derived benefits between community contractors and the beneficiary community is the generation of income. For example, one of the communities sampled had constructed a dam. The water from the reservoir was further used to fill-up constructed fish ponds as well as for gardening purposes. From the fish and vegetables sold, other community members were able to benefit. The dam also generated benefits for cattle and other livestock owners. Similarly, in another community visited, the installation of a grinding mill has resulted in benefits for the wider community, as community members are now able to access the grinding mill easily saving time which has a cost. The time spent walking long distances to a grinding mill has since reduced thereby providing potential to engage in other productive ventures.

5.2.2 Employment creation As opposed to food-for work/asset, direct community contracting approach also provides skilled labour that gets a salary. At the end of the day money paid for skilled labour finds its way to the rest of the community because the salaried community members buy food and other items from within their local environment, leading to a boosted local economy.

5.3 Emerging issues for Guidelines

Cost-sharing: The principle of cost sharing is fundamental to the concept of community contracting. Cost-sharing arrangements for maintaining community public infrastructure provides an incentive for the community to guard the infrastructure jealously. The other aspects of community contracting facilitate direct injection of financial resources to the community.

Cost-effectiveness: As community contracting approaches have already proven themselves in terms of their effectiveness, there is need to build on what has already been done so far, with the view to sharpening the systems further. Training of community key stakeholders is one way of achieving this, as already alluded to above. Among others, such training should focus on issues related to efficiency and cost-effectiveness. Direct engagement of skilled labour from the community as opposed to bringing in an external contractor will reduce costs.

Delivery system: There is need for further work on improving grassroots level delivery systems by, for instance, reviewing roles and responsibilities of various players at community level, to ensure there are no gaps. Full community participation is a great incentive to enhancing skills and is better achieved through direct hired labour than food-for work or partial labour.

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6.0 ASSESSMENT OF KEY ISSUES

6.1 Existing potential

6.1.1 Availability of skilled labour It was generally pointed out by community groups and project committees in this study that artisan labour was readily available. The example provided of Chipindani community, is a case in point, where skilled labour was provided by the community at both technical supervisory and artisan levels.

6.1.2 Project related capacity Through the use of PRA exercises, communities are able to identify their key constraints, prioritize them and identify appropriate interventions to deal with the identified constraints. The communities are also able to engage in planning and implementation processes.

6.1.3 Community participation approach The cost sharing approach is an indicator of community participation. This approach is being widely used by a number of development practioners in Zambia. The communities are ready to choose their own development initiatives and thereby provide ready ground for community contracting.

6.1.4 Past experience The fact that some communities have handled community contracts well despite so many constraints demonstrates that there is a lot of potential for communities to do even better. Past experience also shows that community managed projects may take long to implement, but they are manageable and easy to control and, therefore, may hold greater potential for meaningful local level sustainable development.

6.2 Constraints

6.2.1 Lack of coordination Stakeholders do not have a forum where they can exchange information. There is need to have a forum where contracting organisations and community organisations involved in community contracting can share information and experiences.

6.2.2 Limited experience and knowledge Leaders of participating organisations in community contracting do not have, in most cases, a good formal education and required experience. The noted management weaknesses such as in the area of planning and control resulting in few unified plans make the effective management of contracts difficult. Leaders, although very committed, inevitably cannot shoulder the full extent of management requirements because they have their own household responsibilities to fulfill. However, where training is provided, leaders of community groupings could provide good supervision for the attainment of the objectives of community contracts.

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6.2.3 Inadequate preparation of contract activities

Apart from ZAMSIF which has clear procedures, the rest of the organisations do not have any existing mechanism to conduct training. Since most groups and committees involved in community contracting are doing it for the first time, contracting organisations should have a capacity building programme.

6.2.4 Inadequate Government support Due to lack of political will, government initiatives fail short of promoting community managed contracts. There has to be a strong political will to encourage government agencies in drawing up community based programmes so as to make community contracting more applicable to rural areas. This can be in form of policy. Because this is lacking, external organisations dealing with communities do not feel obliged to promote community managed contracts. Additionally, the Government could also formulate and enforce community contracting guidelines.

6.2.5 Temporal structures

Experience shows that present structures under which community contracting is undertaken come and go with projects. This has made it difficult to retain experience and lessons learning due to the lack of institutional memory. Consequently, building on lessons and experience tends to be ad hoc and rather a big challenge.

6.3 Opportunities

6.3.1 Decentralization This has a deliberate focus on engaging local communities. The Government has embarked on building structures at district and sub-district levels that allow for more accountability of officials and participation of district and community level players. An example of a sub-district level structure is the ADC.

6.3.2 Funding to communities

Due to decentralisation, various donors are now emerging and giving their support to these emerging structures. Donors as well as NGOs are now able to actually reach the ground and provide direct project support and resources to marginalized communities. Organisations that have emerged and are using community contracting as an alternative to community empowerment in Zambia include the following:

• Plan Zambia • World Vision • Oxfam • Christian Children’s

Fund • IFAD • GTZ • Sida • World Bank

• African Development Bank • Development Cooperation

Ireland • JICA • United Nation Development

Programme • UNICEF • Smallholder Enterprise and

Marketing Programme

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6.3.3 High poverty levels High poverty levels tend to cause communities to seek to be involved in the development initiatives affecting their locality. This is due to an absence of alternative livelihoods at their level which could keep them occupied.


Stakeholder forum: Capacity to handle a community contract may be enhanced by the extent to which there is a forum where both community based organisations on one hand and local government and NGOs on the other, are able to tap into each other’s strengths and specialisations and use this to advance their own operations.

Training for institutional development: The areas to be focused on should include the following:

a) Organisational management and leadership. This should include: (i) the structure

and functions of the community contractor (or committee); (iii) strategy implementation; (iv) co-ordination and control; and, (v) leadership and human resource management.

b) Community mobilisation and intervention strategies. This should be aimed at

enhancing community support and ownership of the organisation’s activities. c) Group dynamics. This should include teamwork, conflict resolution strategies,

group communication and feedback.

d) Training in resource mobilisation (including proposal writing), aimed at enhancing effective mobilization of resources for grassroots level development.

e) Legal and Regulatory issues relating to community contracting

Training for enhancing community contracting: Some of the areas that need to be dealt with include:

a) Formation of a CBO or association focusing on the legal aspects. Should discuss

processes of registration, partnership and associations. Legal responsibilities that must be discussed should include taxes, conditions of service for employees and insurance.

b) Formulating a proposal, explaining its necessity and various components.

c) Procurement of inputs and raw materials including identification of the right

sources, the time to buy, the quantities and qualities required and their cost.

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References

ILO ASIST Africa Regional Programme, Tournée J., van Esch W. Community contracts in urban infrastructure works; pg 29; Geneva, International Labour Office, 2001. International Labour Office, Employment –intensive Investment Branch, Oakley Peter, Organisation, negotiations and contracting in development programmes and projects, A study of current practices at the community level; Geneva, ILO office, 2001. Samantha de Silva, Community-based Contracting: A Review of Stakeholder, Experience, the International Bank for Reconstruction and Development/The World Bank, Washington, D.C, 2000 Zambia Social Investment Fund, Annual Report, 2004 Zambia National Tender Board, Procurement guidelines of goods and services, Government of Zambia, Lusaka, Zambia. Zambia National Tender Board, Procurement guidelines of works, Government of Zambia, Lusaka, Zambia. Zambia Social Investment Fund, Operations manual, Ministry of Finance and Economic Development, Lusaka, Zambia, March 2000.

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Appendices

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Appendix 1a: List of organisations consulted

Name Position Organisation Eddy Mwale Operations Manager ZAMSIF Austin Beebe Program Support Manager Plan Zambia Nkumbu Siame Senior Engineer Ministry of Local Govt and Housing Godrey Mwelwa Project coordinator CCF Catherine Mwanamwamba

Care International

Rhoda Habwele Regional Facilitator ZAMSIF Mr. Kawasi PasVida Project coordinator JICA Zephaniah Munga Mazabuka ADP Manager World Vision Mr Kaleyi Project accountant Rural Investment Fund

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Appendix 1b: List of Participants at community level

Name of participant Position Community Oswell Mwanaila Chairman Malala Community Engwell Ngoma Committee member Malala Community Rhoda Sichilongo CDF Plan Zambia Ndeke Residents Development Mervis Hamuntanga Community school Ndeke Residents Development Emmanuel Masiye Treasurer Ndeke Residents Development Rosemary Kayungwa Committee member Ndeke Residents Development Elinah Kayombo Committee member Ndeke Residents Development Edith Libinga Vice Treasurer Ndeke Residents Development Alfred Lwiindi Contractor Ndeke Residents Development Wistern Mweemba Project C/ Chairman Malundu community Rosemary Chikwalila Member Malundu community Mweemba Malambo C/Env Malundu community Dyna Luzongo Maintenance Secretary Malundu community Collin Kapapa Community member Malundu community Dass Chikwalila Headman Malundu community Elijah Musutusa C/ Offices Malundu community Elijah Mwamba Community member Malundu community Senior Headman Shachebo Headman Shachebo Community Mary Nkausu Treasurer Shachebo Community Levy Likamba Committee member Shachebo Community Charles Kasebausha Chairman Moono Community Jacob Gore Vice Chairman Moono Community Baldwin Muluti Secretary Moono Community Lovemore Chibbebbe Vice Secretary Moono Community Ruide Kakumbi Treasurer Moono Community Franco Mwaambi Committee member Moono Community David Kapoli Committee member Moono Community S / H / Man Kakumbi Trustee Moono Community The Headman Chipindani Community member Chipindani community Johns Chakufyali Project committee chairman Chipindani community Moses Ndawo Secretary Chipindani community Maiko Tindi Committee member Chipindani community Lameck Juma Community member Chipindani community Simon Ziba Committee member Chipindani community Sandwell Chirwa Community member Chipindani community Hilda Tindi Community member Chipindani community Justina Chipwalu Community member Chipindani community Fridah Kalimba Treasurer Chipindani community Dina Chakufwyali Community member Chipindani community Fatiness Chipanga Community member Chipindani community Richard Ngulube Community member Chipindani community Rosemary Mupaso Vice secretary Chipindani community Yenelani Tembo Community member Chipindani community Dorothy Kawishi Committee member Chipindani community Mavis Kansanje Committee member Chipindani community Ms. Ngulube Community member Chipindani community Mrs Tembo Community member Chipindani community Headman Mwanjeleka Project committee member Mwanjeleka Village John Lubinga Community member Mwanjeleka Village Danis Mwanza Community member Mwanjeleka Village Patrick K. Mumba Community member Mwanjeleka Village Christopha Kasuwa Community member Mwanjeleka Village Headman Sema Community member Sema Village Francis Chataba Committee member Sema Village Mr. Mwanaumo Community member Sema Village Patrick Mataya Community member Sema Village

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Name of participant Position Community Chrispin Chikopa Community member Sema Village The head Man Sopo Committee member Sopo Village Raphael Mbewe Community member Sopo Village Brain Efeki Agriculture extension officer Lukoshi Camp Peter Mweembe Chairman Lukoshi Camp Trust Ndumba Social Worker Kabile Community CCF Xavier Haamujompa Social Worker Kabile Community CCF Silvia Mwanambaba Project Secretary Kabile Community CCF Simon Malambo Health Worker Kabile Community CCF Vistor Hamugande Community member Kabile Community CCF Willson Mulumba Community member Kabile Community CCF Mathew Mandyabi Community member Kabile Community CCF Phillimon Kaliyangile Community member Kabile Community CCF Clement Haamujompa Community member Kabile Community CCF Josia Mweemba Petty contrator of the local school Kabile Community CCF Albert Siabaingwa Community member Kabile Community CCF Japhet Hamugande Community member Kabile Community CCF Elson Mweemba Community member Kabile Community CCF Cobeit Mwenda Community member Kabile Community CCF Mandomona Chikatula Project Development Manager Kabile Community CCF Kennethy Simukuwa Community member Kabile Community CCF Jonathan Hamunji Community member Kabile Community CCF Xavier Haamujompa Project social worker Kabile Community CCF Trust Ndulumba Project social worker Kabile Community CCF Silvia Manabamba Project secretary Kabile Community CCF Simon Malambo Project Health Worker Kabile Community CCF Amos Ndondo Secretary Musikile community Lawson Chember Treasurer Musikile community Shuambwa Mweemba Member Musikile community

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Appendix 2: National Council for Construction -Fee Structure (US $)3

Classification Grade 1 2 3 4 5 6 Initial Application form 4.7 4.7 4.7 4.7 4.7 4.7 Renewal form 2.3 2.3 2.3 2.3 2.3 2.3 Initial Scrutiny Fee 93 46.5 23.3 11.6 4.6 3.5 Secondary Scrutiny Fee for re-application and renewal of Annual membership

46.5 23.3 11.6 5.8 2.3 1.7

NCC Fee = Annual Fee 348.8 174.4 116 69.8 34.9 23.3

Association Membership = Annual Fee (US$)

474 237 158 95 47 32

3 The ruling rate used is US $ 1 = K4,300 (October 2005)

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Appendix 3: Decision Making Checklist

[Note = Distribute 10 points between women and men according to their share in the activity] Monze district Chongwe district Mumbwa district

Malundu women Malundu men Chipindani women Chipindani men Kabile women Kabile men Question

Women Men Women Men Women Men Women Men Women Men Women Men Identification of subprojects 7 2 2 8 5 5 7 3 5 5 5 5Responsibility for community contracting 5 5 4 6 2 8 2 8 2 8 0 10Contributions? 7 3 7 3 8 2 5 5 6 4 6 4Who is involved in the negotiation process 5 5 5 5 5 5 3 7 2 8 0 10Who signs the contract? 5 5 5 5 5 5 1 9 2 8 0 10Who is involved in training? 5 5 5 5 5 5 4 6 5 5 3 7Who are the bank signatories? 5 5 5 5 4 6 5 5 5 5 3 7Who keeps the funds? 5 5 0 10 5 5 6 4 5 5 4 6Who decides what to procure? 4 6 5 5 5 5 2 8 4 6 2 8Who procures it? 5 5 5 5 5 5 5 5 4 6 0 10Who approves what is procured? 5 5 5 5 4 6 5 5 4 6 2 8Who hires labour? 5 5 5 5 5 5 4 6 5 5 0 10Who determines wage rates? 5 5 5 5 5 5 6 4 5 5 2 8Who monitors & supervises? 5 5 5 5 3 7 1 9 5 5 3 7Who is involved in the maintenance? 5 5 4 6 6 4 5 5 4 6 2 8

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Appendix 4: Lessons learnt, benefits and perception on community contracts

Community & public

works Gaps/lessons Benefits and recommendations

Lukoshi camp – grinding mill, wells & health post

Lessons: Needed to be provided with more training

The community used a full contract and was happy with the approach used and would prefer the same approach in future.

Lunywa Dam- Malala dam construction

Gaps Money not disbursed on time to launch the

project First time to have done the project so may

have made a number of errors Training was short. It needed more time and

retraining

Benefits derived from the experience: Have sense of ownership Capacity was built

Recommendations:

Prefer the labour & material contract especially in cases that were complex technological project are being constructed. Prefer district team to be fully involved

Ndeke community- community school, Road rehabilitation & Water piping

Lessons: Roles of the main players should be well

defined e.g. that of the council, community, Irish Aid

Sensitizing community should be an important aspects and should be a component of capacity building component

Recommendations: Prefer the full contract because it builds a

sense of ownership, builds capacity & skills in various areas.

Better the council carries out supervision Communities should first be trained to build

capacity but also self reliance

Malundu RHC Gaps Some community members refused to

contribute towards the 25% required Lessons learnt:

Cost sharing is possible and has been carried out effectively.

Benefits: Labour, admin costs were low because they

used local labour The builders picked up more experience and

skills through the process The process built confidence in the

community that they can be agents of their own development and produce a technical supervisor

There is a deep sense of ownership Prefer to use the full contract approach

because of the above benefits Chipindani Water and sanitation

Lessons: Learnt more about importance of community

participation Learned how to work together Learned about leadership, budgeting,

administration (project management) Learned how to negotiate

Challenges

There was no money for allowances for those who were involved in procurement & transport hiring

Labour was difficult to find Those who were involved in building felt that

the money was not enough

Benefits It is a learning process for people Capacity is expected to be built There is a sense of ownership

Recommendations

Prefer the full contract approach because it creates employment

There should be timeliness with building materials and funds

Contracting agency should provide transport for collecting of materials

Butinti dam – Kibbo cooperative society RIF funded

Lessons learnt: Working together as a community can lead to

greater achievement The district played a good role of providing

guidance.

Recommendations Would prefer full contract so that the

community can be charge and have a sense of ownership built

In future would prefer that community takes the initiative and are in drivers seat and is involved in selecting contractor, allowed to handle funds to pay for labour

When a project involves highly skilled labour RIF should provide it


Community & public works

Gaps/lessons Benefits and recommendations

Chikwanaula Bridge - Chibombo

Challenges Problem with clearing cheques. Transport problem Due to delays in mobilizing money, the

labourers were paid late and these complained the implementation process

Recommendations: Prefer organizations use the full contract

approach because: It provides a sense of ownership It provides employment It empowers communities

Kabile CCF community projects

Challenges: Employment of skilled labour was a problem. It

was difficult to find them Money came in slowly, so hiring a registered

contractor was going to be difficult Lessons learnt

However, since the construction of the school, CCF has changed the system. Now it is the project board which does everything to ensure quality and sustainability

There is not much skilled labour in the community

(Office) building materials were delivered late Community contracting is appropriate in a

situation where skilled man power is available and when there is no money within the community

Benefits: Community has been empowered There is a sense of ownership Administration costs are low

Recommendations:

Prefer an approach where community takes responsibility over everything, including provision of skilled labour

It would be good to involve local leadership so that they can sanction rules which communities should abide with especially relating to cost sharing

Disbursement of funds should be improved and done timely.

Mushilke cooperative Lessons learnt: It was more costly to hire a contractor. It could

have been cheaper if the co-operative could have handled the job. The cooperative at times felt they did not have control over what the contractor did

Training should have been provided especially in project management

There is skilled labour in the community and would want to engage this in future projects

Recommendations: Prefer to be involved especially in the

procurement process Would prefer a full contract & only for district

staff to involve themselves in monitoring and supervision

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Documents

Community Contracting and Organisational Practices in Rural Areas · 2014. 6. 10. · 4.8 Capacity building skills development ... the transfer of development responsibilities to