The construction industry is one of the fastest growing in the country and with increased government spending the outlook can only get brighter.
With focus shifting to development of infrastructure in the devolved government, contractors are upbeat that this will increase their revenue streams and experience.
Treasury recently said it would seek Parliament’s approval for Sh3.4 billion in supplementary budget to finance setting up offices and assemblies for county officials.
“This presents us with a key source of income and opportunity to gain experience to serve clients better,” said Mr Dennis Busienei, a director of Mobek Works Company Ltd, based in Bomet.
Though lack of technology is cited as cause for losing out to foreign contractors, especially roads, Mr Timas Gasaya of Gasen Construction Company has a different view.
“Lack of equipment cannot be blamed for not securing a tender as witnessed before as there are equipment for hire.”
The difficult bit, Mr Gasaya points out, is when a contractor is required to finance 5 per cent of the project cost.
To help the sub-sector, the government has approved the formation of a National Construction Authority, through the National Construction Authority Bill, which aims to regulate the sector.
The Bill, to be tabled in Parliament soon, proposes setting up of a fund to support upcoming contractors. The National Construction Authority is expected to replace the National Housing Corporation.
[caption id="attachment_1475" align="alignnone" width="640" caption="Many contractors are said to have weak technical capacity to undertake works of the scope that they are engaged leading to poor quality and unsafe buildings being constructed - Source: Daily Nation"]
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With focus shifting to development of infrastructure in the devolved government, contractors are upbeat that this will increase their revenue streams and experience.
Treasury recently said it would seek Parliament’s approval for Sh3.4 billion in supplementary budget to finance setting up offices and assemblies for county officials.
“This presents us with a key source of income and opportunity to gain experience to serve clients better,” said Mr Dennis Busienei, a director of Mobek Works Company Ltd, based in Bomet.
Though lack of technology is cited as cause for losing out to foreign contractors, especially roads, Mr Timas Gasaya of Gasen Construction Company has a different view.
“Lack of equipment cannot be blamed for not securing a tender as witnessed before as there are equipment for hire.”
The difficult bit, Mr Gasaya points out, is when a contractor is required to finance 5 per cent of the project cost.
To help the sub-sector, the government has approved the formation of a National Construction Authority, through the National Construction Authority Bill, which aims to regulate the sector.
The Bill, to be tabled in Parliament soon, proposes setting up of a fund to support upcoming contractors. The National Construction Authority is expected to replace the National Housing Corporation.
[caption id="attachment_1475" align="alignnone" width="640" caption="Many contractors are said to have weak technical capacity to undertake works of the scope that they are engaged leading to poor quality and unsafe buildings being constructed - Source: Daily Nation"]
[/caption]Local contractors argue that they have lost out to foreign contractors as their countries support them financially.
“We do not get support from the government to buy equipment as foreign counterparts and this gives them a competitive advantage,” said Mr Busienei.
Besides, he adds, foreign contractors are given favourable terms as investors with their equipment attracting lower tax as opposed to Kenyan firms importing the same.
During a conference in Nairobi for contractors, Public Works Permanent Secretary Prof John Lonyangapuo said local contractors are notorious for delaying works.
“Those found with delaying projects, ballooning the costs beyond the variation provisions will have their tenders terminated,” he warned.
However, Mr Gasaya said the government must take a share of the blame.
“Every contractor is assigned a quantity surveyor to supervise the work and in case there is poor workmanship or failure to complete work within the stipulated project period, he or she should be held responsible,” he said.
Architectural Association of Kenya chairman Steven Oundo blames the government, consultants, developers and contractor.
“There is poor enforcement of existing building laws and regulations and weak technical capacity in local authorities, corruption and impunity, on the government’s side,” he says. Developers, he says, prefer to use unqualified persons over professionals.
Source: Daily Nation
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