Engineers want law on construction contracts

Kampala. Local construction companies risk being pushed out of business if government does not quickly pass the Uganda Construction Industry Commission Bill, (UCICO) 2012, engineers and builders have said.
The UCICO Bill aims at enhancing local participation and providing funds for development of the industry through a levy on every project.

Speaking at a networking party at Kampala Serena Hotel at the weekend, the engineers and builders under their umbrella body Uganda National Association of Building & Civil Engineering Contractors (UNABCEC), said the law would promote local content in the construction industry, which is currently dominated by foreign companies.
“Having a law that regulates awarding of contracts will increase participation of local construction companies in infrastructure development. It will also help to create more jobs, invest more money and increase tax revenue,” said Mr Michel Mivule Pinto, the UNABCEC executive director.

Mr Mivule highlighted that Uganda had registered high achievements in all sectors of the economy, with a consistent growth of GDP greater than 5 per cent per annum. This, he argues, necessitates the expansion of the country’s physical infrastructure in all sectors, including transport and communications; housing and building; water and sanitation; energy; health; education; and agriculture.

Mr Jonathan Wanzira, the chairman UNABCEC board of directors, said UCICO law would reduce capital flight, adding that the budget for infrastructure development is always high but it does not benefit local construction companies.
“We know the strength of national development is in having stable infrastructures such as roads, hospitals and schools. Unfortunately, the government gives the first opportunity to foreign companies leaving us with peanuts,” Mr Wanzira said.

He acknowledged that there are some projects local companies cannot handle but the foreign companies should be compelled to work hand in hand with local contractors.
He disclosed that UNABCEC offers technical courses for construction professionals such as Estimating and Costing and Construction Site Management in Mbarara, Gulu and Arua.

Why foreigners win construction contracts

Mr Isaac Sserwadda, the former Kampala Capital City Authority manager of engineering operations, also director of Jicon Engineering, Consultancy and Project Management, backs government on giving big projects to foreign companies, saying many local companies lack professionalism on project management.“Some construction companies are not registered. Other companies have experienced technicians who depict themselves as engineers. Government considers technical knowhow, professionalism and financial muscle,” says Mr Sserwadda. He says local companies should first assess how they managed the previous government and individual projects because a good recommendation is essential in winning a contract.

[email protected]