Some of the recommendations that should aid construction industry value chain performance in Malawi include:
Recommendations based on the first objective
Evaluate how expected ‘value’ is created when projects are been delivered in Malawi.
Introduction of basic construction management principles and tendering procedures
training to all new entrants who want to register their construction firms with the NCIC. This would assist in increasing the level of understanding of the industry for future small scale contractors, especially those who have never had any experience in the construction industry. Thus, maintaining the low levels of entry, but having firms that are conversant with how the industry functions;
The NCIC should re-evaluate its criteria for upgrading contractors to higher categories.
Those who wish to be upgraded to the upper levels should demonstrate that they have the capacity in terms of human resources, financial resources, plant and equipment, and the relevant experience. Prominent clients should be able to verify the performance of such contractors. Their approval should be subject to verification by a credible independent
132
firm such as an audit firm for purposes of transparency. The registration certificate should expire after a certain duration and upon renewal of the certificate, the contractors should demonstrate that they have been able to perform in the category they are renewing their certificate otherwise they should be placed in a lower category;
The NCIC should as a matter of urgency, expedite the harmonisation of the various
standards and specifications in use in the construction industry. A good example will be to follow the approach of the South African building contract document of the Joint Building Contract Committee (JBCC), which was formulated and adopted by all members of the construction industry;
H&S training courses should be initiated by the NCIC and be taught at undergraduate
level as well. Contracts above a certain threshold should have mandatory H&S management, including engaging a full time H&S Officer on the project. Punishment schemes should be introduced for non-compliance;
Promotion of off-site production and fabrication will assist in minimising waste in the
industry as well introduction of value management in the construction industry;
Knowledge organisations should re-introduce diploma courses in civil engineering that
were cancelled, as the technicians were providing a vital role in the industry. Furthermore, construction management should be taught as a course, not as part of the discipline in the civil engineering programme at the University of Malawi in order to improve site management skills in the industry;
The knowledge gap existing in the Malawian construction industry is not a result of lack
of research, but rather a lack of an industry specific platform to disseminate the information. With many people attending post graduate education within and outside the country within the sphere of the built environment, it can therefore be assumed that a lot of research has been conducted with regard to Malawi, but the Malawian community has not benefitted from such research, and at most the findings of such research remains with the researcher. The country needs to learn from such research and move forward. The industry needs to organise conferences and symposiums where such information can be disseminated;
The unfortunate situation where some important public institutions have not developed a
website to date or the websites are not regularly updated should be addressed. This situation has resulted in an information gap in terms of what is happening in the construction industry. The general public or members of the construction industry should
133
not wait for a publication in a newspaper to find out the categories of contractors, or tenders which have been advertised. This information should be readily available to all masses online. It is not due to a lack of resources that IT is not being fully embraced, as institutions have invested heavily in IT hardware, but a lack of seriousness on the part of such organisations. The industry therefore needs strong and visionary leadership to drive it to the next level, and
There is a need for a paradigm shift in the way the construction industry members want
the industry to perform. In the past there used to be associations such as the Master Builders Association (MBA) and Malawian Building Contractors and Allied Traders Association (MABCATA) that used to be the voice for the construction industry before the creation of the NCIC. Unfortunately, these organisations are no longer active and members of the construction industry no longer have the opportunity to channel their concerns to the higher authority. Therefore, while the construction industry reforms have brought tremendous changes to the industry, they have not brought the industry together in the same way. Revamping such organisations and funding some of their activities would assist in bringing together the industry. It is important to hear the voice of the voiceless, and members of these groupings should be able to take to task their leaders if their concerns are not being addressed
Recommendations based on the second objective
Identify the dominant structure of ’supply chains’ used in the Malawi construction industry.
Management contracting should be introduced as another form of procurement method.
This method can assist in developing the capacity of small and medium size contractors under the stewardship of the main contractor;
In order to remove perceptions of corruption, client organisations, including institutions
such as the NCIC and the ODPP, should have fully functional websites, whereby all public tenders should be floated and including results of award. Further, all unsuccessful bidders who participated in government tenders should have the opportunity to check on how their bids performed after the contract has been awarded. This will assist in the bidders improving their documentation during tendering and remove perceptions that contracts are corruptly awarded, and
Construction SCM in the construction industry should be introduced to members of the
134
Recommendation based on third objective
Evaluate the impact that ’a supply chain structure’ has on project performance in Malawi.
The selection of contractors based on the traditional procurement method should be
revisited, especially for projects involving small and medium size contractors. Selection based on the lowest bidder, although it may seem to be fair and transparent, is contributing to a lot of inefficiencies in project implementation as contractors try to under-cut each other on prices, but fail to perform on site once the project has been awarded to them. Consideration should be given to using ’engineers’ estimate’ as the basis for evaluation;
The Malawian construction industry still does not require professional indemnity
insurance to be purchased by consultants. This can provide a platform of negligence by the consultants. The inefficiencies that have been cited in this study such as poor information flow, inadequate supervision, lack of resources on the part of consultants, and incomplete designs and documentation during project implementation have had a huge impact on the performance of the industry. It may seem that consultants are wielding too much power, especially at project implementation, and therefore small and medium scale contractors are too afraid of them to seek redress of the situation. In this context, the adversarial relationship existing between consultants and contractors is not a result of lack of trust, but rather an attempt to cover up inefficiencies and incompetence, and
More training should be directed to senior site management. This training should include
construction SCM, construction H&S, environmental and quality management systems, the causes and impacts of non-value adding activities in the industry, construction techniques such as JIT, TQM, and lean construction.
Recommendation based on fourth objective
Examine how procurement method affects how suppliers and subcontractors deliver on agreed targets in Malawi.
The formal risk management process should be introduced on all major projects beyond a
certain threshold. Special emphasis should be made with respect to the sources and availability of construction materials vis-á-vis expected project duration;
Where possible, clients should facilitate contractors‟ securing of sureties for payment of
135
The availability of cheap credit remains a major problem in the construction industry,
especially to small and medium size contractors who may not have enough assets for collateral in order for them to borrow money from commercial banks. Clients can assist in reducing the payment period for such type of contractors. For example, from the normal 28 to 14 days in some maintenance contracts. Efforts should be made to establish a development bank with flexible credit facilities to cater for the needs of the construction industry;
Efforts should be made to foster partnering based on long terms relationships and repeat
commissions for best performance that can foster unity and build trust in the industry, and
Formal monitoring and evaluation exercises should be done on all public funded projects
by the client organisations, and benchmark best practices.