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GOVERNMENT ACTION THAT CAUSES DELAY IN ITS FUNDED BUILDING PROJECTS IN

MALAWI

Before coming in of Malawi Government Conditions of Contract (especially 1984 Edition), the

government used to have very complicated procedures in conditions of the work due to lack of centralized

registry for all important project documentation for purposes of monitoring and evaluation. All Individual

sector reports have also shown that the government has to be blamed for the dismal performance inproject implementation

According to report conducted by Ministry of Economic Planning and Development from 2004 to 2005,

the government also used to be quite slow in resolving requests for contracted government contributions.

The difficulties in attracting foreign loans, reduction in economic activities and the decrease in revenue

accruing to government are the major cause.

According to Malawi Building and Civil Engineering Contractors and Allied Association (MABCATA),

the government was accused of not following procedures in awarding government contracts. MABCATA

expressed its reservations during its annual general meeting held in Lilongwe, saying most contractors

awarded government jobs are not registered with MABCATA and dont qualify to be in the association

Some of the changes would include:

Development Division under the Department of the Ministry of Development Planning and Cooperation

primarily prepares and coordinates national development programmes and projects. The division therefore

undertakes the following functions: Preparation of the Public Sector Investment Program (PSIP), provides

technical advice and assists line ministries in formulation of development program proposals, coordinates

the implementation, monitoring and evaluation and coordinates the implementation of the Infrastructure

Services Project (ISP). This is for the sector Ministries and institutions to achieve a lot even within the

existing system by employing competent project management and staff, and improving monitoring

arrangements.

The improved Malawi Government Conditions of Contract (1984 Edition) was established which sets a

number of contract conditions to be followed by the construction industry including the certificates and

payments for all contracts.The contractor is paid within the contractual specified period and each interim

certificate is issued according to the contract condition of a particular project. This also enables each party

that fails to meet what was agreed in interim certificates under contract conditions to be taken before

arbitration.

In the case of government not rewarding its contracts to eligible contractors the MABCATA through

National Construction Industry Council requested the government to stiffen the registration process to

stop other people from getting certificates using shortcut method and the government through the DeputyMinister of Transport and Public Works assured the association that the government intends to hire local

contractors in major infrastructure projects. Malawi government has reiterated its commitment to build

capacity of local contractors by partnering them with their international counterparts. Fidic Suite is a form

contract widely used throughout the world. Building capacity of local contractors in construction industry

is to make sure that they operate efficiently both locally and internationally. According to Gwengwe lack

of capacity results in poor understanding, interpretation and administration of projects. He said these

results in project delays, contractual disputes and loss of resources.

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SUBMITTED TO: MR. S. ZUKA

11th

October 2012