HANNA NASSIF URBAN UPGRADING PROJECT PHASE … · NBC National Bank of Commerce NCC National...

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999

HANNA NASSIF

URBAN UPGRADING PROJECT

PHASE II

DAR ES SALAAM, TANZANIA

URT/97/032/A09

Support to the project in reviewing tendering procedures, documentation and performance of community and private contracts,

supervision of works, efficient use of labour based technology and update of the plan for construction activities

Consultancy Report

John Clifton

October 1999


TABLE OF CONTENTS LIST OF ACRONYMS ACKNOWLEDGEMENTS 1. EXECUTIVE SUMMARY 2. INTRODUCTION 3. PROJECT BACKGROUND 4. OBJECTIVES OF THE CONSULTANCY 5. DESIGN & PROCEDURES

5.1 Design changes 5.2 Procedures for design changes - roles of UCLAS and COWI (T) Ltd 5.3 Role of COWI (T) Ltd in supervision and approval of works

6. WORK PLAN 7. TENDERING PROCEDURES (PRIVATE CONTRACTORS)

7.1 Packaging of works 7.2 Review of tender documents 7.3 Review of tendering procedures

7.4 Shadow tendering of community contracts 8. CONTRACTS

8.1 Works in accordance with community contract specifications 8.2 Works in accordance with private contract specifications 8.3 Facilitation of improved work - contract documentation, supervision, training 8.4 Perceptions of project partners on community and private contracts 8.4.1 Private Contractors 8.4.2 CDA 8.4.3 DCC 8.4.4 NIGP 9. USE OF LABOUR BASED METHODS & SITE ORGANISATION

9.1 Work planning and reporting 9.2 Site organisation 9.3 Division of work 9.4 Task rates and payment of labourers 9.5 Use of tools and equipment 9.6 Works in accordance with design 9.7 Purchase and use of materials 9.8 Earthworks 9.9 Selection of workers

10. INNOVATIVE TECHNOLOGIES 11. COMMUNITY MAINTENANCE 12. TRAINING PROGRAMME

12.1 Training outline for foremen 12.2 Workshop for short-listed contractors 12.3 Other technical training

13. OTHER ISSUES 13.1 Capacity building for the future 13.2 Environmental issues 13.3 Records 13.4 Impact analysis

14. RECOMMENDATIONS


LIST OF ANNEXES

ANNEX 1 TERMS OF REFERENCE ANNEX 2 ITINERARY ANNEX 3 PRINCIPAL CONTACTS ANNEX 4 LIST OF DOCUMENTS REVIEWED ANNEX 5 REVISED WORKPLAN ANNEX 6 CONDITIONS OF CONTRACT ANNEX 7 MAINTENANCE MANUAL ANNEX 8 TRAINING OUTLINE FOR HANNA NASSIF PROJECT PARTNERS ANNEX 9 EVALUATION, BOQ AND COST IMPLICATIONS


LIST OF ACRONYMS ATU Appropriate Technology Unit (MOW) BOQ Bill of Quantities CBO Community Based Organisation CDA Community Development Association CIP Community Infrastructure Programme CMU Contract Management Unit COWI Cowi (Tanzania) Ltd: Consulting Engineers and Planners CRB Contractors Registration Board CTB Central Tender Board DANIDA Danish International Development Agency DAWASA Dar es Salaam Water and Sewerage Authority DCC Dar es Salaam City Commission ERB Engineers Registration Board GOT Government of the United Republic of Tanzania HQ Headquarters ICB International Competitive Bidding ICE Institution of Civil Engineers ILO International Labour Organisation ILO/ASIST Advisory Support Information Services and Training – International Labour

Organisation IPC Interim Payment Certificate km kilometre KTC Kisii Training Centre, Kenya LB Labour Based MOLG Ministry of Local Government MOW Ministry of Works NBC National Bank of Commerce NCC National Construction Council NCB National Competitive Bidding NIC National Insurance Corporation of Tanzania Ltd NIGP National Income Generation Programme PPM Policy and Procedures Manual RTB Regional Tender Board SI Site Instruction TA Technical Assistance TBCA Tanzania Building Contractors Association TCECA Tanzania Civil Engineering Contractors Association TC Trial Contract TOR Terms of Reference TSh Tanzanian Shilling TST Technical Support Team UCLAS University College of Lands and Architectural Studies UNDP United Nations Development Programme UNV United Nations Volunteer USD United States dollar VO Variation Order WB World Bank WEDC Water, Engineering and Development Centre, Loughborough University WEO Ward Executive Officer (DCC) ROE 1.10.99 TSh800/1USD

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ACKNOWLEDGEMENTS Grateful thanks are expressed to residents and workers from Hanna Nassif, the representatives of Sala Construction & General Maintenance and Lukwati Building Construction Co. and other individuals met during the course of this consultancy for their support and assistance without which the execution of this assignment would not have been possible. Particular thanks are expressed, as always, to Mengisenyi Kaseva and Mpayo Kasure for their participation, advice and logistical assistance. This report reflects only the views and opinions of the consultant which do not necessarily correspond with those of the Government of the United Republic of Tanzania, UCLAS or ILO/ASIST.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 1. EXECUTIVE SUMMARY This consultancy is intended to support the project team in reviewing procedures, documentation and performance of community and private contracts, supervision of works, efficient use of labour based technology and update of plan for construction activities. The assignment is thus complementary to those undertaken in April 1999 (dealing with issues such as packaging, tendering, supervision and programming of works plus use of labour based technology) and in October 1998 (which dealt with development of contracts and contracting procedures for small labour based contractors to be engaged to carry out some of the works) under Phase II of the Hanna Nassif Urban Upgrading Project

Background

Using LB methods storm water drainage and gravel roads were constructed by the Hanna Nassif community during the first phase of the project. Under Phase II these LB works are being extended and expanded to include water supply, solid waste management and credit schemes. The community-based approach is being improved and some of the works are being contracted out to Class VI & VII contractors as a means of developing the local small scale contracting industry.

Design and Procedures Except for the detail of the river crossing for the water supply connection (Nodes 1-2’) no other major design changes are foreseen to be necessary. Any other necessary changes in design may be made on site subject to consultation between site staff and designer [COWI (T) Ltd]. These on-site changes are unlikely to significantly change the scope of works. It is planned to continue the present supervisory regime of day to day supervision by UCLAS with periodic visits by COWI (T) Ltd. There continue to be reservations over this split responsibility for supervision and certification of works and COWI (T) Ltd have already expended half of the provision for their inputs scheduled to extend to the end of the original project period - March 2000. Consideration has not yet been given to arrangements for the 6 month extension to September 2000. Work Plan A revised work plan has been worked out with the active participation of UCLAS based upon agreed packaging of works and takes into account the 6 month project extension. Completion of works within this extended period is dependent upon progress of community executed contracts. There should be ample time to complete planned private contracts within this period as long as it is possible to begin the mains water connection on Kawawa Road by April 2000. Tendering Procedures (private contracting) The proposed packaging of contract works appears reasonable with combined Packages 4 & 5 now split between community and contractor. Tender documents to be used in the tender process are a ‘conventional’ civil engineering format and are slightly modified versions of the draft documents previously examined by this consultant. Most of the changes and amendments to these drafts recommended in April 1999 have been executed. Shortlisting of 10 contractors is in progress and should be completed by mid-October. An independent evaluation of tenders

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 should be made by COWI (T) Ltd. The timetable for tendering the second round of contracts should allow for work to begin on site by mid January 2000. Contracts Additional costs have been incurred in community contracts already executed and further unbudgeted costs may be expected in future community contracts. Similarly there have been significant increases on the contract value of Package No 1 with possible additional large increases yet to be resolved. Urgent quantification of additional costs and consultation with NIGP is essential to permit budgetary control. Different views on the participation of private contractors are held by project partners although there is broad agreement on the capacity of the community to undertake works of this type. During the tender period it is proposed to hold a one-day workshop and site visit for shortlisted contractors in order to clarify tender procedures. Shadow tendering of community contracts will continue on a labour-only basis for water pipeline works and as complete contracts for the construction of water kiosks although further training and sensitisation of CDA is indicated. Use of Labour Based Methods and Site Organisation Reporting and supervision procedures have been examined and some modifications of the roles of TST and COWI (T) Ltd have been agreed. Comparison of community and contractor work forces show that the latter are considerably smaller although the proportion of women workers is similar. The contractors’ daily work outputs are higher than community contracts as although daily task rates are the same for community and private contracts, labourers are expected to continue working for a full day even if they have completed their task while community workers cease work upon completion of the set task. Work quality still needs to be improved although on the whole recent community executed works are of better quality than equivalent contractor works. Systems for ‘best value’ procurement have been reinstated for CDA procured materials and tools. Procurement of all materials for the community executed water supply works has been carried out by UCLAS. Unsuitable material continues to be dumped on roads and adjacent to excavation. Given the relatively high proportion of unsuitable material it would not be possible to achieve a balance of cut and fill in earthworks. It was intended to rotate workers on both community and private contracts on a weekly basis although this is not being carried out by the contractors. Innovative Technologies Further suggestions have been made for trials of alternative methodologies and materials including changes to design and specification although the remaining project period presents little opportunity for experimentation. Community Maintenance Infrastructure maintenance effectively ceased with the cessation of CBO activities and there is current litigation concerning solid waste collection that has stopped that activity also. Despite all this there is no immediate problem and CDA has recently undertaken some clearance of roadside ditches. Revenue sources to sustain routine maintenance after the project period are being considered although institutional fragility of the CDA could be a serious impediment to administration of such revenue collection.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Training Programme

An extended training outline (TOR) has been produced for project partners. NIGP has indicated that further funds for additional training might be possible. Other Issues It is suggested that capacity building of CDA for assumption of civic functions is a major challenge for the remaining project life. Environmental concerns arising from the displacement of detritus from Hanna Nassif to the main water course and out to the bay remain unresolved. Also discharge of raw sewerage into the roadside drains should be discouraged. As built drawings are being produced and SI, VO and certification procedures have been reviewed. Standardisation of base line data collection, methodologies and specifications for projects of this type is discussed. Consideration is being given to duplication of techniques in other informal settlements and to possible extension within Hanna Nssif.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 2. INTRODUCTION This assignment was carried out by John Clifton, Independent Consultant between 29th September and 8th October 1999. Discussions were held with personnel from UCLAS/TST, ILO (Dar es Salaam), ILO/ASIST (Nairobi), COWI (T) Ltd, DCC, NIGP, Sala Construction and General Maintenance, Lukwati Building Construction Co, ILO/ASIST Evaluation Team, CDA and Hanna Nassif workers and residents. Hanna Nassif was visited on several occasions and all works completed under Phase I and Phase II were inspected together with ongoing works and locations of all other work proposed for execution by contractor and community under Phase II. All available relevant background documentation and reports were reviewed. The assignment was commissioned by ILO/ASIST in Nairobi in order to support the project team in reviewing procedures, documentation and performance of community and private contracts, supervision of works, efficient use of labour based technology and update of plan for construction activities. This assignment is a follow up to consultancies carried out in October 1998 and April 1999 which examined respectively, development of contracts and contracting procedures for small scale labour based contractors in urban upgrading works; and packaging, tendering supervision and programming of the works plus use of labour based technology; on behalf of Phase II of the Hanna Nassif Project which is executed by UCLAS. The following specific activities were carried out: • Review and update of recommendations made during previous assignments. • Review of design in the light of subsequent changes to physical conditions and

circumstances and examination of procedures for design changes. • Review of the supervisory role of COWI (T) Ltd with regard to ongoing community and

private contract works. • Update work plan for all outstanding works taking into account the project extension and

supervision constraints. • Review the packaging of works, tender procedures, shadow tenders for community works

and documents including the roles of the project partners. • Review constructed works for compliance with specification. • Review contract documentation. • Assess the perceptions of various project partners concerning relative advantages of

community or contractor execution. • Analysis of works in progress with respect to labour based methods, work organisation,

quality control, selection of workers and procurement of construction materials and tools. • Consider innovative (or at least alternative) methods for certain aspects of the works. • Examination of arrangements for maintenance of completed works. • Review the training outline and arrangements for the proposed course for community and

short-listed contractor’s foremen and recommend other technical training which is desirable for successful completion of the project.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Provisional findings and recommendations were discussed with representatives of UCLAS during the course of a debriefing for TST project participants. A separate debriefing was also undertaken with ILO (Dar es Salaam). Issues and comments arising from these meetings have been incorporated into this report. Some of these findings and recommendations were also discussed with the ILO/ASIST Evaluation Team who visited Tanzania 5-8.10.99. Annexes are attached as follows: Annex 1 Terms of Reference Annex 2 Itinerary Annex 3 Principal Contacts Annex 4 List of Documents Reviewed Annex 5 Work Plan Annex 6 Conditions of Contract Annex 7 Maintenance Manual Annex 8 Training Outline for Hanna Nassif Project Partners Annex 9 Evaluation, BOQ and Cost Implications The draft final document was completed after departure from Tanzania and submitted subsequently to project partners through ILO/ASIST in Nairobi.

3. PROJECT BACKGROUND

The first phase of the Hanna Nassif project supported by UNDP, Ford Foundation, EDF, ILO, UNHCS and UNV demonstrated that upgrading of infrastructure (storm water drainage and access roads) in low income settlements can be successfully carried out by the community, using labour-based methods in partnership with the City Commission backed up by technical advice. The community actively participated in planning, design, implementation and maintenance activities and the works were carried out by small contracts issued to the community for the implementation of the works.

The second phase of the project funded by NIGP, Ford Foundation and UNDP, executed by UCLAS with technical support by ILO, is continuing the works in a much larger area within Hanna Nassif unplanned settlement and extending the scope of works to include solid waste management, drinking water supply and credit schemes. Works have been split into packages some of which are being executed by the community, while others are being contracted out to small scale local contractors. Labour based methods are being used wherever appropriate.

4. OBJECTIVES OF THE CONSULTANCY To support the project team in reviewing procedures and documentation for the tendering of works, to provide recommendations on the contracts and the performance of community and private contracts, supervision of works, update the work plan for construction activities and for the effective and efficient use of labour based technology.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 5. DESIGN & PROCEDURES 5.1 Design Changes During the consultant’s previous assignment the following design issues were considered. • Outfall No.4 Following consultation with CDA it was confirmed that this outfall is no longer required and this package has thus been deleted from the workplan. • Outfall No.5 Buildings have been constructed near to the designed line of the outfall which was proposed as an 80cm reinforced concrete channel connecting to a gabion cascade discharging to the river. The final outfall section leading to the river was a somewhat tortuous lined channel between houses. In response a changed gradient of the concrete channel was combined with a short extension of this channel. Gabions give protection to the foundations of a house immediately adjacent to the drain alignment although excavation of garbage to a depth of some 3-4m could not be avoided opposite this house. The gabion cascade was then constructed more or less as designed. The final section of outfall involved the demolition of a short section of low wall (by agreement with the owner) and replacement of the existing channel by a reinforced concrete channel giving protection to foundations of adjacent houses. No change in detailed design or new design, plans or levels were necessary - adjustments were carried out on site during construction and this is now complete (community execution). • Road No.4 Construction of walls and new buildings at approximately CH 310 have significantly reduced the available width for road construction which includes a lined roadside drainage channel and water supply pipeline. These constructions are founded upon garbage of unknown depth and a recently constructed latrine is on the line of the proposed roadside channel. It is understood that residents in this immediate area do not wish for this section of road to be constructed and the CDA has confirmed that the road should not be constructed through this pinch-point at present. The road will not, therefore, be constructed at this stage between approximately CH 275 and CH 325 while the open channel and water supply pipes will be installed albeit on a slightly modified line away from the foundations of the encroaching buildings. Work on roadside drains is currently (October 1999) in progress at this point by Lukwati Building Construction Co and excavation for this drain has confirmed fears about the depth of tipped garbage such that a line for the drain has been set out to minimise the risk to stability of foundations of the latrine and attached house. Should subsequent negotiations by CDA result in the demolition of a boundary wall opposite the said latrine then there will be sufficient width to construct the road (albeit of reduced width). In this case some sections of drain through the pinch point will require a reinforced concrete cover slab.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 No change in detailed design or new design, plans or levels should be required - adjustments are being carried out on site during construction. • Water Supply Connection Nodes 1 - 2 Earthworks are still in progress on Kawawa Road in connection with the widening and raising of that road. From consultation with the contractor, Konoike Construction Ltd in April, it was understood that earthworks only will be carried out in 1999 and these should have been complete by the end of July 1999. However, these earthworks are not yet complete (October 1999) such that an early start on this connection looks unlikely. These earthworks necessitate the extension of the washout line (to which this water supply pipe should be connected) under the widened embankment which also requires the displacement of this connection to Hanna Nassif by some 16m away from the designed line along the edge of the existing road. Further, the associated structural works, including replacement or extension of the culvert carrying Kawawa Road over the river, will only be undertaken in 2000. As the water supply connection must cross the river then if installed during the project period, this crossing must either be a temporary connection which will then be incorporated in the permanent culvert works or by a stand-alone river crossing. DAWASA has authorised the proposed connection to the main water line in Dawasa Road subject to installation of a bulk meter at the off take point. Likewise DAWASA has given written approval to go ahead with pipe laying works in Hanna Nassif and a draft contract relating to ownership, maintenance and operation of the water supply network has been drawn up and is currently being considered by DAWASA. Following a meeting with CDA all landowners have agreed to the siting of kiosks and a memorandum of understanding has been signed pending final preparation of formal contracts. • Accesses over open Roadside Ditches Vehicular or pedestrian crossings over the lined roadside ditches were shown in the original design drawings (Drg No 7005) but the quantities of reinforcement steel and concrete for these crossings do not appear to have been included in the BOQ for either communty or private contract works although many are being constructed at the behest of the community at regular intervals to give access to roadside premises. No further design changes appear necessary although site adjustments continue to be made as required. 5.2 Procedures for Design Changes - Roles of UCLAS and COWI (T) Ltd Procedures for design changes are as previously reported (ie potential design changes are identified on site and brought to the attention of the designer COWI (T) Ltd by UCLAS with a request to inspect the particular location in question; following such inspection and agreement to proposed modification COWI (T) Ltd issue approval or ‘no objection’). This practice appears reasonable.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 5.3 Role of COWI (T) Ltd in Supervision and Approval of Works This continues to be an issue of importance for quality assurance and approval of works as a whole. The present situation regarding on-going community works and private contract works are considered separately preceded by an outline of the duties of the consultant engineer (COWI (T) Ltd) as set out in the present contract between UCLAS and COWI (T) Ltd. • Present Contract - UCLAS/COWI (T) Ltd

The duties and obligations of COWI (T) Ltd were set out in the contract between UCLAS and COWI (T) Ltd and as recorded in minutes of contract negotiations, any subsequent meetings and technical proposal by COWI (T) Ltd. COWI (T) Ltd can thus be expected to have involvement in the following tasks (some of the original tasks are now completed): - Evaluation of tenders (expected December 1999 for the second round of tenders - 2

contracts). - Certification of completed works. - Provision of limited supervision/checking/advice during construction (ie day to day

supervision by UCLAS with periodic site visits by COWI (T) Ltd). This latter point is not clear and the general conditions of contract attached to the contract para 6.3g) refers to ‘Attending relevant site meetings and making such other periodic visits to site as the consulting engineer may consider necessary in order to monitor that the works are executed generally in accordance with the drawings and specifications ….. The frequency of site visits shall depend on the performance of the contractor and the site staff, if any, appointed by the consulting engineer; it is recommended that such visits shall be fortnightly for a nearby site and monthly for out-of-station sites. The presence of the consulting engineer shall not relieve the contractor of his responsibility for the correctness of the materials and methods used by the contractor, nor for the safety of the works ……’.There is specific involvement in the issue of Site Instructions and Variation Orders.

• Community Works Day to day supervision is undertaken by UCLAS (who also plan, organise and control the works carried out by the community) with COWI (T) Ltd making periodic site visits during which the work is inspected. A report is prepared by COWI (T) Ltd which is prepared for internal COWI (T) Ltd reference and is not submitted to UCLAS. Despite the apparent approval of works by COWI (T) Ltd, payment for community executed work (except for release of the 10% ‘profit’ to the community upon final acceptance of the works) is not conditional upon this approval as the community executed works are not contracts in the conventional civil engineering sense. The present role of COWI (T) Ltd thus continues to be more quality assurance than certification of works. • Private Contract Works The same supervision regime (day to day supervision by UCLAS, periodic visits by COWI (T) Ltd) is applied to private contracts in which certification and approval of works are a specific prerequisite for payment of the contractor and acceptance of works.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 This issue was discussed during the course of a meeting between UCLAS, NIGP and COWI (T) Ltd/Serviceplan on 24.03.99 and the following points were included in the (draft) minutes of that meeting: ‘SUPERVISION According to the contract UCLAS will be responsible for daily supervision and COWI/SERVICEPLAN for a regular check up giving assistance/advice and certification. The supervision services to be rendered by the COWI/SERVICEPLAN will unless otherwise agreed be limited to what is stipulated in the conditions of engagement. Observation, instruction and recommendations by COWI/SERVICEPLAN will be documented after every site visit. However, it was also agreed that the supervision part of the contract will be discussed after the evaluation of tenders with the view of improving the conditions, remuneration and mode of supervision. COWI would prefer to change the present contract to be based on man-months (time basis). NOTE Following the discussion with SERVICEPLAN and NIGP on 25.03.99 it was agreed that the above mentioned discussion on the adjustment to the contract preferably should be done during the month of April while waiting for the response from the contractors in order to make sure we will be ready by 1.06.99.’ It is understood that the discussions on adjustment to the contract scheduled for April 1999 have not taken place. • Site Instructions, Variation Orders and Certificates There has been some confusion over the procedures to be followed regarding issue of SIs, VOs and certificates. The systems have been reviewed and procedures and formats now appear to be clear to all parties. Summarising the procedures: • SIs and VOs issued verbally by TST and recorded in the Site Instruction book held at

Hanna Nassif which will be examined by COWI (T) Ltd on each site visit and signed with any comments. If major quantity changes are involved COWI (T) Ltd must be consulted and any necessary VOs will be issued by COWI (T) Ltd.

• Certificates are raised by the contractor and submitted to the Project Manager. TST check the supporting measurement sheets and valuation and then pass the documents to COWI (T) Ltd for certification (including inclusion of any VOs). The document is returned to UCLAS and submitted under signature of the Project Leader to NIGP requesting payment.

These procedures should be streamlined as much as possible to allow speedy payment of the contractors - late payment to small contractors is often a killing factor.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 • Overview Until the end of the project the planned supervisory staff consists of UCLAS engineers Mpayo Kasure and Mengisenyi Kaseva on a day to day basis with back up by periodic visits by COWI (T) Ltd - in practice Ms Rafia Nshama now backstopped by Nils Bakke and Innocent Macha. The planned works (see 6 below also) from October 1999 involve concurrent operation of community work fronts plus concurrent private contracts. Previously expressed reservations over the split responsibility for supervision and the acceptability of certification of works based upon intermittent visits by COWI (T) Ltd are restated. COWI (T) Ltd continue to claim that the level of COWI (T) Ltd input is greater than expected. Fees allowed for the equivalent of 1.8 person months (3 days per month) for the original project period (ie up to the end of March 2000). It is stated by COWI (T) Ltd that approximately half of this provision has already been expended to the end of September 1999 (although claimed inputs have not yet been itemised or invoiced to UCLAS) on supervision activities in connection with community and private contracts. (There also appear to be different perceptions of the actual amount of time spent in these duties by COWI (T) Ltd as expressed by UCLAS and COWI (T) Ltd). The project period has now been extended by 6 months with community works expected to continue for most of this extended project period while private contracts should be completed by the end of June 2000. In the opinion of this consultant the level of input was not sufficient to ensure adequate control of works contracts (community and contractor) even before this project extension which implies either a spreading of supervisory resources even thinner or a cessation of COWI (T) Ltd services at the exhaustion of fee provision while project works are in progress. 6. WORK PLAN A revised programme of works has been prepared for all outstanding works in Phase II (community executed and private contract works). This revised programme has been fully discussed with UCLAS and is based upon the packaging of works set out in ‘Tender Documents for Major Works - March 1999: COWI (T) Ltd’ as subsequently modified by UCLAS (see also 7.1 below). Although it was agreed during a meeting between NIGP, UCLAS and COWI (T) Ltd on 24.03.99 that every effort should be made to start contract construction on 1.06.99 the contract for Package 1 (Outfall No 3 - Sala Construction & General Maintenance) and Package 15 (Road No 4 [road works, drainage, water supply] - Lukwati Building Construction Co) actually started in September 1999. There continues to be pressure to start remaining works and community executed works recommenced in early October 1999 (Road No 3 - water supply) although this is dependent upon expedition of procurement of water pipes. Whenever possible community works will be executed with 2 simultaneous work fronts for works of the same type eg water supply. Prequalification of contractors for the remaining two packages (ie Package 4&5 [combined] - water kiosks; Package 6 - water connection 1-2’ [Kawawa Road]) is in progress and thus the combined Package 4&5 is expected to start in January 2000.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 The logical sequence of community executed and private contract works has been considered as has the 6 month extension of the project period to September 2000 (while NIGP has confirmed the 6 month extension period in writing [letter to UCLAS dated 23.08.99] it is understood that ‘financial budgetary allocation issues’ have still to be discussed). Completion of works within present project life is dependent upon progress of community executed works. There should be sufficient time to complete private contracts within the available time with phased start-up to allow the site team to adequately cover the inevitable increased work which comes with start up of a contract. 7. TENDERING PROCEDURES (PRIVATE CONTRACTORS) 7.1 Packaging of works The original packaging of works as set out in the ‘Tender Documents for Major Works - March 1999: COWI (T) Ltd’ was: • Private Contracts Package 1: Outfall 3 Package 4: Water Kiosks with 5000 litre storage tanks Package 5: Water Kiosks with 10000 litre storage tanks Package 6: Water supply Node 1 - 2’ Package 15: Road works, storm water drainage and water supply Node 7 - 5 (Road No.4) • Community Works All other works. The original packaging has been subsequently modified whereby it is proposed that Packages 4 and 5 be undertaken by both community and contractor (approximately half each) and the two private contract packages combined into a single package (ie the community will construct 2x10000 litre plus 3x5000 litre kiosks; the contractor will construct 3x10000 litre plus 2x5000 litre kiosks). The original packaging is broadly as suggested by the consultant in October 1998 and the distribution of works between community and contractor appears practical. 7.2 Review of tender documents The tender documents for private contractors consist of: Tender Documents for Major Works: March 1999 Volume 1A: Instructions to Tenderers Conditions of Contract Form of Tender Bill of Quantities Schedules Nos. 1 - 6 Volume II: Technical Specification: July 1998 Volume III: Tender Drawings: March 1999

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 These documents are slightly amended versions of the draft contract documents examined by this consultant in October 1998 and may be described as conventional civil engineering documents. Most of the amendments to these documents recommended by this consultant in April 1999 have been included in the documents under ‘3.0 Special Conditions of Contract’. See also Annex 6 for further comment. 7.3 Review of tendering procedures There continues to be pressure to increase the speed of implementation of works. At present 2 contractors are working on site having begun their works in September 1999. Outfall No 3 should be completed by the end of October 1999 and Road No 4 (drainage, water supply and road works) should be complete by the end of December 1999 (in fact, at the current rate of progress Lukwati Building Construction Co should finish before this date). Another 2 work packages are intended to be constructed by private contractor. Class VI and VII contractors in Dar es Salaam were invited to apply for pre-qualification by newspaper advertisement in July 1999. 22 contractors responded to UCLAS by the deadline (15.07.99) of which 5 were rejected because they were Class V and above. The documentation submitted by the remaining 17 was scrutinised and the 10 highest ranked contractors were advised by letter (15.09.99) that they had been selected for attendance at a one-week training course. By letter dated 5.10.99 the 10 contractors were advised that the proposed course was for foremen (or site supervisors) and that attendance at this course would be a pre-requisite for pre-qualification. This process was carried out by UCLAS. It is understood that NIGP wish to be consulted with regard to the shortlisting of contractors (it is not clear whether this would be approval or ‘no objection’) and it is suggested that this consultation should take place before the contractors are formally notified of selection (end of October 1999). The Code of Practice for Civil Engineering and Building Works in Tanzania:NCC para 6 states ‘ It is ……. Generally accepted good practice that the number of contractors invited to tender should not be less than 4 nor more than 8’. As there are prospectively 10 short listed contractors for 2 packages, these guidelines should be satisfied. Due to pressure upon UCLAS/TST personnel - training courses mid-October and first half of November (with course material preparation late October) plus pressing issues of certification, BOQ and contract value - it is suggested that preparation of the tender documents for this second round of tenders can only begin after the course in November 1999 although formal notification of pre-qualification could be done after the October course. Thus a tender action and timescale is suggested in Table 7.3.1 below. The starting date of mid-January 2000 should not be a problem for the works programme as a maximum of 6 months should be required for the outstanding contractor-executed works (well within the extended project period). Although the works programme shows the sequential start-up of combined packages 4&5 (water kiosks construction) and Package 6 (water supply 1-2’ Kawawa Road) this latter is dependent upon completion of the widening works on Kawawa Road. No dates are available for completion of this work and it may thus be wise to extend the period of tender validity required of bids for this package.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 With the exception of package 6 (for which the details of crossing Mzimbazi Creek have not yet been worked out) changes due to altered site conditions (eg Road No.4 . see 5.1 above) should not substantially alter quantities of work nor the programme of works and may be controlled by site instructions issued during the course of the works. However, the issue should be covered in essence during negotiations even if not yet fully resolved, especially as regards items which are foreseen even if not fully quantifiable (eg breakages of unauthorised water supply pipes during excavation).

ACTIVITY RESPONSIBILITY TARGET DATE Notify contractors of pre-qualification UCLAS 29.10.99

Tender submission UCLAS 19.11.99 Site Inspection/Workshop UCLAS/COWI (T) Ltd 26.11.99 Return of tender documents (to UCLAS) Contractors 9.12.99

Tender opening UCLAS/COWI (T) Ltd 10.12.99 Tender evaluation COWI (T) Ltd 17.12.99 Formal recommendations (to UCLAS) COWI (T) Ltd 24.12.99

Negotiations UCLAS/COWI (T) Ltd 3.01.2000 Review by NIGP NIGP 7.01.2000 Award UCLAS/NIGP 10.01.2000 Contractor on site Contractor 18.01.2000

Table 7.3.1

The proposed evaluation of the tenders by the consulting engineer [COWI (T) Ltd] who will make recommendations to UCLAS is endorsed; this is a conventional arrangement whereby the client is given recommendations from an independent technical evaluation. ILO/ASIST is available to provide advice on labour based aspects of the contractors’ proposals for this evaluation. Further comments on evaluation are included in Annex 9: Evaluation, BOQ and Cost Implications. Within the tender period (ie after the contractors have had time to study the tender documents) it is proposed to invite the 10 selected contractors to a one-day workshop which will include a site visit. This will cover issues which caused problems in the first round of tenders, explain relevant BOQ, specification clauses (eg what should be included in the tender unit rates), tender procedures and some conditions of contract plus go through the design. There should also be a question and answer session for contractors’ queries. It is hoped that more accurate and responsive tenders will result from this exercise which should involve UCLAS and COWI (T) Ltd. The contractors could also be consulted on their perceived need for a longer course on such contractual issues at a later date. 7.4 Shadow tendering of community contracts Community executed works have, until recently, been undertaken under a contract basis which does not allow for a profit (or loss) to be made. Materials are separately purchased, labour requirements are estimated and costed with a 10% retention by CDA for subsequent maintenance funding. Shadow contracts are intended to lead the community from what is effectively a direct labour/force account system to commercial awareness of contract execution.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Initially a paper exercise in which shadow contract and actual performance can be compared, the principle can be extended to gradually phase in a normal contract procedure. Shadow contracts were piloted on community Contracts 11 (Road No 3 - drainage) and 12 (Drain No 1) but only for the labour component; purchase of materials continued to be carried out by CDA under the guidance of TST (ie funds were disbursed by TST to the CDA account after estimation of requirements by the site engineer; a weekly meeting between CDA and TST then decided on requirements for immediate purchase of materials which CDA would procure). A small profit was made on contract 11 (TSh 17000 on a contract value of TSh 4000000) while contract 12 broke even. It is planned to continue with shadow contract trials for outstanding community works. Although shadow water pipeline contracts will continue to include only the labour component (as TST procurement procedures for acquisition of water pipes and fittings for all community works is almost complete) shadow community contracts for kiosks will include all contract elements. As expected, CDA commercial awareness has increased as a result of the trials (and observation of the contractors now working in Hanna Nassif) and the following points are noted: • The distribution of any profit should be clearly agreed at the outset (eg x% for

infrastructure maintenance; y% as bonus to workers; z% to assist CDA register with CRB and so on). In the same way any losses should be accommodated.

• Quality can be jeopardised if works are rushed. • There is reluctance to do additional works without payment as previously (eg crossings

over roadside ditches). • Workers’ task rates have been increased. • Purchasing of materials continues to be a delicate issue. It has been suggested that

identification of supplier and payment of said supplier should be separate functions involving different persons, but both stages subject to CDA approval.

• A seminar or workshop should be arranged to explain to the CDA and community in some detail the aims and principles of shadow contracts.

8. CONTRACTS This section discusses the contractual and cost implications of community and private contracts awarded to date and makes recommendations for dealing with the situation arising from present and past contracts going on to suggest how future procedures might be modified in the light of experience gained to date. Physical construction is covered below in 9.6: Works in accordance with design. 8.1 Works in accordance with community contract specifications Additional costs have been incurred on previously executed community contracts in connection with footbridges over roadside drainage ditches and in connection with reinstatement of unauthorised water supply pipes which cross excavations. It is understood that the estimated cost of such unbudgeted items is some TSh 6700000 despite some community contributions having been made to some of the 200 or so footbridges which have been constructed to date.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Future works include a small section of roadside drainage ditch and water supply works. Thus, although there are not likely to be large numbers of footbridges, unauthorised water supply pipes are likely to remain a problem. It is suggested that an estimate be made of the potential future unbudgeted costs and the extra costs incurred to date be confirmed. A meeting should be held as soon as possible between NIGP, UCLAS and COWI (T) Ltd to discuss the question of accommodation of these costs in the project budget (see below also). 8.2 Works in accordance with private contract specifications Reference should be made to Annex 9: Evaluation, BOQ and Cost Implications which sets out in more detail the situation with Packages 1 and 15. For various reasons there are committed additional costs on Package 1 (tender value TSh 15981500) of some TSh 8878000 and possibly other costs of TSh 5885000 which would effectively double the contract sum. On Package 15 (tender value TSh 53005475) there are possible extra costs of some TSh 1019000. Other predictable but, at this stage, probably unquantifiable extra costs are likely to be incurred. In addition to the extra costs detailed above and in Annex 9 there are other additonal costs implicit in the water main connection works on Kawawa Road. No design has been made for the river crossing although it is noted that the specification states ‘….The rate for excavation for laying 200mm dia pipes along Kawawa Road shall include a reasonable compensation for relocation with proposed plans for expansion of road’. Following the meeting held with COWI (T) Ltd and UCLAS, both parties are making as detailed an assessment of potential costs increases as is possible at this stage. Another meeting will be held to discuss these findings and it is proposed that a round table discussion be held as soon as possible between NIGP, UCLAS and COWI (T) Ltd such that NIGP may consider its position regarding project budget (logically, if there are potential cost implications arising from any changes in the COWI (T) Ltd/UCLAS contract these should also be discusssed). It is strongly recommended that this meeting should consider the situation as it stands and any post mortem thought necessary should be carried out after the budget situation has been clarified. 8.3 Facilitation of improved work - contract documentation, supervision, training No significant change to the contract documents is suggested. However, a review of the BOQ items for the remaining work packages and valuation of any changes is suggested as a component of the estimation exercise noted above. The proposed one-day workshop during the tender period for short listed contractors should highlight any points which are not clear and definitive instruction could be given to the contractors on such points (eg the unit rate for excavation of water pipe trenches includes provision for restoration of disrupted services). The record of this workshop could form a part of the eventual contract document together with the record of negotiation with the selected tenderers. More details of this proposed workshop and other training relevant to these issues are included in Annex 8: Training Outline for Hanna Nassif Project Partners. Supervision modalities would depend upon any changes that may be made to the COWI (T) Ltd/UCLAS contract. For the time being procedures and responsibilities of TST and COWI (T) Ltd have been clarified.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Any significant future cost increases for whatever reason should not be committed without reference to NIGP as contract signatory and funding agent or client. 8.4 Perceptions of project partners on community and private contracts 8.4.1 Private Contractors The 2 contractors currently on site (Sala Construction & General Maintenance and Lukwati Building Construction Co) are predictably positive in their views on the use of private contractors in a community based project of this type but have the following observations: • Initial scepticism concerning the level of technical ability of Hanna Nassif personnel has

been overcome (contractors were obliged to use community personnel wherever possible). • Similarly, unease at the level of community involvement in supervision and quality control

of the contract works has been resolved as there has been no hindrance to progress from this source although the high visibilty of their works do not allow the contractor (to quote one contractor) ‘to hide very much’.

8.4.2 CDA The CDA has strong views on the use of contractors: • There is no rotation of workers despite agreement that the contractor would do so for

unskilled labour. When this was taken up with the contractors both asserted that unskilled workers were rotated on a weekly or fortnightly basis; skilled workers/artisans were not rotated).

• The contractors are not teaching the community anything, rather it is the exact opposite. • Hanna Nassif artisans are better experienced than the contractors’ site

engineers/supervisors. • The only oustanding works which are (possibly) outside the capacity of the community are

the connection to the water main in Kawawa Road. On a more positive note, other CDA observations include: • The community now has an increased confidence in their own abilities (by comparison

with the contractors who are dependent upon community personnel). • The contractors have overcome intial scepticism of the abilities of Hanna Nassif personnel

and have stated that they would use some of these persons again on other contracts outside Hanna Nassif.

• The community has a sharper commercial awareness as a result of observing the contractors.

CDA now wishes to go ahead with registration with CRB as it is considered that there is a market for their acquired skills with other CBOs and NGOs engaged in similar works and DCC are reported to be aware of Hanna Nassif potential in this context. Although pressure of work has apparently prevented TST from assisting CDA in this endeavour it is suggested that this registration application should go ahead within the remaining project life (as previously recommended by this consultant and by Dr.M.Sohail - Community Partnered Procurement - Community Contracts: October 1998)

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 8.4.3 DCC In the opinion of the WEO Phase II works should have been undertaken entirely by the community with specialist contractors only being engaged as necessary (eg connection to the water main on Kawawa Road). This opinion was not based on any antipathy towards the contractors currently working on site but rather a matter of maximisation of proven community abilities. In the same way it is expected that routine and periodic maintenance should be executed and funded by community effort (ie the community should not engage maintenance contractors). There is little chance of financial or physical support (except some technical advice) from DCC (or successor authority) in the foreseeable future. 8.4.4 NIGP NIGP view the Hanna Nassif project as a progressive capacity building exercise. Phase I consisted of community executed works only which were of lower quality but enabled a degree of empowerment and acquisition of skills by the community. Phase II continues and extends that capacity building and improves quality while bringing in small contractors who not only develop their own capability but also, in their use of community labour and artisans, expose the community to better project management and works organisation skills as well as increased commercial awareness. After Phase II, whether through a third phase or similar works elsewhere, NIGP envisages community executed works undertaken under a fully commercial contractual regime. The registration of CDA with CRB would be welcomed.

9. USE OF LABOUR BASED METHODS & SITE ORGANISATION 9.1 Work planning and reporting A weekly report on construction progress is made by Mpayo Kasure to the Project Manager. Fortnightly TST meetings are held at the site for which minutes and action plans are produced. A quarterly report, which forms the basis of an annual report, is produced by TST/UCLAS and is circulated to project partners. Reports on site visits are reportedly produced by COWI (T) Ltd although, as noted elsewhere, these reports are apparently for internal COWI (T) Ltd use only and they are not circulated to UCLAS. COWI (T) Ltd also attend regular site meetings with the contractors for which minutes are produced (as an aside it is suggested that it may advisable to hold individual meetings with each contractor at least as regards financial, contractual and (possible claims) matters which are likely to form a large part of the agenda). Although there continue to be a number of predictable (but probably unquantifiable) constraints to work progress - such as unauthorised water pipes crossing excavations, footbridges over drainage channels, extra excavation to remove unsuitable material from excavations, not all of which have BOQ provision - in the opinion of this consultant, the only potentially major constraint to completion of the works is the water main connection in Kawawa Road which will involve some form of crossing of the river (again there is no BOQ provision for this widening of Kawawa Road as this was not foreseen at design stage; for this reason there is no design for this crossing either). This work is shown in the proposed programme starting in April 2000 as

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 the final private contract. No date for completion of the roadworks is yet available and the water connection would obviously be better undertaken when the earthworks are complete even if the construction of the new river crossing will only take place later. However, it would be possible to lay the new water connection outside the earthworks at the toe of the embankment (although this would not be ideal) but in any case a connection would depend upon the washout line being extended by Konoike Construction Co. 9.2 Site organisation For community execution the work is planned, organised and directed by the UCLAS engineers acting as (contract) site engineers. The resource requirements having been estimated and discussed with the community, materials are procured and brought to site and labour engaged. For contractors the TST engineer acts as a contract supervisory (resident) engineer, other site management functions being the responsibility of the contractor. A comparison has been made of community and contractor’s work forces (the community workforce quoted below is for construction of lined roadside drainage ditches and should thus be closely comparable with the Lukwati Building Construction Co contract which is doing similar work. Sala Construction & General Maintenance is doing a different type of work and so the workforce in this case is not immediately comparable. This community work force of some 42 persons (40% women) (with another 10 trainees of various categories) is considered to be a typical size of community contract labour force and is based upon figures noted while observing the said community work in April 1999 and confirmed during this assignment. The workforces comprise:

TASK Sala workforce

Lukwati workforce

Community workforce

Excavation 4 7 5 Fixing formwork 3 Steel fixing 1 3 Steel bending and cutting 3 Artesans (placing and finishing concrete)

2 2 2

Spreading excavated material on road 3 Shaping of road 5 Carrying and placing concrete 6 10 Carpenter (+ assistant) 2 Mason (+ assistant) 2 Backfilling 4 Plumber 1 1 Stone fillers and carriers 8 Gabion fixing 6 Water carrying 2 Other 1 Fore(woman) 1 1 Concrete mixing 5 Totals 26 20 42 No women 10 9 26

Table 9.2.1

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Even allowing for the comparison not being too exact, it is clear that the contractors are using a workforce that is significantly less than that previously used by the community. Some degree of better site management is certainly indicated but also this may suggest that complaints of contractor’s increased task rates and outputs are not far fetched. Approximately 40% of the community workforce is women (30% of trainees) compared with 45% for Lukwati Building Construction Co and 38% for Sala Construction & General Maintenance although no specific targets have been set for women’s participation. Both contractors commented that most tasks could be executed equally well by women and both contractors admitted that they had started their works with a different impression. Both contractors have made some protective clothing available (eg boots, gloves) but this equipment is only issued to workers on specific tasks such as excavation in waterlogged ground (usually solid waste material being excavated). Sala Construction & General Maintenance has a simple first aid kit on site. Lukwati Building Construction Co has promised to provide one ….. 9.3 Division of work The TST engineers control works under the overall direction of the Project Manager. Although it was intended that the engineers would co-ordinate (and to a certain degree overlap) their duties there is a de facto division of responsibility with site organisation and supervision being undertaken by Mpaya Kasure while Mengisenya Kaseva concentrates on administration and support functions such as procurement of materials, tender procedures, certification and so on. The COWI (T) Ltd role continues to be that of an occasional visitor to site but with involvement in tender evaluation, certification and payment of works. It is suggested that efforts be made to expose other persons to the engineering functions of the TST engineers, not only to expand capacity but also to provide some cover for absence from site of either engineer. It is noted that the contract for Mapayo Kasure which expired in March 1999 has now been extended (under different terms and conditions) by UCLAS. The roles of all parties in contract administration did not appear to be clear in the early stages of the present contracts, particularly regarding certification and measurement in September 1999 leading to rejection by NIGP of the first certificate presented on behalf of Sala Construction and General Maintenance although procedures and formats have now been agreed. 9.4 Task rates and payment of workers Task rates for community and contractor executed works are, at face value, the same and more or less as shown in Table 9.4.1 below. However, private contractors and community contracts differ in that the labourers engaged by the contractor are expected to continue working for a full day even if they have completed their daily task (although payment is pro rata task rate for the actual output achieved) while community workers usually cease work upon completion of the set task. (During this assignment one worker with Lukwati Building Construction Co completed three tasks of 3cum per day ie (9 cum)in a single working day of excavation of trench for water pipes. He did not appear for work the following day).

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 HANNA NASSIF - DAILY TASK RATES (COMMUNITY & PRIVATE CONTRACTS)

ACTIVITY UNIT DAILY TASK Setting out Lin m 50 lin m/wd Stripping and grubbing sq m 175 sqm/wd Site clearance sq m Dense 100 sqm/wd Medium 200 sqm/wd Light 350 sqm/wd Tree and stump removal lin m dia 0.2-0.5 m/wd Boulders removal No Small 6-10 no/wd Medium 2-6 no/wd Large 1-2 no/wd Sand/silt removal cu m 5-13 cu m/wd Excavate ordinary soil cu m 5 cu m/wd Excavate medium soil cu m 3.5 cu m/wd Excavate hard soil cu m 3 cu m/wd Excavate very hard soil cu m 2 cu m/wd Excavate rock cu m 0.8 cu m/wd Haul common fill or gravel cu m 0 – 20m 8.5 cu m/wd cu m 20 – 40m 7 cu m/wd cu m 40 – 60m 6.5 cu m/wd cu m 60 – 80m 5.5 cu m/wd cu m 80 – 100m 5 cu m/wd cu m 100 – 150m 4.5 cu m/wd Camber formation cu m 7-10 cu m/wd Excavate gravel cu m 3-4 cu m/wd Load common fill or gravel cu m 8.5 cu m/wd Unload common fill or gravel cu m 10 cu m/wd Haul 0.2-2 km cu m 60 cu m/td Spread and water cu m 13.5 cu m/wd Compact fill or gravel cu m Manual 9 cu m/wd sq m Equipment 700 sq m/rd Collect stones/sand cu m 3-4 cu m/wd Load, haul, unload stone/sand cu m 3-5 cu m/wd Install culvert No 0.9 lin m/wd Mix and place concrete cu m 1.0 cu m/wd Erect scour checks No 4-8 no/wd Wet masonry work cu m 0.5 cu m/wd Dry masonry work cu m 1.0 cu m/wd Wet stone pitching sq m 4-8 sq m/wd Dry stone pitching sq m 8-12 sq m/wd

wd = workerday td = tractor day rd = roller day

Table 9.4.1


Rates of pay are the same for community and contractors personnel ie: Foreman/skilled workers TSh 1600/day ($2) Semi-skilled TSh 1200/day ($1.50) Unskilled TSh 1000/day ($1.25) Complaints have been received from some workers engaged by the contractors that task rates are, in fact, higher than those set by the community. This has been denied by both contractors although it was noted that Lukwata Building Construction Co was aiming at an output of 24 linm/day of concrete to lined ditch walls (cf 20 linm per day for community works) and using fewer (women) headpan carriers (6 cf 10 for community). Lukwati Building Construction Co has undertaken to review these and other task rates. Other items of work which have been cause for complaint are: • Excavation of solid waste for gabion placing, trenching for water supply and excavation for

roadside ditch (3cum/day can be onerous particularly in deep excavations with sodden material).

• Gabion filling is being tasked at 2 baskets plus 2 mattresses per day (ie 2x1.5 cum plus 2x1.8 cum per day) (it is suggested that 6.6 cum is a high figure by any standards).

9.5 Use of tools and equipment Tools in use at the site by both contractors and community at the time of this assignment included picks, hoes, headpans, wheelbarrows, bars, hand rammers and shovels plus other equipment for bar bending and fixing, surveyors level, tapes and other items for setting out. These tools were available in adequate numbers although it was noted that some items used by the contractors were borrowed from CDA (eg headpans, hoes, steel shutters). It was reported that the only concrete mixer on site has now been repaired after being broken down for a long time. 9.6 Works in accordance with design This section discusses physical construction of works for both community and private contract works. Contractual issues and costs of present and future private contracts are covered in 8. Contracts and Annex 9: Evaluation, BOQ and Cost Implications. During this assignment lined roadside ditches were being constructed by Lukwati Building Construction Co (Sala Construction & General Maintenance were constructing a similar lined ditch as outfall to the gabion cascade on Outfall No 3 both using a community team of workers. The quality of this work is more or less as reported previously with some honeycombing of walls (requiring plastering to fill voids) due to poor compaction and vibration of the concrete by large diameter steel rods for tamping and rubber headed mallets for vibration of formwork. The finished product is, on the whole, acceptable but could and should be better (the concrete is noticeably better in the unfinished culvert being constructed near to the school). The number of workers engaged in this construction is less than was the case with community executed similar works while target output was higher. This obviously would contribute to hurried activity and on-site supervision should be more visible and proactive during any concrete placing activities by the contractors and, indeed, other construction operations noted below.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Previous comments on the concrete mix design are restated although the quality of aggregate being used by the contractors appeared somewhat better. As long as a nominal 20mm aggregate of this type of limestone is used then close attention has to be paid to vibration in order to achieve a quality product. The placing of blinding, steel reinforcement and concrete base in an open ditch gives rise to soil and debris falling into the excavation. Cleaning of concrete surfaces before placing shutters for wall concrete is not being carried out thoroughly and should be improved. Width and level of the ditch walls vary and there is a tendency for the contractor to reduce the height of these walls giving typically a 150mm face of loose material above the top of the walls. This is obviously undesirable whatever the final level of the road surface may be as soils will wash into the drain. Varying wall thickness is due to a combination of loose shuttering, attempts to reduce concrete quantities and the very uneven surface of the excavation sides, especially in areas of tipped solid waste. Ditches completed by the community between April and September 1999 were inspected and appear to be better quality than previously reported in April 1999 and better than current contractor executed works. Solid waste is highly compressible and is an unsatisfactory foundation for any structure including roadside drains. Additional excavation will be necessary to remove unsuitable material in some locations - the junction of road No 4 with Outfall No 3 is a particularly bad area - and selected fill should be placed to give a suitable foundation. Backfill to the roadside concrete drain is usually little as it is cast against the sides of the excavation (it may be better to shutter both sides of the walls) but more is required to sections of the lined outfall ditch from the gabion cascade on Outfall No 3. Little attempt is made to compact this backfill (or backfill to water supply trenches). Some bulging of the gabions placed by the community on Outfall No 4 is noted. It is suggested that greater care is necessary in laying these stones - they should not be simply thrown into the basket but should be laid with long axis parallel to the base of the gabion - although the random shape of this type of limestone makes this operation more difficult. Attempts to achieve high outputs for gabion fill on Outfall No 3 should be monitored closely to ensure that rocks are accurately placed in gabions and mattresses. In discussion with Lukwati Building Construction Co it was noted that it is not planned to use a compactor in road construction but rather hand ramming. Whilst this can achieve acceptable compaction it was originally specified that contractors would use a pedestrian roller or similar equipment. The role of site supervision is important in ensuring adequate quality of construction such that regular and extended site presence during the more important construction activities (eg placing of concrete) is advised.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 9.7 Purchase and use of materials For community executed contracts all resource requirements are agreed at a site meeting and materials and tools purchased by CDA (subject to UCLAS guidance) using funds transferred from UCLAS to the CDA account. It is understood that the system of shortlisted suppliers has now been reinstated. For the water supply contracts UCLAS has almost completed the procurement process for all water pipes and fittings. 3 specialist suppliers were recommended by Serviceplan and invited by UCLAS to quote for all the materials required. 2 responded and the cheapest tender was selected - Plasco. It has been agreed that materials will be delivered to site as required to avoid problems of storage and security that would arise if all the materials were delivered at the outset. Negotiations were completed in the second week of October 1999 and the first draw-down of pipes is expected almost immediately. For shadow contracts involving kiosk construction CDA will undertake all procurement without UCLAS assistance. 9.8 Earthworks Material excavated from roadside ditches should be shovelled towards the centre line of the road from where it will be spread to produce a base for subsequently imported murram. This procedure is set out in Drg. Nos.6003, 6004 although it appears that Stage 1: Excavation to Level (before shovelling of excavated material from the ditch) is not always carried out. It is clear that this process should only take place when suitable material is encountered. In practise, all excavated material is dumped and spread on the road including obviously organic soils and solid waste. This has been drawn to the attention of the contractors and while assurances have been received that this is only a temporary expedient and that the material will be removed before murram is imported, this should be closely monitored as the organic material is highly unsuitable to form any part of a road pavement. Given the relatively small amount of surplus good material encountered in excavation (mainly of roadside ditches) a balance of cut and fill in earthworks is unlikely to be achieved. There will be a preponderance of unsuitable material to be carted to tip whether directly from excavation or by stripping such dumped material from the road prior to spreading gravel. These comments refer also to the water supply pipeline works within the roadway although there is little surplus material after backfilling the trench which should be carefully compacted. No compaction of backfilling was observed on either contractor or community executed works. The other major source of excavated material (outfalls) yields almost entirely unsuitable material which requires disposal although the current site practice appears to be spreading this material immediately adjacent to the excavation as noted above.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 9.9 Selection of workers Many more persons apply for employment for community construction works than there are unskilled positions available. Applicants’ names are noted and collected into groups and each week these groups are rotated such that a person will work one week out of 2, 3 or 4 depending upon the number of applicants and current work needs. Trainees and skilled workers are not rotated as there are no surplus skilled personnel within Hanna Nassif. Although balloting of workers does not take place this system appears equitable in sharing of work by rotation and is accepted by the community. Workers for the contractors were selected after a meeting between CDA and contractor to discuss availability of labour. Many persons turned up on the first day and workers were selected by CDA (with advice from Mpayo Kasure to ensure that there was a mixture of worker capability - it was not intended that the contractors would get all the good (or all the bad) workers based upon the contractors stated requirements. Subsequent selection of additional or replacement workers (some, especially on the Sala Construction & General Maintenance contract abandoned the work which they found to be too hard) was done by the contractor’s foremen without reference to CDA (although these foremen were from the community and were thus well aware of the persons available for work in the community). There continues to be some ‘loss’ of workers as some persons find more lucrative employment for their recently acquired skills although this has not been a serious problem. As noted elsewhere both contractors have overcome initial scepticism about the ability of community personnel and have stated that in the event of gaining similar works elsewhere they would seriously consider using Hanna Nassif personnel. Although both contractors undertook to continue the same system of rotation of workers on a weekly basis this rotation does not appear to be taking place as intended. The contractors contend that despite such rotation disrupting the progress of their works it does actually occur although not necessarily at weekly intervals. 10. INNOVATIVE TECHNOLOGIES Further consideration has been given to this issue and all outstanding works to be undertaken on the project have been considered together with an assessment of completed works. The remaining works are largely water supply with a short section of roadside drain still to be completed. This limited scope of works gives little opportunity for innovation and it is suggested that experiments with different methodologies should be incorporated into the design of other projects (or conceivably on an extension of this project) so as to allow for considerations of cost, speed and ease of construction, quality, utility, durability, appropriate use of LB methods and acceptability to the community. Of the possible alternatives listed below those which could be attempted within the remaining project period are noted in italics. • Drainage Channels Lining with precast slabs - tried early in the project but abandoned in favour of in-situ concrete

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Stone pitching - cost of imported stone is high in Dar es Salaam due to long haulage distances Half pipes (concrete pipes cut longitudinally into 2 sections) Concrete base with plastered brick or blockwork walls - possible only where there is no loading adjacent to the drain structure. • Roadworks Compaction - comparison of improved hand-rammer compaction, light vibrating compactor, introduction of simple on-site testing Paving - viability of brick/block paving - high costs likely Paving or reinforcement of sections subject to aggressive runoff or usage (eg junctions) including areas of change in crossfall/camber - high costs likely Consideration of earth roads - gravel is expensive in Dar es Salaam due to haulage costs although this option would have immediate maintenance implications and should only be attempted if a routine maintenance regime is in place • Materials Stabilisation - lime, cement, chemical compound Importation of higher quality murram Mixture of murram and crushed stone Possible benefits of purchase of better quality aggregate for concrete works • Structures Examination of relative merits of cast insitu and precast concrete cross drainage structures • Employment Generation Review all operations from the view of relative benefits of optimal or maximum use of labour and labour based methods including study of labour productivity and outputs achieved by contractors. • Design and Specification Review design standards and specification used in Hanna Nassif - changes in standards could result in cost savings or improved construction methods (eg road widths, gradients for drainage channels, alignments) Whole life costing - in which cheaper initial treatments involving higher maintenance costs could be compared against treatments with higher initial costs but lower routine maintenance costs (to some degree maintenance-neglect resistant) (eg brick paved roads) 11. COMMUNITY MAINTENANCE 10% of the total value of community executed works were earmarked for routine maintenance as was revenue collected from road tolls (it is understood that there is a backlog in payment of this retained 10% to CDA - TSh 1324000). In practise, maintenance of previously constructed infrastructure was suspended with the cessation of CBO operations as there was then no interim

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 body with authority to collect road tolls. DCC then appointed a local NGO (KIMWODA - Kinondoni Moscow Womens Development Association) as contractor in Hanna Nassif for solid waste collection (funded by fees to be collected from households) and maintenance of open drains (although it was not clear whether this referred to cleaning only or maintenance and repairs also). It is reported that KIMWODA were not fulfilling their obligations of solid waste collection in Hanna Nassif and thus a proposal was made by DCC to reduce the area for which KIMWODA was responsible. The CDA then applied to DCC to take over the contract for solid waste collection in Hanna Nassif. At this point a court injunction was lodged by KIMWODA the effect of which was to not only stop any proposed contract changes but also to suspend any actual collection of solid waste by whatever party in the area under dispute. Despite this, some sections of drain are being cleaned at the initiative of Zonal/Neighbourhood Committees (Hanna Nassi is divided into 12 such zones) using paid labour funded by household contributions. However, detritus removed from the drains is usually dumped on the adjoining road creating an unsuitable and unhygenic road surface some of which soon dries out and blows back into the drains. This situation highlights the key to such maintenance (and to solid waste collection) is provision of acceptable transfer facilities and transport to carry the waste away from Hanna Nassif. TST is currently attempting to identify suitable sites for such transfer stations. (There has also been some recent mobilisation of CDA resources (10% retention from community contracts) to clean ditches including transporting away from the site, coinciding with the visit to Hanna Nassif of the ILO/ASIST Evaluation Team. The road and drainage system cannot be sustained forever without a functioning routine maintenance system in place. Even if a system can be installed during the remaining project life it is likely that only routine maintenance can be practised during this period (with possibly some emergency maintenance) as periodic maintenance should be required only at a later date. Routine maintenance should be well within the capacity of the community (subject to some specific training) but periodic (and perhaps emergency) maintenance may require some higher level technical input which may not normally be available to CDA. It may thus be appropriate for either CDA to have access to such technical support (eg DCC engineering advice - in the fullness of time it is planned for each Ward to have an Engineering Officer posted) or for periodic maintenance to be assigned to a body with such ‘in house’ technical capacity such as DCC or successor municipality (although it has been stated that DCC was looking for all maintenance to be supported and executed entirely by the Hanna Nassif community) . A funding mechanism for support to (at least) routine maintenance in the longer term (ie after cessation of the 10% retention of community contract value) is required. Various possibilities have been investigated by UCLAS: • Road Toll collection has ceased as noted above (although revenue was reputed to be TSh

150000/month net from a gross collection of TSh 400000/month). It is apparently not possible to reinstate road tolls as before due to the lack of CBO authority but it is reported that CDA could establish ‘gate fees’………..

• Property Tax could be collected by CDA as agents for DCC. Agents typically retain 5% of revenue (net after deduction of collection costs). In Hanna Nassif the revenue would be of the order of TSh 5000x2000 households: TSh 10000000 per annum which would render commission of some TSh 500000.

• Development Levy is raised upon head of population. For Hanna Nassif the revenue is estimated at TSh 2300x8000 persons: TSh 18400000. Should CDA be nominated as collection agents the typical retention after deduction of collection costs is reported to be


15% ie TSh 2760000/annum. Possible disadvantages of this and the previous possibility would be the community perception of the CDA as tax collector.

• The Water Supply system will raise revenue from household payments for water and it is

suggested that 10% of this source could be retained for this purpose although no estimates have been made of expected income from this source.

• There is provision for a levy of TSh 1000/person/year ie TSh 8000000/year under an Environmental Maintenance Fund.

• Waste Collection is currently the subject of KIMWODA litigation but should CDA become responsible for collection, it is estimated that a surplus of some TSh 2000000 could be available after deduction of collection costs.

• Note that any surplus accruing from the Hanna Nassif Credit Scheme is not considered in this context as it is intended that any such funds will go back into this scheme whether or not the scheme is expanded with Ford Foundation support.

Collection costs or modalities have not, however, been studied in detail. Should any or all of these options be taken up then CDA could, within a relatively short period of time become responsible for at least some public administration functions including water supply, routine maintenance of infrastructure, credit scheme and waste collection CDA does not have an established adminstration which could handle such civic functions whether or not there were devolution of some functions to the Zonal/Neighbourhood Committees. In addition increased accountability would be required - all registered public activities would require annual audit. These potential revenues should be considered against an estimated routine maintenance budget requirement (for Phase I & II infrastructure) of approximately TSh 3000000/year as detailed in Annex 7: Maintenance Manual. How may these possibilities be pursued? The Steering Committee would have to consider and approve one or more of these revenue sources and authorise the CDA to apply for DCC appointment to act as collection agent (although it has been suggested that DCC has already been canvassed on these themes and has indicated that such applications may be considered sympathetically). These procedures have been estimated to require 2-3 months before revenue collection could begin. This may, however, be optimistic as elections are scheduled for November 1999 after which DCC will be split into 3 municipalities with Hanna Nassif coming under the jurisdiction of Kinondoni. It is very possible that there will be delays arising from this altered local government landscape as time will be required for the new administration to get up to speed. There has been no detailed discussions as yet with the community on this subject and it is suggested that a workshop may be held at which a course of action could be selected by CDA and application made to DCC (or successor municipality) Previously some repairs to the system have been carried out as a part of ongoing works and some further repairs may be necessary (eg connection between drains are often not finished completely due to strings of unofficial water connections thus leaving an opening for erosion). The execution of routine maintenance by the project instead of the established community maintenance regime is probably counter-productive in terms of perception and motivation of the community as to the need for them to undertake this work although until some form of maintenance regime is installed such project support may be the pragmatic solution..

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 12. TRAINING PROGRAMME

A total of 17 courses (including on-job training) are reported to have been carried out by UCLAS during the course of this project although only 5 of these courses appear to have reports prepared. It is understood that certificates or testimonials are not normally issued to persons who have received training during the project. It is suggested that some form of document should be prepared for trainees including those who have participated in on-job training. 12.1 Training outline for foremen A training course organised by ILO/ASIST and conducted by KTC with support from UCLAS and COWI (T) Ltd has been arranged for 11-15.10.99 for foremen of the 10 selected contractors (second round of tenders) who will cover their own expenses plus foremen and other personnel from Hanna Nassif community (who will be sponsored by ILO/ASIST). Attendance at this course is a pre-requisite for pre-qualification of the contractors for the remaining 2 packages to be executed by private contractor. This course has been discussed at length with UCLAS, KTC and ILO/ASIST and no additional comments are made here. It is noted that the course is focussed upon the needs of foremen or site supervisors and topics such as BOQ, measurement and contract obligations will be covered only in the detail required by the foremen for their site duties. It should not be necessary to suspend works while the course is in progress. 12.2 Workshop for short-listed contractors A one day workshop and site visit is proposed for the short listed contractors for the second round of tenders. This has already been discussed in more detail in ‘8.3 Facilitation of improved work - contract documentation, supervision and training’ above. 12.3 Other technical training Further complementary training in many aspects of construction, administration, conditions of contract, BOQ, measurement, specification, financial management, public administration and accounting is suggested and training outlines (TORs) are detailed in Annex 8: Training Outline for Hanna Nassif Project Partners. NIGP has indicated that should additional training be required for which no budget is currently available then subject to satisfactory justification and course outlines being presented by UCLAS to NIGP, then NIGP would be prepared to make a proposal to UNDP for further funds to be made available to the project. 13. OTHER ISSUES This section covers issues which are not included in the TOR for this assignment or which are peripheral to the main issues considered above.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 13.1 Capacity building for the future Pressure continues to increase the rhythm of construction operations on the site although there should now be adequate time available within the extended project period to complete all planned community and contractor executed works. Capacity building, while recognised by project partners as of primary importance has been threatened with subordination to physical construction of works which should now be well within the technical capacity of the community and TST to administer and complete within the allotted time period. UCLAS is actively engaged in identification of informal settlement areas in the Dar es Salaam area which might be suitable venues for replication of the techniques pioneered in Hanna Nassif and this is laudable (4 are under close consideration). Meanwhile in Hanna Nassif, while there remain some problem areas which could be alleviated by construction of various infrastructure, the most pressing problem for which there is, as yet, no satisfactory solution is sustainability and maintenance of the assets created under Phases I and II together with solid waste collection. It was noted during debriefing with UCLAS that this issue is well appreciated by UCLAS and that a determined thrust is to be made in animation which could assist capacity building of CDA, including establishing public administration capacity and revenue generating mechanisms, should be the critical ground-breaking activity in the remaining project period. Registration of CDA with CRB would be but one aspect of this capacity building. Production of a project brochure is noted. 13.2 Environmental Issues It was previously observed that the self cleaning function of the Hanna Nassif drainage system deposited waste into Mzimbazi Creek. It is now confirmed that there is occasionally sufficient water flow in that river to flush out the accumulated waste deposits that are carried out to the tidal creek area towards the bay. There are tell-tale blue plastic sacks to be seen in the tidal area of the creek and on the beach alongside Ali Hassan Mwini Road. The greater part of the waste must therefore be presumed to be eventually swept out into the bay although this situation is obviously environmentally unacceptable. The obvious solution is for solid waste collection in Hanna Nassif to be reinstated as soon as possible (and preferably before rains begin again in November/December). There is a continuing problem of persons discharging raw sewerage into the roadside drains either directly from toilets or as overflow from septic tanks. This is an obvious health hazard as well as a dis-incentive to persons cleaning these drains. Bylaws provide for measures to be taken to remove this nuisance although negotiation and sensitisation of the offending householders is suggested as a first step rather than immediate blocking of outlets. A consequence of this discharge observed during this assignment was a private water supply pipe cracked during the course of works in an area contaminated with this discharge. This could thus enter the water pipe which continued to be used by the houeholder(s). 13.3 Records

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ‘As built’ drawings are being prepared by UCLAS. Drawings on site at Hanna Nassif were inspected and found to comprise some long sections/profiles and sketch plans of some locations. Other plans were not inspected. All instructions and changes in design, circumstances and scope of works for community and private contracts should be recorded on site in a ‘site instruction book’. This was originally completed on site by Mpayo Kasure but this procedure had apparently been suspended following discussions between TST and COWI (T) Ltd in which it was agreed that SIs should be formally made by COWI (T) Ltd. In effect verbal instructions continue to be issued on site and not all such instructions are recorded. During the course of this assignment it was agreed by TST and COWI (T) Ltd that SIs may be given verbally but in all cases these instructions must be recorded in the ‘site instruction book’. COWI (T) Ltd will inspect this book during each site visit and will sign to confirm this inspection and write any comments at that time. 13.4 Impact Analysis It is noted that impact analysis, cost benefit and cost effectiveness studies are proposed. Base line data has been collected and some studies have already been carried out on Phase I. It is now proposed to extend this work and to attempt comparisons with other projects internationally. Immediate problems of comparability appear as there are widely different specifications, physical conditions, cost and so on between these projects. It is suggested that consideration be given to preparing guidelines for base data requirements (and logically specifications also) for future projects such that a greater degree of comparison may be made of projects of like ilk. ILO/ASIST is ideally placed for this type of norm production.


14. RECOMMENDATIONS

ISSUE RECOMMENDATION RESPONSIBILITY FOR ACTION ACTION BY

Negotiations concerning pinch point on Road No 4 should be completed as a soon as possible CDA 1.12.99

Contracts concerning operation of water supply system to be drawn up and signed by all project partners UCLAS 1.12.99

Confirmation required of any design changes necessary for water supply connection as a result of Kawawa Road widening

SERVICEPLAN/ UCLAS 1.12.99

Check to be made on any additional quantities which may be involved in accesses over road side ditches COWI(T)Ltd 15.10.99

COWI (T) Ltd inputs for the remaining (extended) project period should be clarified and if necessary the UCLAS/COWI (T) Ltd contract should be renegotiated

UCLAS/NIGP/ COWI (T) Ltd 1.11.99

DESIGN & PROCEDURES

Identify transfer points for solid waste collection CDA/TST 1.01.2000

WORKPLAN Financial and budgetary implications of project extension should be resolved NIGP/UCLAS 1.1199

Tender procedures for second round of contracts should comply with the tender action set out in Table 7.3.1 UCLAS 29.10.99 -

10.01.2000 Tender prices for Package 6 should have a validity to allow works to start up to 1.04.2000 UCLAS 19.11.99

Workshop/site inspection for shortlisted contractors during tender period UCLAS/COWI (T) Ltd 26.11.99

Tenders should be evaluated by COWI(T)Ltd - with possible input by ILO regarding LB techniques - making recommendations to UCLAS COWI(T)Ltd 24.12.99

Shadow contracts to be carried out on all outstanding community contracts TST/CDA 1.12.99

Workshop on shadow contracts TST/CDA 11.10.99

Consultation with NIGP on shortlisting of contractors UCLAS/NIGP 1.12.99

TENDERING PROCDEDURES

Notify contractors of selection on short list UCLAS 29.10.99

Estimate additional costs actually incurred and expected from future contracts (community execution) TST/COWI (T) Ltd 15.10.99 CONTRACTS

Estimate additional costs already incurred and expected from private contract packages 1 &15 TST/COWI (T) Ltd 15.10.99



Estimate additional costs expected from future private contract packages 6 and combined 4 & 5 TST/COWI (T) Ltd 15.10.99 Estimate any additional costs which may be incurred as a result of any change in the UCLAS/COWI (T) Ltd contract TST/COWI (T) Ltd 15.10.99

No further major cost increases should be committed without consultation with NIGP TST/COWO (T) Ltd -

Assistance given to CDA in registration with CRB TST/UCLAS 1.01.2000

CONTRACTS

Round table meeting to discuss budgetary implications of cost increases UCLAS/COWI (T) Ltd/NIGP 22.10.99

Confirm potential starting date for water main connection on Kawawa Road TST 29.10.99

Site instruction book to be completed by TST and countersigned by COWI (T) Ltd TST/COWI(T)Ltd 11.10.99

Complete procurement procedures for water pipes and fittings for community executed works TST 15.10.99

A review of contractors’ task rates and system for rotation of workers should be carried out TST/CDA 1.11.99

Improve placement of rock in gabions TST 1.11.99

Compact trench backfill TST 1.11.99

Concrete quality and finishing should be improved (quality control ) TST 1.11.99

USE OF LABOUR BASED

METHODS AND SITE

ORGANISATION

Unsuitable material should be tipped and not spread on roads TST 1.11.99

INNOVATIVE TECHNOLOGY Review designs and specifications for more appropriate design for unplanned settlement situations ILO/ASIST/UCLAS 30.09.2000

Routine maintenance systems reinstated CDA/TST 1.11.99

Workshops to consider revenue options UCLAS/CDA 1.11.99 COMMUNITY

MAINTENANCE Payment to CDA of any outstanding monies due under 10% community contract retention UCLAS 1.11.99

TRAINING PROGRAMME

Documentation of courses already carried out by UCLAS UCLAS 1.01.2000



PROGRAMME Implementation of training programme UCLAS 1.01.2000

Capacity building to be targeted as major activity Project Partners -

Identification of other unplanned settlements for duplication of Hanna Nassif techniques (or extension within Hanna Nassif) UCLAS 1.03.2000

Reinstate solid waste collection CDA/TST 1.12.99

Discourage discharge of raw sewerage into drainage ditches CDA/TST 1.12.99

Bring ‘as built’ records up to date TST 1.01.2000

OTHER ISSUES

Develop norms for base data ILO/ASIST/TST 30.09.2000

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 1 TERMS OF REFERENCE


Terms of Reference

John Clifton Follow up mission on contracting and labour-based works

Hanna Nassif project Phase II 28 September– 15 October 1999 (13 days)

Issues to be addressed

1. Follow up on former missions Review and update of the recommendations made during the Sohail October

1998 mission and Clifton March/April 1999 mission to Hanna Nassif.

2. Design and procedures Review design and recommend changes in design as needed Review and recommend procedures regarding changes in design and the roles

of UCLAS and COWI. Review the supervisory role of COWIconsult in the construction and the

approval of works carried out under community contracts and private contracts (what has happened so far and how can this be improved).

3. Work plan

Discuss the timing of the construction activities in the work plan with UCLAS (review the logical order of construction, taken into account the project extension and the maximum number of contracts that can be handled simultaneously by COWIconsult, UCLAS and the community). Propose an updated work plan.

4 Tendering procedures (private contracting)

Review the packaging of works and make recommendations if necessary. Review the tendering documents proposed by COWI Review the tendering procedures, and in particular the role of COWIconsult,

UCLAS, DCC and the community Review and make recommendations on the proposed shadow tendering of

community contracts. 5. Contracts

Review if the works are carried out as specified in the community contracts. Review if the works are carried out as specified in the private contracts. Make recommendations for improvements in the contract documentation

(community and private) and/or supervision and/or training that might facilitate improved works. Assessment of city commission and CDAs view on works carried out under

private contracts and community contracts (is there a preference?).

6. The use of labour-based methods and site organisation Analyse how ongoing labour-based works can be made more cost-effective and

durable. In particular, look at: 6.1 Work planning and reporting 6.2 Site organisation


6.3 Division of work between client-engineer, site-engineer. foremen, and workers

6.4 Task rates and payment of labourers (are workers paid the same wage under private and community contracts?)

6.5 Use of tools and equipment 6.6 Carry out the works according to design 6.7 Effective and efficient purchase and use of materials (Note: the material

costs are about 60% of the total costs, and 66% of the drainage costs. Issues include: where to buy materials; procedures for purchasing material)

6.8 Earth works (how to better balance the cut and fill taken into account that lined drains are constructed and additional excavation takes place due to organic matter in the soil.)

6.9 Selection of workers (through balloting?)

7. Innovative technologies The consultant should provide some key points where he feels innovative

technologies could result in more cost effective or more durable solutions. Possibilities are road surfacing, compaction, alternative lining of drains, local construction of gabion baskets, etc..The consultant should provide an outline on how the project could experiment with the proposed innovative technologies.

8. Community maintenance

The consultant should discuss and propose suitable operation and maintenance procedures for the created assets (this should include a rough yearly budget needed for routine maintenance, use of maintenance contracts etc.1).

9. Training programme

Kisii Training Centre has prepared a training outline for foremen (from private contractors and community contractors). Review and discuss the proposed training with UCLAS, CDA and contractors. Make recommendations for improvement. The overall objective of the training should be to enable the contractors (private and community) to better construct the infrastructure according to labour-based methods.

Advise the project if, besides the foremen training, other technical training courses are essential for a successful project. Identify the type of training and target group.

1 Please note that a maintenance manual has been prepared (and partly translated in Swahili) in Hanna Nassif Phase I (Pal Saetrum and Eng. Kasure).

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 2 ITINERARY

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 27th September 1999 Travel Faro - London - (Dar es Salaam) 28th September 1999 Travel (London) -Dar es Salaam) Briefing TST Briefing ILO/ASIST 29th September 1999 Meeting TST

Site visit Hanna Nassif 30th September 1999 Meeting NIGP

Site visit Hanna Nassif Meeting CDA 1st October 1999 Meeting ILO/ASIST, TST (Hanna Nassif) - training Meetings UCLAS, ILO/ASIST - CBA, maintenance, training 2nd October 1999 Examination of documents 3rd October 1999 Examination and analysis of documents 4th October 1999 Site visit Hanna Nassif Preparation of report Meeting TST 5th October 1999 Site visit Hanna Nassif TST fortnightly meeting Briefing ILO/ASIST Evaluation Mission 6th October 1999 Meeting COWI (T) Ltd, ILO, UCLAS Preparation of report Meeting ILO 7th October 1999 Site visit Hanna Nassif (with ILO/ASIST Evaluation Mission)

Preparation of briefing notes Briefing KTC

8th October 1999 Site visit (with TST)

Debriefing ILO Debriefing TST, UCLAS Travel Dar es Salaam - (London) 9th October 1999 Travel (Dar es Salaam) - (London) - Faro

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 3 PRINCIPAL CONTACTS

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 UCLAS Dr. Kombe Project Leader Dr.G.M.S. Mbyopyo Project Manager Dr. Manoris Meshak Consultant Animator Alfred Mwenisongole Animator S.A.Sheuya Lecturer (CBOs & Infrastructure Specialist) Mpayo Kasure Engineer (DCC/ILO) Mengisenyi Kaseva Engineer Hanna Nassif Community Development Association Nestry Joseph Chairman CDA Ally Mrisho Chairman CCC Seleman Engema Amrani Abdu Trustee CDA Juma Millao Secretary CCC Kikozile Abdalla Aziza Ngitu Storekeeper Mzori Saudi Mbaraka Masas Mohemed Uda Ahamadi Chande Chief Fundi D. Nguzu Hatima Ramasdheru Mgeni Moyo Said Nzory Stella Moshi Azisa Mtendiji Salim Nangungwa Sikitiko Mohid Juma Mwolomwe Mohid Ndondi F. Mbarouk ILO Ali Ibrahim Director John van Rijn Programme Officer (Labour Based Infrastructure) ILO/ASIST Jan Fransen Training/Urban Advisor COWI (T) Ltd Michael Orbech Country Manager Mrs. Rafia Nshama Civil Engineer Innocent Macha Ass.Head of Transport Department

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 SERVICEPLAN Beda Lymo Director National Income Generation Programme K.W.Salewi Chief Engineer Lukwati Building Construction Co Enoch Wapalila Managing Director Sala Construction & General Maintenance Ben Matthews Site Agent ILO/ASIST Evaluation Team Sture Hjelm Team Leader Odd Hogset Institutional Advisor DCC Bryson Mwangemo Ward Executive Officer KTC James Manyara Training Officer OTHER Tadei Mdee Environmental Engineer

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 4 LIST OF DOCUMENTS REVIEWED

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Code of Procedure for Tendering for Civil and Building Works in Tanzania (First Edition); National Construction Council, 1992 Agreement and Schedule of Conditions of Building Contract; National Construction Council, 1998 Policies and Procedures Manual; National Income Generating Programme, January 1995 Contract Documents for Packages 1 & 15; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kinondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, August 1999 Evaluation Report on Tenders for Packages 1 & 15; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kinondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, May 1999 Tender Documents Volume I: Instructions to Tenderers, Conditions of Contract, Form of Tender, Appendix to Form of Tender, Bill of Quantities, Schedule Nos. 1-6; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kinondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, July 1998 Tender Documents Volume II: Technical Specification; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kirondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, July 1998 Tender Documents Volume III: Drawings; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kirondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, July 1998 & March 1999 Tender Documents Volume IV: Background to Design; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kirondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, July 1998 Tender Documents Volume V: Engineers Cost Estimates; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kirondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, July 1998 Tender Documents for Major Works Volume 1A: Instructions to Tenderers, Conditions of Contract, Form of Tender, Appendix to Form of Tender, Bill of Quantities, Schedule Nos. 1-6; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kinondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, March 1999 Draft Community Contract & Tender Documents for Minor Works Volume 1B: Bill of Quantities; Community Based Settlements Upgrading for Hanna Nasif Settlements, Kinondoni District, Dar es Salaam, University College of Lands and Architectural Studies, COWI Consulting Engineers, March 1999

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Draft Report - Community Partnered Procurement - Community Contracting; Hanna Nassif Urban Infrastructure Project, Dar es Salaam, Dr Muhammed Sohail Khan, Urban Infrastructure Unit, WEDC, Loughborough University, October 1998 Development of Contracts and Contracting Procedures for Small Scale Labour Based Private Contractors in Urban Upgrading Works; Hanna Nassif Urban Upgrading Project, Dar es Salaam, URT/97/032/A09, John Clifton, October 1998 Support to Project Team: Procedures for Documentation for Tendering of Works, Supervision of Works, Workplan for Construction Activities for the Use of Labour Based Technology; Hanna Nassif Urban Upgrading Project, Dar es Salaam, URT/97/032/A09, John Clifton, April 1999 Manual on Maintenance of Roads and Drains; Hanna Nassif Community Development Project, Pal Saetrum, Kasava, Bummi Folayan, September 1998 Manual on Maintenance of Roads and Drains; Hanna Nassif Community Development Project, Pal Saetrum, August 1997 (rev October 1997) Employment Intensive Infrastructure Programmes: Capacity Building for Contracting in the Construction Sector; Peter Benthall, Andreas Beusch, Jan de Veen, ILO, April 1999 Community Contracts in Urban Infrastructure Works: Practical Lessons from Experience; Jane Tournée, Wilma van Esch, ILO/Asist, December 1998 Training for Labour-Based and Community-Managed Upgrading of Urban Low-Income Settlements; ILO/Asist, January 1999

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 5 WORK PLAN


REVISED PROGRAMME OF WORKS

1999 2000SECTION

WORK PACKAGE

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP

COMMUNITY CONTRACTS

OUTFALL NO.5

ROAD No 3 DRAINAGE

WATER SUPPLY 2 -9 9 - 8 8 - 7

ROAD WORKS

ROAD No 2B DRAINAGE

WATER SUPPLY 9 - 10 8 - 10

ROAD WORKS

DRAIN NO 1 WATER SUPPLY NODES 11 - 3 11 - 3 11 - 3 11 - 3

NODES 10 - 6’ 10-6’ 10-6’

KIOSKS x 5 CONNECTION LINES TO KIOSKS

PRIVATE CONTRACTS

PACKAGE 1 OUTFALL No3 PACKAGES 4 & 5 KIOSKS

PACKAGE 6 WATER SUPPLY 1 - 2’

PACKAGE 15 ROAD No4 (Road works, drainage, water supply)


NOTES 1. Whenever possible community works will be executed with 2 simultaneous work fronts for works of the same type eg water supply. Although 3 work fronts are shown for January/February 2000 and May 2000 it is expected that in these months one work package will be largely completed with reduced inputs necessary. 2. The time periods estimated for water supply should be capable of reduction. It is thus possible that water supply sections nodes 11-3 and 10-6’ may be brought forward by up to 1 month. 3. The programme is based upon a project extension to September 2000. It is expected that there will be little work outstanding on the final packages (community executed road works during the dry season) allowing for wrap up of activities. 4. Location of water supply sections indicated by node points (eg 2-9). 5. Roadworks now included for the total length of Road No.3. Section 8-7 was previously not included for reconstruction. 6. Contracts are shown as starting in January 2000 by which time selection of contractors and tender procedures could be completed. Package 6 is dependent upon completion of earthworks on Kawawa Road (still in progress October 1999). Thus, the combined Packages 4&5 are shown starting January 2000 followed by Package 6 in March 2000. If necessary the order of these contracts could be reversed or operated concurrently after February 2000. 7. Completion of works within present project life is dependent upon progress of community executed works. There should be sufficient time to complete private contracts within the available time. 8. The starting date for community water supply works in October is dependent upon expedition of procurement of water pipes. Initially it is planned for community personnel to work with Lukwati on water supply works on Road No3 in order to gain experience and then immediately after to start on community water supply works (October 1999) 9. Community works on water kiosks could start earlier than shown without disruption of other works as this is expected to need only a small work force at any one time. 10. A small section of roadside drainage on Road No3 has not been completed - this is planned for January 2000. 11. Works for kiosk installation have been split between community and contractor (ie community will construct 2x10000 litre plus 3x5000 litre kiosks; contractor will construct 3x10000 litre plus 2x5000 litre kiosks).

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 6 CONDITIONS OF CONTRACT

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 AMENDMENTS SUGGESTED IN ANNEX 6 APRIL 1999 REPORT - NOT ACTIONED Most of the amendments to draft contract documents recommended by this consultant have been included in the documents under 3.0 Special Conditions of Contract. Suggested amendments not included are listed below in the same format as Annex 6 April 1999 report together with a brief background to the documents taken from the October 1998 report. These omissions are minor and do not significantly prejudice the scope of the contract. EXTRACT OF COMMENTS FROM OCTOBER 1998 REPORT

8.4 CONDITIONS OF CONTRACT

COWI has already prepared draft contract documents (listed in 8.1 above) for the Phase II works. These documents are what may be described as ‘conventional’ documents comprising a series of ‘Special Conditions of Contract’ – intended to address project-specific situations - which are supplemental to ‘General Conditions of Contract’ (which in this case are not actually included in the contract documents) together with instructions to tenderers, forms and so on. These ‘conventional’ documents are based upon the documents for normal civil engineering contracts of much greater value than the contract packages likely under Phase II and which are often open to ICB. The ‘conventional’ format is a well-used series of documents familiar to all parties to larger civil engineering works and, as such, available as an off-the-peg solution. Applied to smaller works this documentation is ample if not positively cumbersome and complicated, unnecessarily so in the opinion of the consultant. Although this approach is often used in projects for the development of small contractors in various countries, considerable effort is required to ensure that contract partners do understand the essentials of the contract and are able to apply the various relevant conditions. Equally often, sections of the conditions of contract are ignored (or at least not applied) as they are not responsive to the situation in hand (in the same way that in Tanzania requirements for sureties and bonds are often pragmatically ignored).

The use of ‘conventional’ contract documentation is usually defended on the grounds that this is the format that contractors will have to use as they develop into a larger market and indeed it is acknowledged that there is some merit in this argument as, currently there is little usage of any simplified forms of contract, at least as regards public works.

During the course of this assignment views were sought from various bodies concerning ‘conventional’ or simplified contracts. Where the interviewed representative of the body actually expressed an opinion as to the approach to take in the case of small contracts, the consensus was in favour of the ‘conventional’ approach for exactly the reasons stated above. Thus, the consultant has set out in Annexes 8 & 9 alternatives for conditions of contract, either of which may be used in this project:


Alternative A (Annex 8) Conventional documentation as prepared by COWI with recommended changes and additions to the Special Conditions of Contract and Technical Specifications to accommodate labour issues and the special concerns of this project. (Labour issues are discussed in more detail in 8.5 below). The advantage of this approach is that the draft documents are already prepared and completion incorporating the recommended modifications could be quickly carried out allowing the first contracts to go ahead without delay. This is effectively a country-standard document. Alternative B (Annex 9) Simplified conditions of contract in a format similar to some contracts already in use in Tanzania and tested in other African countries for development of small contractors. (As noted below this is based upon a form of contract which has been in use for some time in some regions of Tanzania for routine road maintenance works (Ministry of Works) but with some modifications indicated by the experiences of the Labour Based Contractor Development Programme in Zimbabwe plus inclusion of specific clauses concerning labour policies and practises as recommended by ILO for Employment Intensive Infrastructure Programmes). It has been recognised that ‘conventional’ engineering and construction contracts can inhibit smaller contractors in bidding for straightforward low-risk contracts. Thus some attempts have been made to produce simplified contract forms often using simple language and including references to cooperative working between Employer, Engineer and Contractor. Examples of such contracts are ‘ICE Conditions of Contract for Minor Works 2nd Edition’ and ‘NEC Short Contract (Engineering and Construction)’ – this latter document is currently in draft form. While both are improvements on ‘conventional’ documents both will require modification for application to LB works to be executed by small developing contractors. The draft ‘NEC Short Contract’ seems to have greater potential in this context and could provide input to the suggested convergence of contract and community agreement discussed in 8.6 below. However, until such time as a satisfactory short-form contract is generally accepted and more widely used, various countries which are engaged in small contractor development programmes have developed different contracts. Most have been developed for LB gravel road construction and maintenance (eg Lesotho, Kenya, Zimbabwe, Zambia) and most are expurgated ‘conventional’ forms rather than a new approach. However, some rather more simplified contracts have been developed (Uganda, Tanzania), usually in connection with road works. The proposed contract form in Annex 9 is a variant upon a form of contract which has been used for some 6 years in the Arusha/Moshi areas of Tanzania and is thus familiar to some contractors and GOT (although apparently without being officially approved by GOT). Wherever possible, documents already produced by COWI for their ‘conventional’ documentation have been used to complement this contract. While not as elegant as the ‘NEC Short Contract’ it is suggested that this document should be quite adequate for the Hanna Nassif circumstances as it incorporates the bones of the more complicated ‘conventional’ contracts such that progression to such a format should be possible as contract parties gain familiarity with the use of the contract documents.


It is thus suggested that this contract form should be used for the contractor executed works in Hanna Nassif Phase II. Although translation of the conditions of contract into Swahili may be desirable, translation of the accompanying documents such as Technical Specification would be a daunting task and unlikely to be justified in this case. As drawings, technical specification and BOQ would be common to either approach, preparation should be relatively straightforward whichever approach is used.

OMISSIONS FROM CONTRACT AND COMMENTS Volume I 3. General Conditions of Contract Included as ‘Special Conditions of Contract’. Insert PREAMBLE It is understood by Employer, Engineer and Contractor that the contract shall be undertaken using labour based methods. Further, the contract shall be executed using principles of gender equality such that there will be equal participation of men and women. Labour based methods involve gainful employment generation in creation of public infrastructure (in the case of this project – roads, drainage and water supply in Hanna Nassif) whilst ensuring that costs and quality are comparable with those achievable by other construction methods. Labour will thus be used in the most cost efficient manner, while equipment will be used only where necessary. Casual labour will normally be engaged within the Hanna Nassif settlement. Recruitment will only be undertaken outside Hanna Nassif when it has been established to the satisfaction of the Hanna Nassif representational body that no persons with the required skills are available in Hanna Nassif. 5. Form of Tender Not included in documents but handwritten on documents Insert after ‘ Name of Contract’ ‘Package ……’ (a) Insert after ‘(in words)’ ‘in figures’.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 6. Form of Tender Amount of Performance It is suggested that consideration be given to reduction of the performance bond or surety to 5% of the tender sum. It is not recommended that this requirement be waived entirely. However, recovery of this sum is included in BOQ Preliminary Items. Performance bond remained at 10%. Percentage of Invoice Value of Listed Materials Suggest 50%. 30% used in contracts. 11. Bill of Quantities 12 Schedules Nos 1-6 No comment except for suggestion of reduction of surety to 5% of contract value (Schedule No 5). Remained at 10%. Volume II 1. Preliminary & General Insert 1.12 Hand Tools The cost of providing hand tools must be included in the tender rates. 1.15Taskwork Indicative task rates for overall estimating and planning purposes are listed below in Table A1. These rates are not to be taken as standard and definitive as they need to be tested with time and experience in Hanna Nassif. 2 Road Works Para nos omitted up to 2.7.2 2.7 Compaction 2.7.1 Description of Works • Fill and Subgrade


ACTIVITY UNIT DAILY TASK Setting out lin m 50 lin m/wd Stripping and grubbing sq m 175 sqm/wd Site clearance sq m Dense 100 sqm/wd Medium 200 sqm/wd Light 350 sqm/wd Tree and stump removal lin m dia 0.2-0.5 m/wd Boulders removal No Small 6-10 no/wd Medium 2-6 no/wd Large 1-2 no/wd Sand/silt removal cu m 5-13 cu m/wd Excavate ordinary soil cu m 5 cu m/wd Excavate medium soil cu m 3.5 cu m/wd Excavate hard soil cu m 3 cu m/wd Excavate very hard soil cu m 2 cu m/wd Excavate rock cu m 0.8 cu m/wd Haul common fill or gravel cu m 0 – 20m 8.5 cu m/wd cu m 20 – 40m 7 cu m/wd cu m 40 – 60m 6.5 cu m/wd cu m 60 – 80m 5.5 cu m/wd cu m 80 – 100m 5 cu m/wd cu m 100 – 150m 4.5 cu m/wd Camber formation cu m 7-10 cu m/wd Excavate gravel cu m 3-4 cu m/wd Load common fill or gravel cu m 8.5 cu m/wd Unload common fill or gravel cu m 10 cu m/wd Haul 0.2-2 km cu m 60 cu m/td Spread and water cu m 13.5 cu m/wd Compact fill or gravel cu m Manual 9 cu m/wd sq m Equipment 700 sq m/rd Collect stones/sand cu m 3-4 cu m/wd Load, haul, unload stone/sand cu m 3-5 cu m/wd Install culvert No 0.9 lin m/wd Mix and place concrete cu m 1.0 cu m/wd Erect scour checks No 4-8 no/wd Wet masonry work cu m 0.5 cu m/wd Dry masonry work cu m 1.0 cu m/wd Wet stone pitching sq m 4-8 sq m/wd Dry stone pitching sq m 8-12 sq m/wd

wd = workerday td = tractor day rd = roller day

Table A1

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Delete para 1 and para 6. Use single specification of layer thickness – 75mm. • Compaction Equipment Delete For those works carried out by the Private Local Labour Based Contractors’ insert ‘or’. Para nos omitted after 2.7.3 2.8 Gravel Wearing Course 2.8.1 Description of Works Combine specifications for layer thicknesses for community and Contractor works – 75mm. 2.8.2 Materials Delete ‘For Community Contracts the following shall apply’.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 7 MAINTENANCE MANUAL

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 MAINTENANCE MANUAL A Maintenance Manual for Phase I infrastructure was produced by Pal Saetrum for ILO/ASIST in August 1997 (revised October 1997). This was updated in September 1998 by Pal Saetrum, Mengisenyi Kasure and Bunmi Folayan, again for Phase I infrastructure. Some parts of the earlier manual were translated into Kiswahili by Mpayo Kasure (ie all text, Agreement Form C1, Weekly Site report, Monthly/Quarterly Site Report, Road Inventory Form, Routine Maintenance - Workdays chart). The later manual is a modification and enlargement of the earlier version. Discussion below refers to this latter version. Detailed revision of this manual is not within the scope of this consultancy but the following observations are made: • The manual is a combination of project history, general information on deterioration

mechanisms, manifesto for LB methods and training outline. Whilst this is a comprehensive approach it is suggested that a slimmer, more focussed document could be extracted for technical, resource and budget aspects of the maintenance regime (for translation as a practical site guide) while the larger document could be of value for CDA/UCLAS in a wider context.

• Separate activities are set out for routine and periodic maintenance (Tables 1 & 2). These activities appear reasonable. It is assumed that outfalls are covered in references to main drain in routine maintenance schedules.

• Reference to funding mechanisms will require amendment following discussions on possible revenue sources currently under consideration by UCLAS.

• Most, if not all, wooden structures have now been replaced. • ‘As built’ drawings would be a valuable source of inventory data. • The sections on Community Contracting could be clearer. • There appear to be various figures for the infrastructure outputs from Phases I & I. A

definitive figure should be agreed as basis for resource planning although it is thought that the figures used in the budget calculations are of the right order.

• Manpower inputs and resource estimates as per Appendix 5 of the manual appear reasonable.

• Estimates of resource requirements and annual budget are set out below in the same format as the manual.

• A contingency of (say) 10% added to the estimated budget appears prudent. This would give an annual budget requirement for routine maintenance only of some TSh 3000000.


End of rains Before rains ROUTINE MAINTENANCE Estimated distribution of work days

Rains Dry season Rains

Code Description of activity Report Unit

Feature Inventory Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total days

for crew

RM1 General inspection and removal of large obstructions in the drain system M 2800 2 4 2 2 6 5 21

RM2 Clean culverts and road crossings, inlets and outlets No 35 2 2 6 7 2 19

RM3 Repair culvert structures No 35 5 4 9

RM4 Clean main drain, outfalls and mitre drains M 1100 4 3 4 3 4 7 2 2 2 7 4 42

RM5 Clean and desilt side drains M 3000 10 10 10 10 10 5 5 7 13 10 90

RM6 Repair backfill and compact eroded areas adjacent to drains and outfalls M 4000 4 4 8

RM7 Repair erosion on roads and shoulders M road 2800 3 3 3 3 3 3 18

RM8 Fill potholes and ruts in the carriageway M road 2800 9 9 4 22

RM9 Grub edge and reshape carriageway M road 2800 6 6 5 5 22

RM10 Vegetation control. Clear bush and grass M 3000 5 5 5 15

Total No of days (WD) worked in month 21 16 17 19 22 17 27 22 30 31 20 24 266

Total No of Persondays (PD) worked in the month 84 64 68 76 88 68 108 88 120 124 80 96 1064


ROUTINE MAINTENANCE Estimated costs

Code Description of activity Report Unit

Feature Inventory

Times per year

Total quant

Task rate per

worker PD

PD per year

Days for typical

gang WD

Typical gang

workers

Labour TSh

Materials Equipmen

tTSh Total TSh

RM1 General inspection and removal of large obstructions in the drain system M 2800 6 16800 200 84 21 1 Foreman

4 workers 6400 134400

RM2 Clean culverts and road crossings, inlets and outlets No 35 2 70 1 76 19 1 Foreman

4 workers 6400 121600

RM3 Repair culvert structures No 35 1 35 1 36 9 1 Foreman 4 workers 6400 80000 777600

RM4 Clean main drain, outfalls and mitre drains M 1100 6 6600 40 168 42 1 Foreman

4 workers 6400 268800

RM5 Clean and desilt side drains M 3000 6 18000 50 360 90 1 Foreman 4 workers 6400 576000

RM6 Repair backfill and compact eroded areas adjacent to drains and outfalls M 4000 - 350 10 32 8 1 Foreman

4 workers 6400 11000 139200

RM7 Repair erosion on roads and shoulders M road 2800 2 5600 80 72 18 1 Foreman 4 workers 6400 11000 205200

RM8 Fill potholes and ruts in the carriageway M road 2800 2 5600 60 88 22 1 Foreman 4 workers 6400 11000 250800

RM9 Grub edge and reshape carriageway M road 2800 2 5600 60 88 22 1 Foreman 4 workers 6400 140800

RM10 Vegetation control. Clear bush and grass M 3000 2 6000 100 60 15 1 Foreman 4 workers 6400 96000

1064 266 TSh 2710400Total s

TSh 800 0 US$ US$ 3388

A contingency allowance of (say) 10% would be prudent giving an annual budget of TSh 3000000 (US$ 3700)

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 8 TRAINING OUTLINE FOR HANNA NASSIF PROJECT PARTNERS

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 TRAINING OUTLINE FOR HANNA NASSIF PROJECT PARTNERS

ISSUE TOPICS OBJECTIVES OF TRAINING TARGET GROUP ME

WORKSHOP & SITE VISIT

Tender documents & procedures BOQ & unit rates Specifications Evaluation of tenders

To explain the requirements of the various parts of the tender documents and procedures in order that mistakes which occurred in the first round of tenders are not repeated such that contractors may submit complete and responsive bids. Explanation of how tenders will be evaluated. Familiarisation with the work site and introduction to the Hanna Nassif community and CDA. Question and answer session for contractors’ queries.

Contractors shortlisted for the second round of tenders

Wor(faciUCL(T) L

INDUCTION FOR CONTRACTORS AWARDED 2ND

ROUND CONTRACTS

Project aims and objectives Roles of the community, supervisors and contractor Practical contract administration

To explain the aims and aspirations of the Hanna Nassif project, role of the community (as owners of the works) as complementary to the formal site supervision establishment, practical contract administration and the relative roles of UCLAS and COWI (T) Ltd, use of LB technology, specific requirements for recruitment of labour, conditions of employment and working practices

Contractors (manager, engineer) Hanna Nassif CDA UCLAS/TST COWI (T) Ltd

Wor(faciUCL

ROLES OF PROJECT

PARTNERS

Aims and objectives of the Hanna Nassif project Roles of the project partners Communication Partnership

To explain and set out clearly the roles of all the project partners; review the history of the project in a non-recriminatory way to learn from past mistakes and circumstances, review the aims and workplan of the project; discuss maintenance, possible revenue sources and operation of the infrastructure provided under the project, to agree means of communication and set targets and procedures for the remaining project life. Also consider possible replication of techniques in other informal settlements or further extension in Hanna Nassif

UCLAS DCC (or successor municipality) NIGP CDA ILO/ASIST

Worfacilindemod

CONSTRUCTION BY LB

TECHNIQUES

LB technology Safe working practices Cost control Quality & testing Control and management of labour (inc. Legislation) Task rates & productivity Roadworks Drainage Concrete structures Water supply

Ability to select appropriate methodology and undertake LB (and other) works in a cost effective, safe, efficient and profitable manner

Contractors engineer/manager CDA (This is intended to be complementary to the foreman’s course held in Oct 1999 and is pitched at a higher management level. This may be combined with the course below)

Clas

PLANNING & PROGRAMMING

OF WORKS

Logical planning Preparation and updating of work plans Estimation of resources and time required Procurement Estimation of cash flow requirements

To be able to plan works including resource requirements, preparation and updating of workplan and simple critical path analysis

TST Contractors - engineer/manager CDA

Clas

CONTRACT MANAGEMENT

Purpose of contracts Forms of contract Responsibilities and obligations Interpretation Application Tendering Procurement Credit Conflict resolution Tax & VAT Accounting

To provide an overview of the purposes and use of civil engineering contracts including correct interpretation of the obligations and remedies available under conventional forms of contract leading to other practical aspects of contract management

UCLAS Contractors - manager, engineer CDA

Clas

COMMUNITY CONTRACTS (&SHADOW TENDERS)

Purpose of contracts Forms of contract Responsibilities and obligations Interpretation Application

To give an understanding of community contracts and agreements, their purpose as a means of empowerment of the community and their possibilities and limitations as regards commercial competitiveness.

CDA Clas

CIVIC FUNCTIONS

Laws and regulations covering public bodies Bylaws Committee structures and

To introduce CDA to functions of civic function, responsibility and management of public assets and infrastructure

CDA Zone (neighbourhood) Comminittees

Clas


ISSUE TOPICS OBJECTIVES OF TRAINING TARGET GROUP ME

procedures Conflict resolution Accountability Control of public funds Revenue collection Animation of community Information dissemination VAT Political structures Local government structures

ROUTINE MAINTENANCE

Maintenance planning & workplan Infrastructure inventory Condition survey Tasks & techniques Budget Cost control Resource requirements

To introduce the community to routine maintenance of ‘their’ infrastructure created under Phases I & II. Inculcation of ‘maintenance culture’!

CDA Clas

WATER RETICULATION

SYSTEMS

Familiarisation with water supply system Theory and practice of water supply networks Financial management Maintenance planning Health issues

To introduce the community to operation and maintenance of the water reticulation system created under Phase II.

CDA Clas

NOTES 1. All of these modules are shorter than would normally be the case for a full examination of these topics as the limited project period remaining and the need to undertake training concurrently with completion of programme of works suggests a concentration upon the most important principles of each topic which may be illustrated practically by application to the ongoing works. It is stressed that the contractors must not be hindered or distracted from the completion of their contracted works but at the same time training must be seen by them as an investment in terms of employee time spent on acquisition of directly relevant skills. 2. It is suggested that NCC be contacted concerning extension of this training outline leading to possible registration or some other form of accreditation or recognition of Class VI or VII contractor as LB contractors (including registration of CDA with CRB). 3. It is suggested that technical modules be aimed at participation not only of the second round contractors working on site, but also that unsuccessful short listed contractors and first round contractors be invited to participate.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 ANNEX 9 EVALUATION, BOQ AND COST IMPLICATIONS

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 1. EVALUATION OF TENDERS The independent evaluation of tenders by COWI (T) Ltd for the first round led to the award of contracts to Sala Construction and General Management (Package No 1 - Outfall No 3) and Lukwati Building Construction Co (Package No 15 - Road No 4 [drainage, roadworks, water supply]). The following comments are made on the evaluation procedure: • 7 contractors were shortlisted and invited to tender; 6 collected tender documents of which

4 submitted tenders by the deadline. • The 4 tenderers were assessed on technical capability for each package. Any contractor

rating less than 5/10 points would be rejected. All 4 achieved 5 points or more. • Tenders which fluctuated more than 15% from the Engineer’s Estimate (made in February

1998) of basic unit rates and tender amount were to be rejected. In fact, while the tender amount for Package 15 was 12.65 less than the Engineer’s Estimate only 14/69 of the lowest bid basic unit rates were within 15% of the engineer’s estimate (note that not all the individual unit rates were those of Lukwati Building Construction Co which was awarded the contract). The tender amount for Package 1 was 146% more than the Engineer’s Estimate while 0/16 of the lowest basic unit rates were within 15% of the Engineer’s Estimate.

• No tenderers were initially responsive regarding bid security and performance bond. Following telephone calls bid security was provided by unresponsive contractors. Performance security requirements (bank letters) were waived at evaluation.

• 1 tenderer for Package 15 was rejected as the tender prices were incomplete. • No contractors provided information required under Schedules 1, 2, 4, 5 & 6. This was

waived at evaluation. • All tenderers had arithmetical errors for one or other of the packages. • The evaluation report omitted a recommendation for award of Package no 1. This was later

provided by e-mail. 2. CONTRACT NEGOTIATION MEETING This meeting held on 13.08.99 was attended by UCLAS/TST, COWI (T) Ltd, Serviceplan, Lukwati Building Construction Co and Sala Construction & General Maintenance. Minutes of the meeting form a part of the contract for each contract. Summarising and commenting on certain minuted points: 1. Negotiation on BOQ 1.2 Tender sum for Package 1 is TSh 15981500. 1.3 Tender for Package 1 does not include costs for excavation of the waste and its transportation to disposal site were not included in the BOQ. BOQ 3.3: Excavation for Outfall has provision for excavation of 392 cum. The specification states that this includes excavation of unsuitable material and payment will include ‘…. Disposal of surplus excavated material’. It is not clear from this description whether this rate should therefore include for transport of material to tip. However as there is provision elsewhere in the BOQ (3.9 Cut to Spoil for Drainage Structure and for roadworks, 2.6 Cut to

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 Spoil) payment for both of which includes ‘….haulage not exceeding 2000m ….’ it may be implied that BOQ 3.3 only includes for dumping adjacent to the work site. Thus it appears that it has been agreed that the contractor will be paid for this haulage at dayworks rates. No estimate of the extra cost has yet been made but this consultant estimates a sum of the order of TSh 836000 (392 cum @ 5 cum/truck load x 6 trips per day = 11 days @ TSh 76000 = TSh 836000) 1.4 Package 1 - Stones for gabion boxes and mattresses were not quoted in the BOQ. 1.4 Agreed that Sala Construction & General Maintenance must indicate the rates for the above items not included in the BOQ under Schedule 1 (Day Works) and the Engineer will verify these costs during construction Daywork rates were completed for both contracts. The contractor contended that in quoting rates for BOQ 3.39 Placing of Wire Mesh Gabions and 3.40 Placing of Wire Mesh Gabion Mattresses he did not realise that rock fill was required and thus did not allow for this cost. Although not explicitly stated it appears that it has been agreed that this item will be paid at the quoted daywork rate ie TSh 9000/cum. This will increase the contract sum by TSh 3042000. The specification clearly states that gabions are to be filled with rock and that payment will include fill stones (ie the unit rate should include for this rock fill). The quoted rates are respectively 5x and 3x the Engineer’s Estimate rates. 1.5 Tender sum for Package 15 amended from TSh 54075787 to TSh 54701087. Correction of arithmetic error. 1.6 Contractors labour payment rates should take into account current community rates. It was agreed that payments of community and contract workers would be the same. 2. Discussion/Elaboration/Agreement on various clauses that will form part of the final contract. 2.2 Contractors must submit performance guarantees from either bank or NCC. Both contractors subsequently presented acceptable guarantees. 2.3 Contractors will insure works and workers. This has not been checked by this consultant. 2.4 Contractors will maintain a daily site register of workers. Normal site management practice. 2.5 CDA/TST will work with the contractors to assist mobilisation of workers particularly women. All unskilled and most other personnel are from Hanna Nassif and were identified by CDA.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 3. Payment of Mobilisation Fee 3.1 Advance payment will be 15% of contract sum. 3.2 Advance payment will be paid upon submission of bond/guarantee. Lukwati Building Construction Co submitted an acceptable bond/guarantee and received advance payment as stated. Sala Construction & General Maintenance did not receive advance payment. 4. Date of Signing Contract 4.1 20.08.99 at NIGP subject to submission of documents as noted above. Signature of the contracts was made by NIGP and contractors. The CDA had previously signed the summary of BOQ on 13.05.99 including agreed contract period. 3. OTHER ISSUES Package 1 - Sala Construction & General Maintenance • Although shown in the design no quantities were included in the BOQ for a concrete

drainage channel from the bottom of the gabions to the creek. A length of over 60m of lined ditch was omitted and a VO has been issued to include this item of work in the contract. This will increase the contract value by some TSh 5000000. The work is largely complete.

• BOQ 3.35 Supply of Wire Mesh Gabion Boxes and 3.36 Supply of Wire Mesh Gabion Mattresses are quoted by the contractor at TSh 15000/cum (cf Engineer’s Estimate TSh 5000/cum). Recent invoices from UCLAS for community works on Outfall No 4 show that these gabions and mattresses were costing TSh 31500 and TSh 35000/cum respectively. Thus the contractor appears to have underestimated the cost of purchase by some TSh 5885000 (BOQ 3.35 250x(31500-15000)=4125000; BOQ 3.36 88x(35000-15000)=1760000). The contractor has not raised this point but there is a potential further claim on the grounds that this was omitted from the tender price. This principle has already been accepted as valid grounds for a claim ….

Package 15 - Lukwati Building Construction Co • Additional costs are likely to be incurred in connection with footbridges (not included in

BOQ) over drainage channels if the contractor is instructed to construct these items (not yet instructed). As the works are not yet complete this item cannot be quantified at this stage although it is estimated that 20 footbridges are likely to be required on the section.

• The contractor has indicated that he will claim for additional costs incurred in reinstatement of unofficial water supply pipes crossing excavations of drainage channel and water pipe trench although the specification (p46) indicates that payment shall be unit rate per m of pipe length and shall include ‘…. Restoration of disrupted services’. In other words the contractor should not have a valid claim. This potential claim has not been quantified by the contractor but this consultant’s estimate is of the order of TSh 200000 (plumber 60 days @1600=104000; materials 96000).

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 • Although BOQ 3.5 Backfilling for Roadside Drain is included there is no corresponding

BOQ item for excavation of the roadside drain. As all other drainage items have excavation and backfill items included (BOQ 3.2 Main Drain, 3.3 Oufall, 3.4 Culverts) it can only be assumed that this is an omission. The contractor has spotted this anomaly and states that he will claim although this has not yet been quantified. This consultant’s estimate is approximately TSh 785000 (256cum @ 30607cum) ie water pipe trenching rate).

• It has been suggested by the contractor that there is an error in the taking off detail for reinforcement steel for culverts and Lukwati Building Construction Co has suggested that a claim may be made. This consultant has not checked the bar schedules but a cursory inspection suggests that if an underestimate has been made then it will not exceed 10% of the BOQ quantity ie TSh 34000.

General • Both Packages 1 and 15 involve excavation of unsuitable material and both contractors

have been instructed to carry out additional excavation in order to reach a stable foundation level for drainage channel and gabions. There is BOQ provision for cut to spoil under item 2.22 in Package 15. No quantities have been calculated and thus no estimate of potential increase can be given at this stage. Future BOQ should perhaps have a provisional sum for this type of E/O quantity.

• Package 15 involves excavation of trench for water pipes. In some locations this is through dumped solid waste tip areas and again additional excavation is likely to be necessary to reach a suitable foundation material. Interestingly the specification noted (p45) ‘Excavation shall be to widths and depths indicated on the drawings or to such lesser or greater depth as the Engineer may instruct ….. in order to obtain satisfactory foundation, bedding etc’ and goes on to say ‘Should any excavation be taken below the required levels or depths necessary to obtain a suitable bottom the contractor …. Will be required to fill the excavation to the proper level with concrete or material of same specification for the foundation at his own expense’. Although not explicit it is suggested that the contractor will be entitled to payment for E/O excavation instructed by the Engineer but not for any over-excavation carried out for whatever other reason. Again no quantities are yet available and thus no cost estimate can be given at this stage.

• Normally any pricing error by an experienced contractor at tender stage would not be subject to any additional payment by the client. The argument that the contractor had made a mistake or underestimated the component costs of a BOQ unit rate might rate sympathy on the part of the client but little more. The contractor’s potential profits would be reduced or he may even make a loss. However, in the case of inexperienced contractors it is indeed possible that mistakes had been made and that costs were genuinely underestimated. A project that involves contractor development should not permit a contractor to make a clear loss due to these reasons and on the other hand care must be taken to ensure that an ingenuous request for additional payment on these grounds does not permit a contractor to make additional profit. It has already been decided in principle that the contractor can receive additional payment on these grounds (eg stone for gabions) but it is suggested that very close examination should be made of any further claims on these grounds with comparisons made of community costs for carrying out similar work and of materials costs. The proposed workshop and site visit for the tenderers for the second round of contracts should be able to highlight the need for completeness of bid prices and thus, hopefully, this issue will not be raised again in the later contracts.

Consultancy to Support the Project Team in Reviewing Procedures, Documentation and Performance of Community and Private Contracts, Supervision of Works, Efficient Use of Labour Based Technology and Update of Plan for Construction Activities in Hanna Nassif Unplanned Settlement, Dar es Salaam Hanna Nassif Urban Upgrading Project – URT/97/032/A09 October 1999 4. COST IMPLICATIONS

CONTRACTORS SALA CONST. & GEN. MAINTENANCE PACKAGE 1

LUKWATI BUILDING CONSTRUCTION CO PACKAGE 15

TENDER SUM 15981500 54721087

ENGINEER’S ESTIMATE - COWI (T) Ltd 6535075 53005475

COMMITTED EXTRA COSTS

Rock for gabions 3042000

Haulage to spoil 836000

Concrete channel (VO) 5000000

TOTAL . COMMITTED EXTRA COSTS 8878000 -

POSSIBLE OTHER QUANTIFIABLE EXTRA COSTS

Supply of gabions 5885000

Excavation for road side drains 785000

E/O Water supply pipes 200000

Additional steel for culverts 34000 TOTAL - POSSIBLE OTHER QUANTIFIABLE EXTRA COSTS 5885000 1019000

POTENTIAL TOTAL CONTRACT SUM (Some other extra as yet unquantifiable costs may be incurred

30744500 55740087

HANNA NASSIF URBAN UPGRADING PROJECT PHASE … · NBC National Bank of Commerce NCC National...

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