15 Jun 2014

Local contractors have been encouraged to form joint ventures or consortiums in order to complement their knowledge and improve resources to execute performance based methods of contracts. 

The vice chairperson for Setlogelwa Tsatsing Contractors and Engineers Association, Mr Oabile Pilane said it was essential for local contractors to develop trust between themselves and engage in joint ventures so as to impart and gain knowledge that had proven experience of delivering outcome contracting.

Mr Pilane said during a stakeholders meeting organised by department of roads to brief local contractors about the tour undertaken by a team of the officials from government and constructors and Engineers associations at New Zealand and Australia. 

The objective of the tour was to understand the concept and implementation of performance based methods used in construction and maintenance of roads and also road asset management. 

The experimental or hands-on knowledge obtained from the tour would then enable government through workshops to understand and implement performance based method effectively.

Mr Pilane said employers of local contractors had to resolve issues in an open and transparent manner and mutually agreeable fashion noting that would be a significant advantage. 

He also observed that government had empowered many youths hence the consortiums that have youth as members should continually involve them in contracting so as to mentor them in to becoming a skilled and trustworthy employer for the future.

Also, he emphasised the importance of putting public interest or needs at first noting that people were of paramount importance and called upon any contractor to interpret what the community wants and put it into use within the desired budget. 

He said both the employer and the contracting entity should have a cordial relationship of serving the public.

Mr Pilane also pointed out that employers should have the zeal to deliver a proper job not only for the public, but for the future of the country adding that it is paramount that continuity was maintained. 

Another member of the team, Mr Ricky Mojanaga informed the gathering about types of contracts under Output and Performance Road Contract (OPRC) as used in New Zealand and Australia

He said the New Zealand “Hybrid” contract model was the most similar to the World Bank OPRC contract Model. 

Under the model, Mr Mojanaga explained that the contracting entity was responsible for what had to be done, when and how as long as the set performance standards throughout the contract period are met. 

He said the client chose both the contractor and the consultant and they form one unit. 

“Under this contract, the contracts are in such a way that they are lump-sum payment for routine and unit rates for periodic maintenance. The contractor proposes a work plan for client’s review,” he said.

The team also learnt that OPRC could be a combination of both traditional methods combined with design and construct or either of them but the underlining factor was as long as the levels of services and Key Performance Indicators were achieved. 

They also learnt that there was no need to appoint a board to oversee OPRC project and that it could be operated at the department level which was at the directorate level and the director could report directly to permanent secretary. ENDS