Local contracting

  • Creating an enabling environment for sustainable MSME development
  • Capacity of local institutions and private sector
  • Reinforcing and addressing skills gaps

Public infrastructure works are increasingly being carried out through the involvement of the private construction industry. This can also be a feasible approach to the sustainable provision of local infrastructure such as access roads, water supply, irrigation systems, market facilities, schools, health care centres, government offices, assembly halls and other facilities. The use of local contractors for the development and maintenance of local infrastructure has several advantages. These firms are already operating in the area where their services are required with established supply lines for materials, tools and equipment as well as skilled and semiskilled labour. They have a proven track record of doing business in the construction industry and their skills and competence can be traced through previous works they have carried out. These are firms that can also be relied on for future maintenance works as they have chosen to establish their operations and business in vicinity of where the infrastructure is located.

In many countries, access to basic services such as health, education, clean water, markets and other economic services is still lacking. Therefore there is still a large demand for improving local infrastructure. As a result, there is a large demand for the services of competent local construction firms who can take on the challenges of developing and maintaining the infrastructure facilities in both rural and urban communities. Providing the local construction industry with access to these market prospects, require an efficient contracts management organisation, capable of planning and supervising the works as well as taking care of all financial and administrative activities. This capacity can be established in local government institutions by equipping them with the necessary systems and procedures and with personnel with the skills and knowledge required to take on this management role.