Regional Seminar Papers 1997

Equipping contractors and projects

Choice of Haulage Equipment for Labour-based Road works

Bruno Illi and Walter Illi, Norconsult, P. O. Box 48176, Nairobi, Kenya. Email: norcon@form-net.com

Introduction

Discussions on the most suitable type of haulage equipment are perhaps as old as labour-based rural roads programmes themselves. The extent of possible options ranges from moving material on head-baskets, wheelbarrows, animal drawn carts, tractor/trailer combinations to the haulage of gravel by flatbed or tipper trucks. It is felt that these debates are often based on personal beliefs rather than on actual facts valid for specific and current project situation.

This paper therefore highlights factors to be considered when selecting haulage equipment based on sound economic reasoning. Particular emphasis is given to issues for which circumstances might have changed over the years. Conclusions made are based on present conditions and are applicable to a number of African countries including Uganda, Tanzania, Kenya and Zambia.

Haulage as a Component of Total Construction Costs

Although a project might be "labour-based", equipment-based material haulage is often the most expensive component of the total construction costs. The pie charts in Figure 2.1 illustrate typical expenditure patterns for sample roads from the Zambian Feeder Roads Project (FRP), Eastern Province, and some re-gravelling projects completed under the SIDA funded Minor Roads Project (MRP) contractor training programme in Central Province, Kenya.

The diagrams clearly indicate the importance of the haulage component in the final costs of labour-based road works. In addition, drainage structures and compaction will also involve some haulage equipment, in particular for transporting construction materials to site (culverts, cement, sand, aggregates, etc.) and for watering. The cost breakdown is based on contract documents prepared by Norconsult for the two projects. This analysis was simplified by the fact that Bills of Quantities were initially set up as bills summarising items according to their common input requirements as follows:

• Labour
• Equipment
• Materials

Table 2.1 provides further background information on road standards, equipment type, organisational set up and quantity of work for key items.

History of Equipment Choice for Labour-based Rural Road works

Calculation of equipment hire rates

Many labour-based projects use a tractor-trailer combination to haul material, since this is considered to be the cheapest and most appropriate technology. Entire generations of labour-based practitioners, planners and project designers have raised little objection to this approach as it is very much in line with common donor policies.

These conclusions were predicated from a number of publications and studies which were conducted on the topic in the mid seventies/early eighties. The World Bank Guide for Labor-based Construction Programs, first published in 1983, gave some valuable information on the issue. Appendix G of the report provided a comprehensive method of calculating costs and can be considered to be one of the best guidelines available at the time.

The assumptions and work models employed by this method are recapitulated in brief below:

• Equipment cost calculation was done using methods developed for heavy earth moving plant. The procedure was based on a table format which contained a number of predetermined calculation factors. The final results were expressed as a "direct rate" or hourly usage charge and did not differentiate between fixed and operating cost. The method could be easily applied manually and did not require computer access.
• Depreciation, capital recovery, maintenance, repairs, fuel, lubricants, tyres, salvage value, road license and insurance were the components considered in establishing the rates.
• Assumptions, among others, included economic life expressed in 10,000 hours of total service, entire operating lives of 8-10 years depending on item and 1,000 - 1,250 hours average yearly availability.
• Overhead cost, sales taxes, VAT and profits on the other hand were not included in the World Bank cost calculation model.
• Most labour-based projects at that time were undertaken through government departments, parastatals or specially created force account units. Equipment owned and operated by governments directly, tends to be under-utilised, which subsequently results in high usage charges. Contributory factors to this low productivity could be one or several of the following:

1. Equipment stays idle due to cash flow problems or bureaucratic procurement procedures resulting in fuel shortage, lack of spares, tyres etc;
2. Poorly equipped, staffed and managed government workshops provide inadequate repair and maintenance services;
3. Low civil service salaries result in poor staff motivation and quality of work;
4. Multipurpose equipment, e.g. tipper and flatbed trucks are diverted to activities other than their intended use on labour-based projects.

The application of the World Bank calculation method resulted in hourly usage rates as shown in Table 3.1.

Hourly usage rates alone are not sufficient for cost comparisons between different types of equipment. To achieve this, haulage rates are calculated by use of the following formula:

Haulage Rate = A x B (US$/m² x km)

Whereby:

A = Hourly usage rate (US$ / hr)
B = Number of working hours per day (hr/day)
C = Average haulage distance (km)
D = Loading capacity (m³/trip)
E = Number of trips per day (trips/day)

However, haulage rate is not a constant value. Transportation of gravel over a distance of 1.0 km in 10 trips of 5 m³ each will be more expensive than if 5 m³ are to be moved in one trip over a distance of 10 km even though the total haulage of 50 m³xkm would in both cases be the same. For the latter, only one loading/unloading operation will be required while for the short 1.0 km distance the material is to be loaded/unloaded ten times, thus necessitating much longer equipment waiting periods.

Haulage rates presented in Figure 3.3.1 are calculated using the hire rates at price levels from 1976 as indicated in Table 3.1, and on productivity assumptions and daily target trips given in Table 3.2.1. and Table 3.2.2 below.

It is assumed that tractors are equipped with two tipping trailers, so the time requirement only involves the change of trailers.

Haulage rates were then calculated using the information and assumptions presented under sections 3.1 and 3.2. Comparison between different types of equipment is best illustrated in the format of a line diagram. Figure 3.3.1 provides haulage rates for flatbed trucks, tippers, 35hp and 50hp tractor/tipping-trailer combinations for haulage distances between < 1 and 10 km.

The diagram, prepared on 1976 price levels and assumptions, confirms the following:

• The most economical option for material haulage up to a distance of about 5 km appeared to be a combination of one 50 hp tractor and two tipping trailers of 3.5 m³ loading capacity;
• No significant differences between haulage rates for tipper and flatbed trucks could be observed;
• Combinations of one 35 hp tractor and two 1.0 m³ tipping trailers were not economical;
• There was never a justifiable economical advantage of the tractor / trailer approach over trucks for haulage distances longer than 5 km.

Present Situation

New developments have undoubtedly taken place in the two decades since the previously mentioned studies were carried out. It should therefore be acceptable to look critically at various aspects of haulage equipment choice in order to find solutions which will include experiences from the past and reflect present situations in technical and economical terms.

Uniform standard specifications of tractor/trailer combinations suitable for labour-based roadworks do not exist. Information collected from various projects, however, shows that the most common type of equipment could be described as follow:

• 55-80 hp 2WD diesel engine powered agricultural tractors. A few projects are also using 4WD tractors with engines as large as 90 hp. The majority of models are fitted with hydraulic power steering, braking and hitching systems;
• Single axle non-tipping trailers of less than 3.0 m³ loading capacity. Tyres mostly of size used for 7-tonne trucks with a few models of balloon type or twin wheels;
• Purpose made gravel trailer designs including special heavy duty towing eyes and hitching systems;
• Flatbed or tipper trucks according to ordinary country specification. Loading capacity ranges from 5-6 m³ depending on make.

This summary reveals some significant differences from the assumptions made in the early studies in terms of:

• Higher powered tractor engines;
• More sophisticated tractor technologies;
• Smaller trailer size;
• Non- viability of tipping trailer systems;
• Lifetime of some trailer models shorter than anticipated;
• Need for purpose built trailer designs and hitching methods.

The reason for use of larger engine size tractors is not clearly established. It might be that the previously familiar 45 to 50 hp machines were not powerful enough for the intended purpose, which subsequently resulted in high running costs due to frequent breakdowns. However, it is also to be considered that small engine sized agricultural equipment has become increasingly rare on local markets. A number of reputable tractor manufacturers offer their smallest models equipped with engines of 60 hp or more.

The need for limitation of trailer loading capacity to 3.0 m³, non-viability of tipping systems and requirement for special gravel trailer designs, including necessity for heavy duty pick up hitches, were all realised through more or less expensive trial and error processes.

In particular, it has to be emphasised that all attempts at utilising standard agricultural trailers have failed. Heavy duty gravel trailers are manufactured in local workshops and their procurement entails:

• Engineering design;
• Manufacture, testing and approval of prototype trailer;
• Preparation of detailed drawings and tender specifications;
• Quality control during mass production; and
• Final inspection and approval.

Procurement of gravel trailers is a time consuming undertaking compared with an "off the shelf" purchase of a truck or tractor. In most cases, these activities are the responsibility of highly qualified project staff. Acquisition of a small batch of trailers can amount to a substantial proportion of the actual manufacturing price. Expenses for procurement services are normally not added to the purchase price and therefore not reflected in the cost comparison between different haulage approaches.

Economic viability of tractor / trailer haulage will always depend on availability and price levels for conventional road transport vehicles in a particular country. In the past, the alternatives were often restricted through low competition among truck suppliers. As recently as the mid eighties, a few manufacturers were holding more or less a monopoly in many countries. In an increasingly liberalised economy, these conditions are in the process of changing significantly.

These developments are best illustrated by comparison between equipment procurement cost per m³ of haulage capacity in 1976 and 1997. Indicative figures from Kenya, Zambia and the World Bank Guide reveal that costs for tractor/trailers have risen by 350%, while the price increase for trucks has only been about 260%.

In addition, it is essential that a comparison is made of the true value of the equipment. In many countries, different levels of import duties and sales taxes are applied for tractor/trailers and trucks. In 1995, for instance, the Ugandan Government charged 35% for trucks, while the rate for tractors was as low as 2% because the latter were classified as agricultural implements. Today, however, the contractors in the Uganda Transport Rehabilitation Project/Feeder Roads Component (UTRP/FRC) project will have to pay uniform rates of about 24% for all types of equipment. Choice of technology based on distorted market situations might not be sustainable and will have negative long term effects.

Use of equipment for operations other than the intended gravel haulage activities is another often brought up issue in the discussion about the choice of technology. General lack of road transport capacities is a common problem many government organisations are facing. Suitability of equipment for multipurpose road transportation might therefore not be desirable in a force account environment as it can easily lead to vehicle misuse.

It is questionable as to whether the same criteria should be applied to the private sector. Employment of small scale contractors at their full capacity is a situation no client can ever guarantee. It might therefore be a matter of the contractors' economic survival to have alternative equipment utilisation opportunities in the event of discontinuity in labour-based roadworks.

During project work planning, review of equipment procurement tenders and preparation of contract documents, Norconsult was repeatedly faced with the task of establishing accurate equipment costing figures. Calculation methods had to consider that:

• pricing was to be done for a real market situation without equipment leasing support;
• projects were carried out during periods of exceptionally high currency exchange rate fluctuations.

The need for an efficient calculation procedure, allowing constant updating of price levels, was therefore evident. It was also realised that the objective could only be achieved by use of appropriate computer spreadsheet programs. The chosen approach was based on a separate estimation of fixed and operating costs:

A key element in establishing reliable costing procedures is the identification and definition of parameters. Tractors are commonly equipped with hour clock meters while the mileage on trucks is normally measured in km. It is therefore essential to formulate all required inputs in the respective units for easy transfer from information provided by the manufacturer or which is to be collected from utilisation reports. In addition, we opted to express the productivity performance in relation to actual cycle times by assumption of:

• Loading time (or changing time for tractor / trailer combinations);
• Travel speed of loaded haulage equipment from quarry to dumping place;
• Off-loading time;
• Return speed of empty haulage equipment from dumping place to quarry.

The required data are to be logged in a single input entry sheet. An example of the chosen format appears in Table 4.3.1. Figures and prices contained in the sheet do not refer to a particular project, but they could be considered as a realistic guideline of assumptions for counties including Uganda, Tanzania, Zambia and to some extent also Kenya.

The data in Table 4.3.1 were the used in the preparation of an updated line diagram for haulage rates at current price levels as presented in Figure 4.4.1

Compared with the results presented in Figure 3.3.1, the updated diagram reveals a clear shift of competitiveness from tractor / trailers towards tipper and flatbed trucks.

The planner of a labour-based roadworks programme will, apart from selecting the most suitable type of haulage equipment, also have to decide on the size of required fleet. It is obvious that this conclusion will depend to a great extent on haulage distances prevailing in the project area. Figure 4.5.1 provides annual haulage capacities per piece of equipment based on the assumptions presented in the data log sheet in Table 4.3.1.

Conclusions and Recommendations

The above analyses of developments in haulage technologies for labour-based road works have been drawn together below to form a number of conclusions and recommendations for future project planning:

• Analysis of technical options, work organisation and development of price levels over the past 20 years reveals that some significant changes have taken place over this period. Additional conditions might also vary from country to country. An independent assessment of the prevailing situation is considered an essential task to be undertaken during the project planning stage and should include:
• Equipment investment cost(broken down in initial charges, shipment and clearing, taxes and duty);
• Basic prices relevant for the establishment of equipment operating costs e.g., fuel, lubricants and tyres;
• Assessment of expected haulage distances to be established through gravel surveys in case information on material availability in area is inadequate;
• Comparison of haulage rates between different types priced on actual project conditions.
• Use of computer spreadsheet programmes for calculation of haulage rates is recommended and is best achieved by separation of the three main cost components:
• Fixed cost;
• Operating cost;
• Overhead and profit.
• Calculation should be based on actual equipment running times according to haulage distance rather than on estimated annual average utilisation. Cost parameters are to be expressed in a format which allows easy reference to manufacturers' technical data and performance reports.
• Conclusions made on choice of haulage equipment may reflect the present situation in Uganda, Tanzania, Kenya and Zambia and can be summarised in brief as follows:
• Early studies indicated an economic viability of material haulage by tractor / tipping trailer combinations up to a haulage distance of about 5 - 6 km;
• Review of costing methods and assumptions considering developments over the last 20 years revealed almost equal costs for haulage by trucks and tractor / non-tipping trailer combinations over distances < 2.5 km, while trucks appear to be 50% more economical for transports over a distance of more than 12 km;
• There is little evidence of successful use of tipping trailers. The method is therefore considered as not viable.
• The highest possible output per equipment unit is achievable by 7 - 8 tonne tipper trucks. Performance of flatbed or tractor / non-tipping trailer combinations ranges from 40% to 80% of the tipper capacities.

Abbreviations

References

Norconsult . 1997. Road rehabilitation and gravelling by labour-based contractors: Contract document Volume I. Ministry of Local Government & Housing, Zambia

Norconsult . 1997. Road rehabilitation and gravelling by labour-based contractors: Contract document Volume II. Ministry of Local Government & Housing, Zambia, 1997;

Coukis, Basil. 1983. Labor-based construction programs: A practical guide for planning and management. World Bank

Norconsult . 1997. Road rehabilitation and gravelling by labour-based contractors: Pricing guidelines. Ministry of Local Government & Housing, Zambia

Equipment for the DNEP/DFID Feeder Roads Project, Mozambique

R N Geddes, (Project Advisor, DNEP/DFID Feeder Roads Project, Zambézia, Mozambique

Synopsis

This paper provides a general account of the equipment ordered for the DNEP/DFID Feeder Roads Project in Zambézia Province, Mozambique, and comments on the adequacy and performance of specific items in the early stages of the project. An outline is provided of the procurement process, and the measures taken for clearing the equipment through Mozambique customs. Specific details of the tractor/trailer combinations, and the choice of compaction equipment, are discussed.

The objectives of the project include the rehabilitation of tertiary roads in Zambézia Province, in order to improve the economic and social prosperity of the local population, and the development of capacity in the local road construction industry. Implementation of the works is by emergent, small-scale local contractors who are receiving training within the project.

The project is relatively equipment intensive compared with other labour-based projects, and equipment costs account for about 25% of the cost of the rehabilitated roads. The bulk of the equipment has been provided for gravelling operations and for compaction. This is appropriate considering the amount of gravelling that will be required, and the generally poor quality of the in situ soils. Adequate compaction at the roadbed preparation and formation stages is essential.

An important aspect of the motivation and development of the contractors is the opportunity to own equipment, and the project provides for the transfer of ownership to the contractors.

The paper focuses on the primary equipment supplied for use on the sites and does not include details of hand tools, mechanical workshop tools, survey equipment, radios, computers, office supplies and equipment, carpentry tools, air-conditioners and stand-by generators also supplied to the project.

The description of faults and inadequacies of some items is not meant as criticism of the suppliers, since the equipment is not necessary specifically designed for use in labour-based road construction in remote areas of Africa. The comments are provided to assist those specifying equipment for similar projects in the future to predict and avoid similar problems.

Background to the Project

The purpose of the DNEP/DFID Feeder Roads Project is to rehabilitate approximately 800km of existing classified feeder roads in Zambézia Province, Mozambique, in order to improve the economic and social well being of the local population. The project is being implemented by the Mozambique National Directorate of Roads and Bridges (DNEP) through DEP Zambézia, the Provincial Department of Roads and Bridges. Support to DNEP and DEP for the management of the project is being provided by consultants.

The project is being funded by the British Government, through the Department for International Development (DFID), for the purchase of equipment, materials, works execution and payment to consultants. In addition, DFID are funding upgrading of accommodation, some road maintenance (within the project period) and UK/regional training. The Government of Mozambique contribution includes the payment of import duties, DEP supervision of the works, offices and housing for the Consultants, and in-country training.

The project is part of DNEP's Feeder Roads Programme, which in turn is part of the World Bank-supported Roads and Coastal Shipping Project (ROCS) which seeks to ultimately rehabilitate the bulk of the road network in Mozambique.

An important objective of the project is to develop local capacity for the implementation of rehabilitation and maintenance works by local private contractors using labour-based methods. To this extent, the project is unique within the Feeder Roads Programme, which traditionally operates direct labour brigades through the provincial ECMEPs (state owned Enterprise for the Construction and Maintenance of Roads and Bridges).

Preparations for the implementation of the project started in September 1995 in order to facilitate the commencement of site operations after the 1995-1996 rains. The project completion date is 15 September 2000.

The selection of contractors to participate in the project was made by the DNEP on the basis of recommendations from the Provincial Directorate of Works (DPOPH). The criteria used to select the contractors included: experience in construction; the calibre of staff employed; equipment already owned; financial status and perceived entrepreneurial ability.

By the end of July 1997, approximately 60 kilometres of road had been rehabilitated to all-weather standard and 40 kilometres were under routine maintenance. Six contractors are currently working independently on different sites in Mocuba and Ilé districts under the supervision of the Provincial Department of Roads and Bridges (DEP), and with continued support from the consultants. The roads are being rehabilitated to all-weather standard and significant lengths are being gravelled due to the poor quality of the in situ soils, which are fine grained and, in sandy areas, highly erodible. In non-sandy areas, spot-gravelling is being carried out on steep slopes and on stretches of particularly high plasticity. It is anticipated that up to 50% of the total length of road rehabilitated will require gravelling.

The Equipment List

The list of equipment prepared for the project was based on the standard equipment list for the Feeder Roads Programme brigades. Details of the principal items and comments on their performance and suitability are given in Appendix A.

The quantity of items required was calculated on the assumption that some contractors would develop larger operations than others, and would therefore require, and be able to afford, more equipment. The full purchase price of the equipment, including transport and import duties, was used in the derivation of rental and hire-purchase rates. Since these costs are significant, representing about one-quarter of the average monthly turn-over, the contractors are discouraged from having idle or under-utilised plant on site.

The contractors will be encouraged to purchase equipment in accordance with their management capacity in order to avoid over-capitalisation through the purchase of assets that may be surplus to their requirements. Future work opportunities, beyond the end of the project , will likely be confined to routine maintenance contracts.

Items of equipment that are not purchased by contractors will be kept centrally and will be available for hire for the duration of the project. At the end of the project, DNEP will either dispose of the surplus equipment or continue to make it available for hire.

The unit rates used for the valuation of the contractor's work are derived using the full purchase price of the equipment. The contractors are therefore in a position to seek alternative, and possibly cheaper sources of equipment. This approach is being encouraged as it promotes self-reliance and allows the contractors to maximise their profitability. One contractor has already purchased a new tractor/trailer combination from the local Massey Ferguson agent, and others are rehabilitating old tractors for deployment on site. A 10 tonne flat-bed truck, owned by one of the contractors, has been used in gravelling operations in tandem with tractor/trailer combinations to boost output over long haul distances.

Procurement of Equipment

The procurement of equipment for use on the project is being done by the consultants through an associated company. The payment of import duty for the clearance of the goods is the responsibility of the Government of Mozambique through the DNEP, who are the owners of the equipment.

The equipment has been ordered in two main consignments in order to reduce the risk of over-supply in the event that it would not be possible to find enough contractors to participate in the project.

The equipment list was prepared by the consultants on the basis of the requirements of the Project Appraisal and was approved by DNEP and DFID in February 1996. The first orders were placed in May 1996 and most of the equipment from the first consignment was operational on site before the end of 1996. The preparation of documentation for the importation of some items, such as the mechanic tools and equipment, was delayed in Mozambique due to the large number of items, and the complexity of the descriptions of the goods, which had to be translated into Portuguese.

To date, all items for the first consignment have been received in the port of Quelimane and have been cleared through customs for use on site. The ordering and delivery of items from the second consignment has commenced, in accordance with the site requirements, and some items from the second consignment have been received.

The importation and clearance of the equipment has been initiated and managed on behalf of DNEP by the consultant's project team based in Quelimane. The key to the success of this involvement has been the local recruitment of a Mozambican administrator with a thorough knowledge of Quelimane, and some experience in dealing with the various agencies involved in the process of importation. The decision to manage the process at a local level has been critical to its success, since most of the equipment has been delivered directly to the port of Quelimane, some 1,600km from Maputo.

DNEP's involvement has included arrangements for the payment of customs duties by the Ministry of Finance. DNEP's capacity for dealing with large consignments of imported equipment is now well developed following many years of experience, and the clearance of the goods has been relatively trouble-free.

Project funds have been used for the payment for services provided in Quelimane, such as the production of the import permits, port charges, and the licensing and insuring of equipment following customs clearance. This has been a considerable advantage in reducing delays in the deployment of equipment on the sites.

Expenditure

The total expenditure on equipment to date is slightly less than US$2,400,000, which represents about 74% of the budget provided. A further US$300,000 has been committed in orders for the second consignment. The equipment budget represents about one-quarter of the total project budget.

Equipment Use and Maintenance

The equipment is owned by the DNEP who hire it to the contractors. The hire rates have been calculated to reflect the true cost of owning and operating equipment and include interest at a rate of 12% per annum. Payments are made by the contractors as deductions from their monthly certificates.

The Project allows for the contractors to purchase items of equipment in accordance with their requirements. DNEP are currently preparing proposals to the Ministry of Finance for a hire purchase contract. This will enable DNEP to transfer ownership to the contractors through a series of hire purchase payments made over an appropriate time period agreed by both parties.

Management of the equipment is the responsibility of the DEP Plant Manager who is the counterpart to the consultant's Mechanical Technician. The Plant Manager produces monthly invoices to each contractor for equipment hired during the month.

Maintenance and repairs to the equipment are undertaken by mechanics employed by the contractors with support and training from the consultant's Mechanical Technician. Additional training is being provided by DNEP through training courses held at the Training Centre in Chimoio.

Specific Comments About Tractor/Trailer Combinations and Compaction

Tractor/trailer combinations

Labour-based works in Mozambique within the Feeder Roads Programme (FRP) have been carried out using Massey Ferguson 240 (52HP) tractors for several years and it was decided that MF240s should provide the bulk of the tractors ordered for this project. FRP brigades are also equipped with a four-wheel drive MF 390 (85 HP) tractor which is used primarily to spread excavated material from the side-drains, in the construction of the formation, using Arthur Garden towed graders from Zimbabwe.

At the project inception, it was decided that spreading would be done as an entirely labour-based activity, without the use of a towed grader, so it was deemed unnecessary to provide 85 HP, four-wheel drive tractors. Nevertheless, it was recognised that additional power might be required for certain tasks: e.g. towing the water bowsers out of deep river valleys, and MF275 (70HP) tractors were included on the equipment list.

The tractor order is designed to equip each contractor with one MF275 tractor and up to four MF240 tractors for large-scale gravelling works. Contractors not undertaking gravelling find one MF275 tractor to be adequate to deal with daily site transport requirements.

Experience to date indicates that the MF 240s have sufficient power for most site activities, but severe problems have been experienced on site with failure to the tow hitches.

The design of the 3m³ Herculano trailer, with 20 inch wheels located towards the rear of the trailer, results in the transfer of excessive weight to the tractor and has resulted in the shearing of the bolts fixing the tow-hitch to the tractor chassis. In some cases the tow-hitch has broken. This problem is common to Feeder Roads Programme operations in Mozambique.

The following measures are under consideration to remedy the situation:

• Modify the trailers to reduce their capacity and to move the centre of gravity of the load further towards the rear of the trailer.
• Move the trailer axle forward to reduce the load applied to the tow hitch.
• Install heavy duty tow-hitches ("Natal Hitch").
• Provide smaller diameter wheels to reduce the inclination of the trailer draw-bar onto the tractor tow-hitch.
• Encourage the contractors to provide easier access from the borrow pits in order to reduce the dynamic stresses on the tow-hitches.

The decision to use equipment for compaction was made at the time of the project inception on the basis that equipment is generally used for compaction by Feeder Roads Programme brigades, and in order to achieve the planned output of rehabilitated road. The following equipment has been supplied to facilitate this:

• Towed 2,275 litre water bowsers with spray-bars,
• Water pumps,
• Pedestrian rollers,
• Towed rollers,
• Additional tractors.

The decision to provide towed rollers was based on experience that has shown pedestrian rollers to be unreliable in the long-term in remote areas where service back-up facilities are not available. It was anticipated that towed rollers would provide the contractors with compaction capability well into the future, even if the vibrating mechanisms on the rollers were no longer functional. The supply of a pedestrian and a towed roller to the sites provides the contractors with the capacity to undertake formation and gravelling works simultaneously.

The attainment of optimum moisture content is essential to ensure that compaction is achieved. The water pumps and bowsers are therefore a key factor in the site operations if maximum output is to be achieved by the towed rollers. This is particularly important in the construction of the road-bed and the formation.

The total cost of the equipment provided for the compaction will be approximately US$650,000. The cost per kilometre of fully gravelled road, in terms of the hire rates and operating costs, is about US$1,500. The towed rollers are particularly expensive items.

IBIS, a Danish NGO operating in Zambézia, has been able to achieve reasonable levels of compaction using hand-pulled dead-weight rollers fabricated locally. Water is collected by tractor and trailer in drums which are filled by hand with buckets from the nearest river. The water is spread on the road with watering cans. This method is clearly much cheaper than methods employing mechanical equipment for watering and compaction but produces low output if optimum moisture content is to be guaranteed. The roads rehabilitated by IBIS are generally in areas of good soils, and relatively little gravelling has been undertaken.

The alternative approach of simply allowing traffic to facilitate compaction is not considered appropriate in Zambézia, because the traffic levels on most tertiary roads are very low, particularly during construction when the road may be impassable farther along.

Conclusion

The equipment specifications and quantities for the DNEP/DFID Feeder Roads Project have been designed to enable the project to attain its objectives in terms of output of rehabilitated road and the development of capacity within the local road contractor industry. The equipment specified is largely similar to equipment supplied to brigades within the national Feeder Roads Programme, but the quantities have been adjusted to meet the requirements of private contractors.

The decision to utilise relatively large amounts of equipment on the project is justified on the basis that high outputs of completed road are required, and that there will be a high proportion of gravelling.

Bureaucratic delays in the ordering and delivery of equipment to the sites have largely been overcome through prompt payment of import duties by the DNEP, and proactive support by the consultants for the management of the process. The availability of project funds at a provincial level has been significant in facilitating the movement of goods through Quelimane port and on to the sites.

The equipment is owned by DNEP who lease it to the contractors at rates that reflect the full purchase price. The contractors will ultimately have the opportunity to purchase items of equipment from DNEP on the basis of a lease-hire agreement. The opportunity to own equipment is a major motivator for the contractors, and provides them with a means to invest in capital assets, which is essential for the growth of a small business.

Most of the equipment has operated relatively trouble free in the early phase of the project and the most significant problem faced to date has been the failure of the tow hitches on the MF240 tractors, which are inadequate to support the applied loading from the Herculano trailers when fully laden with gravel. Various measures are under consideration to remedy this situation. Modifications are also required to the fuel filter configuration on the Lister engines supplied with the Benford rollers.

Preventative maintenance systems are in place, and mechanics employed by the contractors are undertaking the majority of the maintenance and repairs under the supervision and control of the Mechanical Technician employed by the Consultant.

It is anticipated that future studies of the equipment supplied to the project will provide additional insights into the long term durability of specific items. Interesting comparisons, such as the differences in operation of the Herculano and Tinto trailers, will be made. Further analysis will also detail the set of equipment finally purchased by each contractor, and how this equipment contributes to their business development.

Appendix A: Equipment Specifications

Development of an Approach to the Appraisal of Tools and Equipment for Labour-based Technology in Road Works: Experience in Tanzania

Dr. P. F. C. Komba, Chief Engineer Rural Roads, Ministry of Works, Tanzania and L. M. Kyombo, Senior Engineer, Appropriate Technology Unit (ATU), Ministry of Works, Tanzania

Abstract

Labour based technology (LBT) in roads construction, rehabilitation and maintenance has been practised in Tanzania for more than 18 years. Nearly half of the country has implemented LBT in road works but acceptance and awareness levels are still low, despite of several efforts to promote the technology. Development of the technology at a national level has proved to have substantial social and economic benefits. However, the expansion of this technology at a national level should be accompanied by quantification of potential inputs which include labour, tools and equipment at a sustainable level.

Efforts to promote of the technology in Tanzania have revealed quite a number of deficiencies such as monitoring of quality of tools and corresponding performance, cost analysis for tools and equipment and monitoring of operational inputs and output levels including their optimisation. Coupled with this, performance data recording and keeping and co-ordination between implementers and local tools manufacturers is required for quality improvement and sustainability. Equipment consumes a significant portion (about 40%) of project costs but implementers have limited knowledge including guidelines on selection and costing as well as, logical approach towards optimisation of labour and equipment inputs for construction output. The investigations conducted in Tanzania have revealed that 7 tonne tipper trucks deployed for haulage are a possible alternative among common LBT haulage equipment.

The investigation has also developed logical relations on selection criteria and costing approaches and has recommended these for use as a basis for improvement of existing guidelines and establishment of checklists. Further studies are needed on the establishment of optimisation of labour and equipment operations to enhance competitive performance of different types of equipment for haulage in labour based technology.

Introduction

Background

Tanzania is one of the developing countries located in sub-Saharan Africa. It is a large country covering an area of 883,749 km² with an estimated population of 25.6 million, the majority live in rural areas. The economy is based on agriculture with most of the country's rural population subsisting on farming.

Like many other developing countries, Tanzania is faced with development challenges, being poor and unable to afford full use of sophisticated equipment ,it requires a more appropriate technology which will make use of locally available and abundant resources to improve the recorded income, social service delivery and provision of infrastructure services such as roads. This is necessary to contribute to the improvement of the rural economies and the quality of life.

Labour based technology involves the use of working systems that optimise the labour content through a cost-effective combination with the right tools and intermediate equipment. Efforts to promote LBT in road works in Tanzania have been made for more than half of the country and the technology is very much needed for quite a bigger portion of the country. In execution of the Integrated Roads Programme (IRP), the government decided to maximise the use of local resources and hence encouraged an introduction and expansion of the use of LBT wherever feasible. To promote the deployment of LBT, an institution dealing with LBT issues was established in 1993, referred to as the Appropriate Technology Unit (ATU). The unit is responsible for provision of advisory role to roadworks implementers targeting adoption of LBT on a large scale, appraisal of its feasibility, sustainability and replicability in the Tanzanian local environment. Key parameters being examined include institutional, managerial and administration considerations; as well as, the cost-effectiveness of the technology with emphasis that even if it might not be financially competitive it may be justified on socio-economic grounds.

Labourers are considered as the main means of production in LBT whereas to enable them to work efficiently and effectively, they need to be provided with proper and adequate tools among other things. The quality of tools is important for productivity as well as for safety. Significant effort should be devoted to the selection of the right tools in respect of the cost involved in order to safeguard labourer productivity and working environment.

LBT deployment in road projects requires attention if efficiency and a satisfactory final quality product are to be achieved. Intervention of labour operations in some tasks such as haulage and placing of road materials is required and provision of equipment of the right type and size, with clear timing and performance, require tactful organisation.

In Tanzania, studied projects executed using LBT, have revealed that about 35% to 45% of total cost is spent on tools and equipment as shown in Table 1.l.

Source: Kilagwa T.T., " M.Sc. Dissertation Report", 1996 pp. 117

In the selection of alternative strategies for road implementation, planners need to have data on availability and utilisation of machines, costs and achievable productivity. Project managers/implementers need to keep data on the right type of tools and equipment in relation to particular site conditions and environment. Together with that, proper assessment of performance of labourers and equipment, including analysis of constraints which affect their performance, is necessary.

The question of deployed tools and equipment appears to be simple, however, their design and quality have big influence on project costs. Selection/choice, costing and management of the same in the application of Labour-based techniques are aspects which can assist to ascertain products of appropriate and good quality. Also, they contribute to actual projects unit costs of works, potentiality of technology sustainability and determine profit margins of the contractors involved in these works.

This paper attempts to address four main objectives. Firstly, to develop a general: logical framework on how to select and specify tools; a logical sequential approach to costing requirements for tools and equipment; and to evaluate management aspects with respect to tools and equipment basing on the experience gained from projects executed in Tanzania. Secondly, to evaluate the practice in the use of tools and equipment in respect of selection and management. Thirdly, to assess the impact of mixing labour and equipment operations with the aim of attaining optimum level of labour and equipment input for efficient construction output. Finally, to outline factors that affect proper selection, costing and management of tools and equipment in deploying LBT and suggest possible mitigation measures basing on Tanzanian conditions.

The findings in this paper are based on the observations and field work done, which included literature review, site visits and interviews on LBT in roadwork practice, tools and equipment deployed, their standard, choice, costing and management aspects.

The study was restricted to observations on use of common general list of tools and equipment for key rehabilitation and maintenance activities. The list of activities, tools and equipment taken into consideration are shown in Table 1.2.

Based on practical experience, assumption of requirements for projects planning inputs and outputs, a certain sequential approach has been developed by the authors (Figure 1).Practitioners can utilise it as a check list on how to develop logical data inputs required at different implementation levels. Also, it can be the basis of control and monitoring of inputs during implementation. Costing of inputs such as, labour, tools, materials and equipment was one of the key aspects covered in this approach.

Selection/Choice of Tools and Equipment

To a great extent, tools and simple or intermediate items of equipment suitably selected for appropriate combination with labour, determine the +quality that can be achieved.

In LBT planning and logistics, special emphasis should be put on information on quantity and type of resources for different sites and tasks. Tools, equipment and labour productivity and availability contributes to the selection of optimum levels of combination between labour and equipment operations.

Availability of good quality tools and proper handling, storage and maintenance encourages good organisation of work. Skilful and harder working labourers can be discouraged by tools of poor quality. At the same time, any implement of road works by LBT needs to have access to basic intermediate equipment as a prerequisite to achievement of meaningful quality work.

Equipment can be made available through hiring or ownership and the implementers require a proper management set up to control selection and utility. Otherwise they will end up paying directly or indirectly for equipment which was standing idle on the site.

Selection of tools and equipment is governed by issues grouped into: institutional issues; operational issues and training.

Institutional issues are those that can be influenced by policy and decision makers. They could be said to be the foundation of all progress but are outside the control of field practitioners. They include, local manufacturers' capacity and development, quality assurance control, finance availability, procurement procedures and policy. These could also be termed as external managerial factors.

Operational issues are those covering operations and they represent those aspects of the project in full control of field practitioners, such as engineers, project co-ordinators and supervisors who influence practical aspects such as designs, specifications, procurement, performance data, costing, appropriate mix of equipment and maintenance of equipment.

Training issues are those covering works executor's performance. Equipment operators and maintenance crew, workshops managers, users of equipment and works supervisors should be trained to understand the influence of availability and utilisation.

In order to establish proper and effective deployment of equipment in LBT, the stated issues should be addressed accordingly and in timely fashion. Failure to address any of them could lead to establishing non sustainable technology.

In LBT, tools operated by labour are meant to produce more or less the same results (for roads where it is applicable) as bulldozers and graders do in equipment based technology (EBT). For sure their selection should be in line with anticipated productivity of labourers and specifications for tasks to be performed. Tools should be of acceptable shape, size, weight, balance, strength, sharpness and of good construction. They should be acceptable to the user and suitable for the environment.

In Tanzania, tools in use (on studied projects) were selected based on specifications stipulated in the standard guide by ILO. A technical manual for labour-based roadworks in Tanzania is to be produced by the Ministry of Works However, appropriate quality standards together with specifications in respect of various conditions are lacking among the implementers. Locally manufactured of tools targeted the agricultural industry and are far too weak to withstand the tough conditions of a road site. There are strong national and regional preferences for particular types of tools, shapes of heads and handles depending on environmental conditions, culture and availability. The selected tools are governed by works category and type; soils or material type, environmental conditions and availability.

The applicability of tools is governed by certain factors, such as, type of work/activity, type of soil or material (including texture) and working condition (such as weather). Therefore, it is impractical to try and have a universally applicable list of tools for certain purposes in Tanzania as the country has a wide range of conditions which affect the choice/selection of the appropriate tools.

Equipment deployed in LBT roadworks are an intermediate between those used for heavy construction and standard agricultural implements and so far there are few standard designs. The type of equipment employed varies from project to project even similar projects but located in different environment may employ different equipment. The question of choosing equipment to be used goes together with the mix of equipment operations with labour operations.

Equipment required for LBT should be able to withstand the adverse conditions likely to be encountered, that is, it should perform effectively over an acceptable working life. Also, it should be easily maintained and managed with locally available skills.

Simple or intermediate equipment covers a very wide range of items that can perform similar work although with a difference. Due to geographical and economic conditions, which vary from country to country, it is not easy to categorise and specify that one piece or design of equipment that works well in one area will be successful in another, this applies also for a very large country like Tanzania. For the selection of equipment key factors include availability, organisational set up, work and working conditions, reliability and utilisation.

In the studied projects, equipment was deployed for haulage of material for distances more than 300 m, and for watering and compaction. For rocky and dry gravel excavation, deployment of labour was not practical, hence equipment was deployed. Table 5.5 shows equipment and related activities in practice.

Costing of Tools and Equipment

For all road projects, the target of the client (the owner), the implementing agency (the contractor), and the user (the public), is to have a product that fulfils the intended purpose at the minimum possible construction and maintenance unit costs. Deployed tools and equipment should be costed and charged accordingly in the project , particularly when establishing cost estimates. The importance of this aspect has to do with issues of replacement, sustainability and continuity of projects. Once pieces of equipment cannot be replaced (at the end of their economic life) from the internal resources of the project, it implies that there exists a subsidy from other programmes.

Budgeting and cost forecasting are often most conveniently carried out by means of unit costs and unit rates. The unit rate for a task is the cost of performing the task per unit of output, the unit cost for a resource is the cost of the resource per unit of time, the cost of the resource per unit of the resource.

For LBT, proper and reliable consideration in the determination of requirements affects the entire project cost. Planners should have as one of their basic planning tools, sound knowledge of technology implementation methods including tools and equipment to be deployed.

Budgeting covers one of the key project management aspects. Usually the project budget is divided into many items, major ones being:

Influence of tools, equipment and labour on costs is substantial. Proper management of the same deserves emphasis, the implementer needs to have a check list of tactics that may be used to reduce costs.

A conceptual sequence for LBT works planning to attain costing inputs was developed by authors and compared with practical experience. The costing procedure is usually performed at the budgeting level, close to the end of the entire planning process.

Costing of tools relies on procurement set up, productivity outputs, sources, and estimation abilities. General experience indicated that the cost of tools was small compared to that of labour in roadworks that employed LBT. When the works were carried out by force account approach, labour was directly employed by the project executing agency, that is, government administrations, who unfortunately overlooked the importance of tools due to the assumed low costs involved. This tendency was attributed to lack of incentives to examine entire project costs and keep them low; together with ignorance of the impact of tools of poor quality on productivity. Private contractors worked on normal business principles, that is, project costs conscious issues take the lead.

General practice in costing use of tools includes:

• initial cost (market price);
• replacement rate in respect of activities involved (i.e. life span); and
• maintenance costs (where applicable).

Conceptual procedure for costing of tools to be deployed in the project as developed by the authors basing on practical experience is as outlined here below:-

• Determine the number of person days (pd) required per activity that should deploy tools (irrespective of tool type)

• Determine the total number of person days (f), for all (s) activities that should deploy tools (irrespective of tool type)

• Determine the cost of all tools to be deployed. Can be done as described in step 6 of Figure 1. The obtained amount is (e).
• Determine the cost of tool person day (CT_pd) assuming activity person days is equal to tool person days.

• Determine the cost of tools for each activity (CT_i)

Factors to be observed in application of this procedure include:

• Number of tools, which should accommodate possible losses, damages and salvage;
• The assumption that types of tools need not be regarded separately for simplicity;
• Cost should include all related logistics.

Although LBT emphasises an extensive use of labour rather than equipment, a significant part of the costs and attention of project implementers is devoted to the use of appropriate equipment. Use of equipment on site is the most costly operation during the whole roadworks execution period. Therefore it is of vital importance to spend time planning equipment use carefully so as to know the costs and ascertain all management aspects irrespective of the size or type or mode of acquisition of the equipment.

No matter the technology, the key problem where equipment is involved is effective and efficient management, availability and utilisation.

Whatever the approach, hiring or owning the equipment, the practitioner should have access to the equipment at a reasonable price which is determined or governed by sufficient supply.

In roadworks, rates to be charged against activities executed using any piece of equipment in the project, should clearly reflect all operating, investment and depreciation costs. This shall ensure replacement from internal resources allowing the project to be sustainable.

In LBT for roadworks, the costing of equipment doesn't differ from the practice adopted when deploying EBT. The issue remains vital as it contributes to effectiveness, efficiency and competitive implementation of the technology.

Based on experience from investigated projects, costing of equipment requires establishment of:

• quantities of work to be performed;
• standardised (in local environment) output rate;
• cost of that equipment per unit time; and
• duration the equipment shall spend on site for the project.

Simplified conceptual steps and relations that may be followed in costing equipment have been developed considering the above key inputs. Major assumptions made include: operations do not require deployment of different types of equipment with varying hire rates and output rates implying different utilisation. The following steps are proposed:-

• Determine activities (s) that shall deploy the same type of equipment including quantities of work for each activity (q_i) and duration (d_i) basing on local conditions output rates (r_i).

• Determine cost of having the equipment per unit of time (n), usually take prevailing market hire rates.
• Determine the cost of using the equipment on each activity (h_i)

• Determine total cost of the equipment while in use on site (m_i)

• Determine the actual equipment cost per unit of time of effective utilisation (w) and use it for costing and budgeting.

Management of tools and equipment

Management is a process whereby managers create, direct, operate and control complex organisation using human effort to achieve the intended objectives. The project management may be defined as the overall control of the process to optimise the major attributes of the process, that is, quality, schedule and cost. The project implementation starts with the planning phase where major decisions are made concerning factors such as, project size and complexity, location, time constraints, desired level of quality and resources inputs. Proper management of the planning and decision process is therefore extremely important, as it determines proper implementation of the construction phase.

Due to the investment involved in road networks, it is important and appropriate to consider managing it in a businesslike manner. That would allow roads construction and maintenance management issues to be termed as getting the right materials, equipment and people to the right place to carry out the right work at the right time and cost.

For general practice, practitioners need to be conversant with:

• handling and management of labour, equipment and other factors that affect productivity;
• general construction outputs and environmental factors that dictate deploying particular types of tools and equipment prior to project take off; and
• reliable and proper co-ordination with manufacturers of tools and equipment. Their experiences of technical problems encountered should be provided as feedback so that manufacturers can be exposed to actual needs in prevailing conditions for development and testing.

Management of tools requires acceptable organisational set up co-ordinating all key stakeholders. LBT practitioners should keep large stock of tools, and think carefully about tools they intend to procure. Based on practical experience, it should always be possible to estimate actual requirements, possible losses, and the quality of tools which would be durable according to environmental conditions. This might be expensive but will be worth it in terms of long term benefits. In order to keep track of tools, it is essential to set up simple tools planning and reporting systems. The information from records should be used to monitor and analyse costs, durability and condition of different batches of tools for purposes of improvement and setting a sustainable trend for future purchases and utilisation. Unfortunately, from studied projects, this does not seem to be the case in practice.

Broken, damaged and worn out items should be replaced or sharpened (where applicable) in the course of work execution. For the purpose of ensuring longer life, control of misuse or theft of tools, proper handling, storage and maintenance deserve emphasis.

For the tools to be deployed, the implementers:

• should be conversant with specific tools requirement in respect of different activities including designs, specifications and criteria of selection;
• should know the source of tools (suppliers and, or manufacturers) within the project locality;
• should know and adopt proper procurement procedures and set up of main and site stores; and
• should observe effects of different types of tools on labourers' productivity

Observed practice on tools management aspects revealed:

• During procurement, specification and design of tools are not observed to suit roadwork conditions. The procurement system of buying from cheapest quoted price contributes to poor quality tools, although this is not quantified. Also, it has been observed that some procurement officials cannot appreciate practical differences between some tools, they are committed to prices only. For example, the difference between mattocks and pickaxes was not clear to some purchasers. The purchaser assumed the two tools are for the same work.
• Verification of quality of tools is not done due to lack of testing facilities.
• Local manufacturers are not encouraged to produce tools specifically for roadworks. Requirements at regional, zonal or national level are not co-ordinated to give an indication of the demand potential.

Management of equipment

For equipment deployed: effective, efficient and reliable implementation can be achieved if key stakeholders are conversant with the following issues:

• different types of equipment required and available for the project and criteria to be used for selection;
• productivity and output rate of available equipment (rated and actual as per the existing conditions);
• modes of acquisition available and associated responsibilities in risk sharing;
• operator knowledge and training required; and
• proper scheduling of activities and monitoring utilisation to avoid paying for pieces which are idling unnecessarily on the sites.

Observed practice indicated the existence of a low level of availability and utilisation of equipment. This was attributed to lack of spare parts, poor maintenance, insufficient planning and co-ordination plus misuse of the programme equipment.

Mixing of Labour and Equipment Operations

In LBT there exists an issue of optimum combination of equipment and labour operations for required project delivery timing and quality achievement.

The mixing of labour and equipment operations depends on the activity sequence, construction output and labour and equipment input levels. General practise of LBT indicates that many activities are executed exclusively by labour using non mechanical tools such as hoes, spades, shovel and wheelbarrows while for activities which cannot be performed efficiently and effectively by labour such as haulage and placing of materials, equipment is deployed.

The concept of mixing is twofold: labour to work with the equipment on the same category of work or labour working on activities preceding or following those performed by deploying equipment.

The question of mixing operations done under LBT in roadworks, is dependent on the sequence of work activities and technological input. Approaching optimum mixes of operations that require labour input exclusively and those that deploy equipment solely, could be a complicated aspect. However, key issues to observe are labour outputs, equipment outputs and construction output. Gang size and co-ordination between performers of different activities, contributes to decisions of optimum level to be achieved, apart from type of equipment and tools deployed.

General observations shows that it would require about 25 labourers to support a 5 five tonne flat truck, hauling about 29 m³ of firm soil per eight hours day over an average condition haul distance of 1.5 km, for excavating, loading, unloading and spreading [Gichaga and Parker, 1988, pp 133]. This concept can be the basis for management decisions, for instance to hire on the basis of the critical labour and equipment input to ensure effective output, seeking always to approximate the maximum achievable output or optimum.

Observed practice in Tanzania is that normally a combination of tipper trucks (seven tonne) and tractor trailers is used for haulage of gravel whereas excavation, loading and spreading is done by labour. However, sufficient quantification of practical data is missing, weakening the argument for advocating adoption of similar practices in other places. The method appears to be efficient but it should be supported by field data and analysis stating surrounding limitations.

Discussion of Observations

• Non observance of quality of tools during procurement and weak emphasis on testing the same on delivery could be attributed to ignorance of practitioners about the impact of good tools on labourers output. Also, lack of encouragement of local manufacturers does not give room to practitioners to specify sources of tools and thereby monitor performance and participate in development, improvements and testing. Continuance of such practice could lead to problems such as, discouraging labourers, increasing costs due to increment in work days required and making the technology unsustainable.
• Procurement procedures which allow purchasers who are not conversant with site working conditions also contribute to non compliance with actual requirements. Losses incurred in this fashion could be significant if the technology were to be adopted nation-wide.
• Co-ordination among manufacturers and supervisors, together with training of users, would allow development and simplification of the technology.
• The logical approach on costing of tools and equipment for each activity is vital to establish a basis for budgeting, monitoring and evaluation of the implementation;
• Shortcomings exist in the practical implementation of deploying tools and equipment on costing and management. Also, awareness is lacking about impacts that can be realised with a proper mix labour and equipment operations in practice.

Recommendations

1. Labour-based technology for road construction, rehabilitation and maintenance in developing countries such as Tanzania is appropriate. Scientific interventions should target deployment of quality tools with emphasis on local manufacturing, towards application of the technology nation-wide. Potential needs at regional, zonal and national levels should be co-ordinated. Local manufacturers should be approached and encouraged to improve product quality with the target of satisfying roadworks site conditions without abandoning normal customers. Promotion of the technology at macro level should involve making it sustainable. Based on field studies it was found necessary to:

• standardise at zonal level, local environmental conditions affecting selection of tools and equipment, together with practical output rates;
• prepare guidelines on logical approaches to selection criteria and costing of tools and equipment; and
• document and publish the established and acceptable approaches and standards as a handbook for practitioners.

1. Deployment of tipper trucks (seven tonnes) for haulage of material has shown acceptable performance making the equipment acceptable for LBT. However, performance data such as output rates, costing approach and management should be quantified for development and sustainability. Practitioners such as contractors, require advice and guidelines on appropriate approaches to be adopted during implementation especially on choosing between available haulage alternatives.
2. A data collection and banking system should be established. Emphasis should be given to output rates, cost of inputs as monitored during implementation, tools and equipment losses and damages.
3. Awareness seminars should also include:

• importance of tool quality, selection criteria and costing. With elaboration on the effects of selection and quality on productivity hence person days required, implying costing.
• emphasis on procurement procedures which observe good quality together with cost constraints.
• involvement of local tools manufacturers to enlighten them on labour-based technology in roadworks site conditions.

References

Anderson, C, A. Beusch and D. Miles (1996) Road maintenance and regravelling (ROMAR) using labour-based methods, Workbook. ILO, Geneva

Beusch, A. and de Veen, J. J. (1991) Course notes: International course for engineers and managers for labour based road construction and maintenance programmes. ILO, Geneva

Coukis, B (1983) Labour based construction programmes, a practical guide for planning and management. World Bank, Washington, D.C.

Gichaga, F. J. N and Parker, A (1988) Essentials of highway engineering; with reference to warm climates. Macmillan, London

ILO (1988) Guide to tools and equipment for labour based road construction and maintenance. ILO, Geneva

Kilagwa, T. T. (1996) The economics of labour based construction and maintenance of rural roads in Tanzania: A dissertation report. University of Dar es salaam, Dar es Salaam

Ministry of Works, ATU (1995) Estimated potential for the use of labour based methods in road works in Tanzania. Ministry of Works, Dar es Salaam

ILO (1993) Labour-based technology; A review of current practice, seminar proceedings report and papers, Harare, 27^th September - 1^st October 1993 ILO, Geneva

Equipping Trained Labour-based Contractors — The Ghanaian Experience

Introduction

The issue of whether or not to equip trained labour-based contractors looks to have been put to rest with the acceptance of the fact that trained labour-based contractors need some basic equipment. The source of this equipment is the subject of argument.

The consensus which looks to be that of the majority now is that trained contractors should be equipped but "appropriately." What is considered "appropriate" can vary from country to country and even from region to region within the same country. Certain key points need to be considered in determining the degree of "appropriateness" of equipment packages. Apart from physical/terrain considerations, issues such as the performance of the existing construction industry and the equipment back-up services need to be given serious consideration. The matrix will be incomplete without a serious look at the pay-back period vis-à-vis the need for continuous "flow" of work for the contractor and the application of "fair" schedule of rates.

Based on the experience gained in Ghana since 1986 with a starting number of seven equipped contractors, this paper intends to look at the managerial aspect of the problem with a view to making salient recommendations that will go a long way to avoid and alleviate the problems encountered.

The Argument

There are two schools of thought on the issue of equipment supply to labour-based contractors. The first group's argument can be summarised thus:

The other group's argument can also be summarised thus:

Ghana belongs to the second group. The Ghana labour-based programme started in 1986. Up to date 93 contractors have been trained out of which 56 have been equipped.

The Status of the Ghana Programme

The Ghana programme started in 1986 with technical support of the ILO. Initially seven contractors were trained in the technology and supplied with the following pieces of equipment at a total cost of US$150,000 on loan, recoverable in four years with interest. This interest is applied to the original loan at the prevailing banking rules and regulations.

1. 3 tractors
2. 6 trailers
3. 1 tipper truck^*
4. 1 towed water bowser
5. 1 pedestrian roller
6. 1 chain-saw
7. A set of hand tools

* Hired by the contractor from a pool and released eventually to the contractor after the completion of the Trial Contract and during the execution of the first Standard Contract.

The subsequent equipment packages included a pick-up and a tipper truck which were released to each contractor from the onset.

One trained contractor has been expelled for non-performance. The programme, which started on a pilot basis in the Western Region and on a demonstration basis in Ashanti and Brong-Ahafo Regions, is now nation-wide.

Table 2 shows how the Ghana programme has been ‘prodding' on with equipment supply to trained contractors and the arrears required.

Table 3 indicates that only 8.9% of the equipment supply so far is from Ghana Government source. This shows a high degree of donor-driven equipment supply.

Factors Affecting the Contractors' Equipment Loan Recovery

Each equipped labour-based contractor is supposed to re-pay the equipment loan with interest in four years. The assumption is that the contractor will be guaranteed continuous work within this loan recovery period. Due to budgetary constraints in a developing economy like Ghana, this condition has been very difficult to fulfil. The contractors' performance in terms of the servicing of equipment loan is affected by the actions of a tripartite group made up of the contractor himself, the client and the loan management bank. The roles played by this group towards the speedy recovery of the equipment loan are summarised in Figure 1. Some few explanations may throw more light on some of the issues summarised in figure 1.

Competitive tendering has led to the procurement of 'unknown' pieces of equipment which have led to very low outputs. In every country there are some familiar and tested brands for every type of equipment. Selective tendering should be used as much as possible in order to take advantage of such experience.

The tipper truck contributes about 32% of the equipment loan but does not contribute significantly towards physical output since it is basically used for the long distance haulage of basic inputs like cement, fuel and iron roads. The tipper should either be replaced by a less expensive low-bed truck or the contractors should be assisted to procure the tipper truck after a period of two years within which the contractors' loan servicing performance would have been determined and the size of the original loan would have been reduced drastically.

The actions of the contractor should always be geared towards optimum productivity and hence speedy servicing of the equipment loan. The following are samples of bad construction management practices:

• use of worn-out tools
• long delay in servicing of equipment
• diversion of money meant for salaries and wages

Years of experience have shown that the following can further enhance speedy loan recovery:

• Denomination of the loan in the currency of the beneficiary country instead of that of the donor;
• Procurement of only time tested equipment; and
• Quarterly interest application instead of monthly.
• To date, 26 contractors should have finished paying for their equipment loans. Despite the numerous initial problems created by the above itemised factors, about 70% of this number have finished paying back the loan with the first completing in a record time of three years. The outstanding 30% have small balances to clear.

The Way Forward

There are currently 36 contractors yet to be equipped. There are 110 political districts in Ghana. Decentralisation of governance to the local/district level is being pursued vigorously in Ghana. The Department of Feeder Roads (DFR) is one of the targeted agencies to be decentralised. The vision of DFR is to evolve a district-based sustainable maintenance strategy with equipped labour-based contractors as the executors. There are 102 rural and 8 Urban/Metropolitan political districts in Ghana. It is envisaged that DFR will have on the average one labour-based contractor per district to be in charge of routine/recurrent maintenance works. Thus eventually 110 contractors, will be trained in the technology. The following are the emerging problems:

• Moving the number of trained contractors from 93 to 110, that is training 17 more contractors
• Equipping the current outstanding 36 contractors and the additional 17

DFR does not intend to train more new contractors until the problems with the equipping the outstanding 36 contractors appropriately have been solved. The current capacity is adequate for the maintenance works since the contractors who have finished paying for the equipment can be engaged to work in more than one district. The training will now concentrate on maintenance and management.

The outstanding 36 contractors need to be equipped appropriately to execute routine/recurrent maintenance. The Ghanaian labour-based contractors are going to be classified into three groups based on equipment holding and the type of work to be executed. The recommended equipment packages listed below were arrived at taking cognisance of the fact that DFR's main thrust for the immediate future is maintenance. The classification will ensure:

1. healthy competition in both quality and performance
2. early loan repayment
3. maximum utilisation of limited funds
4. larger coverage of contractors implying more coverage of the road network to be maintained.

The level of equipment supply should depend on the network condition mix of the country and the thrust of the road authority's operations. Ghana started from level one because at the inception of the programme, the condition of the network required massive rehabilitation works. The rehabilitation backlog has been cleared appreciably and the thrust of DFR's operation now is maintenance and the stabilisation of the existing network hence we can now afford to equip from level three. The recommendation therefore will be to look at your problem and equip contractors accordingly.

An incentive element is built into this approach because contractors at the lower level can either be assisted with further equipment to move up to the next level or they can privately augment their equipment holding to move up. On the other hand, due to non-performance and equipment loss, contractors can be demoted.

The "appropriate" equipment for each class is as follows:

This level of contractors can handle any type of rehabilitation and maintenance contracts.

Current package for equipped contractors so far:

1. 3 tractors
2. 6 trailers
3. 2 pedestrian rollers
4. 1 water bowser
5. 1 tipper truck
6. 1 pick-up
7. towed grader**

Minimum number of trained supervisors: 3

The cost of this package is about US$150,000.

** To be procured later by contractors.

This level of contractors will handle routine/recurrent and periodic maintenance contracts. The recommended equipment holding is as follows:

1. 2 tractors
2. 2 trailers
3. 1 bowser
4. 1 pick-up
5. 1 towed grader
6. 1 pedestrian roller

Minimum number of trained supervisors: 2

This level of contractors will handle only routine/recurrent maintenance contracts. The recommended equipment holding is as follows:

1. 1 tractor
2. 1 trailer
3. 1 pedestrian roller
4. 1 motorbike

The cost of the package is about US$30,000.

Most countries do not have local contractors and works are executed mainly by foreign contractors. Ghana at the inception of the programme had a vibrant construction industry dominated by local contractors and therefore taking the bold decision to involve the private sector in the programme instead of using direct labour was considered not too risky. Most countries are still using direct labour for labour-based works despite the clearly identified attendant problems. The creation of a vibrant core of local contractors can be started cautiously using small scale labour-based contractors.

Setting Up of Plant Pools

Ghana has enormous experience in the performance and contribution of plant hiring companies although this experience is largely limited to capital-intensive contractors. All the large government owned and privately established plant hiring companies have folded up and some are now using the remnants of their equipment stock to execute contracts directly. The reasons for the failure of these companies are numerous, the principal among them being:

• non-payment by contractors;
• large overheads
• acquisition of equipment by contractors due to high hire charges by hiring companies;
• a temptation on the part of the hiring companies to enter the construction industry; and
• high cost of haulage of equipment over long distances.

DFR has indirectly established a protected plant pool for the non-equipped contractors. This category of contractors are the only ones allowed to hire DFR equipment. The hiring cost of the equipment is deducted at source from payments for work done. This system has worked well till now because the non-equipped contractors are awarded contracts for the installation of culverts and the approach fillings. The scramble for equipment even in this system can be intensive.

Experience from other countries, like Tanzania shows that plant pools have not helped in the establishment of labour-based programmes because other stakeholders like capital-based contractors and farmers have increased the scramble for equipment to the disadvantage of the small-scale labour-based contractors. The situation becomes aggravated by the fact that the labour-based contractors need to ensure continuous work to keep up the morale of the workers, especially the casuals. Where resources are available, consideration should be given to the setting up of a protected plant pool as a supplementary equipment source to the current situation of a direct supply of equipment loans to trained labour-based contractors. The advantage is that the cost of hiring of any piece of equipment can be deducted at source by the client.

Conclusion

Trained labour-based contractors need equipment. The source of equipment can be: the client through equipment loans, outright ownership by the contractor or through protected plant pools. The equipment package should be "appropriate" for the work available in order not to overburden small-scale contractors with limitless loans. Labour-based programmes should be designed in such a way as to ensure an optimum mixture of equipment package instead of over-equipping contractors making them to feel that the programme is just a "safe haven" for the acquisition of equipment for other works.

Labour-based Programme: Uganda Country Paper

Background

The Government of Uganda has since 1986 reconstructed/rehabilitated a sizeable portion of its entire road network which necessitated the putting in place of an effective road maintenance system to protect the investment. The government has as one of it's highway network policies "the development of the local construction industry as a measure of ensuring a sustainable road network". The government has endorsed the labour based contracting option as one of its appropriate technologies.

The paper discusses some of the labour-based projects that are currently being or have been recently undertaken by government. The paper looks at the enabling environment provided by the government and how the implementers have been equipped in undertaking the different labour based projects/programmes.

A number of projects deploying labour-based technology are discussed. The use of this technology now has a firm foothold in Uganda as is evidenced by a number of such projects currently under design implementation or design.

Introduction

Since 1986 the Government of Uganda has reconstructed/rehabilitated 60% of the main roads and 20% of the feeder roads at a total cost of over US$300 million. There was therefore mounting pressure to have this enormous investment protected. In 1992, under the auspices of the Road Maintenance Initiative, an in-depth analysis of problems related to road maintenance was undertaken. This led to the formulation of revised policies and strategies which now form the basis on which the contracting option was adopted for roadworks. The government's medium-term highway network policy is the following:-

1. The provision of an efficient, safe and sustainable main roads network as a support for accelerated integrated development and consolidation of peace and national unity.
2. The development of the local construction industry as a measure of ensuring a sustainable road network.
3. To undertake alleviation programmes.

The government has adopted a deliberate policy of increased use of the contracting option with the target of contracting 80% of all roadworks by the year 2000. It was however noted that the local contracting industry was ill-equipped and could only develop gradually through affirmative action by government. Further experience had shown that potential small scale contractors lacked experience in quoting and tendering generally and hence it became extremely difficult from them to break into the market. The adoption of Fixed Unit Rates (FUR) was therefore found to be a most feasible approach.

The objective of the contracting initiatives is to develop in the local contracting industry a sustainable capacity for roadworks using small scale contractors. Both the Ministry of Works, Transport and Communications, and the Ministry of Local Government have embraced the policy of use of contractors as the most cost effective means of handling roadworks.

The Ministry of Planning and Economic Development has also co-ordinated various pilot projects with the aim of creating employment and alleviating poverty. A number of such projects are discussed.

The Labour-based Contracting Programme (LBCP)

Basis

The policy of the Ministry of Works, Transport and Communications (MOWTC) is to increasingly use private contractors for cost effective and efficient operations. The old policy, which was highly dependent on force account operations, had several constraints which the increased use of contractors aims at minimising.

The Labour-based Contracting Programme (LBCP) is financed by the Government of Uganda. Over US$3.0 million is annually budgeted for the programme. The annual turnover for a typical lengthman contractor (maintenance of 2km) currently stands at US$360.

The LBCP which started in January 1993, is an ongoing routine activity budgeted for annually under the road maintenance recurrent budget.

The programme targets all the manual routine maintenance activities that are normally carried out on both paved and unpaved (gravel) roads. The list of activities includes the removal of obstructions, drainage repairs, filling of potholes and grubbing (for unpaved roads only), vegetation control and tree planting.

Initially, tools were provided to the contractors. With the liberalisation of our economy, the contractors are responsible for provision of their own tools, which are readily available. The Ministry, however, still provides expensive tools like wheelbarrows to interested contractors.

The contractors are encouraged to have the following handtools:-

1. Wheelbarrow
2. Hoes
3. Shovels/spades
4. Rakes
5. Slashers

Fixed Unit Rate Mechanised Contracting Programme

Basis

According to the new maintenance strategies, all routine mechanised maintenance will ultimately (by the year 2000) be carried out by contract. Another strategy is that aimed at capacity building of local contractors. This programme was started to answer to the two above strategies.

This is an annual programme whereby the government of Uganda allows a percentage of the budget equivalent to at least US$3 million. This programme is intended to be a short term stop gap, which will eventually give way to local competitive bidding.

This programme is targeted at developing contractors to carry out routine mechanised maintenance. Activities include the following; grading, drainage repairs, spot regravelling of unpaved roads, pothole patching and shoulder repairs for paved roads.

In an effort to offer affirmative support to the emerging contractors, MOWTC adopted a policy whereby contractors can now hire idle equipment to the contractors. Those in a position to repair broken down equipment can repair and hire the same and utilise the equipment for a given period to offset the costs. Contractors are at the same time encouraged to acquire their own equipment.

The Uganda Transport Rehabilitation Project

Basis

The policy direction for the Ministry of Local Government (MOLG)is more less the same as that of Ministry of Works, Transport and Communications (MOWTC), with different targets for attaining local contracting capacity. The Ministry has among its objectives to introduce labour-based methods of road maintenance and feeder roads rehabilitation wherever cost-effective.

This is a component of the Feeder Roads Component of the Transport Rehabilitation Project. It is financed by the International Development Association (IDA), Nordic Development Fund (NDF), and Government of Uganda (GOU). The value of the works is US$8.7millon over a four year period starting in 1995. The annual turnover for a typical contractor is in the range of US$240,000 for rehabilitation works of about 20 - 25 km.

The relevant project activities include rehabilitation of 680km and maintenance of 880km of feeder roads in four districts of Mbale, Kapchorwa, Tororo and Pallisa of Eastern Uganda. The project proposes to use labour-based methods in combination with light equipment like farm tractors, trailers, pickups, motorcycles, pedestrian rollers etc.

Technical assistance (TA) has been provided to steer the programme. Notable in the TA team are local expert staff and this provides another area of local capacity building.

This project attempts to address the main constraint facing contractors, lack of equipment. The project has procured the necessary equipment and tools. A financing/leasing company has been formed and will be responsible for the leasing of the equipment. The leasing company will also be linked to the banking system, which will handle payments and provide working capital to contractors. This leasing arrangement has been a highly motivating factor for the aspiring contractors. Each contractor has been equipped with the following:-

1 pick-up
1 tractor with trailer
1 tipper
1 set of culvert mould
2 double drum rollers

The African Development Bank (ADB) Rural Feeder Road Rehabilitation and Maintenance Project.

Basis

Basically all feeder roads projects are required to apply effective routine maintenance on the rehabilitated roads.

The Project is financed by African Development Bank (ADB) (US$24.0 million) and Government of Uganda (GOU) (US$16.0millon). About 20% of the above funds is meant for manual routine maintenance.

Labour-based routine maintenance of 2400km of rehabilitated roads. Activities include removal of obstruction, drainage maintenance, pothole filling, grubbing and vegetation control.

The project provides the required tools, which include wheelbarrows, hoes, shovels, rakes, slashers, etc. Decentralised payments are made.

Re-Integration of Demobilised Soldiers Programme (RDSP)

Basis

The overriding aim of the project is to give demobilised soldiers a chance to be integrated in society through acquisition of skills and gainful employment.

The funding is through a grant of DM4.0 million from the Government of Germany.

The demobilised soldiers were formed into labour units responsible for opening and rehabilitating of feeder roads in ten districts. Activities include reshaping, selective regravelling, provision of concrete culverts and follow up maintenance.

The labour units are equipped with the necessary tools. Individuals are given the necessary skills in road rehabilitation, maintenance and fabrication of culverts.

MPED/ILO Labour Intensive Projects

Background

In Uganda, the ILO has also been instrumental in promoting labour-based programmes. This was initiated in 1981 under the Ministry of Planning/ILO Labour-Intensive Special Public works Programme (LISPWP). The Labour Intensive Works Unit (LIWU) was established in the Ministry to pilot and promote the various LISPWP projects.

LIWU is currently led by the Under Secretary of MPED as its Chairperson and a National Co-ordinator for the day to day operation of the unit. Technical personnel from other government departments are co-opted into the unit according to the needs of each particular project.

Some of the projects implemented by LIWU are discussed below.

This employment creation and infrastructure building capacity was implemented between 1985 and 1995 with a breakdown during the 1986-87 war. The project involved the building of schools, markets, the construction of boreholes and afforestation works with funding from UNDP (for the technical assistance) and the Government of the Netherlands for the investments (about US$9 million). During the first phase, implementation started in the districts of Moroto and Kotido, later on all investments were concentrated in Kotido district. Local people provided the local materials and served as unskilled labour on all the construction works. Some were trained on-the-job to do some skilled jobs like carpentry and masonry.

This was an emergency relief programme implemented in Semuto sub-country, one of the most war-affected areas in the Luwero Triangle. It was a quick intervention project designed to help people resettle in their homes. It involved construction of schools, co-operative stores and roads, protection of water points, and promotion of agroforestry funded by UNDP. One other important element promoted in this project was banking of mandays in exchange for building materials and opening up of agricultural fields.

This was a research programme funded by the Austrian Government to test the use of improved local building materials in a few selected villages both outside and within the above mentioned project areas. The research conducted involved development of stabilised soil sun-dried bricks and the use of papyrus for roofing.

The UNCDF/UNDP funded project involved the rehabilitation of over 600km of feeder roads in six districts. The rehabilitation of the feeder roads was done mainly by equipment intensive methods. However, operations like culverting were done by small local contractors. Maintenance was also contracted out to small contractors.

The integrated rural-development project was designed to reactivate the local economy of another war-ravaged area using the experiences of the Luwero project. The situation at the beginning of the project was that of an area with impassable, overgrown roads, poor hygiene standards with limited and seasonal sources of drinking water, a high number of uneducated teenagers and, a general lack of facilities to improve the agricultural production. Therefore, the project was designed to improve accessibility to and within the area, to boost the income of the population and to provide primary health-care. The project's outputs include: feeder roads, protected water points, easier access to credit for the poor, and improved hygiene. The project used a community-based approach, and many of the community's workers have acquired trade skills in carpentry, masonry, road reconstruction and maintenance works. These workers simultaneously boosted their income through the wages earned and can now access credit to improve their productive activities. A quantified analysis reveals that over 80,000 days of paid employment had been created by 31/07/97 and Ushs102,409,570 paid in wages to the local workers. In addition, Ug Shs 25 million was spent on buying local materials from the area. These included sand, hard core, timber and murram.

Experiences and Recommendations

Experiences from the different projects indicates that prospects for the labour based technology are bright. However, it is apparent that the following need attention:

1. At the moment, the implementing agencies are apparently initiating projects on their own. There is need for co-ordination between the different implementing agencies, especially in areas of policy and training.
2. Equipping of the implementers even with simple tools is still a major problem. Hardly any leasing/plant hire pool exists in this country. The impact equipping arrangement under the Uganda Transport Rehabilitation Project is yet to be assessed. Future projects should address this critical area.
3. Related to the problem of equipping is the use of wrong tools, evident in most projects. For example, when should a shovel be used instead of a spade. Training components should be a must in all projects.
4. Because of lack of co-ordination the documentation is basically agency specific. Standard labour based management guidelines should be developed.
5. There is limited continuity. Projects are initiated and implemented but there is hardly any follow-up thereafter.

It is hoped that the new project, Support to Labour-Policy Promotion Initiative, will address most of the above issues. The project aims at achieving the following:-

1. Labour-based approaches are integrated into the national planning process and a policy adopted.
2. Technical and administrative capacity to implement labour-based works is created in the public and private sector through training and the development of manuals and guidelines.
3. Knowledge on labour-based works for employment generation is increased among decision makers and the general public.
4. Labour-based techniques and use of local resources is further researched and developed.

Conclusion

Labour-based technology has definitely taken hold in Uganda. The programme has been received with particular enthusiasm by the operatives. The labour based approach offers much needed extra income to the operatives, especially rural dwellers, and inculcates a sense of ownership resulting in a protective attitude towards the infrastructure.

The Uganda programmes have a very high level of funding by the government, which is increased gradually over the years. This augers well for the sustainability of the small scale contracting programmes. Indeed the implementation of the already declared privatisation programme of government will ensure more opportunities for the contracting private sector.

Implementation of the recommendations cited above would definitely improve on the quality and content of the future labour-based projects.

References

Road maintenance management guidelines August, 1993

Four year main road maintenance programme June, 1994

Four Year Main Road Maintenance Programme First Annual Progress Report. April, 1995

Intech Beusch & Co. 1993. Labour based contract maintenance programme orientation course for district engineer Intech Beusch & Co. April, 1993

Ministry of Works, Transport and Communication (MOWTC) Works contract (Labour-based)

Proposal for contractor training support, MOWTC. Dec. 1993

Transport Rehabilitation Project Feeder Roads Component. Implementation manual Oct. 1994

Strategy for rural feeder roads rehabilitation and maintenance March, 1992

Technical consulting mission in support of the labour intensive works unit under MPED October 1996