Governments and City Councils often lack the capacity to provide adequate services to poor settlements. Communities, on the other hand, know the problems and can provide solutions, but often lack organization, know-how, funding and contacts.

Communities can be assisted to organize themselves into Community-Based Organizations (CBOs), representing the interests of the wider community. Through CBOs, communities can be involved in the planning, design, implementation, and maintenance of infrastructure works. This may require training and assistance. One of the advantages of using local labour is that local people are gainfully employed and the acquired skills remain within the community and can be used in maintaining the created assets. In addition, the local peoples capacity to organize themselves is improved and their negotiating skills enhanced.

Governments, City Councils and donors can subcontract certain activities, such as constructing a drain, to a CBO or to a local labour-based contractor. Such contracts develop local capacity, and optimise the use of local labour. These contracts can be developed together with Governments, City Councils, and Communities. ASIST is actively involved in supporting CBOs and in developing community contract documents and methodologies.