Community Partnered Procurement/

Community Contracting

Support to Sustainable Lusaka Programme

May 1999, Lusaka Zambia

SLP/UNDP/Irish Aid/ILO

Dr. M. Sohail Khan

Urban Infrastructure Unit, WEDC

Loughborough University

Contents 1ABBREVIATIONS............................................................................................................................................4

ACKNOWLEGEMENTS ...................................................................................................................................4

1 TERMS OF REFERENCE..............................................................................................................................5

1.1 BACKGROUND ..............................................................................................................................................5 1.2 OBJECTIVE....................................................................................................................................................5 1.3 ISSUES TO BE ADDRESSED SHOULD INCLUDE.................................................................................................5 1.3 METHOD.......................................................................................................................................................5 1.4 OUTPUT ........................................................................................................................................................5

2 FACT FINDING ...............................................................................................................................................7

2.1 WORKSHOP...................................................................................................................................................7

3 ACTION PLAN-COMMUNITY CONTRACTING RELATED ACTIVITIES.........................................8

4 CHECK LIST FOR CONTRACT DOCUMENTATION.............................................................................9

5 ISSUES FOR CONSIDERATION..................................................................................................................9

5.1 CONTRACT AND DOCUMENTS-A REMINDER..................................................................................................9 5.2 CHALLENGES AND OPPORTUNITIES IN INTRODUCING COMMUNITY CONTRACTING. .......................................9

Confidence Building: pilot contracts ...........................................................................................................9 Networking and linkages ............................................................................................................................10 Approvals and regulations ..........................................................................................................................10 Tapping available resources .......................................................................................................................10 City council’s input .....................................................................................................................................10 Transparency ..............................................................................................................................................10 Cash flow.....................................................................................................................................................10 Future for community contractors .............................................................................................................10 Monitoring system.......................................................................................................................................11

5.3 PROCEDURAL ISSUES ..................................................................................................................................11 Conditions and forms for community contracts...........................................................................................11 Size and duration of the community contracts.............................................................................................11 Description of the infrastructure works.......................................................................................................11 Productivity..................................................................................................................................................12 Wage levels and selection of community member........................................................................................12 Surplus or Profit level on contracts .............................................................................................................12 Risk management and insurance. ................................................................................................................12 Tools and equipment....................................................................................................................................12 Advance and final payment..........................................................................................................................13 Information sharing on contract conditions ................................................................................................13 Financial discipline .....................................................................................................................................13 Commissioning, operation and maintenance...............................................................................................14 Safety and quality ........................................................................................................................................14 Women and disadvantaged groups..............................................................................................................14 Infrastructure and sector linkages...............................................................................................................14

A SUMMARY OF FURTHER ACTIONS......................................................................................................14

Short term ....................................................................................................................................................14 Medium term................................................................................................................................................14

CONCLUDING REMARKS ............................................................................................................................15

APPENDICES....................................................................................................................................................16

APPENDIX 1 PEOPLE/ ORGANISATIONS CONTACTED AND SITES VISITED ...........................................................16 APPENDIX 2 DOCUMENTS REVIEWED................................................................................................................17

2

APPENDIX 3 LIST OF PARTICIPANT....................................................................................................................18 APPENDIX 4 ......................................................................................................................................................19 APPENDIX 5 ......................................................................................................................................................21 DRAFT CONTRACT DOCUMENT WITH CONDITIONS OF CONTRACT FOR LUSAKA SUSTAINABLE PROGRAMME....21 APPENDIX 6 ......................................................................................................................................................27 DRAFT CONTRACT DOCUMENT WITH CONDITIONS OF CONTRACT FOR LUSAKA SUSTAINABLE PROGRAMME....27 APPENDIX 7 ......................................................................................................................................................32 DRAFT CONTRACT DOCUMENT WITH CONDITIONS OF CONTRACT FOR LUSAKA SUSTAINABLE PROGRAMME....32

3

ABBREVIATIONS ASIST Advisory Support, Information Services and Training CARE International NGO CPP Community partnered procurement ILO International Labour Organisation LCC Lusaka City Council LWSC Lusaka City Water and Sewerage Company RDC Resident Development Committee SLP Sustainable Lusaka Programme SWM Solid Waste Management LSSP Local Support Service Provider MLGH Ministry of Local Government and Housing RDTS Road Training School ZWMA Zambia Waste Management Association WEDAZ Women Entrepreneurs Development Association of Zambia CISEP Centre for Informal Sector Employment Promotions KAVICA Kabwata Visual Cultural Association

ACKNOWLEGEMENTS I am grateful to the Sustainable Lusaka programme team members, ILO staff, local government officials, NGOs and donors agencies, such as UNDP and Irish Aid, who provided useful information during the visit. I am also grateful to the NGOs, community based organisations and community members for the participation in the workshop.

4

1 Terms of reference The mission to Lusaka was undertaken by the consultant for 4 days from 10 -13 May 1999 to support community contracts for urban services in Sustainable Lusaka Programme. The travel cost to and from Lusaka is not charged to this service agreement. The following ToR received in May 1999 were used as the basis for the visit and report.

1.1 Background This mission is part of the overall proposal for ILO support to SLP and covered under the agreement between the government of the Republic of Zambia and ILO. In the first formulation mission of the ILO flow charts have been prepared indicating the role and responsibilities of the stakeholders involved in community based solid waste management and infrastructure construction, operation and maintenance. The consultant will discuss the various contract situations and the role each stakeholder will play in them, will inform and discuss suitable contract documentation and procedures including issues such as provision of tools and equipment, advance payment and accident insurance.

1.2 Objective The objective of the mission is to conduct a two day training session on community contracting and small scale local contracting for officials from the Lusaka City Council, MoLGH and Lusaka Water and Sewerage Company, selected RDC members and representatives from NGOs such as PUSH, and CARE. The objective of the workshop is to define an action plan on (community) contracting and procedures within SLP activities.

1.3 Issues to be addressed should include • A general overview and background on community contracting, including experiences from other

countries. • The advantages and disadvantages of community contracting • The legal implications and ways to institutionalise community contracting documents and procedures. • The roles and responsibilities of the actors (client, contractor, and engineer/supervisor) related to the

contracts for solid waste management and infrastructure construction, operation and maintenance in Lusaka (see flow charts).

• Examples and checklists for the possible contract documentation suitable to be used in solid waste management and infrastructure construction and operation and maintenance.

• Establish contract procedures for solid waste management, infrastructure construction and operation and maintenance. This should include issues such as advance payments, tools and equipment, accident insurance, decisions on wage levels etc.

• An action plan on the use of contracting within SLP activities, indicating the actions which need to be taken, the responsible persons and time schedule.

1.3 Method SLP organises and invites the above mentioned representatives (approx. 30-40) to the two day training session. The consultant will have one day in advance for preparation and discussions with SLP staff.

1.4 Output The workshop procedures will be prepared by SLP. The consultant will submit a report to ILO ASIST Nairobi (electronic and hard copy) before 20 May, indicating: • The people met, • A brief overview of the discussions held and an assessment of the challenges involved in introducing

community contracting in the Zambia situation, • An overview of contract documents and procedures suitable for this specific situation (see above) and

5

• A detailed action plan on the use of contracting within SLP activities.

6

2 Fact finding A limited number of short interviews were conducted. The people met, organisations contacted and sites visited are listed in Appendix 1. Some of the documents reviewed are listed in Appendix 2.The key sources of information were the discussions and presentations during the workshop held on 11-12 May 1999.

2.1 Workshop The purpose of the workshop was to: introduce participants to the conceptual framework of community partnered procurement and

community contacting explore existing activities undertaken by the key stakeholders relevant to community partnering operationalise the concepts in the context of City council and Sustainable Lusaka programme

(SLP) develop an action plan for the activities related to community contracting.

Almost thirty people attended the workshop, which was planned in consultation with the Sustainable Lusaka Project ( attached as Appendix 4). The town clerk officially opened the workshop. He also mentioned that the city council have passed a resolution in favour of awarding work to community and have reserved 1.5 million per ward for community works. The participants took keen interest in understanding, discussing and applying the concept. A list of participants is attached as Appendix 3. During the workshop the discussions and presentations were focused on: overview and background on community contracting advantages and disadvantages of community contracting legal implications and ways to institutionalise community contracting contract documents and procedures.

The roles and responsibilities of the actors (client, contractor, and engineer/supervisor) related to the contracts for solid waste management and infrastructure construction, operation and maintenance in Lusaka using provided flow charts were explored The consultant introduced the conceptual framework of community partnering and contracts using very simple concepts and related the concepts to the experience of the participants. There were short presentations by some participants on their experience directly or indirectly related to community contacting. The discussion then followed by presentations using a checklist prepared by the consultant. Key issues that emerged from the discussions were identified jointly for further discussion. A series of worksheets, designed by the consultant, to explore organisational relationships, role and requirement of contracts were used. The groups were formulated to discuss, using worksheets, forms, conditions and procedures of the community contracts. Examples and checklists for the possible contract documentation suitable to be used in solid waste management and infrastructure construction and operation and maintenance were provided to the participants. For urban infrastructure, SWM, Water-Operation and maintenance and road maintenance, the contractual and managerial links were identified between the organisations involved. Three generic contract situations were identified on the basis of organisational links. 1 LCC and LSSP 2 LSSP and CBE 3 RDC and CBE

7

The working groups drafted the forms and conditions of the contract for the above situation consulting the resources material and sample contract provided by the consultant. The draft forms conditions are attached as the appendixes 5-7. The participants were provided with handouts and sample contracts. An action plan was developed for the activities related to community contracting. The original transparencies and a copy of the resources material is with the SLP offices for further use. The flip charts are also left at SLP office.

3 Action Plan-Community contracting related activities Activities By when Action by Remarks Approvals 1 LCC. Director of legal services 2 LSSP-Management 3 RDC/CBE 4 SLP-Stakeholder working group

30/6/99 30/6/99 30/6/99 30/6/99

LCC Management LSSP Board RDC/LCC Working group

Organisations will identify a key person to co-ordinate approval process.

Sharing information 1 LSSP 2 CBE/Communities 3 LCC

30/6/99 LCC LCC will take a lead. Information to other than current LSSP will also be provided.

Clarifying financial arrangements.

Not applicable for SLP but steps in other initiatives.

Identifying project areas

Not applicable for SLP but steps in other initiatives.

Identifying type of works and services

Not applicable for SLP but steps in other initiatives.

Identifying potential contractors

1/7/99 It varies with contract. It include LCC, LSSP, RDC.

See training proposal

Invitation of offer 15/7/99 It varies with contract. It include LCC, LSSP, RDC.

In case of LSSP inviting for offer, it could be verbal.

Contract package complete

1/7/99 SLP/LCC Please refer to the list of documents in section 4.

Entering first contract 31/7/99 LCC Training (partial) undertaken

15/7/99 LCC/SLP Training will be an ongoing activity as well.

Monitoring and evaluation(started)

15/10/99 LCC Initial procedures to be placed at the SLP level

Procedures-Contract management.

30/10/99 LCC SLP to take a lead.

8

The action plan needs to be worked in the context of the overall work plan. There is a need to co-ordinate the activities of various organisations involved. One way to do so is to plan the project realistically. Software like “Project 98” may be useful.

4 Check list for contract documentation 1. Obtain the authority required to sign the contact. Identify whether the contract is between two

organisations or two individuals or organisation and individual. 2. Clarify the legal status of contracting organisation/individual. 3. Check whether the required approvals have been obtained by the contracting parties. 4. Check whether the correct package, including conditions, is used for the intended service or

works. 5. Completeness of contract-Check for all the documents such as form of agreement, conditions,

specification, /plans/drawings. appendices, particular conditions, if any. 6. Check for the following provisions in the conditions:

• Parties are identified. • Roles of the parties clarified. • Authority and responsibilities • Payment mechanisms • Time for completion • Taking over • Extension of time • Defects • Default • Insurance • Disputes • Variations • Termination. • Safety

• Quality

5 Issues for consideration The following sections discuss some issues that may be beyond the scope of the short consultancy but are important.

5.1 Contract and documents-A reminder A contract is a lawful agreement between two parties. There may be different forms of contract; verbal, written or agreement by actions. Some agreement may not even have the recourse to legal enforcement like some of the relational or social contracts. However, in case of urban services related activities where the public sector is a partner, the main concern is legal and court enforceable contracts. The parties to the contract may agree on the constituents of the contract. In many cases the contract is written and the documents include conditions of contracts, specification, drawings, and any other document that the parties to the contract to include as a part of contract document. In the action plan, SLP is to co-ordinate the packaging of contract. The forms and conditions developed in the workshop could become a part of the package. The workshop provide a forum for open discussions on contractual issues.

5.2 Challenges and opportunities in introducing community contracting.

Confidence Building: pilot contracts There may be a lack of confidence in the parties to initiate implementation. It is suggested that a small, simple and short contract be tried in the beginning. The whole exercise should also be taken as

9

a learning experience by the parties involved. Proper documentation of the process is important for learning by doing.

Networking and linkages Linking and co-ordinating with City Council is essential as that link will determine the chances and scope of institutionalising the community contacting. A difficult area of networking is handling local politicians. The local politicians should be informed about the activities and their resources could be used. It is naïve to assume that in urban settlement there will be no political interventions. City council and RDC will be the lead organisations to handle such situations.

Approvals and regulations Approvals from City Council may be initially be by-passed on the basis that SLP is a special programme and experimental in nature. Such an approach may be useful in the beginning but the proper approval cycles should be taken seriously and approvals should be obtained as soon as possible. Both formal and informal approaches (convincing by personal contacts) should be used to get the required approval in a reasonable time frame. SLP will have to play a key role and the donors may have to back SLP to get the approvals.

Tapping available resources Communities in the selected areas have skills and capacity. It is essential that during implementation, such capacities be supported. Incorporation of available masons and artisans in the CBE will be very useful.

City council’s input City council’s inputs like supervision, timely processing of bills in running of the community contracts will be crucial. An atmosphere should be created where the official starts using community contracting as an option for procurement in the SLP project and beyond the programme. Gradually, the officials and LSSP could be trained as trainer for community contracting.

Transparency Lack of information will lead to suspicions especially when money is involved. All the partners should be informed about the development in the community contracting. RDC should be held responsible for channelling down the information to the wider community.

Cash flow Cash flow management, at council, LSSP and community level, is crucial. No contract should be awarded unless money is in place for disbursement. The organisations like LSSP, RDC and CBE will not have any financial padding to absorb shocks from lack of payments.

Future for community contractors Options like registering community groups as societies or companies should be explored as soon as community contracting starts. Not all of the community based economic groups will be willing or able to become active outside the community, but a small proportion of them may turn into small enterprises. NGO may like to explore the options of registering themselves or a part of their organisations as companies to capture more works. There may be instances where NGOs are using a community group as sub-contractor to implement work in other areas. Such activities need to be supported. Procedures for registration as societies and companies should be explored, barriers to be identified and solutions to be found. One way is organise a short workshop inviting registrar of companies, registrar of societies, NGOs, small contractors, and city council.

10

Monitoring system There is a need to start thinking about performance monitoring and impact evaluations of small scale contracts including community contracts. One way to monitor is to develop performance indicators. A performance indicator can be defined as an item of information collected at regular intervals to track the performance of a system. Indicators are essential in monitoring and evaluation. Performance indicators (PIs) are collected in many complex systems which deliver a service. Four conditions which can be considered necessary for the development of a coherent set of performance indicators are:

• A clear conceptual framework within which the indicators are derived • A set of purposes that they are intended to serve; • A selection process to determine which indicators are to be applied and how; • A specification of how the indicators fit into the management and decision process.

I will be happy to assist in developing such indicators.

Tracing studies To establish the value for money for dissemination of information, training and equipment and tools distribution, in the long run, some tracing studies will be useful.

5.3 Procedural issues

Conditions and forms for community contracts. The draft form of contracts and conditions can be used with some modification, if required to handle community contact between:

1 LCC and LSSP (see appendix 6) 2 LSSP and CBE (see appendix 7) 3 RDC and CBE (see appendix 8) Those drafts have been discussed in detail during the workshop by the groups. The advantage with starting with those is that the partners will feel that they have drafted the conditions. This feeling will further enforce the attitude of partnering. This could be taken as working documents and later on improved, on tbe basis of experiences. There is also a need to discuss these conditions with the wider community groups. A common set of clauses with some modification came out as a practical solution to handle various organisational relationship. These conditions can be used for the contacts in Solid Waste management, maintenance, Water-Operation and Maintenance, and for Infrastructure. There will be some fine tuning required in the light of the service and works required.

Size and duration of the community contracts The criteria to adopt for the initial contracts is: the duration should be as short as possible, the value as close to what community is already doing, standards as close to what the community is already using.

Description of the infrastructure works It is beyond the scope of this consultancy to address the issue of appropriate specifications for works and services. Specifying services in such a way that service contract can be monitored is very important. A pragmatic approach to monitor service contracts (such as SWM and maintenance) could be to start with simple requirements for activities, document those, and then gradually add the

11

requirements. It is very tempting to specify the highest quality possible without consideration of the ground realities.

Productivity Even if some of the community activities are not paid fully by the contract, all the activities under a contract should aim for an optimum level of productivity. Documenting the existing productivity level and gradually improving it will be one way for continuous improvement. Contract

Wage levels and selection of community member Workers should be paid in line with the market rates. Contributions, if any, by the community should be calculated separately. The basic criteria for involvement of CBE or workers should be the level of performance. Work should be accessible to all, but continuation of work should take place on the basis of performance. Continuation of work on the basis of productivity is a pragmatic approach from the enterprise development perspective. However, its misuse could lead to the selection of only friends and relatives and community members who have not had a chance to work in the project maybe never get a chance to prove themselves. There is a need to strike a balance. Some actions are suggested.

• The selection system should be transparent and agreed upon by the community. • There should be a mechanism for exit of sub-standard workers or CBE. • The first chance should be given to all but re-entry should be performance oriented. • Superior performance should be encouraged. A simple mechanism could be a commendation

certificate. • A proportion of work force may be reserved for disadvantaged group including people willing to

improve their productivity but have conditions restricting their development. The level of proportion should be agreed by the community.

Care should be taken to discourage any attempts to monopolise access to work. The key is to keep the process as transparent as possible. It is recommended that a procedure for selecting workers be developed in a participatory manner with the wider community, which is more performance, productivity and output oriented. After establishing such procedure, it should be applied with community participation.

Surplus or Profit level on contracts LSSP and/ or the CBE/RDC should make some profit (for companies) or surplus (for societies) to be sustainable. The estimates should make provisions for at least 10% initially which could be treated as management expenses.

Risk management and insurance. All risks not in control of the contractor are risks of the client. In some cases, it may be possible that both client and contractor lack the capacity to handle risks. Options of insurance should thus seriously be considered. YWCA mentioned during the workshop that they have arranged a group insurance. It is strongly recommended that options for insurance should be actively explored. SLP may take a lead in the investigation. A workshop involving stakeholder and the insurance company can be organised as a starting point. It was not possible for me to explore this issue further during such a short time.

Tools and equipment. During site visits I have seen that construction work is common in the project areas. I have noticed block-making yards, small steel works stores, carpentry shops and plumbing works. A special care

12

should be taken in providing the tools. The basis on which the standard tools kits are prepared need to be checked for applicability. PUSH is already operating on the basis of tools and equipment banks in some cases. If a similar approach is adopted, the income from such activities could be used for maintenance and replacement of such tools and equipment. I have not seen any evidence of safety equipment being used in Lusaka construction work while passing by. I recommend that SLP take into consideration the safety requirements particularly in waste management contracts.

Advance and final payment Frequent billing and prompt payments should be able to address the issue of cash flow at the beginning of the contract. Introduction to supplier’s credit for a short duration may also be useful. I do not think that there is any justification for paying an advance for mobilisation if the contractor is already in the locality. In some unusual situations the advance may be given to LSSP or CBE/RDC against some financial or social collateral including personal guarantees. I do not recommend advance payments on day to day basis.

Information sharing on contract conditions The conditions of contract and procedures should be explained to the community and they should be given the chance to object to it. A wider level consultation may be useful. This is particularly important as different sections in community may have different stakes. The key is to keep the process transparent and accessible to as many people as possible. The partners, parties to the contract, should own the conditions of the contract, which they will sign. If the unilateral conditions are to be enforced then there may be a lot more cost incurred for ‘policing’ the contract. If each partner feels that he/she is getting a fair deal and is clear about the roles and responsibilities then there are fewer chances of contract breaches. Many breaches in contract results from understating the implication of the contract and in some cases distrust on the other party. The partners to the contract should be responsible for jointly reviewing and modifying the conditions. It is recommended that a systematic review system should be introduced. A simple beginning could be opening a register and documenting the problems with contracts. LSSP and CBE should ensure that the information related to contracts is accessible to the community member.

Financial discipline Community based works are more demanding as far as transparency and accountability are concerned. The project is in the end accountable to the community. The project staff could be liable for all sorts of accusations, and also community members may start accusing each other. A very reliable defence against such incidences is to have a very simple and clear record of financial transactions. The following are some of the suggestions to improve financial discipline.

• Separate account for each infrastructure contract both in LSSP and CBE. • Separate account for SWM by RDC for income and expenses. • Separate account for maintenance of roads. • Separate account for operation and maintenance of water facilities. • Separate accounts for contributions to O&M of water and maintenance of roads • Separate accounts for overheads and management fees and other surplus in LSSP and RDC. The

amount generated in this account could then be used as collateral for future works. • Regular auditing. Initially six monthly audit is recommended.

13

• Sharing summary of financial information with the community. The information should be in the local language.

Commissioning, operation and maintenance A procedure for handing and taking over of new works is recommended. This will indicate an end of a contract and beginning of another. Involvement of the legal owner of the assets like city council should be ensured during handing and taking over.

Safety and quality I recommend no compromise on the issues of safety and quality for the execution of the project. Even if the project has to bear financial cost for safety and quality work, it is worth the funding, as the cost would be recovered in future. Appropriate standards and specifications should be used. Programme code of practices for safety and quality control should be developed and enforced by the partners. It is recommended that a register should be opened to document all the accidents and follow -up actions. This may in future help in claiming discounts for the insurance premiums.

Use of appropriate quality testing should be considered.

Women and disadvantaged groups Draft conditions provide a target proportion of women work force. Access should be provided to the women and disadvantaged groups in the decision making and implementation.

Infrastructure and sector linkages There is a need to see whether the infrastructure is of a stand-alone kind, such as hand-pumps, or is dependent on off-site infrastructure. The other aspect is that of linkages with other programmes such as health and education. If the details about such dependencies are not sorted out in advance there is a danger of doing bits and pieces with the attendant risks that the development integrates neither at site nor at the secondary level. For example, had the storm drainage and solid waste management been integrated, the problems with the cleaning would have been minimised.

A summary of further actions Following are some of the action required.

Short term • Communicate to all the stakeholder the action plan with the action from them and a target date. • Mobilise the required approvals seeking mechanisms. • Dissemination of information about the community contracting to community. • Complete the initial training inputs. • Completion of contract package. • Organise a pre-contract meeting with the partners. • Start the first community contract. • Documentation of process • Monitoring -development and use of performance monitoring indicators. • Follow up training/Visit by the consultant (October/November)

Medium term • Needs for further training to be identified. • Explore insurance options

14

• Explore registration options • Links with City council institutionalised. • Development of: procedures, guidelines, code of safety and quality. • Continuous monitoring. • Evaluation • Revision of procedures. • Dissemination to other councils, ministries and agencies. I will be happy in continuous assistance to the ILO for achieving its objectives.

Concluding remarks There is a need to start action on the ground soon but in a calculated manner. All preparation should be reasonably completed before starting the first community contract. The first experience should be simple, short and under close supervision. To ensure the success of the first contract adequate resources should be in place. A strict adherence to the action plan should be ensured by SLP and other partners. I will be happy to visit Lusaka again in six month time (October / November) to review the progress and hold a community contracting clinic/ training. I will be available to the project for further inputs in relation to the monitoring, training, procedure development or any pertinent issues.

15

Appendices

Appendix 1 People/ organisations contacted and sites visited

S/No NAME ORGANISATION DESTGNATION 1. Mr F. Muwowo Sustainable Lusaka Programme (SLP) Project Manager 2. Ms L. Mate Sustainable Lusaka Programme (SLP) 3. Mr. Bai K.M.

Bojang UN-World Food Programme Advisor/Deputy Country

Director 4. Louis Ndaba-

Hagamye International Labour Office Director Area Office Lusaka.

5. Ms M. Mpande S L P 6. Ms. F. Chikwesha PUSH-NGO Community Development

Coordinators 7. Mr.J.C. Charlier UNDP/UNCDF Programme Specialist 8. Ms.E.M. Mwanza Irish Aid Urban Community Programme

Sites visited 1. Kamanga 2. Ngombe 3. Mandevu

16

Appendix 2 Documents reviewed 1. Barlow, J. et.al (1997) Towards Positive Partnering Revealing the Realities in the Construction Industry,

The Policy Press, UK. 2. Business Advisory Services, Strengthening Small and Micro Enterprises and their Co-operatives and

Associations ( SSMECA), ILO and Small Industries Development, Tanzania. 3. Client/ Consultant Model Services Agreement Agreement General Conditions Particular Conditions

Appendices A,B, and C Test Editions (1998) Federation Internationale Des Ingenieurs-Conseils, Switzerland.

4. Community contracts used for procuring mobilisation services for Solid waste Management, Tanzania. 5. Community contracts used for procuring Primary Health Services, Tanzania. 6. Conditions of community contract in Hanna Nassiff, Tanzania. 7. Conditions of community contract procedures used in NHDA, Sri-Lanka. 8. Conditions of community contract used in Cuttack, India 9. Conditions of Contract for Building Works of A Jobbing Character ( JA/C90), JCT, UK. 10. Conditions of Contract For Works of Civil Engineering Construction 4th Edition( 1987) Parts 1 and 2 with

Amendments (1996), Federation Internationale Des Ingenieurs-Conseils, Switzerland. 11. Conditions of contract used by Lusaka City council and PUSH 12. Conditions of contract used in Bo Sevana, Sri-Lanka. 13. Conditions of contracts used by Lusaka water and sewerage company for concession contract 14. Conditions of contracts used in Sindh Katchi Abadi Authority, Pakistan. 15. Cotton, A.P., Sohail, M. and Tayler, W.K.(1998) Community Initiatives in Urban Infrastructure, WEDC,

Loughborough University. 16. Grassroots Management Training Business Training for Micro-entrepreneurs (1997), ILO. 17. ICE Conditions of Contract Minor Works 2nd Edition (1995), Thomas Telford, UK. 18. Jennings, M.(1997) Solid Waste Management A Report prepared for Irish Aid , November 1997

(unpublished) Sustainable Lusaka project. 19. Jennings, M.(1997) Solid Waste Management A Report prepared for Irish Aid, April 1998 (unpublished)

Sustainable Lusaka project. 20. Jennings, M.(1998) Solid Waste Management Report of 3rd visit September 1998, prepared for Irish Aid

(unpublished) Sustainable Lusaka project. 21. Lusaka City Council (1998) Draft Report Ngombe Consultations Stakeholders Workshop 14th May 1998. 22. Micro Finance Services, Strengthening Small and Micro Enterprises and their Co-operatives and

Associations ( SSMECA), ILO and Small Industries Development, Tanzania. 23. Project Document for Sustainable Lusaka Programme 24. Short form of contract Agreement General conditions Rules for Adjudication Notes for guidance Test

Edition (1998), Federation Internationale Des Ingenieurs-Conseils, Switzerland. 1 Sohail, M. (1997) An investigation into the procurement of urban infrastructure in developing

countries, PhD, Loughborough University 1. The Engineering and Construction Contract 2nd Edition (1995), An new Engineering Contract Document,

Thomas Telford, UK. 2. The Short Contract (Engineering and Construction) (1997), An new Engineering Contract Document,

Thomas Telford, UK.

17

Appendix 3 List of participant

S/No NAME ORGANISATION 1. Ms Irene Mulundika LCC 2. Ms Mirrian Siavuta LCC 3. Ms Mable Lubingu YWCA Mr Kapuamba Mbanga LCC 5. Mr Chipopa Kazuma WEDAZ 6. Mr Wallace Mumba LCC 7. Mr Bornwell Matawe LCC 8. Mr Crispin Nyirenda LCC 9. Mr Fraxon Sinyinza RDC( MANDEVU) 10. Mr Weluzani Phiri RDC (NGOMBE) 11. Mr Daniel Mukonde Zambia Waste Management Association 12. Mr Noel Kalimamukwento LCC 13. Mr Rueben Lifuka ZWMA 14. Ms Florene Siamicheko KAVICA Ms Naomi Kanyenbo CISEP 15. Ms Emma Mwanza IRISH AID 16. Mr Cledwin Mulambwa MLGH 17. Mr Able Chiteshe MLGH 18. Mr Enoch S. Mwape LCC 19. Mr Chail Nondo RDTS 20. Mr Richard Kasingo RDTS 21. Mr Hideyuki Wakasa JICA 22. Mr Kapotwe LCC/JICA 23. Mr Jack Mwiimbu LCC 24. Dr K.B. Sharma SLP 25. Mr Doughlas Singanga LSSC 26. Ms Chilufya Siwale YWCA 27. Mr Lyford Phiri RDC(KAMANGA) 28. Mr Mathew Mbulu LCC 29. Ms Florene Chibwesha PUSH-NGO 30. Mr Francis Muwowo SLP 31. Ms Litumedo Mate SLP 32. Ms Martha Mpande SLP 33. Mr Maric Kangamba CARE INTERNATIONAL.

18

Appendix 4

COMMUNITY CONTRACTING WORKSHOP PROGRAMME TO BE HELD FROM 11TH MAY - 12TH MAY, 1999

______________________________________________________________________ TUESDAY, 11TH MAY, 1999

DAY ONE

08.30 hours - Registration

09.00 hours - Introductions

• Official opening by the Town Clerk

09.15 hours - Introductory remarks by SLP Project Manager

09.30 hours - General Overview of Community contracting by Resource

Person.

10.00 hours - TEA BREAK

10.30 hours - Sharing of experiences from stakeholders working with

communities in construction, waste management and Service contracts

• PUSH - NGO

• CARE - PROSPECT

• Irish Aid -Urban Community Programme

• YWCA

• LWSC

• LCC

• Waste Management Association

12.45 hours - LUNCH BREAK

14.00 hours - Emerging key issues

• Implications for SLP

15.30 hours - TEA BREAK

15.45 hours - Wrap up by Resource Person

17.00 hours - BREAK for the DAY

19

WEDNESDAY 12TH MAY, 1999

DAY TWO

08.30 hours - Registration

09.00 hours - Guidelines on development of community contracts by the Resource

Person

09.30 hours - Break into groups (working tea)

11.30 hours - Reports from groups

12.45 hours - LUNCH BREAK

14.00 hours - Action Planning

15.30 hours - TEA BREAK

15.45 hours - The way forward by the Resource Person

17.00 hours - Official closing of workshop by SLP Project Manager

20

Appendix 5

Draft Contract document with conditions of contract for Lusaka Sustainable Programme (This could be applied for the contractual relationship between City council and LSSP for example in urban infrastructure) Form of Contract The first party to the contract is: Lusaka City Council a corporate body constituted under the Local Government Act CAP 281of the Laws of Zambia The Client is: Name Address: Telephone/Fax: The Client is represent by the following person or his/her nominee: Name: Address: Telephone/Fax: The second party to the contract is: The Community Contractor is (INSERT THE NAME OF LSSP) Name: Address: Telephone/Fax: The Contractor is represent by the following person or his/her nominee: Name: Address: Telephone/Fax: The Works/services are (LIST THE WORKS/SERVICES) The site is (LIST THE SITE) The period of reply is (INSERT NUMBER OF DAYS) working days. The Starting date is ( INSERT THE DATE) The completion date is ( INSERT THE DATE)

21

The total contract sums is (INSERT THE PRICE) The parties of the contract have mutually agreed to carry out the works in accordance with the ontract in the true spirit of partnership.

ks/services within the contract duration for the payment made by e client according to the contract.

IST THE DOCUMENTS AS PERREQUIRED IN THE INDIVIDIUAL CONTRACT)

NCLUDE TO OR EXCLUDE FROM THE FOLLWING DOCUMENTS AS APPROPRIATE)

der.(or equivalent document like minutes or letters?)

4 without examples could be any correspondence or special condition)

?)

Site information (for example, where it is etc.)

ayor………………………………….

own ……………………………………

ith full names and addressees.

ignatures of the Contractor(INSERT THE NAME OF THE LSSP) with full names and addressees.

ATE

ignatures of the Two Witnesses with full names and Addresses.

c The contractor shall perform the worth The following documents are part of the contract. (L (I 1 The Agreement 2 The contractor’s offer or ten3 The conditions of contract

The appendix to conditions of contract. (In some cases you may like to add or subtract changing the conditions

5 Reference to drawings 6 Reference to the specifications 7 Price list (items of works / services and may include materials, labour, tools and equipment8 Works information (for example about the nature of work like construction on waste etc.) 9 Signatures of the M T (w S D S

22

Conditions of Contract 1 General 10 Actions 10.1 The Client and Contractor shall act as stated in this contract and in a spirit of mutual trust and co-operation. 11 Definitions of terms a) Client mean the Lusaka City Council b) Contractor means (INSERT THE NAME OF THE LSSP) C) Agreement means this contract for the works and services as stated. For the definitions of the terms the normal usage of the language and the construction industry norms to be referred. 12 Communications 12.1 Every communication which this contract requires will be in writing. Any verbal communication will be confirmed in writing. 12.2 A communication has effect when it is received at the designated address of the recipient. 12.3 If this contract required the parties to reply to a communication, unless otherwise stated in this contract he/she replies within the period of reply. 13 The Client’s ’s Authority and delegation 13.1 The Client may issue reasonable written instructions which the Contractor shall carry out. 13.2 The Client may give an instruction which changes the Works/Service. 13.3 The Client, after notifying the Contractor, may delegate any of his actions and may cancel any delegation. 14 Access to the site 14.1 The parties to the contract facilitate the access to the site. 14.2 The parties to the contract will take reasonable care in co-ordinating the different agencies involved in the service provision. 15 Early warning 15.1 Each party to the contract, gives an early warning by notifying the other as soon as either becomes aware of any matter which could increase the contract sum, delay completion or impair performance of the works in use. The partners will co-operate in making and considering proposals for how the effect of the matters ( causing delays, cost increase etc.) can be avoided or reduced. 16 Law 16.1 The Law applicable is the law of the country where the site is. (law in general, contract law in particular) 2 The Contractor’s main responsibilities 20 Providing the works 20.1 The contractor provides the Works/Services in accordance with the contract. 21 Subcontracting and people 21.1 If the contractor subcontract work, even for labour only, he/she is responsible as if he had not subcontracted. 21.2 The preference will be given to the worker living in the locality of the site

23

21.3 The preference will be given to the women workers given that the workmanship is of equal quality. 21.4 The Contractor will strive to achieve as much a higher proportion of women workers as possible. A proportion of (INSERT A PROPORTION SAY40% ) will be taken as a minimum target. 3 Time 30 Starting and completion 30.1 The works to be completed within the contract duration. 30.2 The parties to the contract will take necessary steps to achieve completion within time and discourage any time overruns. 30.3 If any party, incur damages due to the delayed completion, necessary steps will be taken to mitigate the damages and for reasonable compensation. 31 Programme 31.1 The parties,, will help each other to produce a work plan. 4 Testing and Defects 40 Correcting Defects 40.1 The defects resulting from the mistakes or ignorance of the contractor will be corrected by the contractor. 40.2 The defects due to design fault will be rectified at the cost of the Client 5 Payment 50 Assessing the amount Due 50.1 The Client assesses the amount due every ( INSERT A NUMBER OF DAYS SAY14th DAY). 51 Payment 51.1 The payment is made within one week from the date of assessment. 6 Compensation events 60 Compensation events 60.1 The contractor will be compensated if the scope of work and duration changes due to instruction/s of the Client. 60.2 The partners (parties to the contract)will consider for compensation to the effected partner if the scope of the Works changes due to factor/s causing the change/s are not under the control of the Contractor and/or the Client. 60.3 The compensation will be agreed between the parties and should be fair and reasonable. 7 Insurance 70 Insurance 70.1 The partners, will agree on a strategy to provide insurance cover for the:

1 Loss of or damage to the works, plant and material 2 Loss of /or damage to property and liability for bodily injury to or death of a person arising from or in connection with the provision of the works. (CHANGE THE CLAUSE IN THE LIGHT OF THE POLICY AVAILABLE IN THE MARKET). 8 Safety 80 Goal

24

80.1 The goal of the parties is to complete the project with no accidents. 80.2 The partners(parties to the contract) will participate in the regular safety meetings. 80.3 The partners(parties to the contract ) will assess the requirements for safety equipment and training. The cost for the safety will be covered in the contract. 80.4 The partners (parties to the contract) will develop and use a ‘Code of safe practices’ for the job

site. 9 Disputes and termination 90 Settlement of Disputes 90.1 A party may notify the other party that he disagree with him/her on any matter under or in connection with this contract within two weeks of becoming aware of the disagreement. Unless settled by the parties, either Party may submit a notified disagreement to an independent third party for dispute resolution. 90.2 The third party settles the dispute by notifying the parties of his decision. 91 Termination 91.1 Parties can mutually agree to terminate the contact. 91.2 Parties can terminate the contract, after notification, on substantial non-compliance of obligation from other party. 92 Assurance of transparency 92.1 The Client shall be entitled to cancel the contract and to recover from the Contractor the amount of any loss resulting from the such cancellation, if the contractor shall have offer or given or agreed to give to any person any gift or consideration of any kind. 92.2 The Contractor shall be entitled to cancel the contract and to recover form the Client the amount of any loss resulting from the such cancellation, if the Client shall have demanded or agreed to take from any person any gift or consideration of any kind. 100 Worker’s considerations . 100.1 No worker below the age of (check the legal age of a child in Zambia) shall be employed on the works. 100.2 The Contractor shall pay not less than fair wage to the workers. The fair wage will not be less than the minimum wage as defined in the relevant law of the country. 100.3 The parties to the contract will be responsible to ensure that no worker is forced to do the works. 100.4 The parties to the contract will be responsible to ensure that there is no sexual discrimination on the works. The worker will be paid according to their productivity and not whether they are male or female.

25

26

Appendix 6

Draft Contract document with conditions of contract for Lusaka Sustainable Programme (This can be used for the contract relation between LSSP and CBE such as in the urban infrastructure. This can also be treated as a sub-contract) Form of Contract The first party to the contract is: The Client is: (INSERT THE NAME OF THE LSSP Name Telephone/Fax: The Client is represent by the following person or his/her nominee: Name: Address: Telephone/Fax: The second party to the contract is (INSERT THE NAME OF THE CBE) Name: Address: Telephone/Fax: The Contractor is represent by the following person or his/her nominee: Name: Address: Telephone/Fax: The Works/Services are (LIST THE WORKS/SERVICES) The site is (LIST THE SITE) The period of reply is (INSERT NUMBER OF DAYS) working days. The Starting date is ( INSERT THE DATE) The completion date is ( INSERT THE DATE) The contract sum is (INSERT THE PRICE) The parties of the contract have mutually agreed to carry out the works in accordance with the contract in the true spirit of partnership.

27

The contractor shall perform the works/services within the contract duration for the payment made by the client according to the contract. The following documents are part of the contract. (List the documents as per the individual contract) The following documents are part of the contract. (LIST THE DOCUMENTS AS PERREQUIRED IN THE INDIVIDIUAL CONTRACT) (INCLUDE TO OR EXCLUDE FROM THE FOLLWING DOCUMENTS AS APPROPRIATE) 1 The Agreement 2 The contractor’s offer or tender.(or equivalent document like minutes or letters?) 3 The conditions of contract 4 The appendix to conditions of contract. (In some cases you may like to add or subtract without

changing the conditions examples could be any correspondence or special condition) 5 Reference to drawings 6 Reference to the specifications 7 Price list (items of works / services and may include materials, labour, tools and equipment?) 8 Works information (for example about the nature of work like construction on waste etc.) 9 Site information (for example, where it is etc.) Signatures of the Client /Partner (partners are the parties to the contracts)) with full names and addressees. Signatures of the Contractor/Partner with full names and addressees. DATE Signatures of the Two Witnesses with full names and Addresses.

28

Conditions of Contract Core Clauses 1 General 10 Actions 10.1 The Client and Contractor shall act as stated in this contract and in a spirit of mutual trust and co-operation. 11 Definitions of terms a) Client mean the (INSERT THE NAME FO THE LSSP) b) Contractor means (INSERT THE NAME OF THE CBE) C) Agreement means this contract for the works and services as stated. For the definitions of the terms the normal usage of the language and the construction industry norms to be referred. 12 Communications 12.1 Every communication which this contract requires is in writing. Any verbal communication will be confirmed in writing. 12.2 A communication has effect when it is received at the designated address of the recipient. 12.3 If this contract required the parties to reply to a communication, unless otherwise stated in this contract he/she replies within the period of reply. 13 The Client’s ’s Authority and delegation 13.1 The Client may issue reasonable written instructions which the Contractor shall carry out. 13.2 The Client may give an instruction which changes the Works/Service. 13.3 The Client, after notifying the Contractor, may delegate any of his actions and may cancel any delegation. 14 Access to the site 14.1 The parties to the contract facilitate the access to the site. 14.2 The parties to the contract will take reasonable care in co-ordinating the different agencies involved in the service provision to the and in the site. 15 Early warning 15.1 Each party to the contract, gives an early warning by notifying the other as soon as either becomes aware of any matter which could increase the total Prices, delay completion or impair performance of the works in use. The partners will co-operate in making and considering proposals for how the effect of the matters ( causing delays, cost increase etc.) can be avoided or reduced. 16 Law 16.1 The Law applicable is the law of the country where the site is. (law in general, contract law in particular) 2 The Contractor’s main responsibilities 20 Providing the works 20.1 The contractor provides the Works in accordance with the contract. 21 Subcontracting and people 21.1 If the contractor subcontract work, even for labour only, he/she is responsible as if he had not subcontracted.

29

21.2 The preference will be given to the worker living in the locality of the site 21.3 The preference will be given to the women workers given that the workmanship is of equal quality. 21.4 The Contractor will strive to achieve as much a higher proportion of women workers as possible. A proportion of (INSERT A PROPORTION SAY60% ) will be taken as a minimum target. 3 Time 30 Starting and completion 30.1 The works to be completed within the contract duration. 30.2 The parties to the contract will take necessary steps to achieve completion within time and discourage any time overruns. 30.3 If any party, incur damages due to the delayed completion, necessary steps will be taken to mitigate the damages and for reasonable compensation. 31 Programme 31.1 The parties,, will help each other to produce a work plan. 4 Testing and Defects 40 Correcting Defects 40.1 The defects resulting from the mistakes or ignorance of the contractor will be corrected by the contractor. 40.2 The defects due to design fault will be rectified at the cost of the Client 5 Payment 50 Assessing the amount Due 50.1 The Client assesses the amount on every 7th day. 51 Payment 51.1 The payment is made within one week from the date of assessment. 6 Compensation events 60 Compensation events 60.1 The contractor will be compensated if the scope of work and duration changes due to instruction/s of the Client. 60.2 The partners (parties to the contract)will consider for compensation to the effected partner if the scope of the Works changes due to factor/s causing the change/s are not under the control of the Contractor and/or the Client. 60.3 The compensation will be agreed between the parties and should be fair and reasonable. 7 Insurance 70 Insurance 70.1 The partners, will agree on a strategy to provide insurance cover for :. 1 Loss of or damage to the works, plant and material 2 Loss of /or damage to property and liability for bodily injury to or death of a person arising from or in connection with the provision of the works. (CHANGE THE CLAUSE IN THE LIGHT OF THE POLICY AVAILABLE IN THE MARKET). 8 Safety 80 Goal 80.1 The goal of the parties is to complete the project with no accidents.

30

80.2 The partners(parties to the contract) will participate in the regular safety meetings. 80.3 The partners(parties to the contract ) will assess the requirements for safety equipment and training. The cost for the safety will be covered in the contract. 80.4 The partners (parties to the contract) will develop and use a ‘Code of safe practices’ for the job

site. 9 Disputes and termination 90 Settlement of Disputes 90.1 A party may notify the other party that he disagree with him/her on any matter under or in connection with this contract within two weeks of becoming aware of the disagreement. Unless settled by the parties, either Party may submit a notified disagreement to an independent third party for dispute resolution. 90.2 The third party settles the dispute by notifying the parties of his decision. 91 Termination 91.1 Parties can mutually agree to terminate the contact. 91.2 Parties can terminate the contract, after notification, on substantial non-compliance of obligation from other party. 92 Assurance of transparency 92.1 The Client shall be entitled to cancel the contract and to recover form the Contractor the amount of any loss resulting from the such cancellation, if the contractor shall have offer or given or agreed to give to any person any gift or consideration of any kind. 92.2 The Contractor shall be entitled to cancel the contract and to recover from the Client the amount of any loss resulting from the such cancellation, if the Client shall have demanded or agreed to take from any person any substantial gift or consideration of any kind. 100 Worker’s considerations . 100.1 No worker below the age of (check the legal age of a child in Zambia) shall be employed on the works. 100.2 The Contractor shall pay not less than fair wage to the workers. The fair wage will not be less than the minimum wage as defined in the relevant law of the country. 100.3 The parties to the contract will be responsible to ensure that no worker is forced to do the works. 100.4 The parties to the contract will be responsible to ensure that there is no sexual discrimination on the works. The worker will be paid according to their productivity and not whether they are male or female.

31

Appendix 7

Draft Contract document with conditions of contract for Lusaka Sustainable Programme (This can be used for the contract between RDC and CBE such as in road maintenance and SWM) Form of Contract The first party to the contract is: The Client is: (INSERT THE NAME OF THE RDC) Name Telephone/Fax: The Client is represent by the following person or his/her nominee: Name: Address: Telephone/Fax: The second party to the contract is (INSERT THE NAME OF THE CBE) Name: Address: Telephone/Fax: The Contractor is represent by the following person or his/her nominee: Name: Address: Telephone/Fax: The Works/Services are (LIST THE WORKS/SERVICES) The site is (LIST THE SITE) The period of reply is (INSERT NUMBER OF DAYS) working days. The Starting date is ( INSERT THE DATE) The completion date is ( INSERT THE DATE) The contract sum is (INSERT THE PRICE) The parties of the contract have mutually agreed to carry out the works/services in accordance with the contract in the true spirit of partnership. The contractor shall perform the works/services within the contract duration for the payment made by the client according to the contract.

32

The following documents are part of the contract. (List the documents as per the individual contract) The following documents are part of the contract. (LIST THE DOCUMENTS AS PERREQUIRED IN THE INDIVIDIUAL CONTRACT) (INCLUDE TO OR EXCLUDE FROM THE FOLLWING DOCUMENTS AS APPROPRIATE) 1 The Agreement 2 The contractor’s offer or tender.(or equivalent document like minutes or letters?) 3 The conditions of contract 4 The appendix to conditions of contract. (In some cases you may like to add or subtract without

changing the conditions examples could be any correspondence or special condition) 5 Reference to drawings 6 Reference to the specifications 7 Price list (items of works / services and may include materials, labour, tools and equipment?) 8 Works information (for example about the nature of work like construction on waste etc.) 9 Site information (for example, where it is etc.) Signatures of the Client /Partner (partners are the parties to the contracts)) with full names and addressees. Signatures of the Contractor/Partner with full names and addressees. DATE Signatures of the Two Witnesses with full names and Addresses.

33

Conditions of Contract Core Clauses 1 General 10 Actions 10.1 The Client and Contractor shall act as stated in this contract and in a spirit of mutual trust and co-operation. 11 Definitions of terms a) Client mean the (INSERT THE NAME FO THE LSSP) b) Contractor means (INSERT THE NAME OF THE CBE) C) Agreement means this contract for the works and services as stated. For the definitions of the terms the normal usage of the language and the construction industry norms to be referred. 12 Communications 12.1 Every communication which this contract requires is in writing. Any verbal communication will be confirmed in writing. 12.2 A communication has effect when it is received at the designated address of the recipient. 12.3 If this contract required the parties to reply to a communication, unless otherwise stated in this contract he/she replies within the period of reply. 13 The Client’s ’s Authority and delegation 13.1 The Client may issue reasonable written instructions which the Contractor shall carry out. 13.2 The Client may give an instruction which changes the Works/Service. 13.3 The Client, after notifying the Contractor, may delegate any of his actions and may cancel any delegation. 14 Access to the site 14.1 The parties to the contract facilitate the access to the site. 14.2 The parties to the contract will take reasonable care in co-ordinating the different agencies involved in the service provision to the and in the site. 15 Early warning 15.1 Each party to the contract, gives an early warning by notifying the other as soon as either becomes aware of any matter which could increase the total Prices, delay completion or impair performance of the works in use. The partners will co-operate in making and considering proposals for how the effect of the matters ( causing delays, cost increase etc.) can be avoided or reduced. 16 Law 16.1 The Law applicable is the law of the country where the site is. (law in general, contract law in particular) 2 The Contractor’s main responsibilities 20 Providing the works/services 20.1 The contractor provides the Works in accordance with the contract. 21 Subcontracting and people 21.1 If the contractor subcontract work, even for labour only, he/she is responsible as if he had not subcontracted.

34

21.2 The preference will be given to the worker living in the locality of the site 21.3 The preference will be given to the women workers given that the workmanship is of equal quality. 21.4 The Contractor will strive to achieve as much a higher proportion of women workers as possible. A proportion of (INSERT A PROPORTION SAY60% ) will be taken as a minimum target. 3 Time 30 Starting and completion 30.1 The works to be completed within the contract duration. 30.2 The parties to the contract will take necessary steps to achieve completion within time and discourage any time overruns. 30.3 If any party, incur damages due to the delayed completion, necessary steps will be taken to mitigate the damages and for reasonable compensation. 31 Programme 31.1 The parties,, will help each other to produce a work plan. 4 Testing and Defects 40 Correcting Defects 40.1 The defects resulting from the mistakes or ignorance of the contractor will be corrected by the contractor. 40.2 The defects due to design fault will be rectified at the cost of the Client 5 Payment 50 Assessing the amount Due 50.1 The Client assesses the amount on every 7th day. 51 Payment 51.1 The payment is made within one week from the date of assessment. 6 Compensation events 60 Compensation events 60.1 The contractor will be compensated if the scope of work and duration changes due to instruction/s of the Client. 60.2 The partners (parties to the contract)will consider for compensation to the effected partner if the scope of the Works changes due to factor/s causing the change/s are not under the control of the Contractor and/or the Client. 60.3 The compensation will be agreed between the parties and should be fair and reasonable. 7 Insurance 70 Insurance 70.1 The partners, will agree on a strategy to provide insurance cover for :. 1 Loss of or damage to the works, plant and material 2 Loss of /or damage to property and liability for bodily injury to or death of a person arising from or in connection with the provision of the works. (CHANGE THE CLAUSE IN THE LIGHT OF THE POLICY AVAILABLE IN THE MARKET). 8 Safety

35

80 Goal 80.1 The goal of the parties is to complete the project with no accidents. 80.2 The partners(parties to the contract) will participate in the regular safety meetings. 80.3 The partners(parties to the contract ) will assess the requirements for safety equipment and training. The cost for the safety will be covered in the contract. 80.4 The partners (parties to the contract) will develop and use a ‘Code of safe practices’ for the job

site. 9 Disputes and termination 90 Settlement of Disputes 90.1 A party may notify the other party that he disagree with him/her on any matter under or in connection with this contract within two weeks of becoming aware of the disagreement. Unless settled by the parties, either Party may submit a notified disagreement to an independent third party for dispute resolution. 90.2 The third party settles the dispute by notifying the parties of his decision. 91 Termination 91.1 Parties can mutually agree to terminate the contact. 91.2 Parties can terminate the contract, after notification, on substantial non-compliance of obligation from other party. 92 Assurance of transparency 92.1 The Client shall be entitled to cancel the contract and to recover form the Contractor the amount of any loss resulting from the such cancellation, if the contractor shall have offer or given or agreed to give to any person any gift or consideration of any kind. 92.2 The Contractor shall be entitled to cancel the contract and to recover from the Client the amount of any loss resulting from the such cancellation, if the Client shall have demanded or agreed to take from any person any substantial gift or consideration of any kind. 100 Worker’s considerations . 100.1 No worker below the age of (check the legal age of a child in Zambia) shall be employed on the works. 100.2 The Contractor shall pay not less than fair wage to the workers. The fair wage will not be less than the minimum wage as defined in the relevant law of the country. 100.3 The parties to the contract will be responsible to ensure that no worker is forced to do the works. 100.4 The parties to the contract will be responsible to ensure that there is no sexual discrimination on the works. The worker will be paid according to their productivity and not whether they are male or female.

36