Economy

Contractors bemoan underpricing of contracts awarded under constituency development projects

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The National Association of Medium and Small Scale Contractors has written to government over what it has called the unreasonably low prices the contractors are subjected to under the Constituency Development Fund construction projects.

In the later dated May 29, 2023 and made available to Zambia Monitor on Saturday, Association president, Edgar Siakachoma, said the principle of executing projects at the right price did not mean low price.

Siakachoma said in the same vain, a high price may not necessarily be the ‘wrong’ one especially that underpricing a project compromised the integrity of the final product.

He said contractors were under obligation to deliver projects at the right quality within the right timelines at the right price.

“We wish to remind you that the three pillars are of equal importance. The speed and quality are dependent on the price. A distorted price will compromise the speed of execution just as it will the quality,” Sikachoma said.

He said while the designs and Bills of Quantities for the pieces of infrastructure were standardized, a recent research by the Association had shown that the prices are not.

Read More: Govt cancels disbursement of 2023 CDF grants in Serenje

Siakachoma said the Association did not expect the prices to be uniform across regions or districts, however there had to be a reasonable minimum price.

“Our assessment, for example, is that there is nowhere outside Lusaka and Copperbelt Provinces (away from the line of rail) where a 1×3 Classroom Block can realistically cost below Nine Hundred and Fifty Thousand Kwacha (K950,000.00),” he said.

Siakachoma said it was in the interest of both the government and the communities to have quality and durable infrastructure which was guaranteed by among other things, the right price.

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