Govt directs foreign contractors to abide by 20% sub-contracting policy

Government has directed foreign Contractors to adhere to the twenty (20) percent sub contraction policy so that indigenous Zambian contractors benefit from every contract awarded to foreign contracting companies.

Acting Housing and Infrastructure Development Minister Michael Katambo has reminded foreign contracting companies that failure to do so is tantamount to breaking the law.

Speaking at a workshop aimed at enhancing local participation in the construction Industry, Mr. Katambo says the 20 percent sub-contracting policy is applicable to all civil and road works contracts exceeding K30 million.

Mr. Katambo has observed that local contractors are still facing challenges in participating in road contracts under the 20 percent sub-contacting policy due to a number of compounding factors which include among others poor capital and equipment base and failure to secure and engage professionals.

He says this has impacted negatively on project delivery and has inevitably led to poor workmanship in some instances and generally poor project management.

Meanwhile Mr. Katambo says government through the Road Development Agency has created 600 opportunities for local contracting companies in the road construction sector since the introduction of the 20 percent Sub-Contracting policy.

Speaking at the same event, Ministry of Housing and Infrastructure Development Permanent Secretary Charles Mushota noted that the 20 percent sub contraction has not yielded its intended good results because some contractors have failed to comply with this policy.

And National Council for Construction (NCC) Executive Director Mathew Ngulube has threatened to blacklist foreign contractors failing to implement the twenty (20) percent sub contraction policy.

Mr. Ngulube has expressed disappointment that most of the contractors are not adhering to the 20 percent policy.

He also warned local contractors who are in habit of subcontracting their contacts.