NCC welcome govt’s decision to legalize 20 percent sub-contracting policy

NCC Executive Director Mathew Ngulube

The National Construction Council has welcomed government’s decision to legalize the 20 percent sub-contracting policy.

The 20 percent sub-contracting policy requires that a minimum of 20 percent of all government funded contracts such as road contracts awarded by the road development agency, local road authorities and other government institutions be executed by Zambian owned companies in line with the share holding structure specified in the citizen economic empowerment act no.9 of 2006.

NCC Executive Director Mathew Ngulube expressed disappointment that most of the contractors are not abiding to the 20 percent policy.

He is however optimism that foreign companies will comply to the policy without giving any excuses.

Mr. Ngulube explains that during their routine inspections they observed that foreign companies in the construction sector were apprehensive to comply to the 20 percent sub-contraction policy because they were not being compelled by law.