Asist: Community Contracting and Organisational Practices in Rural Areas

ASIST
A F R I C A
Community Contracting and Organisational

Practices in Rural Areas
A Case Study of Zambia

Draft Report
November 2005
Tel: 260 1 293529

Fax: 260 1 295178
Email: ruralnet@zzamnet.zm
P. O. Box 51311 Website: www.ruralnet.co.za
Plot 6465 Libala Road
Kalundu, Lusaka, Zambia
Community Contracting and Organisational Practices in Zambia and Malawi
A case study of Zambia
Table of Contents
Acronyms ....................................................................................................................................................... 4
1.0 INTRODUCTION ................................................................................................................................ 5
1.1 Background to the Study ................................................................................................................ 5
1.2 Justification for the Study ............................................................................................................... 5
1.3 Study Objectives ............................................................................................................................ 6
1.4 Study Methodology......................................................................................................................... 6
2.0 TYPES & NATURE OF EXISTING ORGANISATION MODALITIES ................................................ 7
2.1 Project committees......................................................................................................................... 7
2.2 Petty contractors ............................................................................................................................ 7
2.3 Co-operatives ................................................................................................................................. 8
2.4 Other community structures ........................................................................................................... 8
2.4.1 Project management boards........................................................................................................ 8
2.4.2 Resident development committees.............................................................................................. 8
2.5 Emerging issues for guidelines ...................................................................................................... 9
3.0 CONTEXTUAL, INSTITUTIONAL & LEGAL FRAMEWORKS ....................................................... 11
3.1 Community contracts.................................................................................................................... 11
3.2 Procurement systems and regulations.............................................................................................. 13
3.2.1 Procurement at national level .................................................................................................... 13
3.2.2 Procurement at community level................................................................................................ 14
3.2.3 Registration process of contractors ........................................................................................... 15
3.3 Constraints and opportunities....................................................................................................... 16
3.3.1 Constraints ................................................................................................................................. 16
3.3.2 Opportunities................................................................................................................................ 17
3.4 Emerging issues for guidelines .................................................................................................... 17
4.0 OPERATIONAL PROCEDURES AND FRAMEWORKS ................................................................ 18
4.1 Mobilization process..................................................................................................................... 18
4.2 Contract sums .............................................................................................................................. 19
4.3 Negotiations and terms ................................................................................................................ 19
4.4 Recruitment criteria and procedures ............................................................................................ 20
4.5 Standards and productivity norms................................................................................................ 22
4.6 Payment systems/procedures ...................................................................................................... 23
4.7 Contract management.................................................................................................................. 24
4.8 Capacity building skills development ........................................................................................... 25
4.9 Gender Considerations ................................................................................................................ 25
5.0 PERCEPTIONS ON INCENTIVES AND SHARED BENEFITS....................................................... 30
5.1 Between communities and contracting parties............................................................................. 30
5.2 Between community contractors and the beneficiary community ................................................ 31
5.3 Emerging issues for Guidelines ................................................................................................... 31
6.0 ASSESSMENT OF KEY ISSUES .................................................................................................... 32
6.1 Existing potential .......................................................................................................................... 32
6.2 Constraints ................................................................................................................................... 32
6.3 Opportunities ................................................................................................................................ 33
References ................................................................................................................................................... 35
Appendices .................................................................................................................................................. 36
2
Appendix 1a: List of organisations consulted.......................................................................................... 37

Appendix 1b: List of Participants at community level............................................................................. 38
Appendix 2: National Council for Construction -Fee Structure (US $) .................................................. 40
Appendix 3: Decision Making Checklist.................................................................................................... 41
Appendix 4: Lessons learnt, benefits and perception on community contracts.................................. 42
3
Acronyms
ADC Area Development Committee

CBO Community Based Organisation
CCF Christian Children’s Fund
EIIP Employment Intensive-Investment Programme
ILO International Labour Organisation
JICA Japan International Cooperation Agency
NGO Non-Governmental Organisation
PRA Participatory Rural Appraisal
PTA Parents Teachers Association
RDC Resident Development Committee
RIF Rural Investment Fund
VDC Village Development Committees
ZAMSIF Zambia Social Investment Fund
ZDC Zone Development Committee
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1.0 INTRODUCTION
1.1 Background to the Study
The global Employment Intensive-Investment Programme (EIIP) of the ILO promotes and
supports the generation of productive and decent employment through local resource-based
investment policies and programmes in infrastructure to contribute to poverty reduction, economic
development and social progress. ASIST Africa (Advisory Support, Information Services and
Training) has held the role of the delivery mechanism for EIIP in Eastern and Southern Africa. The
programme has been considered fairly successful and is believed to have had significant impact,
particularly when it comes to the delivery of infrastructure and services using the labour-based
technology through small and micro-enterprises. Nevertheless, some work has still to be done to
ensure effective participation of the local communities in decision making and implementation of
interventions to improve their livelihoods.
The ongoing decentralisation reforms in several countries in the region calls for the need to match
the transfer of development responsibilities to the local authorities and communities with
adequate responsive measures to strengthen capacities for beneficiary involvement at local level.
Community empowerment e.g. through training, employment creation, social dialogue, etc. forms
an important part of this process. Community contracting is one of the very encompassing tools
for community empowerment which combines technical, institutional and socio-political aspects of
development. Community contracting is one area that ILO has been involved with in the recent
past, but needs further exploring to be able to scale-up and mainstream the approach in the
development processes as a core strategy for community empowerment and poverty reduction.
Community contracting involves a contract between a client (e.g. the local authority) and the
community, for a remunerated employment package. It is a people-centred approach for
infrastructure and service delivery where both or all parties to development recognise the
benefits. Community contracting for physical implementation of works of which they are the direct
beneficiaries helps to retain substantial portion of any external funding into their hands as well as
helping to build their self-esteem. Community groups are also best involved in project
identification, priority setting and formulation, which in effect reinforce the ownership aspect. The
community contracting approach responds to the needs of the community on a longer - term
period through emphasis on optimisation of local resources, better organisation, accountability
and ownership at local level. This is unlike conventional approaches which may have more
benefits to service providers.
1.2 Justification for the Study
A body of knowledge already exists in ILO with regard to community contracting. However, this is
mainly from the urban context where most of the recent projects have been or are being
implemented, and hence the justification for this rural-based study. In this regard, the following
issues are worth noting:
¾ To address increasing demand: - Owing to the need for development approaches and
interventions that directly address poverty at local level, there is an increasingly high
demand for community contracting information, procedures and/or guidelines by
practitioners in the region to facilitate effective community organization for development
work in both urban and rural areas.
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¾ To fill the knowledge gap: - Community contracting is a slightly new concept which
needs further development based on the existing practical experiences. Consequently
there is paucity of comprehensive knowledge and documented practical examples and
case studies in relation to the rural contexts of Sub-Saharan Africa.
¾ To promote a standardized and acceptable implementation system for public

infrastructure works at community level: - This is intended to substitute or
complement provision of voluntary (unpaid) labour which is often a requirement in most
community infrastructure works receiving external support. This pre-condition is usually
set as a contribution in-kind of voluntary unskilled labour and locally available materials
like sand, gravel, etc. In most cases, the pre-condition is unwelcome by the beneficiary
communities who see themselves as poor and yet required to work for free.
Furthermore, where the community provides voluntary labour, it is usually the poorest
members and especially women who end up contributing free labour. The problem of
unpaid labour in public infrastructure works like roads and community access is
compounded by the undefined nature of ownership and responsibility in this category of
infrastructure and the fact that the asset may serve/benefit a wider community than
those actually involved in its development. This is opposed to buildings or irrigation type
of infrastructure with a more defined group of owners and beneficiaries.
1.3 Study Objectives
(i) To identify and document prominent examples and lessons from the past and ongoing
community contracting practices and community organization modalities for public works
development initiatives in rural areas of selected study countries.
(ii) To develop draft guidelines and test strategies that will provide applicable solutions in
different rural contexts and open to adaptations to local conditions. These will be based on
the examples of good practices and lessons for improvement. The guidelines will enable
practitioners and communities to design and incorporate community contracting system
into public development projects, and also serve as training materials.
(iii) To promote and advocate the benefits of community contracting as a potential tool for
local community empowerment, poverty reduction and sustainable development, e.g.
through employment creation, enhancing social dialogue, social security, transparency,
accountability and ownership.
1.4 Study Methodology
The methodology used in the study encompassed a desk-work study of key/available information
on community contracting. In addition, a fieldwork study was conducted with the aim to cover a
survey of past and ongoing initiatives so as to extract and document practices and lessons.
During the fieldwork study the following were undertaken: (i) Semi-structured interviews with key
players involved in funding and giving contracts to urban and rural areas; and, (ii) case studies of
selected communities involved in community contracting. Exploratory visits together with semi-
structured interviews and focus group discussions were held with key community groupings,
project committees undertaking community investment programmes and petty contractors.
Appendix 1a and 1b provides a list of all organisations and community key players consulted in
this study.
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2.0 TYPES & NATURE OF EXISTING ORGANISATION MODALITIES
Current organisations involved in community contracting in rural areas of Zambia use various
forms of modalities/structures. The study identified such modalities used for community
contracting and these are listed below:
1) Project committees;
2) Petty contractors;
3) Cooperatives;
4) Other community groupings.
The identified modalities are each discussed in turn and their status is summarized in Table 1.
2.1 Project committees
Committees were the most common structures for community contracting being used by the
organisations assessed. These committees include the following four;
• Project Committee,
• Project Management Committee,
• Works Committee and,
• Resident Development Committee (RDC).
Project committees are informal groups, with no legal status. The committees consist of 10 to 12
members who are democratically elected by the community. All the project committees visited
indicated that at least 50% of the members are women.
In all cases reviewed, each committee has a chairperson, secretary and treasurer who in most
cases act jointly as bank signatories. All the elected members work in a voluntary capacity.
The project committee is ad hoc, set up specifically for the project at hand, with in-built flexibility in
its functions. Because the committees are not permanent and lack a legal status, inconsistencies
are likely to arise in the way activities are conducted.
2.2 Petty contractors
Petty contractors were not common in the sampled communities. Kabile school construction, a
project under Christian Children’s Fund in Mumbwa District, was the only case where a petty
contractor was hired within the community. This was not a situation where the contracting
organisation contracted directly but rather, a situation where the project committee subcontracted
the local contractor.
The general feeling by some of the communities visited as to why petty contractors are not used
was that skills are usually not available locally and so they have to contract out.
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2.3 Co-operatives
Programmes implemented under the Ministry of Agriculture and Cooperatives (MACO) use this
structure. Cooperatives by their nature are formal groups with a legal status. Among the
organizations visited, only the Japanese International Cooperative Agency (JICA) and the Rural
Investment Fund (RIF) use this structure. RIF has set it as a condition to only fund co-operatives
that are registered with the Registrar of Cooperatives under the Ministry of Agriculture and
Cooperatives.
When an organisation is dealing with agricultural based pubic works, a cooperative is one of the
best structures to use because members are likely to have specialised skills. However, the
danger in using this structure is that the cooperative may be seen as an elite group having a
monopoly over subprojects related to agriculture.
2.4 Other community structures
2.4.1 Project management boards
The Project management boards are community based and used by CCF Zambia. These are
made up of representatives from the target community and members of the contracting
organisation based at the community level. The project management board is responsible for
community contracting and is in charge of planning, budgeting, implementation, hiring skilled
labour, monitoring and evaluation. Unlike the project committee, the project management board is
a permanent structure and tends to be there as long as the contracting organisation is operating
within the community.
2.4.2 Resident development committees
The Resident Development Committees (RDCs) consist of community representatives in given

peri urban communities. The RDCs have the responsibility of coordinating as well as fostering
development in an area. Some organisations working in peri-urban areas use RDCs in community
contracting because these provide a framework for coordination and for the participation of many
stakeholders. Identified organisations who have used this structure are Plan Zambia and
Development Cooperation Ireland.
Table 1 below summarizes the existing organizational modalities and status and status at
community level.
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Table 1: Modalities/structures used in community contracting
Modality/ Legal status Organisation that has

Structure used such modalities/
structures
Project y Informal group y Japanese International
committees/ y No legal status, but there is need for minutes which Cooperation Agency
Project report the formation of a committee thereby forming y Zambia Social
management the basis for gaining legal status, Investment Fund
committees y Christian Children’s
Fund (CCF)
Resident y Informal group with no legal status y Development
development Cooperation Ireland
committees y Plan International
Cooperatives y The cooperative is officially registered under the y Rural Investment
Registrar of Cooperatives under the Ministry of Fund,
Agriculture and Cooperatives y JICA
Project y The board is not a registered group. y CCF
management y It is governed by a set of guidelines and constitution
boards
Works y These are informal committees often made up of y Plan Zambia
committees other committees/structures in the community such
as the Neighbourhood Health Committee, the
Parents Teachers Association (PTA), etc.
2.5 Emerging issues for guidelines
¾ Nature of existing modalities: It has emerged that most organisations using community
contracting use ad hoc committees such as the project committee. The advantage of using this
kind of arrangement is that it is representative of the community and allows for flexibility. In
addition, it is fairly easy to establish. However, the disadvantage is that it is not sustainable and
usually leads to confused responsibilities. For instance, in one community visited (Chipindani
community), it was observed that there were different project committees dealing with different
projects under ZAMSIF, CCF and JICA. The problem with this as was observed, is that one of
the project committees seemed to have placed itself as an elite group in the community. To
avoid this, the issue then becomes the need to establish a permanent group within the
communities which can act as a representative body for voicing opinions and advocating
community contracting as a tool for community empowerment.
It would be beneficial to use existing permanent structures such as the Area Development
Committees (ADCs) to coordinate community contracting to avoid potential conflict.
¾ Supportive government policy framework: If community contracting is to be used as a tool

for community empowerment, there is need for the formulation of supportive Government
policies. After the adoption of the Decentralisation Policy in 2002 which seeks to transfer power
to the grassroot levels for development planning and implementation, the ADC in each ward
was to be established. The ADC is the lowest permanent sub-district structure. In the example
given above if all the different projects had come under one permanent structure such as the
ADC, the different players would have been able to complement each other, thereby creating a
synergy for community development. The ADC which is equivalent to RDCs but is more rural
based, is a committee of community representatives in a given ward and has the responsibility
of coordinating development in the area.
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The community representatives that form the ADC are leaders of the various committees
existing at the ward and sub-ward level. An ADC is further sub-divided into zones. Each zone
has a Zone Development Committee (ZDC). Like the ADC, this is a committee of
representatives which in turn consists of community leaders drawn from Village Development
Committees (VDCs) in the zone. Affiliated to the VDC are community based committees
formed around areas of specific interest such as the Village Water and Sanitation Health
Education committee (V-WASHE), Neighbourhood Health Committee (NHC) and Parents
Teachers Association (PTA).
The Government has recognized that the ADC will increasingly play a prominent role in
facilitating development at grassroot level. With the government’s deliberate drive towards
decentralization, the typical direction in which ADCs appear to be evolving could play a leading
role in community contracting. As permanent structures, ADCs have the advantage of serving
as a reservoir for community contracting experience.
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3.0 CONTEXTUAL, INSTITUTIONAL & LEGAL FRAMEWORKS
3.1 Community contracts
The type of community contracts used by the various community structures were assessed using
the following definitions provided by ILO1.
a. Labour- only contracts: The community is only responsible for the provision and
organisation of the labour input. The contracting authority or external assistance group is
responsible for the timely provision of materials and equipment in sufficient quantity and
quality.
b. Labour and material contracts: The community is responsible for both the labour and
materials input for a certain construction activity.
c. Full contract: Under a full contract the community provides the labour, materials and the
necessary equipment, and is also responsible for overall management, sub-contracts etc.
The local government or contracting organisation provides technical assistance.
An assessment of the types of community contracts used for different public works development
initiatives in rural areas revealed the existence of different types of contracts. Table 2 illustrates
the type of contracts and contractors and processes used in selecting a community contractor.
Table 2: Community contracting models
Public works Contracting Type of contract Contractor Selection process

development initiatives organisation of contractor
Grinding mill, wells & y JICA y Full contract y Project committee y Community
health post consensus
Lunywa dam y ZAMSIF y Labour & material y Sub-contractor y Bidding
Ndeke Community school y Irish Aid y Labour only y Private contractor y Recommended by
& centre contracting
organisation
Ndeke Road y Irish Aid y Full contract y Resident y Community
rehabilitation Representatives consensus
Ndeke Water piping y Plan Zambia y Full contract y Resident y Community
Representatives consensus
Malundu Rural Health y ZAMSIF y Labour and y Project committee y Community
centre material consensus
Chipindani Water and y ZAMSIF y Full contract y Project committee y Community
sanitation project consensus
Butinti dam & Fish y RIF y Labour and y Sub-contractor y Recommended by
Ponds material contracting
organisation
Chaminukwala Bridge y ZAMSIF y Full contract y Project committee y Community
consensus
Kabile CCF project office y CCF y Labour & material y Project management y Community
board consensus
Kabile CCF School y CCF y Full contract y Project committee y Community
y Local contractor consensus
Mushikile Storage shed y RIF y Labour & material y Sub-contractor y Bidding
1
ILO ASIST Africa Regional Programme, Tournée J., van Esch W. Community contracts in urban infrastructure works; pg 29; Geneva,
International Labour Office, 2001.
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Generally, it was observed that community contracts were either provided directly to the
community or were provided to a sub-contractor contracted by the community. The former which
involves channeling of funds to be managed entirely by the community was the most common.
However, in situations where more complex technological project deigns are chosen (such as
construction of a dam as in the case of the Lunywa dam, a ZAMSIF sub-project), the latter is the
preferred approach. Here the community enters into a contract with the sub-contractor using a
financing agreement drawn up by the contracting organisation. There was only one isolated case
involving the construction of a community school and centre, where a labour only contract was
used.
Some organisations like ZAMSIF (Zambia Social Investment Fund) and RIF (Rural Investment
Fund) use a combination of contracts. This depends on the project type as well as the institutional
capacity of the communities. Organisations were also assessed in terms of the form of contracts
they use. Only ZAMSIF and RIF had the practice of drawing up simple standard community
contracts. In all cases, these contracts were not legally binding. Other organisations use financial
agreements as contracts.
An assessment of the type of contracts communities prefer was carried out with the aim of
conducting a comparative analysis of the pros and cons of the 3 types of contracts. Out of the 9
communities visited, only 1 community expressed its preference of the labour and material
contract, the remaining 8 indicated they would prefer the full contract approach (see Appendix 4).
Reason provided for the preference of labour and material contract was based on the need to
have technical expertise to carry out complex technological projects. The advantage of this type
of contract is that it provides communities with an opportunity to manage human and material
resources. This ultimately enhances their management skills which are necessary for providing
sustainability. However, the presence of external contractors and technical experts in this type of
contract robs the communities the opportunity to enhance their skills in the full management of
projects.
Reasons provided for preference of a full contract were similar in most cases, the major ones
including:
It builds capacity
It equips communities with skills particularly in financial, technical and administration
management
It provides a sense of ownership
It creates employment
Some communities were, however, quick to add that the full contract should consider the
involvement of a technical supervisor coming from the local government or from the contracting
organisation. As they observed, a technical supervisor is important especially when the
community lacks skills or technical knowledge to manage the implementation of an infrastructure
project. Clearly this is also true in situations where a community is undertaking public works for
the first time. On the other hand due to the involvement of the technical staff, communities may be
constrained in fully participating in the management of the contract and undertaking project
activities.
The labour only contract was the least preferred contract model because it does little to promote
skills and capacity which are essential for sustainability of projects. However, one advantage of
this type of contract is that it frees the community of the burden of providing materials, resources
and technical skill especially where capacity building has not been undertaken.
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3.2 Procurement systems and regulations
3.2.1 Procurement at national level
The procurement of works at country level, which is undertaken by the Zambia Tender Board, are
concerned with Civil Engineering, Construction and the Supply and installation of Plant and
Equipment. Examples include the following:
a. Construction of schools or office blocks;

b. Construction of roads;
c. Construction of sewerage works;
d. Construction and installation of plant and equipment;
e. Renovations and refurbishment of hospitals;
f. Construction and installation of telephone exchanges; and,
g. Construction of bridges.
The Board has set thresholds, where the estimated minimum value of the procurement is $1,100
but does not exceed $3,300. This is set for informal tenders who are invited, evaluated and
authorised for acceptance by the District Tender committees. Procurement above $3,300 is
authorised by the Central Tender Committee.
In the public sector, the procurement of works is undertaken when the concerned institution
identifies the need to provide infrastructure that is intended to enhance the operating efficiency of
the user institutions. The procedure that is taken for the procurement of works is further
elaborated in Box 1.
Procurement processes are regulated by the Zambia National Tender Board Act, 1982, Section
27.
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Box 1: Procedure for the procurement of works at Country level

Government institution identifies the need. Then it informs the Ministry of works and Supply of their
need. Government institution sub warrants the funds to Ministry of Works and Supply. Ministry of
Works and Supply prepares the technical specifications. Ministry of Works and Supply prepares
tender documents.
a. Pre-qualify contractors/call for bids

Prepare prequalification document (dossier)
Invite statement of capability
Evaluate the experiences of capacity
Obtain authority to shortlist
b. Invite tenders
Invitation to tender notice
General instruction to tenders
Special instructions to tenders
General Conditions of Contract
Special Conditions of Contract
Specifications
Drawing
Bills of Quantities
Sample Forms
c. Site visits
To assess site conditions
Incorporate resultant data into tender
Optional or mandatory
d. Tender closing and opening
Receipt of offers
e. Evaluation
1. Preliminary
2. Technical
3. Commercial
f. Award of contract
Lowest evaluated bidder awarded contract
g. Contract management
Sign contract
Contract submits performance Bond
Release Bid Bond
Monitor Contract
3.2.2 Procurement at community level
Among the organisations visited, ZAMSIF has the most comprehensive, well structured
procurement system laid out for the community level. Box 2 gives a description of this system.
The bulk of the works procured at the community level consist of minor works. These are
managed differently as was observed. The most preferred approach used by communities is
engaging qualified and skilled labourers within the community. As works at community level are
not complex in nature and are small in size and value, most communities prefer to implement
these utilising this approach.
Where a community subcontracts, the contracting organisation or the district council assists in
advertising for contractors. It was a common practice among organisations to engage contractors
on the basis of quotations obtained in response to a written invitation. The group or committee,
14
with the guidance from the district officers or contracting organisation, evaluates and awards the
work on the basis of qualification, experience and the least cost.
Box 2: Procedure for the procurement of works – ZAMSIF approach
The responsibility for procurement at the community level mainly rests with the
communities’ Project Committees. These are trained in procurement prior to and during
implementation of the sub-projects. In situations where ZAMSIF wants to ensure quality,
cost efficiency and durability, procurement is undertaken centrally by ZAMSIF
Management Unit (MU).
Procurement forms used by the communities are part of the Financing Agreement entered
into with the communities by ZAMSIF MU. All tender documentation related to a sub-
project is maintained either by the community or/ and ZAMSIF MU.
Potential bidders may be procured on the basis of quotations obtained from three qualified
domestic contractors in response to a written invitation. The bidders are at least given one
week to submit their quotation. The Committee or group opens the bids in a public forum
and the name of the bidders and the price are read out. The qualifying contractor is then
awarded a contract on the basis of qualification, experience and the least cost.
In some cases, the workers hired will require supervision by a qualified and experienced
technical person. The selection of the technical supervisor is on the basis of qualification
and experience. ZAMSIF’s experience indicates that these typically amount to the
equivalent of US$1,500 per contract. The Project Committee will prepare terms of
reference for the Technical Supervisor and will solicit at least three quotations.
Responsibility for selection rests with the Project Committee, and will require
endorsement by the District.
3.2.3 Registration process of contractors
In Zambia, the registration of contractors is carried out by the National Council for Construction
(NCC). The NCC is an advisory body, affiliating and representing all trade organisations and
professional bodies within the Zambian construction industry.
The NCC ACT No. 13 of 2003 was established to empower the National Council for Construction
to register and regulate all contractors and consultants in the Zambian construction industry. The
NCC runs a registration scheme for all contractors and consultants engaged in construction
activities in Zambia. Box 3 provides the registration process potential contractors are required to
go through. The processes include the costs2 and time taken for registration.
The advantage of the NCC is that it facilitates the creation of opportunities for contractors
according to their category and capacity. It also provides a basis for focused and effective
capacity building programmes.
2
Costs are provided in US dollars at the prevailing exchange rate.
15
Box 3: Registration process
The NCC Registration form can be obtained at a fee of US$ 4.4

The form is returned with complete details of all requirements for the category in which the
contractor wishes to register, and pays the relevant initial scrutiny fee as indicated in
Appendix 2.
The application form is reviewed by the Provincial Registration Committee and physical
verifications are undertaken for the office premises and plant and equipment. All referees are
contacted.
The relevant fees are paid as follows:
9 Registration form- US$ 4.4
9 Initial scrutiny according to classification grade applied for.
9 Registration fee - to be paid upon acceptance of application by the NCC.
The time it takes to obtain formal registration, is 3 weeks.
3.3 Constraints and opportunities
3.3.1 Constraints
Institutional frameworks
There are insufficient institutional arrangements for community contracting with respect to
planning and operational modalities. Structures to support community contracting are not fully
developed such that integration of the different aspects of community contracting, particularly
procurement processes, is still weak. To a large extent this situation can be attributed to the
inadequate administrative decentralization as well as the low capacity of local government to
enter into community level contracts. In Zambia, these processes are still evolving.
Unfavorable Government policies
The formulation of national government policies still favours urban areas. For example, the
country’s procurement system does not cover small local organisations based in rural areas.
Therefore, decisions on procurement and general contracting issues are influenced by the
contracting organisations which isolate the local groups and organisations from the process.
Ideally, the contracting organisation should only act in an advisory capacity and the final decisions
on contracting should be made by the community. Consequently, there is need to develop policies
that suit rural communities in community contracting procedures.
The legal status of the target group
Presently, most groups involved in community contracting are not registered as associations,
CBOs or contractors. The lack of legal status for the committees and other groups entails that
they are not protected from unfavorable conditions that might be imposed upon them by various
actors such as the contracting organisation, local government, private contractors and suppliers of
goods and services.
Lack of Information
Information is generally lacking on issues such as procurement, registration and managing of

contracts at the community level. Communities have no knowledge on how much time and costs
go into registration. In addition, communities lack awareness on training and credit facilities that
16
could be available for them. It is critical that information is made available to the communities to
facilitate their effective participation.
Poor enabling environment
There is lack of training facilities to assist community groups and committees to acquire skills
necessary to carryout contractual arrangements with the contracting organisations or local
government departments. Communities need to have a thorough understanding of the stages
involved in community contracting. Lack of training has implications on the extent to which
community groups can effectively participate in the various stages of community contracting.
3.3.2 Opportunities
Existing Partnerships
A number of organisations have started using direct project support and have also been building
their own participatory structures at the community level. This approach provides an opportunity
for communities to independently undertake community contracting especially when investment
funds are solely managed by the community, committee or group.
Social and political recognition of Community Based Organisations (CBOs)
Due to the drive towards decentralisation, CBOs are now being recognized as key players in the
development process. This is seen as an opportunity for CBOs to slowly be integrated into the
institutional framework for public procurement of works at community level.
¾ Developing community level procurement procedures: The development of procurement

procedures has to support the principles of community contracting, that is, contracts can be
issued to small local contractors or to community groups. In addition, the procurement
guidelines of the Zambia National Tender Board need to be adopted and tailored to suit the
local communities.
¾ Legal environment for community contracting: The creation of a legal association or CBO
can act as a formal link with government public procurement system, as this would eventually
manage collective funds, and award or execute contracts. Establishing a legal environment
also serves the community as well as the contracting organisation a reference point with
regards to activities undertaken.
¾ Tailor-made contracts: Contracts should be awarded after an assessment of the capacity and
skills of a community contracting group. The contracts drawn should not only be simple but
comprehensive, including areas that will promote the broader objectives and purposes. They
should not only be limited to responsibilities, conditions on contributions, work to be
undertaken, or disbursement arrangements, but should also include issues such as legal
obligations etc.
¾ Information and training: Mechanisms should be provided which allow communities to

access information on public procurement works. Access to training should also be considered
and provided for the communities.
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4.0 OPERATIONAL PROCEDURES AND FRAMEWORKS
4.1 Mobilization process
The mobilization process was identified in the study as occurring at two levels.
Level 1: Through key leaders, the community is mobilized with the view to identifying projects
which follow an examination of community problems by communities themselves. A group is
identified or a committee is elected to oversee the project. The group or project committee is
responsible for making an application. Application forms are then submitted to the relevant local
government department. Once a proposal is approved, the contracting organisation makes all
contractual arrangements with the community group or project committee.
Level 2: The contracting organisation visits selected communities and makes contacts with
individuals and representatives of local social and cultural groups. Through district and sub-district
staff, councilors, church, CBOs and other community groups, communities are informed of the
opportunities made available. The group’s influence is used to mobilize the community. Certain
communities already have an active community group. The contracting organisation will introduce
the infrastructure programme to the community group and assess their interest in such a
programme. Box 4 provides common stages in the mobilisation process that are undertaken by
communities assessed in this study.
Box 4: Stages related to mobilisation
⇒ Identification: Local authorities call meetings to discuss problems in the

community. Needs and priority areas of interventions are identified with the
consensus of the community. In some cases, the contracting organisation
conducts PRAs, with the full participation of the wider community to assist
communities select priority areas of intervention.
⇒ Establishment of a group or committee: A group is identified to handle all the
issues. This process varies from community to community and invariably some
procedures are more democratic than others. In the case of a project committee,
membership size is 10 to 12 and in most cases they consist of an equal number
of men and women.
⇒ Collection of community funds: This step does not apply to all cases but is
common with ZAMSIF CIP projects. Community funds are required for the
payment of their share of the project costs as well as the operation and
maintenance facilities.
⇒ Application process: An application is made by the community. The application
is community driven. The contracting organisation and in some cases the council
or local government department conducts a desk appraisal and a field appraisal
of the project. Projects which meet the requirements are approved and funds
provided for.
⇒ Capacity building: In the case of ZAMSIF, the committees are taken through a
two days workshop looking at simple book-keeping, banking systems, gender
issues etc.
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4.2 Contract sums
The study has revealed that, contract sums are based on rates determined by each contracting
organisation. The financial analyst or accountant prepares a financing plan or a bill of quantity.
This provides very detailed unit costs of materials and labour required. Table 3 shows the
contract sums for various public works development initiatives reviewed.
In all the communities sampled, there were no groups that had been involved in determining the
contract sum and this was attributed to the lack of technical skills to undertake an accurate cost
assessment of the project.
Table 3: Contract sums for various Public works development initiatives
Public works development initiatives Average value (US$)

Hammer mill, wells and health post- Lukoshi camp 11,400
Lunywa dam 86,200
Community school/centre –Ndeke RDC
Road rehabilitation –Ndeke RDC 6,000
Water piping – RDCs 4,500
Malundu Rural Health centre 69,759
Chipindani Water and sanitation projects 55,802
Butinti dam/Fish Ponds – Kibbo cooperative society 28,300
Chaminkuwla Bridge- Chibombo 88,704
Storage shed - Mushikile Co-operative 5,600
4.3 Negotiations and terms
It was evident that negotiation was absent in the projects looked at. None of these communities
have reached such a stage where they can negotiate for themselves. The study, firstly, revealed
that contracting organisations seemed to be rigid. Secondly, the negotiation process is not well
organized and only provides communities with an opportunity to engage in negotiations related
only to their social interests. Thus, communities were only involved in the negotiation process
during the identification of the project. This varied among the communities. They were those
communities who would be approached by the contracting organisation (in the case of Kabile
school construction and Ndeke water piping). Through participatory rural appraisal (PRA)
activities, the communities are provided with an opportunity to negotiate for the type of
intervention they need. In other instances, communities would identify their need and then
approach the contracting organisation or the district council to explain their project to them. This
gives again communities the chance to negotiate for what they want.
However, it is imperative that the negotiation process should extend to other aspects such as
contract sums, conditions and implementation processes e.t.c. This is important in changing the
status of the poor and empowering them to be actors in development.
These communities fall short of participatory meetings where all the stakeholders can be provided
with the opportunity to participate in discussing the contract. The danger in failing to achieve this
is that people make their own conclusions and interpretations which can lead to confused roles
and responsibilities.
Apart from the identification of an intervention, the negotiation of terms is another critical stage
that sets out whether the informal group or committee will get funding. The terms and conditions
19
under which funds would be made available varied in some cases under this study. The main
issues pointed out by the communities visited were mainly contributions, responsibilities, timing of
construction and maintenance.
The most common issue for present funding in most of the communities sampled is based on a
25% contribution by the community, with the remaining 75% provided by the contracting agency.
Other terms are that a community has to demonstrate its commitment to the project by providing
their share of the first batch of the works before building can start.
Cost sharing arrangements is a condition that ZAMSIF has usually demanded for. A community is
expected to have contributed about 15% of labour and locally available materials to the project
and should demonstrate the existence of self reliance. Communities felt this condition was unfair
because it limited their level of involvement in the process of development. Communities who
have been involved in this process complained of the difficulty to fulfill this condition because not
everyone in the community was willing to contribute. This would in most cases delay the
application process.
4.4 Recruitment criteria and procedures
The recruitment processes and criteria used among the communities varied depending on the
staff required and type of contract approach used. It was generally observed that most contracting
organisations strive to create an opportunity for small local contractors or individual labourers
within the community to be involved in public works contacts. The recruitment process will,
therefore, be assessed in light of the contract approach used by the various contracting
organisations, community groups and committees.
4.4.1 Technical supervisor
Contracting for technical and more sophisticated services, such as the construction of overhead
tanks, dams and drilling boreholes largely used contractors outside a community. All communities
visited, which have used a technical supervisor, stated that where they see an absence of skills
locally, they opt to go for an outside registered private contractor. This type of contracting is
mostly done by the districts or the contracting organisation with minimal involvement of the
community group or project committee. The technical supervisor is in most cases recommend by
the contracting organisation or by the local government department involved in the project.
There was only one community among those sampled, where the project committee had insisted
on recruiting a technical supervisor from within the community. This was Chipindani community
where ZAMSIF had approved funding for an improvement in their water and sanitation. The
project committee felt that there was readily available skilled manpower within the community to
take on the role of a technical supervisor. The project committee called for community members
with potential in technical supervision to attend interviews. The person selected was the one who
had the best references. The advantage with this approach is that it empowered the community
and provided employment. However, this approach does not ensure quality of work. But in the
example given the community were happy with the quality of the construction of the bathrooms
and toilets. Figure 1 shows the toilet and bathrooms constructed.
20
Figure 1: Example of type of bathrooms & VIP toilets constructed in Chipindani community
Bathroom VIP toilet
4.4.2 Skilled labour
The study revealed that, contracting for skilled services, such as bricklaying, carpenters, fitters,
plumbers and masons is mainly done at the community level by the committee or group in charge.
As opposed to the urban set up, recruitment of skilled labour in rural areas mostly involves a
verbal agreement.
When the community decides to hire skilled labour from within itself, invitations are made either
directly to individuals in the community who are known to possess such skills and at other times
invitations would be made during community meetings. Those who then feel they posses the
required skills would go before the group or committee in charge to be assessed.
The advantage of using local skills is that it generates local employment. Apart from the
generation of local employment, it also enhances the already available skills as well as provides a
sense of ownership. This approach also provides the community with greater control on
expenditures.
4.4.3 Sub contractor
It was generally observed that similar formal contracting processes are used across the
organisations and communities sampled, when it came to sub-contracting. The contracting
organisation and the districts especially, play a proactive role in this kind of contracting to help
groups or committees identify and select the right contractors.
When the community decides to sub contract, formal contracting processes are used, which
usually include inviting bids and awarding contracts on the basis of quality and price. The
contracts are awarded on the basis of at least three quotations obtained from qualified local or
private contractors in response to a written invitation. The invitations mostly include a detailed
description of the works, relevant drawings in some cases, including basic specifications, required
completion date, a contract format which has been cleared and agreed to by contracting
organization. The award is made to the contractor who offers the lowest price quotation for the
required work. In some cases as it was noted, the district officers also look at the contractor that
has the necessary experience and resources to successfully complete the contract.
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In all cases looked at, it was noted that contractors are encouraged or obliged to employ local
people as labour wherever possible. The advantage also in this is that those involved in building
will benefit directly from the completed works. Apart from employment creation, quality in
construction is expected to be achieved when a private contractor is used. This approach,
however, robs the community of much needed experience.
4.5 Standards and productivity norms
Field assessment revealed that most of the projects visited have safeguards to ensure quality in
the services provided, materials procured and implementation of each particular project. Active
participation of district officers as well as the provision of a technical supervisor plays an important
role in guiding communities in the processes of labour provision within the community,
procurement of materials and construction.
Two areas where achieving standards is critical is the procurement of materials and the
construction process. In all the project areas visited, it was revealed that district officers, technical
supervisors or contracting organisations guide the group or committee to identify and select the
right materials for construction. Where procurement of materials is done by the community, the
community group or project committee members decide on the materials to be purchased and
nominate two to four representatives to be involved in the purchase of these materials. In some
cases like RIF, the agriculture extension camp officer is also a member of the procurement
committee. In case of other organisations such as ZAMSIF, the technical supervisor is the key
person. The committee conducts a market survey of manufacturers and authorized dealers
stocking materials needed and collects quotations from them. The approval process of collecting
the quotations varied among the projects, but were mostly at three levels, namely:
(i) Approval by the contracting organisation or the concerned district department;

(ii) Approval by the technical supervisor; and,
(iii) Approval by the group or project committee.
The district, contracting organisation or committee verifies the costs on the basis of the market
prices. ZAMSIF ensures that before the materials are dispatched from the dealer or supplier to
the community, the technical supervisor samples and looks at the quality of the material being
dispatched.
Lessons drawn from the field assessment reveal that the key to achieving high standard and
productivity norms lies in the following:
• Capacity building of community groups or committee

• Effective monitoring and supervision of procurement of materials as well as services
• Adequately qualified skilled labour
ZAMSIF was noted among all the organisations assessed to have high quality building
constructions undertaken by the communities themselves (see Figure 2 for a rural health centre
constructed by skilled labourers obtained within the community).
22
Figure 2: Malundu Rural Health centre constructed by Malundu Community
4.6 Payment systems/procedures
Payment procedures across the organisations involved in these projects had slight variations and
these related to the contract approach used, i.e. whether it involved skilled labour within the
community or a private sub-contractor. Table 4 presents payment systems used by the
organisations sampled.
Table 4: Payment systems
Organisation Payment systems

ZAMSIF y The disbursement of funds normally is made in four installments:
– an advance equivalent to 36% of the ZAMSIF contribution;
– second and third allocations each of 24% of the total ZAMSIF contribution;
– A final payment of the balance of 16%.
y Each successive installment is paid only after justification of 75 % of the previous
installment and 100% of all installments before that. Where a contractor is used,
disbursements follow certification of works and a retention fee is held until the end
of the project.
JICA y Funds are disbursed at a go, once the contract and financial agreement has been
signed by the project committee.
RIF y Uses two approaches
– First approach: RIF deposits funds directly into the cooperatives account. This
can either be in installments or a one time deposit.
– Second approach: RIF disburses operational funds to the Ministry of agriculture,
while the contactor is paid directly by RIF
Christian y CCF national office allocates money for the project. CCF then deposits a subsidy
Children’s Fund check in the project account
Plan International y Funds are given out in installments after the works committee in charge of
supervising, makes a recommendation based on the progress of the contractor.
Development y Funds were given in installments
Cooperation
Ireland
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Funding in most cases commenced once the project committee or group has opened a bank
account, solely for the project's use, and a copy of the relevant Financing Agreement, signed by
all parties concerned, has been received by the contracting organisation. It was established in the
study that some organisations disburse funds directly to the beneficiary community project bank
account. Others use the district which disburses funds.
The main area of concern with the communities was not the channel used for disbursement but
rather, the procedures and time taken to disburse the funds. Among the projects assessed, RIF
and JICA were the only two organisations who disburse funds in one lump sum. Other
organisations would disburse funds in installments. For instance, ZAMSIF would advance an
initial 36% of funds to the community project bank account. Thereafter, each successive
installment would be paid only after justification of 75 % of the previous installment and 100% of
all installments before that. Where a contractor is used, disbursements follow certification of
works and a retention fee is held until the end of the project.
Communities visited generally expressed a lot of negative than positive elements to the
installment payment systems. The major complaints noted were:
• There were delays in releasing funds in most cases. This often slowed down the
implementation process and the delay would at times be for long periods of time. The
implications of this are that the skilled labour hired or sub- contractor would lose interest as
well as money.
• Due to the delay in the release of funds, prices of materials would be higher than what is in
the bill of quantities due to high Inflation. This is also more likely to affect the pace at which
the project is implemented.
However, paying out money in installments can have positive elements. For example, it allows
groups or committees to gradually build their expertise in handling large sums of money.
4.7 Contract management
Contract management, includes looking at the responsibility and contract requirements related to
activities that groups and project committees are obligated to perform. Contract management
hinges on the capacity of the group involved in community contracting. Except for ZAMSIF funded
projects, the other projects assessed lacked capacity building.
An important issue to consider in contract management is accountability. Accountability is key in

the management of contacts. In all cases, the groups or committees were accountable to the
community in all aspects of the projects. However, communities were not obliged to be
accountable. There is, therefore, need to work out modalities that would make communities
accountable also, perhaps to the contracting organizations.
Financial control is another aspect to be considered. The committees have to bear financial
management, especially in relation to procurement of goods. If therefore, they lack capacity in
this area, financial management becomes a struggle. This is clearly so when the group is
managing a contract for the first time. All groups and committees talked to, except the RDCs,
indicated that it was their first time to handle a contract. Experience by the RDCs in Ndeke
community shows that, with time they have gained experience in the management of contracts.
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4.8 Capacity building skills development
One of the key assumptions when adopting a community contracting model in project
implementation is that along with the responsibility of the contracting agency, the community must
have the capacity to undertake community contracting.
Among the organisations visited, only ZAMSIF had a deliberate focus on building the capacity of
the project committees. ZAMSIF, through the Regional Facilitators and district officers, train
committees implementing projects. Capacity building is done in the following areas: training in
simple project management, bookkeeping, banking systems, gender issues, monitoring and
evaluation. A Project Implementation Manual is made available to all beneficiary communities.
Training is also provided to the technical supervisors.
Other organisations hold orientation sessions with the group or committee contracted to explain
the details of the contract or financial agreement and the roles and responsibilities of each
member. Other organisations, like Plan Zambia and CCF train the beneficiary communities in
PRA methodologies to assist them in the identification process of their projects.
It was clearly evident that communities who have not undertaken capacity building had struggles
in issues of contract management. For example, the case of Kabile school project led to
procurement of low quality materials due to lack of training in procurement processes and
financial management (see Box 5). The issue then is that, if responsibilities specified in the
community contracts have to be managed effectively, there is need to build the strength and
internal capacity of the community contractors in all key areas.
Box 5: Kabile school project
The project committee was contracted and was in charge of mobilizing, procuring,
implementing, monitoring and supervising the various activities. Prior to the start of the
project, the project committee had only been oriented to what their responsibilities
would be. This, however, did not involve any capacity building.
When it came to procuring materials the treasurer, secretary & chairman were
specifically responsible. The three got quotations based on the cheapest materials they
could get. The main reason for this was that they were trying to make savings. The
cheapest quotation was approved by the project committee. Materials were then
procured but were of very inferior quality. Because of the low quality of materials, the
school building was of very low standards. The community was initially happy but with
time they realized that the work was of poor quality.
4.9 Gender Considerations
To determine the level of gender considerations in the various steps of community contracting, an
exercise was carried out in some communities. Using a decision making checklist, the participants
were split into two groups, one comprising of women only and the other of men only. The two
groups were then each asked to distribute 10 points between women and men according to their
share in the activities of community contracting.
According to the findings of the 6 groups (3 groups of women and 3 groups of men) assessed,
there was gender balance in a number of processes relating to community contracting (see
Appendix 3). However, women’s participation was inadequate during the negotiation and
25
procurement processes. With regards to contributions, 5 out of the 6 groups revealed that women
made greater contributions to the carrying of sand, stones, while men’s involvement would only
be limited to moulding bricks. Of the 6 groups, 5 stated that men were more responsible for
community contracting than women. Related to this, it was pointed out by the 6 groups that men
were the ones involved in the signing of contracts. It was further revealed that, men were more
involved in maintenance work than women.
Areas that had equal participation by men and women: Identification of subprojects, training,
bank signatories, keeping funds and hiring of labour. Although there was equal participation
between men and women with respect to hiring of labour, one community felt this area should be
left to men because men are the only ones who are hired for skilled labour.
If community contracting is going to contribute to employment creation and sustainable

livelihoods, there should be an active involvement of women at all stages from the identification of
project to implementation and maintenance. There are a number of reasons justifying the
incorporation of gender considerations in community contracting approaches. These include the
following two;
There is evidence that women are often more disadvantaged than men and, therefore,
should benefit more from direct support programmes. This point cannot be over-
emphasized in low income countries which tend to be characterized by, among other
things, inequality against women with respect to accessibility to productive resources
(including credit and land).
Programmes that take into account the gender dimension of transfer programmes tend to
benefit more household members due to the critical position women occupy in household
welfare. There is evidence that putting more resources under women’s control has a more
positive impact on household well-being.
Mobilization process
¾ The process by which communities identify, plan and manage subprojects should be
evaluated. There should be evidence of widespread support and participation within the
community. This is particularly important in projects with the specific objective of empowering
the community.
¾ Key organisations identified with potential to support community contracting should be tasked
to ensure that common interest of the wider community and other groupings or associations
are synergized.
Negotiations and terms
¾ There should be a gradual move towards facilitating communities to negotiate contract sums.
This would allow committees to eventually build expertise in negotiation and other relevant
skills, including the capacity to handle large sums of money.
¾ There is need to have a more participatory approach towards negotiations. Participation of the
wider community was inadequate and only undertaken during project identification.
Participation of the marginalized groups should also be considered. It is important to identify
26
the views of the most vulnerable in the communities to ensure that they are represented during
the negotiation process.
¾ Community involvement in negotiation processes is critical in their strengthening. The study

revealed that communities are not in a strong position to negotiate for their needs because
they lack knowledge in what goes in the processes. Orientation and training should, therefore,
be a critical element if this is to be achieved.
¾ A simple but comprehensive framework should be created for negotiation to guide both the
contracting organisation and community based organisations in contracting processes.
Guidelines of negotiating and contracting should be developed and applied:
– between the contracting organisation and the community;

– between the community and the local government; and;
– between the contracting community and the sub contractor.
Recruitment criteria and procedures
¾ The study revealed that groups and project committees recruit skilled labour through verbal
communication. Contracting organisations should assist communities design simple standard
contracts for hiring of skilled labour. Contracts should be simple but comprehensive, targeting
among others, the following areas:
– Description of the work

– Time period it will take
– Wage rates
– Payment schedules
¾ It was indicated by communities assessed that they prefer to recruit locally. Communities
should, therefore, be encouraged to recruit locally to avail them greater choice and bargaining.
While some organizations have made an effort to enforce this, it is not the case in most
organizations.
¾ Reliance on unpaid volunteer labor for public works initiative is not sustainable and leads to
confused responsibilities. The issue then is that contracting agencies should allow
communities to pay hired skill market value prices and not those determined by the contracting
organisations.
Standards and productivity norms
¾ A quality assurance system needs to be put in place and well developed for public works
development initiatives.
¾ Quality control should be maintained through external supervision. The ZAMSIF approach on
making a spot quality check of material reaching the community should be adopted in the
procurement of goods. Sub-standard materials should be rejected and the suppliers should
take responsibility for replacing them.
27
Payment systems/procedures
¾ According to the review, most of the organization’s financial procedures affected the releases
and resulted in delays in disbursements of funds to beneficiary communities. It may be useful
to negotiate with communities different financing packages that can be tailored to their
capacities to implement projects.
¾ Contracting organisations should take issues of timely disbursements seriously. For instance,
the approval process for funding should be shortened. In addition, every effort should be made
to ensure timely allocation and disbursement of budgeted resources. Disbursed funds should
be reduced to at the most two installments.
Contract management
¾ Contracting processes need to be simplified and improved upon for the committees and groups
to manage.
¾ There should be clear roles and responsibilities for those involved in contract management.
¾ There should be rules regarding the groups’ and committees’ accountability to the community
to make them more responsible for contract management.
¾ It is important to provide information to communities on contract management in areas where
communities are deficient such as:
– recruiting,
– managing contractors,
– procedures for community management, and
– rights and obligations that communities have to fulfill.
Capacity building skills development
¾ One training model may not suit all community groups and project committees. Therefore,
considerations should be made to design training programs that are based on the assessment
of the community’s capacity.
Gender Considerations
¾ There should be need to identify and enforce specific roles for women in community
contracting. This process should include enhancing women’s involvement in negotiation
processes.
¾ Community contracting should be made to accommodate the needs of participating women, for
instance, by targeting periods they would be most free to participate in project activities and by
ensuring availability of technologies that are friendly to women.
¾ Most importantly, the development of a gender policy for community contracting should be
given much attention. This would provide a platform for local government and community
groups to incorporate gender concerns in community contracting.
28
29
5.0 PERCEPTIONS ON INCENTIVES AND SHARED BENEFITS
5.1 Between communities and contracting parties
5.1.1 Cost effectiveness
The general findings from the study indicate that when community skilled labour is hired directly,
contracting organisations tend to largely reduce the cost of administration. In other words, the
cost of administering support becomes minimal when community contracting is channelled
through established community structures, such as the project committee. For instance, costs
going towards paying direct skilled labour from the community tend to be lower compared to fees
paid to a hired private contractor. On the other hand, the active involvement of community groups
or project committees in community contracting as opposed to partial labour or food-for-
work/asset approaches, has positive implications on enhancement of ownership leading to
improved sustainability.
5.1.2 Incentive costs
The participation of local communities in community contracting usually requires incentives aimed
at encouraging their participation. As an incentive, funds that are not utilised from the contract
sum should be given to the community to be utilised for other identified areas of need. This
approach provides the financing institution greater capacity to finance more projects because of
the savings that will have been made. This in turn leads to greater benefits accruing to the
community.
From the study, communities who were allowed to retain the unutilized funds were able to put the
money to good use, thereby benefiting the wider community. For instance, the Lukoshi camp (a
JICA funded community) managed the contract strictly resulting in savings which were used to
buy small livestock as an income generating activity. With the money generated, the project
committee was able to commit savings towards the improvement of community livelihood. For
instance, input and output marketing was supported by such a facility that was established.
5.1.3 Sustainability
Full participation of the community in the design and planning of public works development
initiatives provides an incentive to the community. It builds a deep sense of ownership which
leads to sustainability.
Community contracting enhances the use of local skills to the benefit of the whole local
community. It eventually leads to enhanced technical, administration and management skills,
critical for sustainable development. This will also benefit the local government in the sense that
skilled manpower will be readily available for future development initiatives.
30
5.2 Between community contractors and the beneficiary community
5.2.1 Income generation
One of the derived benefits between community contractors and the beneficiary community is the
generation of income. For example, one of the communities sampled had constructed a dam. The
water from the reservoir was further used to fill-up constructed fish ponds as well as for gardening
purposes. From the fish and vegetables sold, other community members were able to benefit.
The dam also generated benefits for cattle and other livestock owners. Similarly, in another
community visited, the installation of a grinding mill has resulted in benefits for the wider
community, as community members are now able to access the grinding mill easily saving time
which has a cost. The time spent walking long distances to a grinding mill has since reduced
thereby providing potential to engage in other productive ventures.
5.2.2 Employment creation
As opposed to food-for work/asset, direct community contracting approach also provides skilled
labour that gets a salary. At the end of the day money paid for skilled labour finds its way to the
rest of the community because the salaried community members buy food and other items from
within their local environment, leading to a boosted local economy.
5.3 Emerging issues for Guidelines
¾ Cost-sharing: The principle of cost sharing is fundamental to the concept of community

contracting. Cost-sharing arrangements for maintaining community public infrastructure
provides an incentive for the community to guard the infrastructure jealously. The other
aspects of community contracting facilitate direct injection of financial resources to the
community.
¾ Cost-effectiveness: As community contracting approaches have already proven themselves

in terms of their effectiveness, there is need to build on what has already been done so far,
with the view to sharpening the systems further. Training of community key stakeholders is one
way of achieving this, as already alluded to above. Among others, such training should focus
on issues related to efficiency and cost-effectiveness. Direct engagement of skilled labour from
the community as opposed to bringing in an external contractor will reduce costs.
¾ Delivery system: There is need for further work on improving grassroots level delivery
systems by, for instance, reviewing roles and responsibilities of various players at community
level, to ensure there are no gaps. Full community participation is a great incentive to
enhancing skills and is better achieved through direct hired labour than food-for work or partial
labour.
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6.0 ASSESSMENT OF KEY ISSUES
6.1 Existing potential
6.1.1 Availability of skilled labour
It was generally pointed out by community groups and project committees in this study that
artisan labour was readily available. The example provided of Chipindani community, is a case in
point, where skilled labour was provided by the community at both technical supervisory and
artisan levels.
6.1.2 Project related capacity
Through the use of PRA exercises, communities are able to identify their key constraints,
prioritize them and identify appropriate interventions to deal with the identified constraints. The
communities are also able to engage in planning and implementation processes.
6.1.3 Community participation approach
The cost sharing approach is an indicator of community participation. This approach is being
widely used by a number of development practioners in Zambia. The communities are ready to
choose their own development initiatives and thereby provide ready ground for community
contracting.
6.1.4 Past experience
The fact that some communities have handled community contracts well despite so many
constraints demonstrates that there is a lot of potential for communities to do even better. Past
experience also shows that community managed projects may take long to implement, but they
are manageable and easy to control and, therefore, may hold greater potential for meaningful
local level sustainable development.
6.2 Constraints
6.2.1 Lack of coordination
Stakeholders do not have a forum where they can exchange information. There is need to have a
forum where contracting organisations and community organisations involved in community
contracting can share information and experiences.
6.2.2 Limited experience and knowledge
Leaders of participating organisations in community contracting do not have, in most cases, a

good formal education and required experience. The noted management weaknesses such as in
the area of planning and control resulting in few unified plans make the effective management of
contracts difficult. Leaders, although very committed, inevitably cannot shoulder the full extent of
management requirements because they have their own household responsibilities to fulfill.
However, where training is provided, leaders of community groupings could provide good
supervision for the attainment of the objectives of community contracts.
32
6.2.3 Inadequate preparation of contract activities
Apart from ZAMSIF which has clear procedures, the rest of the organisations do not have any
existing mechanism to conduct training. Since most groups and committees involved in
community contracting are doing it for the first time, contracting organisations should have a
capacity building programme.
6.2.4 Inadequate Government support
Due to lack of political will, government initiatives fail short of promoting community managed
contracts. There has to be a strong political will to encourage government agencies in drawing up
community based programmes so as to make community contracting more applicable to rural
areas. This can be in form of policy. Because this is lacking, external organisations dealing with
communities do not feel obliged to promote community managed contracts. Additionally, the
Government could also formulate and enforce community contracting guidelines.
6.2.5 Temporal structures
Experience shows that present structures under which community contracting is undertaken come
and go with projects. This has made it difficult to retain experience and lessons learning due to
the lack of institutional memory. Consequently, building on lessons and experience tends to be ad
hoc and rather a big challenge.
6.3 Opportunities
6.3.1 Decentralization
This has a deliberate focus on engaging local communities. The Government has embarked on
building structures at district and sub-district levels that allow for more accountability of officials
and participation of district and community level players. An example of a sub-district level
structure is the ADC.
6.3.2 Funding to communities
Due to decentralisation, various donors are now emerging and giving their support to these
emerging structures. Donors as well as NGOs are now able to actually reach the ground and
provide direct project support and resources to marginalized communities. Organisations that
have emerged and are using community contracting as an alternative to community
empowerment in Zambia include the following:
• Plan Zambia • African Development Bank

• World Vision • Development Cooperation
• Oxfam Ireland
• Christian Children’s • JICA
Fund • United Nation Development
• IFAD Programme
• GTZ • UNICEF
• Sida • Smallholder Enterprise and
• World Bank Marketing Programme
33
6.3.3 High poverty levels
High poverty levels tend to cause communities to seek to be involved in the

development initiatives affecting their locality. This is due to an absence of alternative
livelihoods at their level which could keep them occupied.
¾ Stakeholder forum: Capacity to handle a community contract may be enhanced by

the extent to which there is a forum where both community based organisations on
one hand and local government and NGOs on the other, are able to tap into each
other’s strengths and specialisations and use this to advance their own operations.
¾ Training for institutional development: The areas to be focused on should include

the following:
a) Organisational management and leadership. This should include: (i) the structure
and functions of the community contractor (or committee); (iii) strategy
implementation; (iv) co-ordination and control; and, (v) leadership and human
resource management.
b) Community mobilisation and intervention strategies. This should be aimed at

enhancing community support and ownership of the organisation’s activities.
c) Group dynamics. This should include teamwork, conflict resolution strategies,

group communication and feedback.
d) Training in resource mobilisation (including proposal writing), aimed at enhancing

effective mobilization of resources for grassroots level development.
e) Legal and Regulatory issues relating to community contracting
¾ Training for enhancing community contracting: Some of the areas that need to be
dealt with include:
a) Formation of a CBO or association focusing on the legal aspects. Should discuss

processes of registration, partnership and associations. Legal responsibilities that
must be discussed should include taxes, conditions of service for employees and
insurance.
b) Formulating a proposal, explaining its necessity and various components.
c) Procurement of inputs and raw materials including identification of the right

sources, the time to buy, the quantities and qualities required and their cost.
34
References
ILO ASIST Africa Regional Programme, Tournée J., van Esch W. Community contracts
in urban infrastructure works; pg 29; Geneva, International Labour Office, 2001.
International Labour Office, Employment –intensive Investment Branch, Oakley Peter,

Organisation, negotiations and contracting in development programmes and projects, A
study of current practices at the community level; Geneva, ILO office, 2001.
Samantha de Silva, Community-based Contracting: A Review of Stakeholder,

Experience, the International Bank for Reconstruction and Development/The World
Bank, Washington, D.C, 2000
Zambia Social Investment Fund, Annual Report, 2004
Zambia National Tender Board, Procurement guidelines of goods and services,

Government of Zambia, Lusaka, Zambia.
Zambia National Tender Board, Procurement guidelines of works, Government of

Zambia, Lusaka, Zambia.
Zambia Social Investment Fund, Operations manual, Ministry of Finance and Economic
Development, Lusaka, Zambia, March 2000.
35
Appendices
36
Appendix 1a: List of organisations consulted
Name Position Organisation

Eddy Mwale y Operations Manager y ZAMSIF
Austin Beebe y Program Support Manager y Plan Zambia
Nkumbu Siame y Senior Engineer y Ministry of Local Govt and Housing
Godrey Mwelwa y Project coordinator y CCF
Catherine y y Care International
Mwanamwamba
Rhoda Habwele y Regional Facilitator y ZAMSIF
Mr. Kawasi y PasVida Project coordinator y JICA
Zephaniah Munga y Mazabuka ADP Manager y World Vision
Mr Kaleyi y Project accountant y Rural Investment Fund
37
Appendix 1b: List of Participants at community level
Name of participant Position Community

Oswell Mwanaila Chairman Malala Community
Engwell Ngoma Committee member Malala Community
Rhoda Sichilongo CDF Plan Zambia Ndeke Residents Development
Mervis Hamuntanga Community school Ndeke Residents Development
Emmanuel Masiye Treasurer Ndeke Residents Development
Rosemary Kayungwa Committee member Ndeke Residents Development
Elinah Kayombo Committee member Ndeke Residents Development
Edith Libinga Vice Treasurer Ndeke Residents Development
Alfred Lwiindi Contractor Ndeke Residents Development
Wistern Mweemba Project C/ Chairman Malundu community
Rosemary Chikwalila Member Malundu community
Mweemba Malambo C/Env Malundu community
Dyna Luzongo Maintenance Secretary Malundu community
Collin Kapapa Community member Malundu community
Dass Chikwalila Headman Malundu community
Elijah Musutusa C/ Offices Malundu community
Elijah Mwamba Community member Malundu community
Senior Headman Shachebo Headman Shachebo Community
Mary Nkausu Treasurer Shachebo Community
Levy Likamba Committee member Shachebo Community
Charles Kasebausha Chairman Moono Community
Jacob Gore Vice Chairman Moono Community
Baldwin Muluti Secretary Moono Community
Lovemore Chibbebbe Vice Secretary Moono Community
Ruide Kakumbi Treasurer Moono Community
Franco Mwaambi Committee member Moono Community
David Kapoli Committee member Moono Community
S / H / Man Kakumbi Trustee Moono Community
The Headman Chipindani Community member Chipindani community
Johns Chakufyali Project committee chairman Chipindani community
Moses Ndawo Secretary Chipindani community
Maiko Tindi Committee member Chipindani community
Lameck Juma Community member Chipindani community
Simon Ziba Committee member Chipindani community
Sandwell Chirwa Community member Chipindani community
Hilda Tindi Community member Chipindani community
Justina Chipwalu Community member Chipindani community
Fridah Kalimba Treasurer Chipindani community
Dina Chakufwyali Community member Chipindani community
Fatiness Chipanga Community member Chipindani community
Richard Ngulube Community member Chipindani community
Rosemary Mupaso Vice secretary Chipindani community
Yenelani Tembo Community member Chipindani community
Dorothy Kawishi Committee member Chipindani community
Mavis Kansanje Committee member Chipindani community
Ms. Ngulube Community member Chipindani community
Mrs Tembo Community member Chipindani community
Headman Mwanjeleka Project committee member Mwanjeleka Village
John Lubinga Community member Mwanjeleka Village
Danis Mwanza Community member Mwanjeleka Village
Patrick K. Mumba Community member Mwanjeleka Village
Christopha Kasuwa Community member Mwanjeleka Village
Headman Sema Community member Sema Village
Francis Chataba Committee member Sema Village
Mr. Mwanaumo Community member Sema Village
Patrick Mataya Community member Sema Village
38
Name of participant Position Community

Chrispin Chikopa Community member Sema Village
The head Man Sopo Committee member Sopo Village
Raphael Mbewe Community member Sopo Village
Brain Efeki Agriculture extension officer Lukoshi Camp
Peter Mweembe Chairman Lukoshi Camp
Trust Ndumba Social Worker Kabile Community CCF
Xavier Haamujompa Social Worker Kabile Community CCF
Silvia Mwanambaba Project Secretary Kabile Community CCF
Simon Malambo Health Worker Kabile Community CCF
Vistor Hamugande Community member Kabile Community CCF
Willson Mulumba Community member Kabile Community CCF
Mathew Mandyabi Community member Kabile Community CCF
Phillimon Kaliyangile Community member Kabile Community CCF
Clement Haamujompa Community member Kabile Community CCF
Josia Mweemba Petty contrator of the local school Kabile Community CCF
Albert Siabaingwa Community member Kabile Community CCF
Japhet Hamugande Community member Kabile Community CCF
Elson Mweemba Community member Kabile Community CCF
Cobeit Mwenda Community member Kabile Community CCF
Mandomona Chikatula Project Development Manager Kabile Community CCF
Kennethy Simukuwa Community member Kabile Community CCF
Jonathan Hamunji Community member Kabile Community CCF
Xavier Haamujompa Project social worker Kabile Community CCF
Trust Ndulumba Project social worker Kabile Community CCF
Silvia Manabamba Project secretary Kabile Community CCF
Simon Malambo Project Health Worker Kabile Community CCF
Amos Ndondo Secretary Musikile community
Lawson Chember Treasurer Musikile community
Shuambwa Mweemba Member Musikile community
39
Appendix 2: National Council for Construction -Fee Structure (US $)3
Classification Grade 1 2 3 4 5 6
Initial Application form 4.7 4.7 4.7 4.7 4.7 4.7
Renewal form 2.3 2.3 2.3 2.3 2.3 2.3
Initial Scrutiny Fee 93 46.5 23.3 11.6 4.6 3.5
Secondary Scrutiny Fee 46.5 23.3 11.6 5.8 2.3 1.7
for re-application and
renewal of Annual
membership
NCC Fee = Annual Fee 348.8 174.4 116 69.8 34.9 23.3
Association Membership = 474 237 158 95 47 32

Annual Fee (US$)
3
The ruling rate used is US $ 1 = K4,300 (October 2005)
40
Appendix 3: Decision Making Checklist
[Note = Distribute 10 points between women and men according to their share in the activity]
Question Monze district Chongwe district Mumbwa district
Malundu women Malundu men Chipindani women Chipindani men Kabile women Kabile men
Women Men Women Men Women Men Women Men Women Men Women Men
Identification of subprojects 7 2 2 8 5 5 7 3 5 5 5 5
Responsibility for community contracting 5 5 4 6 2 8 2 8 2 8 0 10
Contributions? 7 3 7 3 8 2 5 5 6 4 6 4
Who is involved in the negotiation process 5 5 5 5 5 5 3 7 2 8 0 10
Who signs the contract? 5 5 5 5 5 5 1 9 2 8 0 10
Who is involved in training? 5 5 5 5 5 5 4 6 5 5 3 7
Who are the bank signatories? 5 5 5 5 4 6 5 5 5 5 3 7
Who keeps the funds? 5 5 0 10 5 5 6 4 5 5 4 6
Who decides what to procure? 4 6 5 5 5 5 2 8 4 6 2 8
Who procures it? 5 5 5 5 5 5 5 5 4 6 0 10
Who approves what is procured? 5 5 5 5 4 6 5 5 4 6 2 8
Who hires labour? 5 5 5 5 5 5 4 6 5 5 0 10
Who determines wage rates? 5 5 5 5 5 5 6 4 5 5 2 8
Who monitors & supervises? 5 5 5 5 3 7 1 9 5 5 3 7
Who is involved in the maintenance? 5 5 4 6 6 4 5 5 4 6 2 8
41
Appendix 4: Lessons learnt, benefits and perception on community contracts
Community & public Gaps/lessons Benefits and recommendations

works
Lukoshi camp – Lessons: The community used a full contract and was
grinding mill, wells & Needed to be provided with more training happy with the approach used and would
health post prefer the same approach in future.
Lunywa Dam- Malala Gaps Benefits derived from the experience:
dam construction Money not disbursed on time to launch the Have sense of ownership
project Capacity was built
First time to have done the project so may
have made a number of errors Recommendations:
Training was short. It needed more time and Prefer the labour & material contract
retraining especially in cases that were complex
technological project are being constructed.
Prefer district team to be fully involved
Ndeke community- Lessons: Recommendations:
community school, Roles of the main players should be well Prefer the full contract because it builds a
Road rehabilitation & defined e.g. that of the council, community, sense of ownership, builds capacity & skills in
Water piping Irish Aid various areas.
Sensitizing community should be an important Better the council carries out supervision
aspects and should be a component of Communities should first be trained to build
capacity building component capacity but also self reliance
Malundu RHC Gaps Benefits:

Some community members refused to Labour, admin costs were low because they
contribute towards the 25% required used local labour
The builders picked up more experience and
Lessons learnt: skills through the process
Cost sharing is possible and has been carried The process built confidence in the
out effectively. community that they can be agents of their
own development and produce a technical
supervisor
There is a deep sense of ownership
Prefer to use the full contract approach
because of the above benefits
Chipindani Water and Lessons: Benefits
sanitation Learnt more about importance of community It is a learning process for people
participation Capacity is expected to be built
Learned how to work together There is a sense of ownership
Learned about leadership, budgeting,
administration (project management) Recommendations
Learned how to negotiate Prefer the full contract approach because it
creates employment
Challenges There should be timeliness with building
There was no money for allowances for those materials and funds
who were involved in procurement & transport Contracting agency should provide transport
hiring for collecting of materials
Labour was difficult to find
Those who were involved in building felt that
the money was not enough
Butinti dam – Kibbo Lessons learnt: Recommendations
cooperative society Working together as a community can lead to Would prefer full contract so that the
RIF funded greater achievement community can be charge and have a sense
The district played a good role of providing of ownership built
guidance. In future would prefer that community takes
the initiative and are in drivers seat and is
involved in selecting contractor, allowed to
handle funds to pay for labour
When a project involves highly skilled labour
RIF should provide it
Community & public Gaps/lessons Benefits and recommendations

works
Chikwanaula Bridge - Challenges Recommendations:

Chibombo Problem with clearing cheques. Prefer organizations use the full contract
Transport problem approach because:
Due to delays in mobilizing money, the It provides a sense of ownership
labourers were paid late and these complained It provides employment
the implementation process It empowers communities
Kabile CCF Challenges: Benefits:

community projects Employment of skilled labour was a problem. It Community has been empowered
was difficult to find them There is a sense of ownership
Money came in slowly, so hiring a registered Administration costs are low
contractor was going to be difficult
Recommendations:
Lessons learnt Prefer an approach where community takes
However, since the construction of the school, responsibility over everything, including
CCF has changed the system. Now it is the provision of skilled labour
project board which does everything to ensure It would be good to involve local leadership
quality and sustainability so that they can sanction rules which
There is not much skilled labour in the communities should abide with especially
community relating to cost sharing
(Office) building materials were delivered late Disbursement of funds should be improved
Community contracting is appropriate in a and done timely.
situation where skilled man power is available
and when there is no money within the
community
Mushilke cooperative Lessons learnt: Recommendations:
It was more costly to hire a contractor. It could Prefer to be involved especially in the
have been cheaper if the co-operative could procurement process
have handled the job. The cooperative at Would prefer a full contract & only for district
times felt they did not have control over what staff to involve themselves in monitoring and
the contractor did supervision
Training should have been provided especially
in project management
There is skilled labour in the community and
would want to engage this in future projects
43

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ASIST

Community Contracting and Organisational

A Case Study of Zambia

Tel: 260 1 293529

Appendix 1a: List of organisations consulted.......................................................................................... 37

ADC Area Development Committee

1.1 Background to the Study

1.2 Justification for the Study

¾ To promote a standardized and acceptable implementation system for public

1.3 Study Objectives

1.4 Study Methodology

2.0 TYPES & NATURE OF EXISTING ORGANISATION MODALITIES

2.1 Project committees

2.2 Petty contractors

2.4 Other community structures

2.4.1 Project management boards

2.4.2 Resident development committees

The Resident Development Committees (RDCs) consist of community representatives in given

Table 1: Modalities/structures used in community contracting

Modality/ Legal status Organisation that has

2.5 Emerging issues for guidelines

¾ Supportive government policy framework: If community contracting is to be used as a tool

3.0 CONTEXTUAL, INSTITUTIONAL & LEGAL FRAMEWORKS

3.1 Community contracts

Table 2: Community contracting models

Public works Contracting Type of contract Contractor Selection process

3.2 Procurement systems and regulations

3.2.1 Procurement at national level

a. Construction of schools or office blocks;

Box 1: Procedure for the procurement of works at Country level

a. Pre-qualify contractors/call for bids

3.2.2 Procurement at community level

Box 2: Procedure for the procurement of works – ZAMSIF approach

3.2.3 Registration process of contractors

Box 3: Registration process

 The NCC Registration form can be obtained at a fee of US$ 4.4

3.3 Constraints and opportunities

Unfavorable Government policies

The legal status of the target group

Information is generally lacking on issues such as procurement, registration and managing of

Poor enabling environment

Social and political recognition of Community Based Organisations (CBOs)

3.4 Emerging issues for guidelines

¾ Developing community level procurement procedures: The development of procurement

¾ Information and training: Mechanisms should be provided which allow communities to

4.0 OPERATIONAL PROCEDURES AND FRAMEWORKS

4.1 Mobilization process

Box 4: Stages related to mobilisation

⇒ Identification: Local authorities call meetings to discuss problems in the

4.2 Contract sums

Table 3: Contract sums for various Public works development initiatives

Public works development initiatives Average value (US$)

4.3 Negotiations and terms

4.4 Recruitment criteria and procedures

4.4.1 Technical supervisor

Bathroom VIP toilet

4.4.2 Skilled labour

4.4.3 Sub contractor

4.5 Standards and productivity norms

(i) Approval by the contracting organisation or the concerned district department;

• Capacity building of community groups or committee

Figure 2: Malundu Rural Health centre constructed by Malundu Community

The NCC Registration form can be obtained at a fee of US$ 4.4