Every construction work is a boom to the national economy

CONSTRUCTION industry is one of the sectors that handles large financial resources of any country including Tanzania. The amount of money that change hands in the industry are significant. The industry contributes about 11.5 percent of Tanzania’s Gross Domestic Product (GDP) due to that momentary volume. This being the case, there is a need to equip key players in the industry with adequate financial skills for the sector to work more effectively. The industry requires competent engineers. It is these engineers who actually play the greatest role in each of the main legs of the construction triangle-clients’ representatives as consultants and contractors as well as architects and quantity surveyors. Engineers are required to play their roles professionally and in strict compliance with the code of conduct and ethics for engineers when discharging out their duties. Because of the above factors, Tanzania government established its own regulatory bodies whose task is to monitor the contractors and engineers professionals to abide by the rules and ethics so as to avoid shoddy construction work in the country These are the Engineers Registration Board (ERB), being the oldest board in the country. The Board was established way back in 1968 and was re-established in 1997. Then there is Contractors Registration Board (CRB) which was formed in 1997. According to CRB, the government has invests heavily in construction industry so as to get the country’s infrastructures in good order, and now the growth of the sector stands at 11.5 percent. About a decade ago, the growth status of the sector stood at four or five percent. The construction industry comes second after education when it comes to budgetary allocation from the government for having considered its importance to the national economy. The growth of the industry can be measured through the presence of new buildings, modern roads, city master plan, telecommunication towers and airport runways. This shows the big role and dedication which is being displayed by professional engineers in the country. In view of this, CRB has dedicated more to build the capacity of local contractors in order to enable them to undertake larger projects in both local and international markets.
Statistics by CRB indicates that, up to 2008, the market share by value for local contractors in the country was 30 percent, while foreign contractors had 70 percent lion’s share. However local contractors account for about 94 percent of the local contractors registered in the country. This trend does not create a friendly environment for the development of the local contractors and contracting capacity. Access to finance is one of the challenges that have continued to stifle the growth of contractors despite the strategic role they play in the building of the nation. The importance of the construction industry to the national economy is well recognized in so many relevant policy documents such as Tanzania vision 20025, MKUKUTA 2005-2010 and construction industry policy 2003.
Currently construction industry contributes substantially to the national economy through contractors. It has been growing at an average of 11 percent and the industry employs about 9 percent of the workforce in the country. The industry therefore has a strong operational base and business presence in the local economy. Despite of the importance of contractors to nation building, the main constraint to local contractors is capital and access to finance in the financial institutions in the country. In order to rescue local contractors in the country, CRB has adopted to seek a strategic and holistic approach in addressing the issue with no objective of seeking sustainable solutions through collaborative efforts with various stakeholders. CRB in collaboration with the World Bank through the international finance corporate has started to implement a leasing project to local engineers. The construction industry can be a stepping stone towards improved social well-being in the country. The sector can help accelerate social and economic development and fight poverty and unemployment. Engineering is among the noble profession that have the privilege and responsibility of self regulation because of its importance. It works on the modes of communication including roads, railways, telecommunication towers and airports. In this regard, construction industry is in the forefront when it comes to social and economic development initiatives in the country.
ERB on the other hand has also worked out code of ethics that aim at regulating the activities of engineers. It also overseas the conduct of engineers and engineering consulting firms. The codes is based on the Board tenets of truth, honesty and trustworthiness, respect for human life and welfare, fairness, openness, competence and accountability, engineering excellence, protection of environment and sustainable development. Under the law, it’s illegal for an engineer or an engineering firm to practice the profession that’s not registered. The ERB Board, just like CRB also has the legal powers and has the obligation to withdraw the right to practice from registered engineer’s Board, and if found guilty of professional misconduct or professional incompetence.