The Rural Development Company Ltd (RDC) conducted its first in a series of training workshops for contractors on November 12 at Sevilla Club, Couva. The workshop was aimed at imparting essential managerial tools for the effective preparation of tenders and construction of projects. RDC is a special-purpose state enterprise that was established in 2005 to build infrastructure in rural communities of Trinidad. Its mandate is to assist in the development of the small and medium contractors.
According to a statement from the RDC, it has completed more than 150 projects in 26 communities throughout Trinidad. The company also completed the infrastructure to 13 large farms at six sites for the Ministry of Agriculture Land and Marine Resources. Tajelal Sarwan, chief executive officer of the RDC, in opening remarks at the workshop, said that based on the RDC's experience in its administration of contracts over the past three years, several areas of deficiency in capability of the contractors were observed. Sarwan said the motto for all contractors should be "doing it right the first time, to best quality and on time."
Tenders
The workshop was designed to inform the contractors of the key issues that must be considered in the preparation of tenders as well as management of the contracts during construction. The workshop brought together other key state enterprises that provide support facilities for contractors comprising the Business Development Company (BDC), National Entrepreneurship Development Company (Nedco) and National Quarries Ltd. More than 120 contracting firms attended the workshop. The RDC had invited them to tender on infrastructure development projects in 10 rural communities throughout Trinidad. The programme of activities included several presentations from RDC's management, other state enterprises and a representative of the Occupational Safety and Health Agency (Osha). The programme was chaired by Clivia Pierre, RDC's company secretary. Chris Jagroop, manager of engineering, explained the procedure for bidding, a document that identifies key issues to be considered in the preparation of the tender and essential support documents to be supplied with the tender.
FIDIC
Jagroop said the RDC will be using the FIDIC (1999), short and long forms of contract for works designed by the employer and outlined key clauses. He said contractors must refrain from communicating with the RDC about their tender. Claude Bharath, finance manager, spoke about the financial responsibilities of contractors and financial management during the construction of a project. Bharath discussed the importance of proper cash management to ensure that work progresses continuously. Saying that contractors are in business to be financially viable, Bharath said proper record keeping in contractors' accounts department is a key tool in managing their finances.
Covering all costs
Engineers Russell Ramrattan and Satyadeo Arjoon gave participants a treatise on the build-up of unit rates for various types of work, considering the direct and indirect costs that make up the rates and other considerations as identified in the preamble to the bills of quantities. Contractors were advised that indirect cost will include provisions for health, safety and environmental protection facilities during construction, along with normal overheads. Contractors were told to consider other costs that may affect their tender, such as finance charges for loans and overdraft facilities, considering the time for payment. It was emphasised that unit rates for items of work will be evaluated to ensure that they adequately cover costs all associated with completing works. Engineers David Alexander and Zayid Alleyne gave guidance on the management of contracts during construction. They said a successful project is one that is completed to the required quality and configuration and within time and budget with minimal inconvenience to the communities.
Construction, safety
Participants were advised that proper management of contracts will ensure successful completion of projects. Contractors were informed that RDC fully supports Osha, and regularly collaborates with the assigned safety officer. Tazim Salim, of Osha, said the Occupation Health and Safety Act is now law and gave an indepth presentation of the responsibilities of the contractors to their workers and the public in ensuring that works are conducted in manner that is safe, poses no health risks and is sensitive to the preservation of the environment. Salim said the statutory compliance by the contractors and that inspections of the projects will be conducted periodically with RDC's representatives to ensure compliance. Salim said although Osha had the power to prosecute, it was taking the course of assisting contractors in achieving compliance with the legislation as a first step.
Financing
Roann David and Sheldon Blugh, of the Business Development Company (BDC), explained the procedure to access the BDC's financial products. They said the BDC had set up a subsidiary company to provide leasing arrangements for the supply of tools and equipment to contractors. Contractors were also made aware of the advantages of leasing over purchasing equipment. Faiz Ramjohn, of Nedco, gave a summary of the procedure for accessing its facilities and the various types of business ventures that will qualify for funding.