Investigation on efficacy of prime contracting in Tanzania

This dissertation investigated efficacy of “prime constructing’’ in Tanzania whereby the entire array of actors and construction activities are placed under responsibility of a single contractor. Literature review was made to discern the merits of prime contracting in general especially on its evolution in the United Kingdom over the late 1990s and its adoption there between 2000 and 2002 and whether or not the practice can also be initiated in Tanzania. Research approach observations and face to face interviews were used as data collection methods so as to assess through questioning, four key areas, namely, the capacity of actors in the industry, challenges faced by stakeholders, opportunities available for them and to recommend appropriate strategies that can be used to initiate the practice in Tanzania. A total of 62 stakeholders responded and comprised consultants, contractors, clients, board members and individual experts. The study revealed that the practice has been used in the past although it was not called by that name and is still being used under PFI models as it is the case with the National Housing Corporation. The current situation shows that there is need to make a lot of improvements on the local contracting capacity in order to address many challenges facing the construction industry and be able to take more advantages of many available work opportunities in the construction sector. The study also found out that most local contracting firms appeared to be family owned with limited financial and organizational competencies. It has been strongly recommended that there is need for them to reposition themselves as well as solve their financial constraints through formation of their own bank or financial institution. The National Construction Council was seen as a government institution that can spearhead initiation of “Prime Contracting” practice beginning with formalization of actors who operate informally and then move up the rank gradually.