By Deogratias Mmana:
The National Construction Industry Council (NCIC) Tuesday launched construction cost indices which will guide industry stakeholders in budgeting, pricing and cost-management in construction projects.
NCIC Board Director Monica Kandodo said the cost indices will also address the issue of unrealistic bids, which often result in exorbitant contract sums which drain resources.
“The indices are coming at a time there has been an outcry from various stakeholders of unrealistically low bids, rendering contracts unattainable as well as unrealistically high bids resulting in exorbitant contract sums which drain resources,” Kandodo said.
She said in the absence of the cost indices, there have been unrealistic claims and price escalations that have lacked a basis for objective assessment and comparison.
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Kandodo added that the indices will help moderate budgeting and pricing of projects and managing costs on construction projects in order to ensure value for money in the infrastructure sector while ensuring quality and efficiency.
The indices augur well with the country’s long term development blueprint, Malawi 2063, as the country needs to invest in infrastructure to support accelerated attainment of an inclusively wealthy nation whose people enjoy safe infrastructure.
Chairperson for the Parliamentary Committee on Transport and Public Works Enock Phale asked the NCIC to take the indices to councils where a number of projects are implemented with cost variations.
“Many projects are implemented under CDF [Constituency Development Fund] and you find different cost prices for similar projects. There is a need to bring sanity to the industry. So, please orient the councils.”
