Malawi building and Civil Engineering Contractors and Allied Trade (Mabcata), trustee, Patrick Khambadza, has tipped small and medium entrepreneurs in the construction sector on issues regarding financial management.
Khambadza, who is a lecturer at The Polytechnic, which is an arm of the University of Malawi (Unima), and owner of Blithe Constructions Limited and Imperial Modern Finishes Limited, made a presentation during the association’s annual general meeting held in Lilongwe recently.
In his presentation, Khambadza emphasised the need for contractors to be prudent in financial management if they are to grow their businesses.
His presentation also highlighted financial problems that most contractors face as a result of under-pricing construction works, lack of controls and bribery.
“It is important for contractors to have a budget and cash flow analysis for their project before they start doing the job. This is lacking in most projects done by SMEs within the sector,” Khambadza said.
He further tipped the contractors on how to prepare a budget and cash flow for their projects and companies.
“There are 11 principles of good practice to financial management which include price to do the job and not win the job, having levels of authority and controls, paying tax, forming joint ventures to tackle bigger projects, desisting from corruption, fraud and bribery acts,” he said.
The conference was sponsored by, among others, Britam, Rainbow Paints, Shayona Cement, Larfage and Imperial Motors.