Collaboration in Construction
Contents Staff Changes at CRB...4 List of Registered Contractors...7 Collaborative Working: the concept...14 Interpretation of voluntary arrangements...16 Promotion of voluntary arrangements...18 Tools for collaboration: Conflict avoidance techniques...22 rough Collaboration and Teamwork...25 Roads cave in, vehicles fall in.....26 Editor Eng. H. N. Ilahuka MediaCom Ltd P. O. Box 105122 Dar es Salaam Tel: + 255 22 2617082 E-mail:mediacomltd@hotmail.com Editorial Committee B. C. Muhegi - Chairman M. Bairi - Member S. Njaa - Member V. B. Lobo - Member D. S. Msekeni - Member D. Jere - Secretary H. N. Ilahuka - Editor e Contractor is published quarterly by the Contractors Registration Board Floor 3, TETEX Building Pamba Road P. O. Box 13374 Dar es Salaam Tel: + 255 22 2131169 / 2137962-3 Fax: + 255 22 2137964 E-mail: crbhq@crbtz.org Website: www.crbtz.org e views expressed herein do not necessarily reflect the official views of the Contractors Registration Board or its individual officers, or any particular organisation. Price per copy: Tsh 2,500/= Subscription form is enclosed For advertising rates please see ad on page 16. Printed by CRB Collaboration in Construction From the Editor Collaboration in Construction Collaboration, which is the theme of this issue, means different things to different people. To some people it simply means cooperation, to others it means alliance. Yet to others it means partnering. We are going to focus on collaboration as in collaborative working, in construction projects a process by which the project parties and individuals operate in a mutual manner to align their interests for the successful outcome of the project. Partnering may also mean different things to different people, however, often the terms relationship-based contracting, partnering and negotiated contract are used. But whatever meaning is assigned, it is well established that the essence of collaboration is working towards a shared vision to deliver results that cannot be easily achieved independently and whatever motivates it one thing is clear: collaboration can only thrive in a conducive, harmonious environment which is rich in trust. is definition illustrates the role of trust: a type of collaboration in a construction project based on dialogue, trust, openness and with early participation from all actors. e project is carried out under a mutual agreement expressed by mutual activities and based on mutual economic interests As a business concept, however, collaborative working sounds like it would undermine the spirit of competition - which itself is the basic tenet of business, of course. It therefore creates many challenges including deciding when collaboration is appropriate, establishing the collaborative contract and executing it and delivering the expected benefits. Clients everywhere will always want to get better value for money, and the construction industry is not an exception. is implies that it would be in the best interest of the industry to embrace new ways of working in order to remain competitive and to meet the needs of its ever demanding clients. is means moving away from the limitations of traditional project relationships and lowest-price tenders to other, more collaborative forms of contract procurement. is issue of e Contractor provides some insights into how collaboration can be created and put to work in an industry driven by competition. Already the new concept has taken hold in some countries where traditional structures of responsibility in firms have led to the promotion of collaborative approaches to project delivery and to the fostering of longer-term relationships. In the European Union for example, there is now considerable evidence that such measures can lead to more successful project outcomes. Proponents of the concept suggest that for a start collaborative venture partners must be averse to conflicts. ey have also done sufficient research to establish the so called rules of the game, and they are transparency, a clear mutual understanding of what every party had signed up for; alignment of corporate objectives; and an expectation that every player would achieve top-notch performance levels. Here in Tanzania the Mbutu Bridge project in Igunga awarded to a Joint Venture of 13 contractors will surely best serve the purpose of showcasing the benefits of collaborative arrangement in big projects. Furthermore, it will serve to emphasise how public entities and government organizations have an important role to play, and a stake in, improving the competitiveness and efficiency of the construction industry in that they also provide the venues required for the collaborative activities necessary to change existing practices. We commend Minister Magufuli for his insight and enthusiasm in demonstrating that collaborative arrangements are indeed feasible if contractors and other industry stakeholders take their roles seriously, knowing that in the end it is the wider community which will benefit when small contractors manage to acquire the necessary capacity to embark on bigger projects. Let every stakeholder embrace this spirit. Cover photo: Collaboration can be applied on any project. Bagamoyo Road Wazo - Mwenge Project - DSM 2 e Contractor, July - Sept, 2012
From the Registrar Dear Readers, Foremost, I thank God the Almighty for his continued grace and blessings to us. I would also like to thank the Board for its guidance, my staff for all the efforts they make to ensure the fulfillment of our plans; to the contractors and all stakeholders for their continued support. Despite our good plans to build the capacity of contractors, many still face huge challenges. e challenges include inadequate financial base, limited access to construction equipment as well as limited skills and experience - especially in the execution of high-value projects. And, although these challenges do not impact on all contractors in the same way, ultimately, most would experience some measure of hindrance to growth. Foremost in our focus, therefore, is seeking to minimise this hindrance. In our endeavours several approaches are at our disposal of course, but the one tested and which we are advocating in this issue is the one born out of the old adage umoja ni nguvu unity is strength. We have always been aware that significant growth of local contractors could only become feasible if they got involved in big-value projects. is is what we are addressing here. A typical scenario is where you have contractors with some strength but the individual strengths are inadequate to successfully execute a particular project being tendered for. Under such circumstances, combination of the strengths is the most sensible approach it is called collaboration. Joint Ventures or JVs, are one of the ways contractors can collaborate to complement their abilities in order to successfully execute high value projects. In JVs, individual firms need not merge; they only form contractual agreements that join two or more firms for the purpose of executing a particular project. e Board has been in the forefront to sensitize contractors to form joint ventures as a way of overcoming the challenges to growth. It will be recalled that the Board conducted special training on Joint Ventures in early 2000s to ensure that the contractors understood not only the importance but also the best ways to form Joint Ventures. e general principle is that since money is involved in a joint venture and the partners have to share the profits and losses resulting from the JV project, it is necessary for the partners to have a strategic plan in place and ensure that all are committed and focused at the JV project s success. I would like to insist, however, that contractors should embark on Joint Ventures with a tangible objective in mind. erefore, Joint Ventures should be Strategic Alliances such that once the JV project is over, the individual contractors should realise advancement relative to their former positions, otherwise it would be wasted efforts. It is important for contractors to choose JV partners carefully and strategically; partners who can help towards successful execution of a project and whose presence in a project brings tangible benefits such as knowledge and experience to partners. Furthermore, JV partners should embrace honesty, integrity, transparency and communication among themselves. During the tabling of the 2012/2013 budget for Ministry of Works, you must have heard how the Government wished to see increased participation of local contractors in the improvement of the country s infrastructure. e Minister responsible for Works, Dr. John Magufuli stated that the Government would like to see local contractors executing most of the projects including big-value ones - that are funded by internal sources. Dr. Magufuli is on record for championing efforts that would see local contractors forming Joint Ventures in order to increase their capabilities that would in turn increase their chances to qualify for big-value projects. e awarding of over TZS 12bn Mbutu Bridge project in Igunga to a Joint Venture of 13 contractors is proof of Government s commitment to developing local capacity. It is now up to contractors to show that they are themselves committed and willing to collaborate as a tangible way of enhancing their capabilities and therefore growth. May I take this opportunity to encourage contractors to take up the challenge. I believe through this strategy, the future is bound to be brighter if we all play our roles. B.C. Muhegi REGISTRAR e Contractor, July - Sept, 2012 3
From inside CRB STAFF CHANGES AT CRB If you recently visited our Head Office in Dar es Salaam, you probably met three new faces and wondered why they looked very much at home. Well, there are indeed some new faces at CRB and e Contractor is pleased to introduce them to our readers as follows: Mr. Kilemile Ramadhani - Head Internal Auditor Mr. Ramadhani joined the Board on 4th June 2012. He holds a Bachelor of Commerce (BComm. - Finance) degree from the University of Dar es salaam and an MBA (Corporate Management) from the University of Mzumbe. He also holds a Postgraduate Diploma in Scientific Computing from the University of Dar es Salaam. Furthermore, Mr. Ramadhani is a CPA (T) holder and is a member of the National Board of Accountants and Auditors (NBAA) as well as the Institute of Internal Auditors (IIA). He previously worked for the Tanzania Investment Centre (TIC), Tanzania Education Authority (TEA) and Superdoll Trailer Manufacturers Ltd. He thus brings to the Board a vast experience of over twelve years in Accounting and Auditing. Mr. Emmanuel Mbembati - Senior Administrative Officer Mr. Mbembati who holds a Bachelor of Business Administration (BBA) from the Institute of Finance Management, a Postgraduate Diploma in Business Administration (PGDBA) Marketing from the College of Business Education (CBE) and MBA - Corporate Management from the Mzumbe University, joined the Board on 1 June 2012. He previously worked for the University Computing Centre (UCC) of the University of Dar es Salaam, Unilever Tea Tanzania Limited, and CRDB Bank PLC. Mr. Mbembati brings to the Board a vast experience of more than eight years in Procurement, Marketing and Business development. Mr. Amosy Mwakapalila - Network Administrator Mr. Mwakapalila holds an Advanced Diploma in Computer Science from the Institute of Accountancy Arusha (IAA). He previously worked for the Muhimbili University of Health and Allied Sciences (MUHAS) and Business Times Ltd. He brings to the Board over three years experience in computer end-user support, website development, database management and networks and systems administration.. e Contractor welcomes the three new members to CRB and wishes them success at their duties. Eng. Albert Uriyo leaves CRB Eng. Albert Uriyo, a well known staff member, who has been working at the Board in the Research and Development Department for the past 13 years, has left the Board to work for the International Labour Organisation (ILO) in South Africa. Eng. Uriyo will be remembered for his dilligence and hard work and will surely be missed by colleagues and the entire contracting community. e Contractor wishes Eng. Uriyo all the best in his new endeavours and trusts that his professionalism and impressive work ethic will quickly become evident at ILO. NOTICE TO THE GENERAL PUBLIC SHIFTING OF THE EAST ZONE OFFICE FROM HEAD OFFICE TO MWENGE Members of the public and Contractors are hereby informed that the East Zone Office has been shifted from the head office located at Pamba Road, Tetex House, ird Floor, to the new offices at Mwenge area, Coca cola road on 4th floor Jossam House Building with effect from 13th June, 2012. e services which will be offered in the new offices include; Enforcement of the CRB Act of 1997 as amended. Attending complaints. Other CRB related information including registration of projects e Contractors and general public are urged to use this branch office effectively for the services stipulated herein above. Contacts Telephone: 255 2701747, 255 2701996, 255 2771877, Cell: +255 754 274149, Website: www.crbtz.org REGISTRAR 4 e Contractor, July - Sept, 2012
EQUAL CONSTRUCTION LIMITED. P. O. Box 6833, MOBILE: 0754-983206 / 0712643512, Email: equalconstructionltd@gmail.com, Plot No.115, Mikocheni light, Industrial area Near ITV office, Kinondoni, Dar Es Salaam, Tanzania. REGISTERED BUILDING CONTRACTOR. 6 e Contractor, July - Sept, 2012
List of Registered Contractors from July 2012 - Building Works BUILDING Contractor Name Registration Reg.ClassNumber Dt of Reg HIGHLANDS ESTATES LTD. B1/0122/5/12 1 5/2/2012 CHENGDU SHEMNA INTERNATIONAL LIMITED B1/0121/01/12 1 1/4/2012 GNMS CONTRACTORS CO. LIMITED B2/0061/4/12 2 4/23/2012 IBRA BUILDING CONTRACTORS AND GENERAL B2/0062/5/12 2 5/14/2012 SUPPLIES LIMITED KIKA CONSTRUCTION COMPANY LIMITED B2/0060/02/12 2 2/27/2012 AUDACITY INTERCON (T) LIMITED B3/0089/03/12 3 3/1/2012 BULLEM INVESTMENTS LTD. B4/0395/4/12 4 4/10/2012 MFINANGA BUILDING AND CIVIL B4/0394/3/12 4 3/20/2012 CONSTRUCTORS CO. LIMITED FREEDOM BUILDING CONTRACTOR LTD B4/0398/5/12 4 5/2/2012 EURO DESIGN LIMITED B4/0397/4/12 4 4/27/2012 GIANT ENGINEERING COMPANY LIMITED B4/0396/4/12 4 4/20/2012 SURCHET BUILDING AND CIVIL WORKS B4/0399/5/12 4 5/18/2012 COMPANY LIMITED TANSINO LOGISTICS LIMITED B4/0392/01/12 4 1/20/2012 NIKARA ENGINEERING LIMITED B5/0681/4/12 5 4/12/2012 GAGDU CONTRACTORS CO. LIMITED B5/0680/2/12 5 2/17/2012 BAGRA COMPANY LIMITED B5/0683/4/12 5 4/12/2012 KIRIBO LIMITED B5/0685/4/12 5 4/18/2012 CHITAN REAL ESTATE CO. LIMITED B5/0682/4/12 5 4/5/2012 BHL ENGINEERING CONSTRUCTION B5/0687/4/12 5 4/19/2012 & SERVICES CO. LTD. LUKOSE CONSTRUCTION LIMITED 5/0686/4/12 5 4/16/2012 ZIONANE CONTRACTORS & GENERAL B5/0684/4/12 5 4/13/2012 SUPPLIES COMPANY LIMITED TANZANIA J.A.A.U INVESTMENT COMPANY LIMITED B5/0690/5/12 5 5/4/2012 WID'S CONSTRUCTION LIMITED B5/0689/4/12 5 4/25/2012 MILLENNIUM MASTERBUILDERS (T) LIMITED B5/0688/5/12 5 5/2/2012 KEENMAN LIMITED B5/0693/5/12 5 5/7/2012 CONSTRUCTION PIONEERS TANZANIA LIMITED B5/0692/5/12 5 5/7/2012 QUICK AND RELIABLE ENGINEERING B5//0691/5/12 5 5/3/2012 COMPANY LIMITED TOWERCELL LIMITED B5/0695/6/12 5 6/21/2012 FEMA BUILDERS LIMITED B5/0665/01/12 5 1/2/2012 PIONEER BUILDERS LIMITED B5/0666/01/12 5 1/5/2012 JAPA CONSTRUCTION LIMITED B5/0677/02/12 5 2/28/2012 RAVSIM CONSTRUCTIONS LIMITED B5/0678/02/12 5 2/20/2012 QSP - ENGINEERING LIMITED. B5/0679/03/12 5 3/2/2012 VISUAL STORM COMPANY LIMITED B5/0674/02/12 5 2/23/2012 STELMA LIMITED B5/0675/02/12 5 2/24/2012 NOVIDS LIMITED B5/0676/02/12 5 2/24/2012 KINASHA BUILDING CONSTRUCTION B5/0671/02/12 5 2/15/2012 ENVIRONMENTAL ENGINEERING & GENERAL ENTERPRISES LIMITED ENGINEERING PLUS (T) LIMITED B5/0672/02/12 5 2/17/2012 KERES HOLDINGS (T)LIMITED B5/0673/02/12 5 2/23/2012 KIM YUNG ENGINEERING COMPANY LIMITED B5/0670/02/12 5 2/13/2012 BACC TECHNICAL COMPANY LIMITED B5/0667/01/12 5 1/19/2012 AZTEM CONSTRUCTION COMPANY LIMITED B5/0668/02/12 5 2/14/2012 KELAD INTERNATIONAL CO. LIMITED B5/0669/02/12 5 2/13/2012 NACOD ENTERPRISES LIMITED B6/0642/4/12 6 4/13/2012 SOJUYAMZI CONSTRUCTION COMPANY LIMITED B6/0641/4/12 6 4/12/2012 WINYO BUILDERS & CIVIL WORKS LIMITED B6/0640/4/12 6 4/12/2012 ASA-GENERAL SUPPLIERS & CONSTRUCTIONS CO. LIMITED B6/0645/4/12 6 4/13/2012 e Contractor, July - Sept, 2012 7
Contractor Name Registration Reg.ClassNumber Dt of Reg BAHAL CONSTRUCTION COMPANY LIMITED B6/0644/4/12 6 4/10/2012 POWER FACILITY LIMITED B6/0643/4/12 6 4/13/2012 KIOMA GROUP COMPANY LIMITED B6/0648/4/12 6 4/16/2012 SEANMARK & COMPANY LIMITED B6/0647/4/12 6 4/5/2012 KANDISU CONSTRUCTION COMPANY LIMITED B6/0646/4/12 6 4/13/2012 KISHILU COMPANY LIMITED B6/0651/5/12 6 5/3/2012 DEBRO INCORPORATION LIMITED B6/0650/4/12 6 4/18/2012 ATEB CO. LIMITED B6/0649/4/12 6 4/17/2012 DREAM HOME SERVICES LIMITED B6/0653/5/12 6 5/17/2012 HINGILILI COMPANY (T) LIMITED B6/0652/5/12 6 5/3/2012 SIA CONSTRUCTION COMPANY LIMITED B6/0632/02/12 6 2/28/2012 SANUPE WORKSHOP ENTERPRISES LIMITED B6/0633/02/12 6 2/20/2012 MAJ CONSTRUCTION COMPANY LIMITED B6/0634/02/12 6 2/17/2012 JIMAFORD COMPANY LIMITED B6/0621/01/12 6 1/9/2012 LUMOCONS COMPANY LIMITED B6/0618/01/12 6 1/5/2012 SINONI CONSTRUCTION COMPANY LIMITED B6/0619/01/12 6 1/2/2012 ABBEYS CONSTRUCTION CO. B6/0620/01/12 6 1/10/2012 CHEX ENGINEERING LIMITED B6/0616/01/12 6 1/2/2012 MEMO COMPANY LIMITED B6/0636/03/12 6 3/19/2012 POWER GROUP (T) LIMITED B6/0630/02/12 6 2/20/2012 QUINTESSENTIAL (T) LIMITED B6/0631/02/12 6 2/23/2012 TWAVWANE BUILDING AND CIVIL ENGINEERING B6/0635/03/12 6 3/5/2012 CONTRACTORS LIMITED KINDERU GENERAL SUPPLIES & CONSTRUCTION B6/0627/02/12 6 2/17/2012 COMPANY LIMITED IBAYAS FAMILY COMPANY LIMITED B6/0628/02/12 6 2/17/2012 KASHEBAS AND SONS CO. LIMITED B6/0629/02/12 6 2/17/2012 DX CONTRACTORS AND GENERAL B6/0625/02/12 6 /13/2012 SUPPLIES (T) LIMITED COTECH DEVELOPERS LIMITED B6/0626/02/12 6 2/15/2012 LIKANU INVESTMENT LIMITED B6/0622/01/12 6 1/23/2012 KAGWA GENERAL SUPPLIES LIMITED B6/0623/02/12 6 2/13/2012 A & B BUILDERS LIMITED B6/0624/02/12 6 2/14/2012 ELEISA COMPANY LIMITED B7/3960/4/12 7 4/12/2012 SINAI BUILDERS & ENGINEERING B7/3963/4/12 7 4/12/2012 CONSTRUCTION LIMITED RUANGWA DSL COMPANY LIMITED B7/3962/4/12 7 4/12/2012 BUJUGO CONSTRUCTION COMPANY LIMITED B7/3961/4/12 7 4/12/2012 VALLET BUILDING AND CIVIL CO. LIMITED B7/3967/4/12 7 4/18/2012 MKALI BROTHERS AND GENERAL SERVICE B7/3966/4/12 7 4/16/2012 VICTORY WOMEN GROUP & COMPANY LIMITED B7/3965/4/12 7 4/11/2012 KIDO HOLDINGS CO B7/3970/4/12 7 4/23/2012 INTERLOCKING BUILDING SYSTEM B7/3969/4/12 7 4/19/2012 COMPANY LIMITED KABU ENGINEERS & CONTRACTORS LIMITED B7/3968/4/12 7 4/19/2012 VICTORY GENERAL CONTRACTORS B7/3973/4/12 7 4/25/2012 & SUPPLIES CO. LTD SBE TANZANIA LIMITED B7/3972/4/12 7 4/23/2012 CHRISSARIKO BUILDING & CIVIL B7/3971/4/12 7 4/24/2012 CONTRACTORS CO. LIMITED ANYAGHILE INVESTMENT CO. LIMITED B7/3976/4/12 7 4/30/2012 JUPADAISHI CONSTRUCTION COMPANY LIMITED B7/3975/4/12 7 4/30/2012 OMOSO BUILDING CONTRACTORS LIMITED B7/3974/4/12 7 4/30/2012 CHARS & GODFREY COMPANY LIMITED B7/3979/5/12 7 5/9/2012 UWEZA CONSTRUCTION CO. LIMITED B7/3978/5/12 7 5/7/2012 PRIDAN CONSTRUCTION COMPANY LIMITED B7/3977/5/12 7 5/4/2012 BARANDA ENTERPRISE B7/3982/5/12 7 5/14/2012 SURVENG INVESTMENT LIMITED B7/3981/5/12 7 5/10/2012 MALULI ENTERPRISES COMPANY LIMITED B7/3980/5/12 7 5/10/2012 8 e Contractor, July - Sept, 2012
Contractor Name Registration Reg.ClassNumber Dt of Reg ANNA BUILDERS B7/3985/5/12 7 5/30/2012 ISPECH CIVIL & BUILDING CONTRACTORS LIMITED B7/3988/6/12 7 6/13/2012 KASUBI CONSTRUCTION & GENERAL SUPPLIES B7/3987/5/12 7 5/29/2012 CO. LIMITED SMS COMPANY LIMITED B7/3986/5/12 7 5/31/2012 VAPTO ENTERPRISES B7/3989/6/12 7 6/21/2012 BWB CONSTRUCTION WORKS LIMITED B7/3955/02/12 7 2/29/2012 BIGAN INVESTMENT & SONS CIVIL AND B7/3957/03/12 7 3/21/2012 BUILIDING CONSTRUCTION COMPANY LIMITED JUSA ENGINEERING COMPANY LIMITED B7/3953/02/12 7 2/20/2012 KURWAKI SUPPLIES AND SERVICES CO. LIMITED B7/3954/03/12 7 3/2/2012 KASTAN CONSTRUCTION COMPANY LIMITED B7/3956/03/12 7 3/7/2012 LAND ENTERPRISES LIMITED B7/3950/02/12 7 2/16/2012 HUGA CONSTRUCTION COMPANY LIMITED B7/3951/02/12 7 2/16/2012 VEMATISA CONSTRUCTION AND GENERAL B7/3952/02/12 7 2/17/2012 SUPPLIES COMPANY LIMITED FALY EAST AFRICAN LIMITED B7/3948/02/12 7 2/2/2012 DHULKIFLI CONSTRUCTION LIMITED B7/3949/02/12 7 2/15/2012 MSUMBATI ENGINEERING LIMITED B7/3945/01/12 7 1/16/2012 BATASHA COMPANY (T) LIMITED B7/3946/01/12 7 1/27/2012 SEGA Y ENGINEERING AND CONSTRUCTION B7/3942/01/12 7 1/11/2012 COMPANY LIMITED KILANJO CONSTRUCTION COMPANY LIMITED B7/3943/01/12 7 1/16/2012 GASPER GROUP & COMPANY LIMITED B7/3939/01/12 7 1/2/2012 TRANSLEN INVESTMENT AND TRADING B7/3940/01/12 7 1/2/2012 COMPANY LIMITED LAI CONTRACTORS LIMITED B7/3941/01/12 7 1/5/2012 CIVIL WORKS Contractor Name Registration Reg.ClassNumber Dt of Reg GNMS CONTRACTORS CO. LIMITED C1/0075/4/12 1 4/23/2012 ATLANTIC MARKETING LTD. C2/0035/02/12 2 2/24/2012 R. H. ENTERPRISES LIMITED C2/0036/02/12 2 2/24/2012 MILO GROUP LIMITED C4/0199/4/12 4 4/24/2012 GIANT ENGINEERING COMPANY LIMITED C4/0198/04/12 4 4/20/2012 BULLEM INVESTMENTS LTD. C4/0197/04/12 4 4/10/2012 NOVIDS LIMITED C5/0549/02/12 5 2/24/2012 KIM YUNG ENGINEERING COMPANY LIMITED C5/0546/02/12 5 2/13/2012 KERES HOLDINGS (T)LIMITED C5/0547/02/12 5 2/13/2012 ENGINEERING PLUS (T) LIMITED C5/0548/02/12 5 2/17/2012 QSP - ENGINEERING LIMITED. C5/0545/02/12 5 2/13/2012 FELIX CONSTRUCTORS (T) LIMITED C5/0562/5/12 5 5/31/2012 AMACON TANZANIA LIMITED C5/0560/5/12 5 5/14/2012 BR & ASSOCIATES CONTRACTORS LIMITED BR C5/0559/5/12 5 5/8/2012 & ASSOCIATES CONTRACTORS LIMITED UNGANDO CONTRACTORS & GENERAL C5/0556/04/12 5 4/19/2012 SUPPLIES LIMITED KIRIBO LIMITED C5/0555/04/12 5 4/18/2012 ZIONANE CONTRACTORS & GENERAL C5/0554/04/12 5 4/13/2012 SUPPLIES COMPANY LIMITED CHITAN REAL ESTATE CO. LIMITED C5/0552/04/12 5 4/5/2012 NIKARA ENGINEERING LIMITED C5/0553/04/12 5 4/12/2012 LUMOCONS COMPANY LIMITED C5/0544/01/12 5 12/5/2012 FEMA BUILDERS LTD C5/0543/01/12 5 1/2/2012 BATIMBA ENGINEERING & BUILDING C5/0550/03/12 5 3/12/2012 CONTRACTORS LIMITED JAPA CONSTRUCTION LIMITED 6/1068/02/12 6 2/28/2012 SANUPE WORKSHOP ENTERPRISES LIMITED C6/1069/02/12 6 2/20/2012 KASHEBAS AND SONS CO. LIMITED C6/1065/02/12 6 2/17/2012 10 e Contractor, July - Sept, 2012
BQ Contractors Limited. Mechanical, Civil & Building Contractors PHYSICAL ADDRESS Josam House Complex, Mikocheni Light Industrial Area, CocaCola Road P.O Box 32396, Dar es Salaam. Tel: +255 784 / 773-608301 Email: johnbura@bqcontractors.co.tz Website: www.bqcontractors.co.tz Well Head SS11 Connection at Songo Songo Natural Gas Plant Songo Songo Gas Processing Plant TANESCO Tegeta 45MW Power Plant Future expansion to Sinza Area along Sam Nujoma Rd of TPDC natural gas distribution pipeline for domestic and industrial use. Natural Gas Pipeline Integrity tests at TPDC Village - Mikocheni. Our Services Mechanical, Civil and Building Works Construction of fuel facilities and inspection Construction of natural gas pipelines and fuel facilities - steel, HDPE, MDPE electrofusion and butt welding of line pipes and fittings. Construction of steel structures Health and Safety advice Scaffolding works Corrosion protection Insulation by lagging and cladding Manpower hire and Plants Shutdown Services Our Values: Quality Delivery, Timeliness, Realiability, Client Satisfaction and Value for Money BQ Contractors Limited is Registered with Contractors Registration Board and is a Member of Contractors Association of Tanzania
Cover Story Collaborative Working: the concept It is now an established fact that in Tanzania most of the major construction projects are not undertaken by local contractors, the reasons being lack of capacity and expertise. But it is also an established fact that the Government and its institutions notably CRB have never been happy with this state of affairs and have been seeking solutions that would reverse the trend. One response has been to encourage local contractors to put in place Joint Ventures as it has been established that collaborative working or partnering is at the very heart of the solution. Only a few alliances and partnering arrangements (JV) have been tried here but their outcomes are not well known. A more focussed method through the use of demonstration projects was clearly needed which could take in positive results and spread the gospel and one could see the Mbuti Bridge project as a demonstration project to test out the new ways of working, which CRB and the government have been drumming about. e Mbuti Bridge Project is being undertaken by 13 firms making it the largest JV ever in the country in terms of the number of local firms joining forces with a common objective. e significance of these efforts makes it prudent for us to revisits the concepts behind collaborative working. Collaborative working is the process by which the project parties and individuals operate in a mutual manner to align their interests for the successful outcome of the project. Partnering is a subset of collaborative working usually with a more formal type of agreement or contract. Requirements of a Collaborative Working Agreement ere should be equitable benefit for all parties in the agreement A correct attitude of openness and trust is required to make collaborative working successful Encourage team attitude and What is best for Project Make sure adequate time is spent at the pre-planning stage as it is worthwhile in the long run Include all the organisations, sub contractors from as far down the supply chain as possible, as it is they who do the work Long-term agreements eliminate the need to start from scratch on each project Do not underestimate the cultural shift involved and the time that could take be Gain Share, if it is not then there will be Pain Share. the premise of CWA is that it is built on developing a unity of purpose where all parties business needs, and financial success are aligned to create a win- win situation. ere cannot be a win-lose result because of the way Gain Share and Pain Share is structured. e most important aspect is that there are no adversarial contracts as in the normal lump sum tender process Benefits of a Collaborative Working Arrangement Improved predictability of cost, time and quality Minimised risk Reduced costs Enables all parties in a team environment to make maximum contribution Promotes innovations with additional benefits as to Best for Project attitude Understanding issues of other parties Continuous improvement of process as it is in the interest of all parties Development of long-term relationships and highly efficient vendor supply chains. Improved trade performance and better schedule control Workarounds to reduce delays when things go wrong Conclusion ere is no such thing as e Perfect Project, of course but practitioners say that they have seen the different construction companies (who normally would not be very co-operative) helping each other out to sort out unforeseen problems when for example materials fail to perform according to specification. Indeed, Collaborative Working Arrangements are a great improvement on the existing construction methodology of internecine warfare and to date are showing excellent performance improvements. Establishing a Collaborative Working Agreement e main purpose of Collaborative Working Agreements (hereafter called CWA) is to engage the client, design consultants, contractors, sub-contractors, and vendors into one team, with incentives to establish a structure to ensure that everyone works together to achieve agreed shared targets. e idea is the building of a unified team with the purpose of creating an environment whereby outstanding results can be achieved. e incentives are developed into a Gain Share / Pain Share arrangement. If the project is successful there will Let us collaborate: You have got a loader, I have got a truck 14 e Contractor, July - Sept, 2012
Cover Story Interpretation of voluntary arrangements for collaborative working Because a wide range of different specialists contribute to the execution of construction projects, much collaboration takes place in the normal course of business, and without specific measures or incentives. Here we are discussing arrangements that specifically aim to foster and reward collaborative behaviours and actions by members of a project team. ese have, as a common feature, a decision by one or more parties to the arrangement to give up some power or freedom of prospective benefit, in the belief but not the certainty that this will lead to a superior outcome for themselves and the other parties to the arrangement. From several sources we have identified five popular types of voluntary arrangements: Project partnering where the parties formally agree to work collaboratively in a single project, this agreement being often expressed in a partnering charter or similar document and underpinned by agreements about sharing of savings, resolving disputes without recourse to litigation etc. Strategic partnering where a client decides to work with a defined set of suppliers interests over a number of projects, with mutually expressed intentions sometimes overall project performance. e actual works to be carried out may not be defined at the start of the arrangement. Framework arrangements In these a client selects certain suppliers to supply services for a defined period, and there is a mutual intention to improve the quality of relationships and of performance over that time. e actual works will not be defined at the start of the period but once a project is defined there is a secondary selection process to determine which firm(s) will carry it out. Framework arrangements should be distinguished from framework contracts; in the latter, the relationships are purely contractual with no commitment to mutual improvement. Alliances a particularly strong form of project partnering in which the client and the principal supply interests create a joint organisation which has its own identity to deliver a project. In its strongest form this is established as a jointlyowned company. One should distinguish between consortia formed specifically to tender for a particular project, which maybe considered to be normal business practice, and those intended to have a longer period of existence, during which the firms develop new construction services or tender jointly for a number of projects. is form of collaboration, in contrast to the others, does not involve the client. Voluntary arrangements are complementary to the contractual relationships between parties to a project and do not replace these. ey promote a collaborative environment in which contractual obligations are fulfilled. us they need to be distinguished from the use of integrated forms of contract (e.g. design-build-operate) which may not include any collaborative elements. Some measures to encourage collaboration (e.g. payment arrangements which encourage mutual problem-solving) may be included in contractual conditions. Similarly, voluntary arrangements are distinct from funding arrangements in particular public-private-partnerships do not necessarily include measures to promote collaborative although they often cause firms to come together in a consortium. Factors that lead to successful collaborative relationships: Factors which contribute to successful collaborative relationships include the critical importance of inter-personal relationships; the central role of leadership, particularly by senior managers in client organisations; the selection of partners who share a willingness and commitment to working collaboratively; the benefits of early appointment of key members of a project team; the need to establish a common understanding of the principles and objectives of the collaboration, and to express these in an agreed, public document; the interactions between contractual provisions and measures that support collaboration; measures which promote collaborative behaviours and good communications; the role of rigorous performance monitoring in maintaining healthy and effective relationships; financial incentives for collaboration; procedures that that enable disputes to be settled without recourse to legal action and the collective management of risk. Construction consortia where a group of supply interests come to an agreement to develop and market services jointly. Look, it pays to advertise in e Contractor If you are a player in the construction sector and do not know how to reach the other players, You can definitely reach them by advertising in e Contractor Advert Size Quarter Page Half Page Full Page Inside Back Page Back Page Price Tshs.150,000/= Tshs.250,000/= Tshs.400,000/= Tshs.500,000/= Tshs.550,000/= 16 e Contractor, July - Sept, 2012
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Cover Story Promotion of voluntary arrangements e introduction of voluntary arrangements for collaboration requires changes in procurement and management practice on the part of the client and construction interests involved in a project. ese will not happen unless the various parties are persuaded of the advantages. Public sector clients have a particularly important role in achieving change, by providing market-related incentives for change. But in turn they will be able to introduce new processes only if the national framework for public procurement allows them to do so. ere would need to be an appraisal of the scope of the introduction of collaborative ways of working, including an assessment of the regulatory and commercial framework for construction, and the development of a change programme. Collaborative relationships are based on trust and openness amongst the parties, and lead to behaviours and decisions which provide mutual, not just individual benefit. ey are also based on belief rather than certainty. e parties to the relationship have no guarantee that they will benefit from it, but believe that this will happen. Collaborative arrangements linked to projects are not a substitute for a contract; they enable contractual obligations to be discharged more effectively. e promotion of voluntary arrangements could involved some or all of: high-level reports, national promotional bodies, revision of public procurement guidance; audit body endorsement, research and training initiatives, and the development of performance indicators. e role of public procurement in bringing market influence to bear on the promotion of collaboration is particularly significant. A principal conclusion is that exhortation alone will not bring about change. In many countries collaborative arrangements have been introduced by contractors, but have required the active cooperation of client bodies and in some countries public sector clients take a leading role in the promotion of collaboration in their own projects. ere is considerable consensus on the measures that managements can take to promote the creation of collaborative relationships. ese include: early involvement of key parties; payment systems with pain/gain sharing; adoption of dispute resolution procedures that avoid litigation; clarity in objectives; workshops to ensure communication and understanding of these objectives; setting and monitoring of performance targets. Openness and appropriate behaviours by individuals are considered crucial. ere is also consensus that such arrangements can lead to improved delivery of projects, with final outputs that better satisfy clients needs, more assurance on costs and timescales, fewer disputes and a generally more satisfying and acceptable working environment for all participants. While cost savings are not necessarily achieved, projects which have faced difficulties may be completed without the extra costs that would otherwise have been incurred. Public procurement requirements are seen in some countries as a barrier to the adoption of more collaborative ways of working or the creation of longerterm relationships. Sometimes the perceived barriers are the result of national rules; however, the wide use of different forms of voluntary arrangement in some countries implies that these can be successfully implemented within the rules ere is evidence to suggest that voluntary arrangements can support other policies including those on sustainable development, training and skills development and innovation. 18 e Contractor, July - Sept, 2012
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Cover Story REMARKS 1) ere are potential risks in the adoption of such arrangements, because they imply closer relationships between clients and suppliers. But these may be addressed through having full access to financial data and by clients maintaining awareness of market conditions and prices, for example by continuing to place some work through conventional tendering rather than a framework. Independent auditing of costs and designs will also provide assurance that clients are receiving value for money. e extensive use of voluntary arrangements by pubic authorities in many countries indicates that any associated risks are manageable. 2) SMEs ere is a risk that voluntary arrangements for collaboration may reduce market opportunities for SMEs. is risk can be addressed through legislation. 3) Sustainable development Voluntary arrangements facilitate communications among the parties to the construction process. is leads to reduced waste and greater alignment with client requirements. Achieving high levels of environmental performance in buildings also requires all parties to communicate effectively. Voluntary arrangements also facilitate the use of Life Cycle Costing, help to promote innovation, and contribute to skills development. 4) Contractual, management and insurance issues Voluntary arrangements are not substitutes for contracts but help to provide a project environment in which contractual obligations may be more effectively fulfilled. ey may be introduced alongside conventional contracts but forms of contract based on collaborative principles have been developed and are generally considered helpful. Management practices are at the core of collaborative ways of working. ere are challenges for managements and for individuals in moving to collaborative relationships. SMEs particularly, may find it difficult to devote the necessary management resource to understanding new principles of operation and client bodies may need to take the initiative to identify needs and make provision for appropriate training. Most collaborations have taken place with conventional Insurance arrangements in which each party is covered by their own indemnity insurance. But project-based collective insurance is used in some countries and this is generally thought to be helpful in promoting collaboration. e introduction of longer term relationships may stimulate the wider provision of such insurance, by enabling insurers to assess the track record of combinations of firms. Mbutu Bridge JV Project: Construction of the approach road 20 e Contractor, July - Sept, 2012
Tools for collaboration: Conflict avoidance techniques Feature Construction is a high-risk business with a high potential for adversarial relationships. Every project involves a multitude of players, all with potentially conflicting interests, but whose mission it is to plan, design and build a structure, on time and within budget. Once the building process has begun, the work can t be interrupted or delayed without serious consequences. Time is money, so the construction industry places a premium on quick solutions to problems and the prevention of disputes. To achieve this, it has developed some remarkably successful collaborative techniques that have broad application to the public and private sectors of other industries. ey can be put into two groups Realistic allocation of risks, open communication, incentives for cooperation, and partnering help to keep problems from arising. Step negotiations and the use of standing neutrals to provide real time control and management of problems keep problems from escalating into disputes that would otherwise have to be resolved by litigation, arbitration or mediation. Conflict prevention or cooperation techniques Realistic allocation of risks: Research has shown that one of the most powerful ways to prevent and control disputes is to allocate project risks realistically, by assigning each potential risk to the participant in the project who is best able to manage, control or insure against it. It is now well recognized in the construction industry that when lawyers seek to negotiate the best deal for their clients, they often craft contract provisions that unrealistically and unfairly allocate risks to project participants who are unable to handle the risk, often creating problems of a far greater magnitude than those they sought to solve. Realistic allocation of risks improves productivity, lowers costs, and creates better relationships among participants. e result is fewer disputes and a greater chance for project success. Open communications: e best construction project results are obtained through good communications among project team members, so that incipient problems can be identified and solved before they become serious. Channels need to be developed to open up dialogue between all parties. Incentives to encourage cooperation: e construction industry uses incentive plans to encourage multiple parties to work together towards a common goal. For example, a general contractor or construction manager who needs to coordinate the activities of multiple subcontractors who have the potential of getting into conflict with each other, can establish a bonus pool which is based upon the need for cooperation and the attainment of specific project goals, will be shared among all of the subcontractors. Under such a system the bonus is payable only if all of the subcontractors avoid conflict and meet the assigned goals it is payable either to everyone, or to no one. is places a premium on teamwork, provides all participants with a common goal and incentive to work cooperatively, and reduce conflicts. Where an organisation is contracting with a number of other parties with diverse interests, it can be helpful to structure a system of incentives. Well-conceived incentive programs can be an effective means of aligning the goals of all, can encourage superior performance and discourage conflict. ey encourage participants to subordinate their individual interests to the legitimate needs and success of the enterprise as a whole, for the ultimate benefit of all participants. Partnering: In the construction industry, partnering is a teambuilding effort in which the participants in a project establish cooperative working relationships through a mutuallydeveloped formal strategy of commitment and communication. Partnering on a long-term basis involves the development of a strategic alliance which maximizes the effectiveness of each participant s resources. e relationship is based upon trust, dedication to common goals, and understanding each other s individual expectations and values. e expected benefits include improved efficiencies and cost effectiveness, increased opportunity for innovation, and continual improvement of products and services. When used on a project-specific basis, partnering is usually instituted at the beginning of the relationship by holding a retreat among all participants who have leadership and management responsibilities. Assisted by an independent facilitator, they become acquainted with each other s objectives and expectations, recognize common aims, define mutual goals, develop a teamwork approach, initiate open communications, and establish non-adversarial processes for resolving potential problems. e initial retreat is followed up by periodic evaluations and meetings to ensure the communications and teamwork are continuing. In any common business enterprise, if individual parties are left to their own devices in trying to achieve their own goals, they are likely to be guided primarily by narrow self-interest, which at some point may conflict with those of other participants. Sharing mutual goals creates a community of purpose that serves to minimize disputes and encourages the formation of synergistic relationships which leverage the whole process to the advantage of all. e focus is on fixing the problem, not fixing the blame For example, a large company had several divisions operating independently that were unwilling to give up power and behaving like a dysfunctional family. A partnering facilitator was brought in, the leaders and key employees in each division participated in partnering exercises, and the result was an alignment of interests between all divisions for the overall good of the company. e same process could be employed to achieve alignment among the employees of entities that have been brought together as the result of a merger or acquisition. 22 e Contractor, July - Sept, 2012
Feature Dispute control and real time early resolution techniques Step negotiations: Negotiation is the time-honored method by which parties resolve disputes through discussions and mutual agreement. A construction industry improvement on negotiation is the step negotiation procedure, a multi-tiered process that can be used to break a deadlock. If the individuals from each organization at the lowest project level who are involved in the dispute are not able to resolve a problem promptly at their level, their immediate superiors are asked to confer and try to resolve the problem; if they fail, the problem is to be passed to higher management in both organizations. Because an intermediate manager is not likely to be as closely identified with the problem, the manager s interest in demonstrating to higher management that he or she has the ability to solve problems and to keep them from bothering higher management is a built-in incentive to resolve disputes before they have to be referred to the level of management. is technique can be easily adapted for use in the early resolution of problems in any business relationship. Standing neutral: One of the most promising developments in controlling disputes in a construction project is the concept of having a respected pre-selected or standing neutral expert to be a dispute resolver throughout the course of the project. is standing neutral, or a board of three experts called a dispute review board or (DRB), is jointly selected by the parties early in the project; briefed on the nature of the project; furnished with the basic documents; provided with progress reports; and occasionally attends jobsite meetings with the parties to get a feel for the dynamics and progress of the project relationships. e DRB or standing neutral is expected to be available on relatively short notice to make a recommendation to the parties as to how to resolve any disputes the parties are unable to resolve themselves. ree critical elements are essential to the success of the standing neutral technique: early mutual selection and confidence in the neutral; continuous involvement by the neutral; and prompt action on any submitted disputes. Although the standing neutral s decisions are typically not binding, experience has shown that their decisions have almost universally been accepted by both parties as the basis for resolving a dispute, without any attempt to seek relief from a tribunal. is technique has been successful in resolving over 95 percent of all disputes presented to a standing neutral, in addition to having been credited with keeping many other potential disputes from ever being presented to it. By providing a dose of reality that encourages parties to be more objective in their dealings, while at the same time giving the parties an opportunity to construct their own solutions to problems, the standing neutral process tends to strengthen the relationship and create trust and confidence. e standing neutral concept is appropriate for any type of continuing business relationship. Examples include joint ventures, long-term supply contracts, corporate governance, or any other type of long-term business relationship. e standing neutral, who could be a trusted experienced business person, expert accountant, or neutral attorney, would serve as a standby resource to assist in the resolution of disputes. e standing neutral should be initially informed of the purpose and nature of the business relationship, provided with progress reports or attend meetings with the parties to keep up to date with the project. If the parties should later have a problem that they cannot readily resolve by themselves, they can call ask the standing neutral to provide an expert opinion as to how the problem should be resolved. e existence of a pre-selected standing neutral, already familiar with the business relationship between the parties and its progress, avoids many of the initial problems and delays that are involved in appointing one after a controversy has arisen. e fact that the standing neutral will hear every dispute which occurs during the life of the relationship, and particularly the speed with which they can render decisions, provide powerful incentives to the parties to deal with each other and the neutral in a timely and frank manner. e standing neutral serves not only as a standby dispute resolution technique but also as a successful dispute prevention device. Even though some expense is involved in the process of appointing, orienting and keeping the standing neutral informed about the relationship, the costs are relatively minimal when compared to the potential costs of resolving a dispute in arbitration or litigation. Project site of the Mbutu Bridge JV Project e Contractor, July - Sept, 2012 23
24 e Contractor, July - Sept, 2012
Feature Through Collaboration and Teamwork, Construction Company Thrives During Industry Slump Bush Construction Company, Inc., has made huge strides since the firm was founded in 2008, going from zero to $18 million in revenue in its first full year of business. According to A.J. Loss, President of Bush Construction, the company has been awarded more than $60 million in projects to date. What makes the company s growth so exceptional is the fact that it took place during a nationwide recession with an accompanying construction industry slump. e company has succeeded in its endeavors through a collaborative approach to business, Loss stated. rough collaborative relationships with our clients, designers and subcontractors, we have established an unconventional approach to the world of commercial building construction, he said. is high degree of collaboration is only possible in an atmosphere of mutual trust and respect. e company believes strongly in the power of teamwork, Loss noted. By embracing a collaborative environment with our project teams, he said, we have been able to deliver some very complex projects on time, under budget and with happy clients. Providing a high level of customer service is always a top priority at Bush Construction, Loss added. From inception to completion, each project receives the time, skills, and attention needed for success, he said. Clients often comment on our team s willingness to go above and beyond expectations representing their best interests. Bush Construction is a general contractor, design-builder, and professional construction manager. eir team members have worked on a wide range of industrial, educational, government and commercial projects in the Quad-Cities and throughout the Midwest. Teamwork on Behalf of the Community Bush Construction maintained its early growth while handling a number of philanthropic projects, spending considerable time and resources in the community. In December 2011, Bush Construction was honored during the 23rd annual Hard Hat awards presentation. Bush received the Collette Hinrichsen Award for Philanthropy for their contributions to the Rock Island Economic Growth Corporation (RIEGC). Bush Construction worked with RIEGC on the Jackson Square project, a brownfield area in downtown Rock Island, Illinois, that was turned into an attractive 30-unit apartment complex. Bush Construction acted as Construction Manager on the project. RIEGC, the owner of the property, attained the necessary funding for the project. e Illinois Oil Products warehouse used to operate on the property, said Ryan Schertz, Bush Construction Superintendent in charge of the project, who was the on-site manager for all activities on the site. e work took about 15 months. e land had environmental issues. It was a brownfield site with multiple tanks and lots of oil everywhere. ere were tanks within the building as well as underground. We had chemical infiltration throughout the site that needed to be remediated. According to Rob Davis, Bush Construction Project Manager for the Jackson Square project, the environmental concerns were the No. 1 challenge. EnviroNET, Inc., was the environmental contractor. Remedial action was carried out while construction was taking place, so both endeavors had to be coordinated for greatest efficiency, Davis said. When the project was done, we received a clean bill of health for the land. e EPA confirmed that no further action was required. e community is ecstatic about the way Jackson Square turned out, Schertz said. It was quite a transformation. e success of the Bush Construction team relied strongly on the combined talents of its members, Schertz added. e staff is highly experienced, he said. e team really makes a difference. What we can handle is pretty limitless for us. e Best People for the Best Results According to Loss, Bush Construction is committed to finding and retaining the best staff members. We give careful consideration to every resume we receive, he said. It takes the best people to bring about the best results. e teamwork manifesto at Bush Construction also extends to its clientele and subcontractors, Loss noted. Building a strong customer relationship takes daily diligence, planning, care and ongoing communication, he said. We listen to what our clients have to say, since we are helping to build the future success of their businesses. We treat our subcontractors as team members as well by working with them in an ethical manner. Our unwavering position against bid-shopping and our commitment to ensuring timely payments to our subcontractors has reinforced these important relationships and, in turn, provided a unique market advantage. Teamwork is the key to success in construction and really, in any industry. e Hard Hat awards recognize investment in the community and were presented by RIEGC, Renaissance Rock Island, e Development Association of Rock Island, and e District of Rock Island. e Contractor, July - Sept, 2012 25
From the Press Roads cave in, vehicles fall in.. A van is trapped in a hole after a road caved in at Fuxing road in Guilin, Chin Source: e Telegraph 8 June 2012 A car is trapped in a hole after a road in Hangzhou, China, caved in following heavy rainfall Source: e Telegraph 23 June 2012 A car sits in a giant sinkhole in Duluth, Minnesota, after flash floods caused by torrential rain Picture: e Star Tribune, Brian Peterson/AP Residents look at a pit caused by a road cave-in, in Harbin, Heilongjiang province, China. According to local authorities, two people died from injuries sustained when they fell into the 10- metre-deep pit. A 70-year-old woman had to be rescued by firefighters after the path beneath her feet crumbled and she fell into a pit created by eroded house foundations. Firefighters set about making the opening larger so that two of their colleagues could climb down to the woman and bring her up to safety. She was checked over by medical staff and was found to be suffering several fractures but no life-threatening injuries. Picture: Quirky China News / Rex Features 26 e Contractor, July - Sept, 2012
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