Chinese National Complete Engineering Corporation (CCEC) against undervaluing projects to local contractors. Special Assistant to the President for Project Monitoring and Implementation Andrew Chellah says projects given to local contractors should be at the agreed amount with Government. Mr Chellah said foreign contractors should not offer works below the figures indicated in the signed Bill of Quantity (BoQ). The company is building the K450 million Kafulafuta dam in Masaiti for Kafubu Water and Sewerage Company (KWSC).

“Offer the sub-contractors’ works at the value as stated in the BoQ,” Mr Chellah said. He issued the warning yesterday after learning that the project was undervalued by US$600,000. Luvis Limited, a local contractor, was offered a US$1.6 million project in Mpongwe when the actual value in the BoQ is US$ 2.2 million. Mr Chellah also asked CCEC business manager Bruce Zhou why the company does not make frequent payments to local companies. The company received US$133 million for the project but made a paltry US$ 2.7 million to local contractors.

“That is a very small amount,” Mr Chellah said. Mr Chellah also refused to officiate at a ceremony where CCEC was supposed to subcontract a local contractor for US$1 million. He said he will only do so when the foreign contractor undertakes corrective measures. Mr Chellah also questioned the contractor for sub-contracting a deal worth US$9 million without engaging KWSC as the client of the project and National Council for Construction (NCC), who are regulators in the industry. He warned of penalties in future when the company overlooks the client and regulator.