3 things to do to retain skilled labors

Last June as reported by Serambi Indonesia newspaper more than 40 labors from West Java was left Calang to Meulaboh by walking. Out of their desperation, these people dare to go on feet. They have been frustrated by weeks because of un-clear payment. The contractor who employed them said the wages have been paid through the labors head. But disappeared some where, and did not trickle down. In other places reported the contractors left their projects leaving their workers unpaid. Same happen with some NGOs the payment procedure was complicated, made contractors and labors waiting for their payments for months. This situation becomes a common tale in Aceh reconstruction.

Conditions like these were spread out amongst the workers out side Aceh region. They were afraid to work in Aceh. They thought they will experience the unpaid work. These circumstances affected our work in last February. At that time almost our worker was Aceh worker. Their capacity is not sufficient to meet our standard and timeline. So when we were planned to bring skilled labors from Medan, they gave us the negative response.

But nowadays the condition was upside down. Just 9 months after they rejected our invitation, many head of skilled labors call our construction managers asking for works. Same happen with the above, the good news about us are spoken widely amongst the labors. This surprising circumstance was the fruit of how we treat our labors. There are 3 things as a must if we want to retain our skilled labors:1. Punctuality of payment time. The on time payment is more appreciates than the contract value. For labors payment security is more important than high rate of their contract. This assurance makes them fully concentrated of their work. This regularity is produce of a strong team work from every department.

2. Material availability prior their arrival. It is easy to maintain our workers in high spirit. Put material on site prior their arrival. Show them that our warehouse is complete. Let them see the regularity of material inflow from our supplier.

3. Project management. The labor will comfortable if we have proper project management. They have to see the shop drawing that can guide them to work and minimize confuse and dispute. They have to see the projection about the flow of work. It means after their completing one work they will know another works prepared for them. The appropriate project management will direct their work and some time we can discipline them.

Arwin Soelaksono - Disaster Response & reConstruction

Brick price plummet

After climbing for several months, nowadays brick price is plunge. Last January the price was double than before tsunami, it was reached 700 Rupiah. But currently we can buy 500 Rupiah each.

The contractors and NGOs who work in reconstruction purchase brick out side this region. This tsunami area was receiving brick from Bireun and Medan. Even though the transportation cost is expensive, the price of brick on site still cheaper compare with local bricks.

The brick business was attracted to some people who saw the opportunity. They opened home business based brick factory. Some NGO working with them as a livelihood program. The result is good. The supply is getting bigger and suit with the demand. Then the economic law is effective, all prices get down.

But the problem of high price is still there. In some area they force NGOs and contractors to buy their bricks. They are serious with their threat, by blocking the trucks which bring bricks which bought not from them. This harassment from the local supplier has an economic terminology, they call it, protection.

Arwin Soelaksono - Disaster Response & reConstruction

Local contractors flooded BRR with requests for prequalification

Last week BRR issued a press release to inform the process of contractors’ selection. The numbers was astonishing. There were 3,088 companies who took the prequalification document. They were 2,885 contractors and 203 consultants.

Not all of them submit the documents, but most of them did. BRR received prequalification documents from 2,267 contractors and 121 consultants. 2,134 companies are Aceh-based. The results for prequalification will be announced on 27 March 2006. A joint committee (BRR, Unsyiah, BPKP (State Financial Audit Board)) are processing the prequalification documents.

The number was unbelievable. Is it true that Aceh before the disaster already has a lot of construction companies? If this is in Jakarta, I wont surprised me. Similar numbers of contractors are working in the golden years of 90’s in Jakarta. Or it is just people who want to grab the opportunity in the reconstruction job?

My alarm in the head was ringed. This condition can cause serious problem. It can describe in short in 2 implications.

First, only small numbers of them are really a genuine contractor. What I mean with genuine is capable, sufficient experience, adequate capital, own warehouse, construction equipments and vehicles, strong connections with suppliers, supported by big number of skilled labors and managed by professional engineers. So, we can predict if the huge number of contracts will be disbursed, these kind of contractors can win the job. Then we can expect the poor quality of work will produce.

Second, there are construction companies intentionally made for get the contract. And soon after they win the job, they will sub contract the job to other company. The bad news is not over yet. This subcontracting will go to 2 or 3 tiers. At the end of the day, the last tire will suffered out of cash. And they will easily leave the job unaccomplished.

Arwin Soelaksono - Disaster Response & reConstruction

Dumbest thing in Aceh reconstruction works, NGO competition

Enormous funding flowing into Aceh due to extensive publication on tsunami victims. It brought 124 International NGOs, dozens of UN organizations and 430 local NGOs flocked to Aceh. All of these parties have their responsibility in relief, rehabilitation and reconstruction of Aceh. And off course they have their responsibility as a channel of their donor who poured the funding through them.

Around mid of 2005, in big cities like Banda Aceh and Meulaboh, the presence of NGOs made these 2 cities looks like getting smaller. These 2 towns are crowd of organizations. Nearly everyone are in the high spirit to run their program. If everyone is getting hot and the area is crowd the issue is who will be the beneficiaries of the huge funding? The nasty thing to do is persuade the beneficiary to receive someone’s program and in the same time reject others.

For instance is in permanent shelter work. There is a competition of the size and the completeness of the house. Some NGO to win the heart of the beneficiary’s they built 2 stories houses. Some provide kitchen set. Some endow with cash to move in the new house. The beneficiaries were spoiled that they can choose on one NGO and refuse others. Or they can bargain with some NGO in order to seize the best they can get.

This is utterly awful, the mission to reach many people shifted to put the flag of the organization on higher ground. If everyone’s mindset is to provide decent house to as many tsunami victims can get, the competition as mentioned above will not happen. The bigger house, the more complete house built or even more beautiful house, will reduce the number of beneficiary.

Other example from permanent shelter reconstruction works is as happen in Meulaboh, Aceh Barat District. Most of the NGO are prepared to build 36 m sq meters houses. But there was a day, when one NGO came to the local authority told all their houses will be 45 sq meters. Concerned with the jealousy will spread amongst the citizens, the local authority instructed all NGOs to build the same size with that NGO. Same as above based on the budget availability the number of the beneficiary decrease.

But the jealousy already reaches to other district. People of Aceh Jaya District which the closest area of Aceh Barat District receive smaller houses. Most of the NGO here build the 36 sq meters house.

Yesterday evening, a group of villagers came to our office in Rigaih, Aceh Jaya. They asked me, why we treat them differently. They knew that we build 45 sq meters house in Aceh Barat but here the 36 sq meters. In anger they forced me to build same as we build in Aceh Barat otherwise they will kick us out. I told them, we will only build the 36 sq meters. We will not persuade them to receive it. They who are willing to get the 36 sq meters house they can have it freely otherwise they can go to other NGO to receive bigger house. And I told them, if all of them agree to refuse us, we will leave that community.

NGO competition brings bad attitude to the beneficiaries. It made them spoiled. At the end of the day can dictate the NGO who helped them to fulfill their unreasonable needs. Our mission is not only building a house. More than that, we have to share the noble values which are embedded in every NGO entity.

Arwin Soelaksono - Disaster Response & reConstruction

Bridge Collapse in Panga

This was shocking to us! Last 6 days ago, we just awarded one supplier for bulk buying. They will send their materials from Meulaboh to our sites on the West Coast. It means they will pass this bridge. With this situation, they have to change the route. The roadway from Banda Aceh to the West Coast is not much better than Meulaboh's.

Below is the email of Eka Rinanda from the Aceh Jaya Field Office
Office of the United Nations Recovery Coordinator for Aceh and Nias (UNORC): Today at around 12.00 am a UNORC Calang received a report of a bridge (bailey bridge) collapse in Panga. A 30 - 40 MT JICS truck loaded with sand/gravel, which was trying to cross, stumbled into the river. No casualties were reported - there was only one driver and no passenger, but the truck is still in the river. The location is in the Ulee Titi sub-village, Keude Panga village, Panga sub-district. The bridge is not totally disconnected but twisted halfway through; therefore, it is not passable for vehicles. Motorbikes can go through, some reported, but passengers have to get off.

I contacted Samaritan's Purse in Panga for the above-detailed information and informed the BRR Regional Office here. I have called Dewi Elyana in our Meulaboh office, and she will inform NGOs/Agencies in Meulaboh about this situation and maybe talk to the JICS office there. From the BRR side, Saliza will contact Banda Aceh for a follow-up. I also heard that Oxfam may have planned to fix this bridge, and they have checked on the spot today. I will confirm this with Oxfam Calang.

I attach photos taken by ACF staff for your clear description of the damage. It is critical for Aceh Jaya, especially now that we hear about the fuel shortage in Calang and the need to get supplies from Meulaboh. The email sent on Mar 9, 2006 3:01 PM

Arwin Soelaksono - Disaster Response & reConstruction

BRR warns it may take over unfinished contracts

This is the time that every agency to realize that reconstruction in disaster area is not an easy thing. Many aspects and issues impeded the process along the way. Some of the NGOs are beaten up by the chief of BRR. It was written in the Jakarta Post newspaper.

One of UN body who works in reconstruction which its name is similar with us was heavily criticized. Funny thing is many people were confused with this similarity. When people asked us what was happened. We just told them…. “It’s not us. We are Habitat for Humanity. It is very different organization with the organization which described by the Jakarta Post.”

Below is the article from The Jakarta Post.

Duncan Wilson, The Jakarta Post, Banda Aceh

Source: The Jakarta Post, 8 March 2006.

http://www.thejakartapost.com/detailheadlines.asp?fileid=20060308.A02&irec=3

Rehabilitation and Reconstruction Agency for Aceh and Nias (BRR) chief Kuntoro Mangkusubroto has blasted non-governmental organizations, accusing some of dishonesty and a lack of professionalism, and threatened the agency would take over any projects that remain unfinished in June next year.

Kuntoro said some of the larger organizations had "lied" to their donors and the public about their progress, were beset by high overheads or divided by internal problems, and fixated with obtaining land for houses when most survivors wanted to return to their villages.

"One NGO took pictures claiming they had built 100 houses but they just built two houses. Another NGO built toilets but in some areas there was no water in them, how can professionals do that kind of thing?" Kuntoro said recently.

He singled out several NGOs for special criticism.

They included UN Habitat, which he accused of "being slow in some areas". He also alleged that CARE had often behaved duplicitously.

Kuntoro said the BRR would measure the NGOs' current performance against their pledges, so that donor countries could best target their funding.

"We are so proud of projects and groups like the Salvation Army for example, but when it comes to bigger organizations I am sad to say they're not as effective.

"They have too many overheads and I believe too many internal governance problems and I feel it is my duty to communicate that to donors and the NGO head offices.

"Usually the NGOs say 'can you give us land?', but that is not the (correct) approach when 90 percent of people will go back to their villages," Kuntoro said.

He said that any agencies that failed to deliver on their commitments by the middle of next year would be required to leave, and the BRR or more efficient NGOs would assume their work.

"We will now be asking the NGOs to review their current performance against their December pledges, and submit new numbers and projects.

"The consequences are severe, but I want to send a signal that we are serious here and this is not business as usual.

People have to work fast in these projects and I'm really serious about that."

Kuntoro's comments focused on the construction of housing, but BRR's Nias operations head William Sabander said Kuntoro intended to apply sanctions across the board.

"He has told me that we will ask for commitments from all agencies, which should come with an action plan, and if this does not meet the schedules we need to evaluate and get someone to take over things, or the BRR could assign another agency," William said.

The BRR, UN and Red Cross recently announced they had pushed back by several months their March target for moving people out of tents and into temporary shelters.

Only 235 out of the estimated 16,000 temporary shelters needed for the 70,000 Acehnese living under canvas have been completed since the program began in September.

About 12 percent of the around 120,000 new permanent homes required have been built.

While Kuntoro acknowledged his comments could create tensions between some NGOs and the BRR, Kuntoro said he hoped they and the performance review would encourage efficiency and transparency.

"We need the houses now, not at the end of the year. If the agencies say they have to scale back their pledge, fine, as long as they deliver the pledge.

"What I really worry about is philanthropists or donors' nasty surprise if they find out that something is untrue or not realistic," Kuntoro said.

UN Habitat project head Ian Hamilton said the organization may have been a little slow initially.

"Maybe we could have spent less time at the beginning talking and starting to build things but you always do much analysis at the start."

Hamilton said the organization had built 200 homes, which put them "in the top four or five organizations."

UN Habitat had agreed to construct 4,000 houses.

CARE's Aceh head Christophe Legrand said the company, with projects for this year worth US$30 million, was always transparent and professional.

"(Kuntoro's criticisms) may be referring to initial work in the emergency, but the standards we strive to reach are very high," Legrand said.

He said the company had 700 houses at various stages of construction, but not one had yet been completed.

Hamilton and Legrand said they were not troubled by the Aceh and Nias Reconstruction and Rehabilitation Authority's proposed review of non-government organizations, and enjoyed a positive working relationship with the organization and Kuntoro.

¿Qué Pasa, Waskita Karya ?

Almost all people who are dealing with construction business know Waskita Karya. It is a name of a well-know state owned contractor. In Indonesia’s construction business they are one of the top 10. The company which found on 1961 has experiences in building skyscrapers. The BNI tower which is the highest building in Jakarta marked their achievement. Big projects like bridge which are connecting islands in Batam was done successfully. Successes in housings are the same as mentioned previously. In short Waskita Karya (WK) is a highly regarded and reliable contractor company.

But what is going on in Aceh? Kuntoro, the head of BRR slammed WK down. With his order he blacklisted WK. The decree which issued yesterday is refrained WK to have a job in Aceh for 2 years. Everybody who knows WK, like me, was surprised. ¿Qué Pasa. What was happened?

Last year WK won a contract for 1,050 houses from Turkish Red Crescent Society. The project is in Kemukiman Lampuuk, Aceh Besar and Desa Bitai, Banda Aceh. I believe because of WK excellent track record, they entrusted the 90.3 billion Rupiah project. But last December in the commemoration of 1 Year Tsunami, the leading light of WK turns to grow fainter. None of the house was completed.

What was happened to WK can be happen to any contractors or NGOs. So these are the lessons learnt:
1. Renew the mind set. If we go to do the reconstruction work we have to change our mind set. The mentality from doing business in the normal area to the state of mind of working in disaster area. We have to live by our own. We have to have a strong system to protect our values and mission. We have to prepare our mind to well-perform in the place with no bank, no internet connection, no cellular network, no electricity, no medical support and sometimes no food. In short there is no business at usual. I think WK still in the mind set of normal condition area.
2. Be careful when budgeting. Providing all by our self may costly. Meanwhile along the process the costs may soars. When WK sub-contracted the project with 68 million Rupiah, they thought the cost is sufficient until the project completion. They may surprise with the skyrocketing price for more than 40% of construction materials.
3. Transparency and equality. We have to treat equal to all sub-contractors. WK gave the job to PT Almahdali with 82 million Rupiah per-unit. But WK gave the same job to 6 local contractors with 68 million Rupiah per-unit. At the end of the day, the 6 local contractors asking for a rise until 80 million Rupiah unless they stop the work.
4. Be clear in the contract document. There were dispute between WK and the 6 sub-contractors. They were mentioned did not know about the material specification, so they asking for the rise. The local contractors said, they just knew the material just did not fit with the specification in the middle of the work. I don’t know this is true or not, but with the clear in contract document the dispute may be minimized.
5. Give the sub-contractor job in staggered. Do not award the contractor just in one shot. This is the disaster area, everyone may experiencing failure. If we give big number of money for down payment to our subcontractor, it is difficult to withdraw when they failed. Release the job or in package is a better solution. In this case WK awarded Alhmahdali 315 houses, but none the house was completed.
6. Be careful of 2 tier work. If we have to give our work to sub-contractor, be careful that the sub-contractor is just looking for fee. Obviously WK them self is looking for fee. GeRAK anticorruption watch mentioned, with this sub-contracting scheme, WK gains 18.9 billion Rupiah.

Arwin Soelaksono - Disaster Response & reConstruction

Construction material price soars

This is the day when the construction material vendors are the KINGs.

Since last month, the construction works amongst the implementing agencies have been on fire. Everyone in Aceh reconstruction is like a participant in the racetrack. All of us are working hard, to complete the work on time. All agencies who work in the reconstruction are craving for construction materials. Timbers, cement, steel rebar, zinc roofing and bricks go through the economic law. The construction material production is not fast enough as the speed of construction. Scarcity of bricks, cement and other material has started to happen. The price goes up with no one to prevent it.

One brick before tsunami which was IDR 300 but nowadays it is IDR 700 each. Even though, it was easily sold out. Payment should be in hard cash. Just like in the stock market, every hour and even every minute, the vendor can change the price. The vendor will give to the best bidder who comes to them with the highest price and with enough money in their pocket.

The nightmare is not over yet. The quality of the brick is poor. Generally, the brick burned within 3 days, to reach its strength. But because the buyer is already in front of their gate, they just burn it in 2 days.

This is too much and has to be stopped. There are 3 things we have to do to end this madness.

First, just stop the work. Stop and watch. We should not have allowed someone to take advantage of making a fool upon us by playing the price. If we follow their game, the price will continue to skyrocket. If other agencies are still willing to dance to their rhythm, let them, it won’t be long; they will be short of cash soon.

Second, we have to buy materials outside Aceh region. We must even pay the transportation cost; the price is still lower compared to the local supplier. And still, we will get better quality bricks.

Third, we produce construction material by ourselves. We just need to find enough space to build our factory and the quarry for material. We can enhance the quality of life of the local people to work with us.

The first idea might be the easiest and the last suggestion is to idealistic. But if we just do one of them, the kings will wake up and smell the coffee.

Arwin Soelaksono - Disaster Response & reConstruction