Thursday, March 23, 2006

Local contractors flooded BRR with requests for prequalification

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

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

The number was unbelievable. Is it true that Aceh already had many construction companies before the disaster? If this is in Jakarta, I won't be surprised. Similar numbers of contractors worked in Jakarta in the golden years of the 90s. Or are they 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 a small number of them are really genuine contractors. 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