Contracting SMEs for labour-based public works

This course provides an interactive e-learning opportunity to understand the environment in which SMEs operate in the construction sector, and explore how to engage them through transparent and efficient procurement procedures that can create an enabling environment for SMEs development. By undertaking a review of different approaches, case studies and tools, participants will learn how to engage SMEs as well as local communities for infrastructure works to create more and better jobs, while ensuring the quality of the assets to be constructed. This third edition of the course will have a specific focus on procurement and contracting procedures, including the introduction of a community contracting tool. This course will place a specific focus on contracting aspects. OBJECTIVES At the end of the course, participants: • Know challenges and opportunities that SMEs in the construction sector face; • Know how to build the capacity of SMEs to carry out labour-based operations effectively; • Know best practices for open, fair, efficient and sustainable contracting and procurement procedures for SMEs in the construction sector; • Be equipped with the community contracting tool to directly engage local communities for specific tasks and nurture entrepreneurship; • Understand the social and environmental dimensions for infrastructure works and how to integrate them into contracting and procurement procedures; and • Build a network of practitioners working in the construction sector. CONTENT The construction sector, SMEs, and employment-intensive investments. General overview of the context in which SMEs operate, as well as the employment-intensive approach to infrastructure works and its advantages and challenges for implementation. • The construction sector at a glance: key statistical figures, trends, and policy frameworks • What are the challenges SMEs in the construction sector face, and what constitutes an enabling environment for them • ILO’s Employment-Intensive Investment Strategies • Local resource-based (LRB) approaches Appropriate management of contracting and administrative procedures In order to implement employment-intensive infrastructure works, it is critically important to clearly define the scope of works to be performed by SMEs, taking into consideration their characteristics, capacities, and the policy environment. Thus clearly defined scope of works will then be integrated into bidding procedures for open, competitive and targeted procurement procedures that create an enabling environment for SMEs to develop, while ensuring quality outputs and value for money. This learning block will review what constitutes key elements to be considered when targeting SMEs for infrastructure works. • Facilitating the involvement of small contractors • Procurement procedures including contracting system • Community Contracting as a tool Building capacity of small-scale contractors in local resource-based approaches The capacity of SMEs may be assessedwith the following dimensions: human resources, equipment and tools, finance, and management skills. Human resources here pertain to technical knowledge and skills to carry out required tasks, whereas access to and maintenance of appropriate light equipment for employment-intensive works shall be balanced at an optimal level in comparison to human resource development. Equally challenging for the SMEs is usually access to necessary funds to mobilize the workforce, materials and equipment on the ground. This learning block will explore local resourcebased (LRB) approaches as a cost-efficient solution for the small contractors and the economy. Topics covered include: • What does “capacity” mean? • Planning for Local Resource-Based (LRB) training and involvement of small-scale contractors • Developing an LRB training programme International labour standards and social/environmental safeguards in labour-based contracts A productive workforce in a safe working environment is key to quality infrastructure works. Furthermore, SMEs are becoming more and more accountable for environmental and social responsibilities. Social and environmental safeguards, guided by the ILO’s Decent Work Agenda, thus play an integral role to protect the working conditions of all workers in an inclusive way, whilst protecting environment. This learning block will give an overview of key items to be considered in order to fulfil such accountability through contractual agreements between the client and SMEs. • Decent work principles • Occupational Safety and Health (OSH) • Gender equality and gender-responsive procurement • Disability inclusion • Environmental Safeguards and Social Safeguards ACHIEVEMENT NUMBER OF WEEKS: 3 weeks, 80 hours