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Expression of Interest are invited for Quantity Surveying Consultancy Description: Project Background and objectives The International Finance Corporation (IFC), the private sector arm of the World Bank Group (WBG), fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. Private sector financial development is essential to the promotion of successful and sustainable economies in low- and middle-income countries around the world. Sound and efficient financial markets can ensure that resources are allocated where they are most productive, assisting job creation and spurring economic growth. The Financial Institution Group (FIG) at IFC has three main objectives: 1) financial inclusion 2) servicing the real economy and 3) mobilizing third-party resources. Through the financial inclusion initiatives, IFC helps to increase the availability and affordability of financial services both for corporate entities and individuals. Our priorities are, inter alia, to strengthen bank and non-bank financial institutions, develop financial infrastructure, and improve the legal as well as regulatory framework. One the of IFCs global initiatives associated with increasing financial inclusion is focused on improving access to housing finance for low-income people. Housing is a basic human need. Adequate shelter is central to improving the lives of people and is positively correlated with wealth creation, higher educational attainment, and overall social stability. And yet, lack of adequate housing is one of the biggest challenges facing Africa today. According to the World Bank the vast majority (an estimated 70 percent) of Tanzanians work in the informal sector and build their houses incrementally over an average time span of 815 years, using savings and microcredit loans diverted to housing. Also, availability of housing microfinance in Tanzania is limited and there is a need to develop a product to facilitate affordable, faster, and more efficient housing construction (incremental home construction, improvement, expansion, and completion) within a reasonable time. IFC intends to pilot in Tanzania an innovative Housing Microfinance (HMF) lending product. The product will be catering for the needs of the majority of low-income people who live in single-family houses. These houses are in poor condition, but people cannot afford to purchase new houses due to their limited income. Therefore, they improve existing ones (change or mend roofs, floors, doors, and such.), extend houses, adding new rooms, or incrementally step-by-step build new houses. In most cases low-income Tanzanians either build houses themselves and/or hire minimally qualified labor (mafundi) on local markets. Having no savings, low-income Tanzanians borrow for that purpose from a range of financial institutions including Microfinance Institutions (MFIs), SACCOs, Community banks, Microfinance Banks, and Commercial Banks. Given that most low-income homeowners in Tanzania are not experts in construction, they need to get not only money to improve, extend or incrementally build their houses but also to get construction technical assistance (CTA) enabling them to build properly. Such CTA may include preparation of Bills of Quantities (BOQs), cost estimate and drawings, getting advice on technology, on selection of decent quality construction materials and on implementation of works. To assist low-income households with the above, IFC is considering building in Tanzania an HMF lending product under which loans for home improvement/extension/construction (HMF loans), non-financial services will accompany loans to provide low-income borrowers with the CTA. IFC has piloted such an HMF product in Kyrgyzstan. Under the Kyrgyzstan pilot, loan officers provided the non-financial services. The loan officers operated CTA tools pre-developed by IFC for that purpose. The CTA tools enabled loan officers who are not experts in construction to provide valuable advice to HMF clients. One of the most crucial elements of this advice entails developing Bills of Quantities (BOQs) and cost estimates. Preparation of BOQs and cost estimates requires developing algorithms aimed at assessing types and volumes of materials needed for a particular construction project and identifying and making regular price updates of construction materials that are going to be used. Most of the algorithms were already developed under similar projects in other countries but they will need to be customized to meet the specifics of Tanzanian home designs and construction methods. The Project is procuring the services of a consulting firm (henceforth referred to as the Consultant) to review the existing algorithms and amend them if necessary and to organize periodic collection of construction material prices all over the country. This Terms of Reference (ToR) describes the proposed scope of work for this assignment. 1. Purpose The Consultant will need to: A) Review and amend the list of materials and types of works as well as their units of measure to ensure that all the materials and works needed to calculate prices of building all elements of houses typical for Tanzania are in the list and their parameters, and units of measure correspond with the ones used in Tanzania. B) Review and amend the algorithms that frame the volume of materials , as well as scope and approximate cost of works, that low income Tanzanians will need to use, while building their houses including but not limited to (a) building foundations, (b) erecting walls, (c) building roofs of various forms (including ceiling), (d) making floors, (e) installing and purchasing or making windows and doors, (f) conducting finishing works, (g) building systems of water collection including purchasing and installation of water tanks, (h) building fences, (i) windows covers, and such. C) While developing algorithms for assessing the necessary volumes of materials the Consultant will need to consider the typical minimum units of purchase for these materials. For example, the volume of metal sheets for the roof should be not just be the total square footage (area) of the metal needed for the roof but should take into account the sizes and forms of metal sheets that can be purchased. The volume of cement should consider the sizes of the bags of cement available on the market and not just total volume of cement needed, and such others. D) Collect unit prices of all materials, and works, needed to calculate what it will cost to build all elements of typical individual houses in all regions of the country. E) Monthly update unit prices of the same materials and works for Dar es Salaam through the course of 3-5 years? Refer to scope of work #3. 2. Process: On-boarding to Familiarize the Consultant with Existing tools Given the complex nature of the assignment the Consultant will be on-boarded prior to commencing the project. The goal of the onboarding will be to familiarize the Consultant with the software tool that will be using the prices collected by the Consultant and preliminary list of materials for which prices will need to be collected. The Consultant will be shown how the algorithms that are to be amended currently work. 3. SCOPE OF WORK To achieve the Projects objective, IFC is seeking to obtain the services of a specialized consulting firm. The work will cover the following areas: Scope of Work #1. Review the BOQs that are prepared by the tool and suggest amendments. The Consultant will identify a set of at least ten projects to be used to test the correctness of the BOQs. The set is to be approved by IFC. The projects will differ in the forms, types and heights or roofs, materials, and wall heights, floor plans and types, finishings, and such. The Consultant will use the existing software tool to develop BOQs for all identified projects. The consultant will also develop BOQs for the same projects using traditional methods that Consultant currently uses to prepare BOQs. The consultant will analyze differences between BOQs developed for the same project by the two above specified approaches and will identify discrepancies in the BOQs developed by the software tool. These discrepancies may include but should not be limited to wrong types of materials or jobs outlined, missing materials or jobs, wrong volumes calculated, wrong unit measures used, and such. The Consultant will advise software developers about how they should amend the algorithms, data presentation, and such other measures to address the issues and eliminate (or minimize) the discrepancies. As a result of the work the Consultant will prepare a report #1. The Report #1 will outline: (a) the list of projects used to verify BOQs, (b) the discrepancies identified, (c) measures suggested for each discrepancy including but not limited to suggested amendments to the algorithms for calculation, the units of measures, the list of materials and jobs, and such. After IFC software specialists update the software following the suggested amendments, the Consultant will review the results of this work by preparing and verifying BOQs for at least 10 projects (approved by IFC) to verify whether the BOQs prepared by the software have become correct. As a result of the work the Consultant will prepare a Report #2. The Report #2 will outline (a) information about to what extent the software developers updates addressed the discrepancies, (b) results of the review of the BOQs prepared by the software after the software amendments. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/3891/view.html
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