ﺓﺰﻏ ﻉﺎﻄﻗ ﰲ ﲔﻠﺠﺴﻣ ﲑﻐﻟﺍ ﲔﻟﻭﺎﻘﳌﺍ ... · 2008-12-21 ·...
TRANSCRIPT
ANALYSIS OF THE INFORMAL CONSTRUCTION SECTOR "UNREGISTERED CONTRACTORS" IN THE
GAZA STRIP
يف قطاع غزة"املقاولني الغري مسجلني" حتليل قطاع اإلنشاءات الغري رمسي
Prepared by
Eng. Mustafa Fawzi El Kurd
Supervised by
Prof. Dr. Adnan Enshassi
Professor of Construction Engineering and Management
A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of
Master in Civil Engineering - Construction Management
April, 2008
The Islamic University - Gaza Higher Education Deanship Faculty of Engineering Department of Civil Engineering Construction Management
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III
Dedication Dedication Dedication Dedication
To the memory of my Father To the memory of my Father To the memory of my Father To the memory of my Father
Mustafa Fawzi El KurdMustafa Fawzi El KurdMustafa Fawzi El KurdMustafa Fawzi El Kurd
IV
Acknowledgments
First and foremost I would like to thank Allah for what I am and for everything I have.
Next I wish to express my deepest appreciation to Prof. Adnan Enshassi under whose
supervision and advice this thesis was developed. Without his considerable efforts, this
thesis could not have been carried through completion. Thank you for being my mentor
and for the friendship that you offered me.
My appreciation to Dr. Mohammad Ziyara and Dr. A/ El Majid Nassar for their honest
efforts and comments which added to this research more power and accuracy.
Special thanks for Dr. Abed EL Karim Jouda and Eng. Rafiq Abed for their sincere
support to this research.
My best wishes to the expert panel who gives a powerful intervention to the field survey,
Eng. Zaidan Abu Zuhri, Eng. Ibrahim Saqir, , Eng. Anas El Dirawi, Eng. Khalid Abu
Said, Eng. Salam El Zibda, and Eng. Akram Abu Amera.
My grateful thanks to all unregistered contractors who participated in this study.
I would like to extend my gratitude to my friends and colleagues from the Department of
Civil Engineering and from the work in SEHP/UNRWA.
It is always impossible to personally thank everyone who has facilitated successful
completion of the work. To those of you who I did not specifically name, I also give my
thanks for moving me towards my goal.
Finally I would like to thank my mother, wife and lovely children for their love, support
and for tolerating the time I spent working with my research.
V
Abstract
The Construction sector is one major component of the Palestinian economy with regard
to its contribution in the income generation and employment. Contractors in this sector
can be divided into two groups:
Group one: Registered contractors in the Palestinian Contractor Union (PCU) represented
by the contracting companies.
Group two: Unregistered contractors as informal contractors who have not registered in
PCU. They are usually specialized in specific jobs related to the construction like:
plastering, tiling, painting, electrical installation and sanitary installations.
The main objective of the study is to investigate the role and significance of the informal
construction sector to the economy. The objectives of the study have been approached
through eighty valid questionnaires received from the unregistered contractors working in
Gaza Strip.
In this study, the informal construction sector was assessed and the weakness of the
professional association assumed to support this sector was discovered. Meanwhile, most
of the unregistered contractors have written contracts with the employers without any
financial guarantees from the two parties. Most importantly, the majority of workers in
this sector do not have social insurance. The results indicate that most of unregistered
contractors do not cover their staff by health and social insurances.
The study put some recommendations to develop the informal construction sector
including law proposals to be submitted to the concerned authorities for approval. The
recommendations also, include the establishment of professional association to support
the unregistered contractors and their employees in this sector in regard to their
professional skills and health. The association is supposed to organize the work in this
sector through adherence to technical specifications and organizing the contract with the
employers based on approved principles of measurement and pricing.
VI
الملخص
في قطاع غزة"المقاولين الغير مسجلين" تحليل قطاع اإلنشاءات الغير رسمي
يعتبر قطاع اإلنشاءات من القطاعات األساسية في االقتصاد الفلسطيني من حيث مساهمته في توليد
: ينقسم العاملون في هذا القطاع إلى قسمين.الدخل و االستخدام
. الذي تمثله شركات المقاوالتإتحاد المقاولين الفلسطينيين فيين المقاولين المسجل: القسم األول
.إتحاد المقاولين الفلسطينيين وهم المقاولين الغير رسميين في مسجلين الغيرالمقاولين :القسم الثاني
القـصارة، الـبالط، الـدهان، : متخصصين في مهن معينة لها عالقة باإلنشاءات مثل واعادة ما يكون
. الكهربائية، التمديدات الصحية وغيرهاالتمديدات
الغيـر رسـمي علـى االقتـصاد قطاع اإلنشاءات للبحث هو دراسة دور وأهمية أن الهدف الرئيسي
ولقد تم التوصل إلى األهداف من خالل ثمانين استبانه صالحة تم استالمها مـن المقـاولين .الفلسطيني
.الغير مسجلين العاملين في قطاع غزة
حيث تبين ضعف .الغير رسميإلطالع على واقع خدمات قطاع اإلنشاءات ل ي هذه الدراسةلقد تم ف
معظم عقود كما أظهرت نتائج البحث أن.األطر المهنية التي ترعاه و تعمل على تطوير العاملين فيه
هي عقود مكتوبة دون أي في هذا القطاعالعمل بين المقاولين الغير مسجلين وأصحاب العمل
أي واألهم من ذلك هو أن غالبية العاملين في هذا القطاع ال يحظون ب. الطرفينبيننات مالية ضما
وتشير النتائج أن معظم المقاولين الغير مسجلين ال يشملون العمال لديهم بأي تأمين .تامين اجتماعي
. صحي واجتماعي
لقد قدمت الدراسة عدة توصيات لتحسين واقع الخدمات في قطاع اإلنشاءات غير المنظم شملت اقتراح
قتراح إنشاء مؤسسات مهنية خاصة أ. تقديم مشاريع قوانين إلقرارها و اعتمادها من الهيئات الرسمية
كذلك تعمل على . تأهيلهم فنياً و رعايتهم صحياًتعمل على رعاية العاملين في هذا القطاع من حيث
تنظيم عقود العمل مع أصحاب العمل وتنظيم العمل في هذا القطاع من ناحية االلتزام بمواصفات فنية
.باالستناد إلى أسس معتمد للكيل و التسعير
VII
Table of Contents ACKNOWLEDGMENT ................................................................................................... IV
ABSTRACT ........................................................................................................................V
pqAF<ا ............................................................................................................................... VI
LIST OF ACRONYMS ....................................................................................................... XI
LIST OF TABLES………………………………………………………………………………..XIII
LIST OF FIGURES ..........................................................................................................XVI
CHAPTER 1 INTRODUCTION ............................................................................................ 1
1.1 HISTORICAL BACKGROUND............................................................................................. 1
1.2 THE CONSTRUCTION INDUSTRY........................................................................................ 2
1.3 THE PALESTINIAN ECONOMY........................................................................................... 3
1.4 THE CONSTRUCTION SECTOR IN PALESTINE ......................................................................... 5
1.5 THE CONSTRUCTION CONTRACTOR IN PALESTINE ...........................................................................11
1.6 INFORMAL SECTOR...................................................................................................... 12
1.7 INFORMAL CONSTRUCTION SECTOR ................................................................................................13
1.8 RESEARCH PROBLEM .......................................................................................................................15
1.9 RESEARCH AIM ................................................................................................................................15
1.10 THE IMPORTANCE OF THE RESEARCH ....................................................................... 16
1.11 LIMITATION ........................................................................................................... 16
1.12 MAIN METHODOLOGY ................................................................................................................17
CHAPTER 2 THE INFORMAL SECTOR ....................................................................... 18
2.1 WHAT IS THE INFORMAL SECTOR? ............................................................................. 18
2.2 CHARACTERISTICS OF THE INFORMAL SECTOR ............................................................ 21
2.3 PROBLEM FACING THE INFORMAL SECTOR .................................................................. 24
2.4 THE FORMAL AND INFORMAL SECTOR ........................................................................ 28
2.5 INFORMAL ECONOMY ............................................................................................... 33
2.6 LEGAL AND POLICY ISSUES ....................................................................................... 35
2.7 LITERATURE REVIEW SUMMARY CONCERING INFORMAL CONSTRUCTION SECTOR ........... 36
2.8 THE INFORMAL SECTOR IN OCCUPIED PALESTINIAN TERRITORIES ................................. 40
CHAPTER 3 METHODOLOGY ......................................................................................... 43
3.1 INTRODUCTION ........................................................................................................ 43
3.2 RESEARCH STUDY.................................................................................................... 43
3.3 THE RESEARCH STRATEGY ........................................................................................ 44
3.4 THE RESEARCH DESIGN ............................................................................................ 44
3.5 RESEARCH LOCATION .............................................................................................. 45
3.6 RESEARCH POPULATION AND SAMPLE SIZE ................................................................ 47
3.7 SAMPLE METHOD ..................................................................................................... 47
3.8 LIMITATION AND BOUNDARIES OF THE STUDY ............................................................. 48
3.9 QUESTIONNAIRE DESIGN ........................................................................................... 48
3.10 PILOT STUDY ......................................................................................................... 50
3.11 VALIDITY OF QUESTIONNAIRE ................................................................................. 51
3.12 RELIABILITY OF RESEARCH ..................................................................................... 52
3.13 STATISTICAL ANALYSIS TOOLS ................................................................................. 53
VIII
CHAPTER 4 DATA ANALYSIS AND DISCUSSION....................................................... 54
4.1 INTRODUCTION ........................................................................................................ 54
4.2 RESPONDENTS PROFILE ............................................................................................ 54
4.2.1 Education level of the unregistered contractor ........................................................ 54
4.2.2 The unregistered contractor relationship with his employees ...................................... 55
4.2.3 Experience years of the unregistered contractors...................................................... 55
4.2.4 Field works of the unregistered contractors ............................................................. 56
4.2.5 Education level of the unregistered contractor employees .......................................... 57
4.2.6 Ages of the unregistered contractor ..................................................................................... 58
4.2.7 Ages of the unregistered contractors employees........................................................ 59
4.2.8 Marital status of unregistered contractor ................................................................ 59
4.2.9 Marital status of the employees .......................................................................... 60
4.2.10 Owners of the unregistered contractor company ..................................................... 61
4.3 FIELD WORK OF UNREGISTERED CONTRACTORS .......................................................... 61
4.3.1 Work agreement with the employer ...................................................................... 61
4.3.2 Employer of the unregistered contractor ................................................................. 62
4.3.3 Joining as unregistered contractors ....................................................................... 63
4.3.4 Preferred clients for the unregistered contractor ...................................................... 63
4.3.5 Tender pricing system ......................................................................................... 64
4.3.6 Nature of the payment ......................................................................................... 65
4.3.7 Payment format.................................................................................................. 66
4.3.8 Allowances for the unregistered contractors.........................................................................66
4.3.9 Experience sources for the unregistered contractors ............................................................67
4.3.10 Technological development .................................................................................................67
4.3.11 Management organization...................................................................................................68
4.3.12 Methods of getting the work ................................................................................................69
4.3.13 Agreement with registered contractor .................................................................................69
4.3.14 The ability to deal with supervising staff .............................................................................69
4.4 INSTITUTIONAL LIFE ................................................................................................. 70
4.4.1 Membership in unions or syndicates other than PCU...........................................................70
4.4.2 The benefits of membership ..................................................................................................71
4.4.3 Informal construction sector relationship with labors union .............................................. 72
4.4.4 Membership in chamber of commerce……...............................................................73
4.4.5 The government plans ...........................................................................................................73
4.4.6 PCU support to the informal construction sector..................................................................74
4.4.7 Registration at the PCU ........................................................................................................75
4.4.8 Resolving the financial and moral problems by PCU ...........................................................75
4.4.9 Supporting documents ...........................................................................................................76
4.4.10 Owner assistances ...............................................................................................................77
4.4.11 Issuing the experience certificates...................................................................................... 78
4.5 ECONOMICAL ASPECTS AND WORKING EXPERIENCE ..................................................... 79
4.5.1 Average project value in US$ ............................................................................... 79
4.5.2 Average project duration...................................................................................................... 79
4.5.3 Annual average value of executed works ............................................................ .....80
4.5.4 The unregistered contractor equipment.................................................................................81
4.5.5 Equipment value of the unregistered contractors ................................................................82
4.5.6 Equipment percentages hired by the unregistered contractor ..............................................83
4.5.7 No. of works or jobs executed during the last 5 years ...........................................................83
4.5.8 No. of annual projects implemented for the registered contractors .....................................84
4.5.9 No. of annual projects implemented for private owners........................................................85
4.5.10 Monthly workdays ............................................................................................................. 86
4.5.11 Purchasing the construction material ................................................................................ 87
4.5.12 Percentage of building materials purchased by the unregistered contractor......................88
4.5.13 Dealing with banks to fund works ...............................................................................88
IX
4.5.14 Other financial income ........................................................................................................89
4.5.15 Financial resources .............................................................................................................90
4.5.16 Employees of the unregistered contractors .........................................................................90
4.5.17 Capital investment of unregistered contractors (US$) .......................................................91
4.5.18 Yearly profit.........................................................................................................................91
4.5.19 The daily rate of the unskilled labors ..................................................................................92
4.5.20 The daily rate of the skilled labors (NIS).............................................................................92
4.5.21 The daily rate of foreman or surveyor.................................................................................93
4.5.22 The daily rate of the engineer..............................................................................................94
4.5.23 Allowances for staff leaving their jobs ................................................................................94
4.5.24 The largest financial ability for executing the work ............................................................95
4.6 CHALLENGES FACING THE UNREGISTERED CONTRACTOR AND RELATIONSHIP WITH THE REGISTERED
CONTRACT ..................................................................................................................... 96
4.6.1 The reasons behind working as unregistered contractors ..................................................96
4.6.2 The relationship between the registered contractors and the unregistered contractors… ..97
4.6.3 Effect on the official economy ...............................................................................................97
4.6.4 Work as a registered contractor ............................................................................................98
4.6.5 The training and increasing knowledge ................................................................................99
4.6.6 The methods that can be followed to make this sector legal and formal one with respect to the
existing tax system ...............................................................................................................100
4.6.7 Complaints were raised against the unregistered contractor by a registered one in tax
departments ..................................................................................................................................100
4.6.8 Competition in the private sector work ..............................................................................101
4.6.9 Exchange complaints and claims ........................................................................................102
4.6.10 Projects documents and files ............................................................................................103
4.6.11 Prices agreement with the registered contractor...............................................................103
4.6.12 The technical and experience ............................................................................................104
4.6.13 The problems between registered and unregistered contractors.......................................104
4.6.14 The obstacles affecting the development of the unregistered contractor ..........................106
4.6.15 The close cooperation........................................................................................................107
4.6.16 Supplying the needed labors to the work...........................................................................108
4.6.17 The interim payment date ..................................................................................................108
4.6.18 The final payment ..............................................................................................................109
4.7 WORK CONDITIONS AND TRAINING .............................................................................. 110
4.7.1 No of daily working hours ...................................................................................................110
4.7.2 Working days per year.........................................................................................................110
4.7.3 Non working days per year..................................................................................................111
4.7.4 Sons work ............................................................................................................................112
4.7.5 The work conditions ............................................................................................................113
4.7.6 Participate in training .........................................................................................................113
4.7.7 The living level of the labors ...............................................................................................114
4.7.8 Encourage from the unregistered contractors towards employees ....................................115
4.7.9 Knowing laws and regulations of work and workers...........................................................116
4.7.10 Following the regulations and laws ..................................................................................116
4.7.11 keeping the skilled labors ..................................................................................................117
4.7.12 Getting training for labors ................................................................................................117
4.8 HEALTH AND SAFETY .................................................................................................118
4.8.1 Responsibility of safety and site conditions .........................................................................118
4.8.2 Safety rules ..........................................................................................................................119
4.8.3 Safety tools in site ................................................................................................................119
4.8.4 Responsibility about any damages at site............................................................................120
4.8.5 Suspension of work due to accident ....................................................................................121
4.8.6 Workers insurance...............................................................................................................121
4.8.7 Health insurance .................................................................................................................122
4.8.8 Social insurance for labors..................................................................................................123
X
4.8.9 The environmental damages................................................................................................125
4.8.10 Labors insurance items in the contract .............................................................................125
4.8.11 Workers wearing the following tools and clothes during work .........................................126
4.8.12 Disciplinary actions...........................................................................................................127
4.8.13 Safety measures pricing.....................................................................................................128
4.8.14 Reading specifications of safety measures.........................................................................128
CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS ........................................130
5.1 INTRODUCTION .......................................................................................................130
5.2 CONCLUSION ............................................................................................................130
5.2.1 Respondents profile .............................................................................................................130
5.2.2 Field work of unregistered contractors ...............................................................................131
5.2.3 Institutional life ..................................................................................................................131
5.2.4 Economical aspects and working experience ......................................................................132
5.2.5 Challenges facing the unregistered contractor and relationship with the registered one..133
5.2.6 Work conditions and training ..............................................................................................135
5.2.7 Health and safety ................................................................................................................135
5.3 RECOMMENDATIONS ..................................................................................................136
5.3.1 Integration of the informal construction sector into the development process ................137
5.3.2 Financing and credit ..........................................................................................................137
5.3.3 Training and technical assistance ......................................................................................138
5.3.4 Organizing...........................................................................................................................139
5.3.5 Legal and policy issues........................................................................................................139
5.3.6 Health and safety.................................................................................................................144
5.3.7 Information and linkages.....................................................................................................144
5.4 FURTHER STUDIES AND LIMITATIONS .............................................................................................145
REFERENCES................................................................................................................147
LIST OF ANNEXES .......................................................................................................153
ANNEX 1 ENGLISH VERSION QUESTIONNAIRE.....................................................................154
ANNEX 2 ARABIC VERSION QUESTIONNAIRE ......................................................................178
XI
List of Acronyms ASA
ASALA
CPI
ERF
EPI
EPSRC
ERF
ETF
EU
GDI
GDP
GDRC
GNI
GNP
GIGA
GDRC
GS
ICE
ICEG
IDB
IDF
ILO
ISAMI
LaRRI
MAS
MENA
MOPIC
NGO
NUNW
Palestinian Businesswomen’s Association
The American Sociological Association
Consumer Price Index
Economic Research Forum
The Economic Policy Institute
Engineering and Physical Sciences Research Council
Economic Research Forum
European Training Foundation
European Union
Gross Domestic Income
Gross Domestic Product
Global Development Research Center
Gross National Index
Gross National Product
German Institute of Global and Area Studies
Global Development Research Center
Gaza Strip
Informal Construction Enterprises
International Center for Economic Growth
Islamic Development Bank
Israeli Defense Forces
International Labor Organization
Building a Microfinance Industry in the West Bank and Gaza
Labor Resource and Research Institute
Palestinian Economic Policy Research Institute
Middle East and North Africa
Ministry of Planning and International Co-operation
Nongovernmental Organization
National Union of Namibian Workers
XII
OCH
OECD
OPT
PAASIA
PCBS
PCU
PECDAR
PHC
PNA
PWA
SBC
SD
SEAPAT
SME
SEHP
SPSS
RFF
UNCTAD
UNDP
UNSCO
UNRWA
USAID
VAT
WB
WBGS
Orchard Supply Hardware
Organization for Economic Cooperation and Development
Occupied Palestinian Territories
Palestinian Academic Society for the Study of International Affairs
Palestinian Central Bureau of Statistics
Palestinian Contractors Union
Palestinian Economic Council for Development and Reconstruction
Palestinian Hosing Council
Palestinian National Authority
Palestinian Water Authority
Small Business Council
Standard Deviation
South-East Asia and the Pacific Multidisciplinary Advisory Team
Small and Medium-Sized Enterprise
Special Environmental Health Programme
Statistical Package for Social Science
Resources for the Future
United Nations Conference on Trade and Development
United Nations Development Program
United Nations Special Coordinator in the Occupied Territories
United Nations Relief and Works Agency
United States Agency for International Development
Value-Added Tax
West Bank
West Bank and Gaza Strip
XIII
List of Tables
TABLE 1.1 KEY INDICATORS OF THE PALESTINIAN ECONOMY (EXCL. JERUSALEM, SELECTED YEARS) .........4
TABLE 1.2 CONSTRUCTION SHARE IN GDP FOR THE WBGS SELECTED YEARS MILLION US$........................6
TABLE 1.3 PALESTINIAN LABOR FORCE – VARIOUS FEATURES ...................................................................10
TABLE 2.1 BASIS FOR CLASSIFYING NON-AGRICULTURAL SECTOR JOBS AS "INFORMAL'………………….19
TABLE 2.2 CATEGORIES OF INFORMAL WORK ARRANGEMENTS……………………………………………20
TABLE 2.3 EGYPT DISTRIBUTION OF THE WORKFORCE INFORMAL & INFORMAL SECTORS ACCORDING TO THE
DEGREE OF STABILITY OF EMPLOYMENT (PERCENT).………………………………………...........30
TABLE 3.1 CORRELATION COEFFICIENT OF EACH FIELD AND THE WHOLE QUESTIONNAIRE ………………..52
TABLE 4.1 EDUCATION LEVEL OF THE UNREGISTERED CONTRACTOR……………………………………..55
TABLE 4.2 THE UNREGISTERED CONTRACTOR RELATIONSHIP WITH HIS EMPLOYEES………………………55
TABLE 4.3 EXPERIENCE YEARS OF THE UNREGISTERED CONTRACTORS……………………………………56
TABLE 4.4 FIELD WORKS OF THE UNREGISTERED CONTRACTORS………………………………………….57
TABLE 4.5 EDUCATION LEVEL OF THE UNREGISTERED CONTRACTOR EMPLOYEE.…………………………58
TABLE 4.6 AGES OF THE UNREGISTERED CONTRACTORS EMPLOYEES……………………………………...59
TABLE 4.7 MARITAL STATUS OF THE EMPLOYEES........................................................................................60
TABLE 4.8 OWNERS OF THE UNREGISTERED CONTRACTOR COMPANY .........................................................61
TABLE 4.9 THE UNREGISTERED CONTRACTOR'S EMPLOYER0………………………………………………62
TABLE 4.10 JOINING AS UNREGISTERED CONTRACTORS..………………………………………………….63
TABLE 4.11 PREFERRED CLIENTS FOR THE UNREGISTERED CONTRACTOR.…………………………………64
TABLE 4.12 NATURE OF THE PAYMENT.……………………………………………………………………65
TABLE 4.13 ALLOWANCES FOR THE UNREGISTERED CONTRACTORS.………………………………………67
TABLE 4.14 EXPERIENCE SOURCES FOR THE UNREGISTERED CONTRACTO.…………………………………67
TABLE 4.15 TECHNOLOGICAL DEVELOPMENT..…………………………………………………………….68
TABLE 4.16 MANAGEMENT ORGANIZATION..………………………………………………………………68
TABLE 4.17 METHODS OF GETTING TWORK..………………………………………………………………69
TABLE 4.18 AGREEMENT WITH REGISTERED CONTRACTOR .........................................................................69
TABLE 4.19 REGISTRATION IN UNIONS/SYNDICATES OTHER THAN PCU ......................................................71
TABLE 4.20 THE BENEFITS OF MEMBERSHIP... …………………………………………………………. ...72
TABLE 4.21 INFORMAL CONSTRUCTION SECTOR RELATIONSHIP WITH LABORS SYNDICATE. ……………….72
TABLE 4.22 MEMBERSHIP IN CHAMBER OF COMMERCE...............................................................................73
TABLE 4.23 SUPPORT AND DEVELOPMENT ..................................................................................................74
TABLE 4.24 CARE OF PCU IN THE INFORMAL CONSTRUCTION SECTOR ........................................................75
TABLE 4.25 REGISTRATION AT THE PCU.………………………………………………………………….75
TABLE 4.26 RESOLVING THE FINANCIAL AND MORAL PROBLEMS BY PCU...................................................76
XIV
TABLE 4.27 SUPPORTING DOCUMENTS ........................................................................................................77
TABLE 4.28 OWNER ASSISTANCES...............................................................................................................78
TABLE 4.29 ISSUING THE EXPERIENCE CERTIFICATES ..................................................................................78
TABLE 4.30 AVERAGE PROJECT VALUE INUS$.............................................................................................79
TABLE 4.31 AVERAGE PROJECT DURATION.………………………………………………………………..80
TABLE 4.32 ANNUAL AVERAGE VALUE OF EXECUTED WORKS……………………………………………...81
TABLE 4.33 THE UNREGISTERED CONTRACTOR EQUIPMENT........................................................................82
TABLE 4.34 EQUIPMENT VALUE OF THE UNREGISTERED CONTRACTORS ......................................................82
TABLE 4.35 EQUIPMENT PERCENTAGES HIRED BY THE UNREGISTERED CONTRACTOR .................................83
TABLE 4.36 NO. OF WORKS OR JOBS EXECUTED DURING THE LAST 5 YEARS................................................84
TABLE 4.37 NO. OF ANNUAL PROJECTS IMPLEMENTED FOR THE REGISTERED CONTRACTORS ......................85
TABLE 4.38 NO. OF ANNUAL PROJECTS IMPLEMENTED FOR PEOPLE .............................................................86
TABLE 4.39 NO. OF ANNUAL PROJECTS IMPLEMENTED FOR PRIVATE HOUSE OWNERS AND REGISTERED
CONTRACTORS….…………………………………………………………………………………..86
TABLE 4.40 MONTHLY WORKDAYS (NO. OF WORKERS PER DAY × NO. OF WORKDAYS PER MONTH)............87
TABLE 4.41 PURCHASING THE CONSTRUCTION MATERIAL...........................................................................87
TABLE 4.42 OTHER FINANCIAL INCOME.......................................................................................................89
TABLE 4.43 FINANCIAL RESOURCES ............................................................................................................90
TABLE 4.44 EMPLOYEES OF THE UNREGISTERED CONTRACTORS .................................................................90
TABLE 4.45 YEARLY PROFIT........................................................................................................................92
TABLE 4.46 THE DAILY RATE OF THE UNSKILLED LABORS ...........................................................................92
TABLE 4.47 THE DAILY RATE OF FOREMAN OR SURVEYOR ..........................................................................94
TABLE 4.48 THE DAILY RATE OF THE ENGINEER ..........................................................................................94
TABLE 4.49 ALLOWANCES FOR STAFF LEAVING THEIR JOBS ........................................................................95
TABLE 4.50 THE LARGEST FINANCIAL ABILITY FOR EXECUTING THE WORK .................................................95
TABLE 4.51 THE REASONS BEHIND WORKING AS UNREGISTERED CONTRACTORS ......................................97
TABLE 4.52 THE RELATIONSHIP BETWEEN THE REGISTERED CONTRACTORS AND THE UNREGISTERED
CONTRACTORS ...............................................................................................................................97
TABLE 4.53 EFFECT ON THE OFFICIAL ECONOMY ........................................................................................98
TABLE 4.54 WORK AS A REGISTERED CONTRACTOR ....................................................................................99
TABLE 4.55 CHANGE TO AN UNREGISTERED CONTRACTOR..........................................................................99
TABLE 4.56 THE TRAINING AND INCREASING KNOWLEDGE .........................................................................99
TABLE 4.57 COMPETITION IN THE PRIVATE SECTOR WORK ........................................................................101
TABLE 4.58 EXCHANGE COMPLAINTS........................................................................................................102
TABLE 4.59 THE REGISTERED CONTRACTOR CLAIMS AGAINST THE UNREGISTERED ONE ...........................102
TABLE 4.60 PROJECTS DOCUMENTS AND FILES..........................................................................................103
TABLE 4.61 PRICES AGREEMENT WITH THE REGISTERED CONTRACTOR.....................................................103
XV
TABLE 4.62 THE TECHNICAL AND MANAGEMENT EXPERIENCE ..................................................................104
TABLE 4.63 THE REGISTERED CONTRACTOR EXPERIENCE .........................................................................104
TABLE 4.64 THE PROBLEMS BETWEEN REGISTERED AND UNREGISTERED CONTRACTORS ..........................105
TABLE 4.65 THE OBSTACLES AFFECTING THE DEVELOPMENT OF THE UNREGISTERED CONTRACTOR .........107
TABLE 4.66 THE CLOSE COOPERATION ......................................................................................................108
TABLE 4.67 SUPPLYING THE NEEDED LABORS TO THE WORK.....................................................................108
TABLE 4.68 THE INTERIM PAYMENT DATE.................................................................................................109
TABLE 4.69 NO OF DAILY WORKING HOURS...............................................................................................110
TABLE 4.70 WORKING DAYS PER YEAR .....................................................................................................111
TABLE 4.71 NON WORKING DAYS PER YEAR..............................................................................................112
TABLE 4.72 SONS WORK............................................................................................................................112
TABLE 4.73 THE WORK CONDITIONS .........................................................................................................113
TABLE 4.74 PARTICIPATE IN TRAININ………………………………………………………………….....114
TABLE 4.75 TRAINING MECHANISM ...........................................................................................................114
TABLE 4.76 TYPES OF TRAINING SUBJECTS................................................................................................114
TABLE 4.77 THE LIVING LEVEL OF THE LABORS.........................................................................................115
TABLE 4.78 KNOWING LAWS AND REGULATIONS OF WORK AND WORKERS................................................116
TABLE 4.79 FOLLOWING THE REGULATIONS AND LAWS.............................................................................116
TABLE 4.80 KEEPING THE SKILLED LABORS ...............................................................................................117
TABLE 4.81 RESPONSIBILITY OF SAFETY AND SITE CONDITIONS.................................................................119
TABLE 4.82 SAFETY RULES .......................................................................................................................119
TABLE 4.83 SAFETY TOOLS IN SITE ............................................................................................................120
TABLE 4.84 SUSPENSION OF WORK DUE TO ACCIDENT...………………………………………………….121
TABLE 4.85 WORKERS INSURANCE ...........................................................................................................122
TABLE 4.86 HEALTH INSURANCE FOR LABORS ..........................................................................................123
TABLE 4.87 SOCIAL INSURANCE FOR LABORS............................................................................................124
TABLE 4.88 REGISTRATION IN SOCIAL INSURANCE ....................................................................................124
TABLE 4.89 HEALTH SUPERVISION OF LABORS ..........................................................................................125
TABLE 4.90 THE ENVIRONMENTAL DAMAGES ...........................................................................................125
TABLE 4.91 LABORS INSURANCE ITEMS IN THE CONTRACT……………………………………………. 126
TABLE 4.92 WORKERS WEARING THE FOLLOWING TOOLS AND CLOTHES DURING WORK............................127
TABLE 4.93 DISCIPLINARY ACTIONS ..........................................................................................................127
TABLE 4.94 READING SPECIFICATIONS OF SAFETY MEASURES….………………………….…….129
XVI
List of Figures
FIGURE 1.1DISTRIBUTION OF GDP BY SECTOR (PECDAR, 1997)……………………….………..6
FIGURE 1.2 ECONOMIC STRUCTURE, 2004 ESTIMATES (% OF GDP)(PASSIA, 2007)…………….7
FIGURE 1.3 GRANTS DISTRIBUTED TO DIFFERENT SECTORS IN PALESTINE IN 1994–
2000………………………………………………………………………………………….8
FIGURE 1.4 LABOR FORCE DISTRIBUTION BY SECTOR (%) ……………….…………………….. 11
FIGURE 3.1 FLOW CHART OF METHODOLOGY……………………………………………………...46
FIGURE 4.1 AGES OF THE UNREGISTERED ONTRACTOR ………………………………………..…58
FIGURE 4.2 MARITAL STATUS OF UNREGISTERED CONTRACTOR ……………..……………….60
FIGURE 4.3 TYPE OF CONTRACT WRITTEN WITH THE EMPLOYER ……………..……………..62
FIGURE 4.4 TENDER PRICING SYSTEM………………………………………………………..…….65
FIGURE 4.5 PAYMENT FORMAT……………………………………………………………………...66
FIGURE 4.6 THE ABILITY TO DEAL WITH SUPERVISING STAFF……………………………………..70
FIGURE 4.7 MEMBERSHIP IN UNION OR SYNDICATE………………………………………………..71
FIGURE 4.8 THE GOVERNMENT PLANS .................................................................................. 74
FIGURE 4.9 PERCENTAGE OF BUILDING MATERIALS PURCHASED BY THE UNREGISTERED
CONTRACTOR ........................................................................................................... 88
FIGURE 4.10 DEALING WITH BANKS TO FUND WORKS ............................................................. 89
FIGURE 4.11 CAPITAL INVESTMENT OF UNREGISTERED CONTRACTORS (US$) .......................... 91
FIGURE 4.12 THE DAILY RATE OF THE SKILLED LABORS (NIS)……………………………….. .... 93
FIGURE 4.13 THE METHODS THAT CAN BE FOLLOWED TO MAKE THIS SECTOR LEGAL AND FORMAL
ONE WITH RESPECT TO THE EXISTING TAX SYSTEM…………… ....................................100
FIGURE 4.14 COMPLAINTS WERE RAISED AGAINST THE UNREGISTERED CONTRACTOR BY
REGISTERED ONE IN TAX DEPARTMENTS..…………………………………………………101
FIGURE 4.15 THE FINAL PAYMENT………………………………………………………………..109
FIGURE 4.16 ENCOURAGE FROM THE UNREGISTERED CONTRACTORS TOWARDS
EMPLOYEE………………………………………………………………………………...……….115
FIGURE 4.17 GETTING TRAINING FOR LABORS..………………………………………………….118
FIGURE 4.18 RESPONSIBILITY ABOUT ANY DAMAGES AT SITE………………….………………..121
FIGURE 4.19 SAFETY MEASURES PRICING…………………………………………………………128
Chapter 1
Introduction
In this chapter an introduction to the research environment of Gaza Strip will be done. An
overview of construction industry in Gaza strip will be discussed. The research
importance, problem, objectives and boundaries are also explained.
1.1 Historical background
For more than 7,000 years the Canaanites (Palestinians) lived continuously uninterrupted
on the land of Palestine. By 1949 more than 400 Palestinian towns were destroyed,
thousands of Palestinians were massacred and 750,000 Palestinians fled to safety in
neighboring countries. The Jews occupied 77% of the total land of Palestine. In 1967
Israel attacked and occupied the remaining 23% of Palestine (Oweis, 2003).
The combined area of the West Bank and Gaza Strip (6,165 sq km) constitutes 23 per
cent of the area of pre-1948 British Mandate Palestine. The West Bank is 5,800 sq km in
area, 130 km long and ranges from 40 to 65 km in width; it lies between Israel to the
West and Jordan to the East. The Gaza Strip is 365 sq km in area, 45 km long and
between 5 and 12 km wide; it borders Israel to the north and east, the Egyptian Sinai
peninsula to the south, and the Mediterranean Sea to the West (UNCTAD, 1998).
The estimated number of Palestinians in the world in 2004 was 10 millions. Just over half
(51%) live outside Palestine, 11% live in Israel, 24% in the WB and 14% in Gaza. The
estimated number of Palestinians in WBGS at the end of 2005 is 3, 762, 0052 inhabitants,
63% (2,372,216 inhabitants) of whom live in the West Bank and 37% (1,389,789
inhabitants) in the Gaza Strip (ETF, 2005).
-1-
- 2 -
The Gaza Strip has one of the highest overall growth rates and population densities in the
world. The 2006 population was 1,428,757 inhabitants, giving the region a population
density of 3,750 persons per sq km (9,712 per sq mi) (Encarta, 2006). The Gaza Strip has
a temperate climate, with mild winters, and dry, hot summers subject to drought. The
terrain is flat or rolling, with dunes near the coast. Annual rainfall seldom exceeds 400
mm (Wikipedia, 2006).
1.2 The construction Industry
Various definitions have been put forward to describe the construction industry. It is clear
from all these definitions that the construction industry encompasses all spheres of human
life. The construction industry can be divided into a ‘‘formal’’ and an ‘‘informal’’ parts.
The formal construction industry is one in which all the government regulations with
regard to construction (licensing, registration, etc.) are adhered to, while the informal
construction industry is that part of the industry where some or all of the regulations are
not compiled with (Mlinga and Wells, 2002).
According to (U.S Department of Labor, Bureau of Labor Statistics, 2006), the
construction industry is also divided into three major segments.
• Construction of building contractors, or general contractors, builds residential,
industrial, commercial, and other buildings.
• Heavy and Civil Engineering construction contractors build sewers, roads,
highways, bridges, tunnels, and other projects.
• Specialty trade contractors perform specialized activities related to construction
such as carpentry, painting, plumbing, and electrical work.
Mlinga and Wells (2002) argue that the impact of the construction industry divides into
direct contribution, indirect contribution and backward linkages. The construction
industry contributes directly to output and employment through construction activity.
Indirectly it facilitates the growth of other sectors like agriculture, manufacturing and
services. The industry also has great potential for generating further employment, through
- 3 -
its backward linkages with other industries, notably those involved with the production
and distribution of building materials and equipment and in the provision of financial
services to the industry. EPSRC, (2004) state that in UK the construction industry is a
vital part of the economy, with an output equivalent to 8-10% of GDP and employs
almost two million people.
1.3 The Palestinian Economy
On the economic front, the most severe and sustained set of movement restrictions
imposed since the beginning of the occupation in 1967, violence, closures and curfews
affect the survival and livelihoods of 3 million Palestinians in the West Bank and the
Gaza Strip with either limited or no access to medical care and basic supplies and
services. Daily domestic losses are estimated at $6.0 – 8.6 million/ business day.
Unemployment has risen to as high as 67 percent in Gaza and 48 percent in the West
Bank (Esim and Kuttab, 2002). Qazzaz, etal (2005) cite that the overall losses suffered by
the Palestinian economy since the beginning of Al Aksa Intifada until September 2004
amounted to around US$9,970 millions.
According to (PASSIA, 2006), Palestinian economy is dominated by services, while
industry remains underdeveloped and at a low level. Any sustained Palestinian economic
recovery will ultimately require the dismantling of the closure system. The conditions for
economic development are greatly affected by the complicated authority structure; by the
wall erected between Israel and WBGS; and by the difficult export conditions resulting
from a lack of a harbor, airports and other transport facilities that would provide reliable
access to export markets (ETF, 2005). By the end of 2004, 61% of Palestinian households
were estimated to live under a poverty line of $350 per household. 32% of Gaza and 20%
of West Bank households are living in extreme poverty. The main reason for poverty is
unemployment. Table 1.1 illustrates that the key indicators of the Palestinian economy
(Excl. Jerusalem, selected years) (PASSIA, 2006).
- 4 -
During the Israeli occupation, which began in 1967, the Gaza Strip became increasingly
dependent on Israel (Encarta, 2006). The economy of the Gaza Strip largely depended on
Palestinians who worked in Israel. And the border closures for security reasons have hit
them hard. Overall, the Palestinian economy declined in per capita terms by 38% in the
four years from 1999-2003. The Gaza economy was particularly hard-hit in 2004 by an
escalation in the conflict with Israel after a modest recovery of the whole Palestinian
economy in 2003. A number of actions by the Israeli Defense Forces (IDF) restricted
movement within the Gaza strip and blocked people and goods from crossing the borders
into Egypt or Israel. As a result, exports declined, humanitarian aid was temporarily
curtailed, and the number of workers crossing to Israel declined to a daily average of
1,000, compared to 6,000 the previous year. However, given that the Palestinian economy
is only one-fortieth the size of Israel's economy, ($3bn vs. $130bn); it is bound to live in
its shadow for some time to come (Schifferes, 2005).
Table 1.1 Key Indicators of the Palestinian Economy (Excl. Jerusalem, selected years)
1995 1999 2000 2001 2002 2003 2004
GDP(US$ million) 3,225 4,201 4,108 3,816 3,484 3,921 4,011
GNI (US$ million) 3,699 4,932 4,793 4,143 3,700 4,204 4,373
GDP per capita
(US$)
1,380 1,478 1,386 1,229 1,073 1,158 1,146
GNI per capita
(US$)
1,583 1,736 1,617 1,335 1,140 1,242 1,249
Real GDP growth
(%)
6.1 8.6 -5.6 -6.6 -3.8 4.5 -1.0
Real GNI per
capita growth (%)
7.9 4.1 -10.7 -16.1 -9.8 2.8 -4.2
Domestic
expenditure (% of
GDP)
151.8 163.0 155.4 143.3 161.0 153.0 164.4
Inflation (CPI -
annual %)
10.8 5.5 2.8 1.2 5.7 4.4 3.0
Poverty rate (% of
population)
West Bank:
Gaza Strip
20
13
32
27
18
42
37
27
54
51
41
68
47
37
64
48
38
65 Source: PASSIA, 2006
- 5 -
1.4 The construction sector in Palestine
The construction sector comprises establishments primarily engaged in the construction
of buildings or engineering projects (AME Info, 2007). The construction sector is an
important sector of the economy and contributes significantly to Gross Domestic Product
(GDP). The United Nations Environment Programme has noted that about one-tenth of
the global economy is dedicated to constructing and operating homes and offices. It is
now widely recognized that construction activity plays a vital role in the process of
economic growth and development, both through its products (infrastructure, buildings)
and through the employment created in the process of construction itself. The
development of an efficient construction industry is an objective of policy in most
countries (Mitullah and Wachira, 2003).
Notwithstanding the constraints of occupation, construction and housing have evolved
into a major sector of the Palestinian economy, playing an important role in the
generation of employment and income. In assuming this role, the sector has also carried
significant forward and backward linkages, ranging from simple furniture manufacturing
plants to major construction materials production and processing industries (Abdul Hadi,
1994). Through a complementary process, several parties contribute to the construction
sector. Such stakeholders are the public and private sectors, universities and institutes,
donor countries, international financing institutions and banking sector. Construction
sector contributes largely to different sectors of investment, such as manufacturing of
construction materials. In addition, it provides materials needed for construction, such as
stone, marble, brick, floor tiles, etc. (PCU, 2003).
The construction sector had experienced a considerable growth in the aftermath of 1967
war. Its share of GDP increased from under 10% in 1972 to over 17% in mid 80’s
(PECDAR, 1997). The contribution of the construction sector (classified in national
accounts series to include water and electricity works) to the GDP of the West Bank and
Gaza Strip has increased from about $165 million in 1980 to about $302 million in 1987
(Abdul Hadi, 1994). Table 1.2 illustrates the construction share in GDP for the WBGS
- 6 -
selected years Million US$ and Figure 1.1 illustrates the distribution of GDP among
different sectors during the year 1994 (PECDAR, 1997).
Table1.2 Construction share in GDP for the WBGS selected years
Million US$
Item \ Years G.D.P Construction Share %
1972 276.2 9
1974 548.7 12
1976 650.5 16
1978 695.4 16
1980 1044 16
1982 1002 19
1984 998.8 18
1986 1536.7 16
1988 1789.9 16.7
1990 2220 21.6
1992 2486.6 22.4
1994 2975.23 26
Source: PECDAR, 1997
Services and
commerce
48%
Industry
12%
Agriculture
14%
Construction
26%
Figure 1.1 Distribution of GDP among different sectors during the year 1994
(PECDAR, 1997)
- 7 -
The building and construction industry is one of the leading economic sectors in the West
Bank and Gaza Strip. Home building makes up the bulk of investments. Although
spending in this sector has somewhat diminished over the past four years, it is estimated
that in 2002 total output in this sector amounted to $300 million (BUYUSA.GOV, 2005).
However, in 2004, it appears that the contribution of the construction sector to the GDP
has been reduced to 3.3% (PASSIA, 2007). Figure 1.2 illustrates the economic structure,
2004 estimates (% of GDP) (PASSIA, 2007).
Construction
3%
Mining,
manfacturing,
elecricity and
water
16%
Agriculture and
fishing
12%
Services and
others (incl.
puplic admin.)
43%Commerce,
hotel, restaurants
15%
Transportation,
storage,communica
tions
11%
Figure 1.2 Economic Structure, 2004 estimates (% of GDP) (PASSIA, 2007).
The Gaza Strip has a small construction industry, some farming, a modest citrus
fruit industry, olive crops, and livestock grazing. However, Gaza depends on Israel for
nearly 90% of its imports (largely food, consumer goods, and construction materials) and
exports (mainly citrus fruit and other agricultural products), as well as employment, and
the economy, such as it is, has been devastated by recent fighting (infoplease,2006).
The idea to offer international aids, started in 1993, was to rebuild the infrastructure of
the new emerging Palestinian State. The annual international aids ranged between $250
million to $650 million yearly during the last eleven years (ERF, 2006). As of Oct. 2005,
- 8 -
total donor commitment since 1994 had reached US$6,104,851,292, while actual
disbursements amounted to US$4,677,626,670 (PASSIA, 2006). The Palestinian
economy has only been maintained at all by a doubling of foreign aid to nearly US$
1,000,000,000 per year adding nearly $400 per year to per capita income (Schifferes,
2005).
In 1994 – 2000, the grants offered to the construction sector in comparison with other
sectors amounted to more than one billion US$; approximately 35% of the grants offered
to other sectors which reached 3 billion US$. 40% of the grants has been allotted to
water and public health projects; 20% to construction projects; and approximately 10% to
housing (PCU, 2003).The international bodies and organizations offering grants to the
construction sector are the Islamic Development Bank (IDB), the United Nations Relief
and Work Agency (UNRWA), World Bank (WB), the U. S. Agency for International
Development (USAID), United Nations Development Program (UNDP), the European
Union (EU), German and Japanese institutions. Figure 1.3 illustrates grants distributed to
different sectors in Palestine in 1994 – 2000 (PCU, 2003).
Social sector
29%
Productive sector
10%
Instituation
buliding
26%
Infrastructure
35%
Figure 1.3 Grants distributed to different sectors in Palestine in 1994 – 2000
(PCU, 2003).
- 9 -
Construction sector has played a crucial role in extending job opportunities for
Palestinian labor force. Expansion of the construction activity in both the WBGS and
Israel has generated a lot of jobs for skilled, semiskilled and unskilled construction
workers. The absolute no. of domestic construction labor has increased from 12.8
thousands in 1970 to reach 40.3 thousands in 1996 (PECDAR, 1997). Prior to the Israeli
re-occupation of the Palestinian territories on September 28, 2000, construction sector
used to employ an average of 22.3% of Palestinian labor force volume. By 2001, the
sector employs 10.8% of the labor force volume only, thus constituting a decrease in the
labor force volume as a direct consequence of the Israeli forces occupation (PCU, 2003).
Data from the labor force survey during the second quarter of 2005 reveal that the labor
force in the Palestinian territories is composed of 833 thousand workers, distributed 576
thousand in the West Bank and 257 thousand in the Gaza Strip. Labor statistics reveal
that the number of those employed in the Palestinian territories during the second quarter
of 2005 reached 656 thousand workers, distributed 477 thousand in the West Bank and
179 thousand in the Gaza Strip (Qazzaz, etal, 2005). The working age population (15+
years) reached 2,041,000 (54% of the total population) by Sept. 2005, of which by ILO
standards - the number of labor force participants stood at 850,000 (41.7%), with 586,000
(44.1%) in the WB and 264,000 (37.1%) in the GS. Table 1.3 illustrates Palestinian labor
force – various features (by ILO Standards) (PASSIA, 2006).
Total number of workers in Israel has dropped from 83.8 thousands in 1993 to reach only
25 thousands in 1996 (PECDAR, 1997). According to (PASSIA, 2006), 146,000
Palestinians (116,000 from the West Bank, incl. East Jerusalem, and 30,000 from Gaza)
worked in Israel, incl. industrial estates and settlements, during the third quarter 2000.
Since then, numerous Palestinian workers have lost their jobs in Israel as a result of
Israel’s closure policy. In March 2005, they numbered 60,000 (with less than 1,000
coming from Gaza). Remittances of workers in Israel declined accordingly from US$328
million in Sept. 2000 to only $58million at the end of 2004. As of Sept. 2005, 5.9% of the
Palestinian labor force was employed in Israel and settlements as opposed to 23% in
1999. Most workers were employed in construction. The average daily wage of those
- 10 -
working in Israel, incl. settlements, was NIS 128. Figure 1.5 illustrates labor force
distribution by Sector (%).
Table 1.3 Palestinian Labor Forces – Various Features (by ILO Standards)
By employment status
(%)
2005 (July-Sept.)
WB GS Total
1997-99
Average
2000 2001-04
Average
Labor force participation rate
Full employment
Underemployment
Unemployment
44.1
70.9
9.2
19.9
37.1
68.4
2.6
29.0
41.7
70.2
7.1
22.7
42.85
77.7
6.7
15.5
41.5
80.9
5.0
14.1
39.4
67.6
5.2
27.2
By labor status (%):
Employers
Self-employed
Waged employees
Unpaid family members
5.3
26.7
55.0
13.0
2.9
22.0
66.6
8.5
4.6
25.4
58.3
11.7
5.5
20.4
65.4
8.7
4.6
19.6
66.1
9.7
4.0
26.3
59.3
10.5
By economic activity (%):
Agriculture, forestry,
hunting, fishing
Mining, quarrying,
manufacturing
Construction Commerce, hotels,
restaurants
Transportation, storage,
communication
Services and other
branches
18.4
13.9
10.1
21.4
5.7
30.5
10.4
7.9
8.5
17.5
5.6
50.1
14.9
13.0
13.0
20.1
5.3
33.7
12.8
15.8
21.2
17.8
4.7
27.7
13.7
14.3
19.7
17.5
4.9
29.9
14.5
13.0
12.6
19.8
5.6
34.5
Working time and wages
WB GS Israel WBGS average 1997-99 2000 2001-04
Average weekly
working hours
43.7
42.5
46.2
44.3
43.1
41.7
Average monthly
working days
23.7
24.3
21.4
22.6
23.2
23.1
Average daily net
wage – NIS
74.5
59.9
128.0
67.8
77.3
73.5
Median daily net
wage - NIS
65.4
53.8
134.6
53.8
69.2
57.3
Source: PASSIA, 2006
- 11 -
Wes
t Ban
k, 3
0.35
%
Wes
t Ban
k, 1
3.90
%
Wes
t Ban
k, 1
8.40
%
Wes
t Ban
k, 1
0.10
%
Wes
t Ban
k, 5
.70% W
est B
ank,
21.
40%
Gaz
a St
rip,
50.
10%
Gaz
a St
rip,
7.9
0%
Gaz
a St
rip,
10.
40%
Gaz
a St
rip,
5.6
0%
Gaz
a St
rip,
17.
50%
Gaz
a St
rip,
8.5
0%
Isra
el, 7
.30%
Isra
el, 4
3.60
%
Isra
el, 1
9.30
%
Isra
el, 2
2%
Isra
el, 5
.60%
Isra
el, 2
.20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agriculture and fishing
Mining, manfacturing,
elecricity and water
Construction
Commerce, hotel,
restaurants
Transportation,
storage,communications
Services and others
Percentage
Figure 1.4 Labor Forces Distribution by Sector (%) (PASSIA, 2006)
1.5 The Construction Contractors in Palestine
The contractor is the individual or company operating in the construction sector and who
or which shall be registered and classified at the Palestinian Contractor’s Union (PCU).
Construction contracting profession is, according to PCU by-law, any work pertaining to
the construction of buildings, roads, installations, various engineering projects in addition
to the operation and maintenance of such construction projects. The PCU member is the
contractor registered at the Palestinian Contractor’s Union and who acquires a
classification grade according to the standards specified in the “Instructions of Contractor
Classification” issued by the National Classification Committee. The number of members
classified throughout Palestinian districts has been (599). Members classified in the West
Bank have been (379), whereas those classified in the Gaza Strip have been (220).
Contractors shall be classified according to specialty as follows (PCU, 2007):
1. Building contractors.
2. Road Construction contractors.
3. Water and sewer contractors.
4. Electro-mechanics contractors.
5. Public works and maintenance contractors.
- 12 -
1.6 Informal sector
According to (Wikipedia, the free encyclopedia, 2007), the simplest definition of
informal economic activity might be: any exchange of goods or services involving
economic value in which the act escapes regulation of similar such acts. (Gërxhani, 1999)
quotes that although the significance of the informal sector has varied in different
periods and across different countries, society has become more and more aware of the
importance of studying it.
The informal sector (IS) describes economic activity that takes place outside the formal
norms of economic transactions established by the state and formal business practices but
which is not clearly illegal in itself. Generally, the term applies to small or micro-business
that is the result of individual or family self-employment. It includes the production and
exchange of legal goods and services that involves the lack of appropriate business
permits, violation of zoning codes, failure to report tax liability, non-compliance with
labor regulations governing contracts and work conditions, and/or the lack of legal
guarantees in relations with suppliers and clients. As such, it is conceptually,
methodologically and theoretically difficult to define in terms of its precise nature, size
and significance, leading some authors to criticize the term for lack of clarity (Cross,
1998).
The study of the informal economy is important inasmuch as it sheds light on how the
state’s regulatory and enforcement systems affect economic performance (Loayza, 1995).
(Mitullah and Wachira, 2003) cite that informal entrepreneurs are not avoiding formality,
specifically registration and taxation; instead, it is the employer who tries to avoid legal
obligations, including payroll taxes and other employer contributions. Many informal
workers would prefer being formalized if doing so guaranteed secure contracts, worker
benefits, social protection, and the right to organize and be represented. The informal
sector (IS) plays a significant role in developing countries viz. the provision of
employment, income and supplying ignored markets (Ishengoma & Kapel, 2006). The
informal sector in developing countries not only makes a significant contribution towards
- 13 -
gross domestic product, but is a major potential source of entrepreneurship (Morris etal,
2004). “Informal labor” is defined to include all construction workers who are employed
on a casual or temporary basis without any proper form of contract, as well as those who
work for themselves either alone or in small groups. The terms and conditions of
employment are not regulated in any way and hence the workers have no protection from
the law against dismissal and no social protection against sickness, old age or incapacity
to work (Mitullah and Wachira, 2003). Informal employment makes up 48% of non
agricultural employment in North Africa, 51% in Latin America, 65% in Asia, and 72%
in sub-Saharan Africa. In developing countries, the largest part of informal work, around
70%, is self-employed, in developed countries, wage employment predominates
Wikipedia, the free encyclopedia (2007).
The most common criterion used in research to distinguish between formal and informal
sectors was non registration by state institutions (Stanculescu and Lie, 2001). The general
literature on the informal sector recognizes that numerous and complex links exists
between the informal and formal sectors. The linkages may be divided into ‘‘economic
’’and ‘‘social/political ’’ and into ‘‘technological, consumption and credit financing
’’links (.Mlinga and Wells, 2002).
1.7 Informal construction sector
The informal construction sector forms a very important part of construction industries of
developing countries. Little was however known on the characteristics of the sector and
therefore no concrete policy measures could be proposed or undertaken to develop it. The
informal construction sector comprises unregistered and unprotected individuals and
small enterprises that supply labor and contribute in various other ways to the output of
the construction sector" (Mlinga and Lema, 2000).
These small enterprises and individuals are mainly engaged in housing and building
construction activity. But it is now recognized that they also supply labor to contractors
engaged in large projects in other sections of the industry (Mitullah and Wachira, 2003).
Informal firms are younger, less capital-intensive, almost never run by Asians, pay less
- 14 -
skilled wages and no taxes, have poor access to credit and have less educated managers
(Bigsten et al, 2000). Much activity in the informal construction system (but not all)
takes place outside of the system of planning control. The houses are constructed without
building permits or planning permission and often without legal title to the land. In some
low-income countries the vast majority of construction laborers have always been
employed informally. In others, the number of such workers has increased dramatically in
the past few decades, as competitive pressures have forced contractors to shed their
directly employed labor force in favor of ‘outsourcing’ their labor requirements. Most
labor is now engaged through subcontractors and other intermediaries. Subcontractors,
who are themselves employed for short periods of time, invariably employ workers on a
short-term, often daily, basis (Mitullah and Wachira, 2003).
As a matter of fact, since the beginning of the 20th century the Palestinian economy has
been under one form of outside rule or another starting with the Ottomans, the British, the
Jordanians, Egyptians and Israelis where the development of a local economic
infrastructure in agriculture and industry was not prioritized or promoted. In this context
informal employment has become a survival mechanism (Esim and Kuttab, 2002). The
informal economic sector in WBGS is a hidden sector, which is not accounted for in the
economy’s GDP measurement; thus, no formal development policies exist to support its
growth and transformation. The literature on the sector is very limited and little has been
done to explore its potential, however the few available reports suggest that the sector is
large, economically significant, and contributes substantially to the welfare of poor
Palestinians (Massar Assocaites, 2003).
According to the study of Esim and Kuttab (2002), at a critical political juncture in
Palestinian history when informal employment widened and dramatically increased in the
Occupied and Palestinian Territories (OPT) due to the closures and sieges following the
eruption of the Al- Aqsa Intifada in September 2000. While some of the most recent
increase in the expansion of informal employment can be attributed to the current
Intifada, we can actually trace its growth back to Israeli occupation of 1967. Given the
- 15 -
significance of the informal sector, the challenge becomes evident in creating the required
enabling environment for a smooth transformation into small businesses and eventually
larger ones (Massar Assocaites, 2003). In 2003 there were 98,727 people (91,074 males
and 7,653 females) engaged in establishments in the informal sector in WBGS, 885
enterprises. There are no time-line surveys showing trends in the informal sector. Small
and medium sized enterprises (SMEs) constitute the majority of firms in WBGS: in 2004,
91% of enterprises employed 0–4 employees and 6% employed 5–9 employees. These
sectors include agriculture, construction, food processing and pharmaceuticals. The
number of people engaged in the informal economy in household projects (outside the
establishments) was 82,303, 91.6% of them males and 8.4% females (ETF, 2005). The
vast majority of establishments were small enterprises with up to 4 employees (over
90%), while less than 1% of the establishments had more than 20 employees. The legal
status of the vast majority of establishments (over 85%) was sole proprietorship
(PASSIA, 2006).
1.8 Research problem
The informal construction sector has wide contribution to the Palestinian economy, but its
significance is not yet quantified. There are both registered and unregistered contractors
in PCU in Gaza Strip. The subject of study is the unregistered contractors. It is the first
study of its kind to provide empirical information about the unregistered contractors.
1.9 Research aim
The aim of the study was to gain a better understanding of the terms and conditions of the
unregistered contractors in Gaza Strip in order to suggest how working conditions might
be improved and employment security ensured. The specific objectives to meet the goal
are outlined below:
1- To study the role and significance of the unregistered contractors to the economy.
� Impact on Gross Domestic Productivity (GDP).
� Contribution to employment generation.
- 16 -
� Linkage with other Suppliers (cement, steel, aggregate ...etc)
2- To study the output of the unregistered contractors.
� Informal and formal housing (shop, school and clinics)
� Who is the client for informal construction sector?
3- To study problems and weakness facing the unregistered contractors.
4- To develop a comprehensive framework for the promotion of unregistered
contractors.
5- To study the linkage between the registered contractors and the unregistered
contractors.
1.10 The importance of the research
The informal construction sector in the Gaza is a hidden sector which is not accounted for
in the economy’s GDP measurement; thus, no formal development policies exist to
support its growth and transformation. The literature on the sector is very limited and
little has been done to explore its potential, however the few available reports suggest that
the sector is large, economically significant and contributes substantially to the welfare of
poor people. The purpose of this assignment, therefore, is to provide a comprehensive
descriptive and analytical study of the unregistered contractors in Gaza Strip, so that the
study can be made available to policy makers, NGOs, small and micro lenders, and donor
agencies, to better enable them to make informed decisions and design appropriate
interventions relative to the informal construction sector. The rationale for such a study
may be summarized as follows:
• There is an obvious shortage of information about the sector, with respect to its
size, characteristics, concentration, contribution and needs.
• There are no formal, systematic and focused efforts to assist this sector, due to the
lack of information about its importance, nature and contribution to the welfare of
Palestinians.
- 17 -
• With proper support based on an understanding of the informal construction
sector, it may gradually transform into formal construction sector and in so doing,
create increased business opportunities and employment.
1.11 Limitation
Due to time limitation, this research is concerned with analysis of the informal
construction sector in the Gaza Strip only. Focus will be on the informal construction
sector in the Gaza Strip. Efforts will be concentrated on to examine contribution to (GDP)
and the problems and weakness facing the informal construction sector. Only unregistered
contractors in the Palestinian contract union will be addressed by the study.
1.12 Main methodology
1. A comprehensive literature review about the informal sector to support the survey
methodology.
2. Developing the basis of the questionnaire.
3. A pilot study was done.
4. A first draft of questionnaire was developed on the basis of literature review.
5. The final version of the questionnaire was reached after incorporating some
modifications which were made according to the inputs obtained in the pilot
study.
6. A total of 100 unregistered contractors were included in this survey.
7. Data analysis has been done using statistical software (SPSS 15).
- 18 -
Chapter 2
The Informal Sector
The informal sector represents an important part of the economy and certainly of the labor
market in many countries, especially developing countries, and thus plays a major role in
employment creation, production and income generation. In recent years the informal
construction sector has grown in size and importance in many countries. The informal
construction sector forms a very important part of construction industries of developing
countries. This chapter reviews literature concerning the major issues of informal
construction sector in order to recognize the related information regard those issues.
2.1 What is the informal sector?
Various definitions have been put forward to describe the Informal Sector (IS), the term
IS was first introduced by Keith Hart (1973). According to (Morris, 2004), the informal
sector typically includes providers of economic activities not recorded in the national
accounts and not subject to formal rules of contract, licensing, labor inspection, reporting
and taxation. The informal sector describes economic activity that takes place outside the
formal norms of economic transactions established by the state and formal business
practices but which is not clearly illegal in itself (Cross, 1998).
Thornton (2000) cites the informal sector includes economic activity based on small-
scale, labor intensive work and lies outside the regulation of the state. The informal sector
in the Russian Federation covers all types of economic activities which are deliberately
concealed from the authorities in order to minimize costs, particularly to avoid taxes.
These economic activities are usually unregistered and they operate within the black
economy (shadow economy) (Velichko, 2002). The informal sector is an oxymoron on
one hand it is an unorganized 'nuisance' sector whose members, for example, do not pay
any form of tax; on the other, it provides jobs and increases incomes of the most
vulnerable groups in a city the very low-income group (GDRC, 2006).
- 19 -
Normally one or more of three criteria is used to define the informal sector. The first one
is size, where the concept of informal is restricted to self employed and micro-enterprises
with less than 10-20 employees. The second criterion concerns legal informality, that is
informal enterprises are not registered and do not comply with legal obligations
concerning safety, taxes, labor laws, etc. The third criterion indicates that the firms should
have limited physical and human capital per worker (Bigsten, etal, 2002). According to
Jha (2002), the informal sector is “A person whose main job is not in agriculture has been
counted as working in the informal sector if his or her present job satisfies each of the
conditions shown in Table 2.1”.
Table 2.1 Basis for classifying non-agricultural sector jobs as "Informal'
Employment Status Institutional Sector Number of
Employees
Paid employee Private unregistered
company or other
Less than
10
Operating own business with no employees - -
Operating own business with regular paid
employees or contributing family member
without pay or other.
- Less than
10
(Source: International Labor Organization (Bureau of Statistics), resolution concerning statistics of
employment in the informal sector, adopted at the Fifteenth Conference of Labor Statisticians, Geneva,
1993).
The informal sector cites by some other names for example, black market, casual work,
clandestine activities, community of the poor, family-enterprise sector, hidden sector,
informal economy, informal opportunities, informal sector, intermediate sector, invisible
sector, irregular sector, lower-circuit of the urban economy, non-plan activities, non-
westernized sector, one-person enterprise, parallel economy, people's economy, petty
commodity production, shadow economy trade-service sector, transient sector,
underground economy, unobserved economy, unofficial economy, unorganized sector,
unrecorded economic activities, unremunerated sector, unstructured sector, urban
subsistence sector (GDRC, 2006).
- 20 -
Mitullah and Wachira (2003) argue that informal employment is defined as employment
without secure contracts, worker benefits, or social protection. The informal employment
comprises two basic components: self-employment in informal enterprises; and paid
employment in informal employment relations. According to Avirgan, etal (2005), the
informal employment as an employment without formal contracts (i.e., covered by labor
legislation), worker benefits, or social protection. Table 2.2 outlines the different
categories of informal work arrangements.
Table 2.2 Categories of informal work arrangements
Category of informal work Definition
Informal sector Own-account workers, unremunerated family
workers, domestic servants and individual
working in production units of between 1 and 10
employees.
Informal employment Informal wage workers and unpaid family workers
who may work in the formal or informal sector.
These workers are defined as informal if they lack
a contract, specific health and pension benefits,
and social security coverage.
Informal enterprises Defined by the nature of regulation in each
context: the availability of licenses, and the
payment of licenses, taxes and fees
Informal economy Includes both private informal workers and the
informal self-employed as well as informal
enterprises
(Source: Avirgan T., Bivens L. J. and Gammage S., 2005. Good jobs, bad jobs, no jobs labor markets and
informal work in Egypt, El Salvador, India, Russia, and South Africa. The Economic Policy Institute)
The informality of firms has since been described in relation to interrelated aspects:
compliance with government regulations (viz. registration, payment of tax and adherence
to labor regulations); size of the firm; firm level resource endowment and applied
technology (labor or capital intensive), location, the physical place of operation and the
- 21 -
characteristics of workforce and ownership (Kappel and Ishengoma 2006). A common
definition of small firms is 1-10 workers. However, in order not to lose observations on in
formals 12 workers have been set the threshold slightly higher (Bigsten, etal, 2002).
The informal construction sector comprises unregistered and unprotected individuals and
small enterprises that supply labor and contribute in various other ways to the output of
the construction sector (Mlinga and Lema, 2000). These small enterprises and individuals
are mainly engaged in housing and building construction activity. But it is now
recognized that they also supply labor to contractors engaged in large projects in other
sections of the industry (Mitullah and Wachira, 2003). Some authors do define ‘informal
construction’ to embrace all unplanned or unregulated housing or building activity
(Wells, 1999). Informal contractors are positioned in between informal employees and
entrepreneurs (Cross, 2000).
2.2 Characteristics of the informal sector
The main characteristics of the informal sector are heterogeneous composition -major
activities include retail trade, transport, repair and maintenance, construction, personal
and domestic services and manufacturing, labor- intensive, requiring relatively low skills,
family ownership of enterprises, easy entry and exits, compared to formal sector, informal
employer-employee relationship, with little or no appreciation of industrial relations and
workers' rights and operates in conjunction with the formal economy ( ILO, 1998).The
informal sector may be broadly characterized as consisting of units engaged in the
production of goods or services with the primary objective of generating employment and
incomes to the persons concerned (Bangasser, 2000), and plays an important and
controversial role, they provides jobs and reduces unemployment and underemployment,
but in many cases the jobs are low-paid and the job security is poor (GDRC, 2006).
Arthur (2005) indicates that some are introduced into the sector through friends.
Some are recruited by parents or other relatives as apprentices. Others enter into
the industry through their own volition.
The three, more frequently, cited reasons of holding a job at the present work for owners
in the informal sector are the following: not being able to find another job (with a share of
- 22 -
39%), having suitable previous job experience, education and training for the same type
of jobs (with a share of 15%) and intention to be independent (with a share of 13%) in
accordance with (Bulutay and Taştı, 2002). Moreover, LaRRI, (2004) indicates that most
of the people employed in the SMEs were single (71%) compared to 27.9% of the
respondents who were either married or cohabitating.
The informal sector applies to small or micro-business that is the result of individual or
family self-employment. It includes the production and exchange of legal goods and
services that involves the lack of appropriate business permits, violation of zoning codes,
failure to report tax liability, non-compliance with labor regulations governing contracts
and work conditions, and/or the lack of legal guarantees in relations with suppliers and
clients (Cross, 1998).
Kappel and Ishengoma (2006) identify three categories in the informal sector: the survival
informal group whose actors have an income equal to that of informal wage labor;
dependent workers operating as commissioned sellers; and genuine entrepreneurs who are
part of the modern informal sector. Two criteria can be used to classify entrepreneurship:
the risk-taking provision of "new" goods or services (innovation) and individual initiative
(Cross, 1997).
Williams (2005) quotes four principal types of informal work:
1. Organized informal work. This involves people working as employees on an informal
basis for a business that undertakes some or all of its activity informally.
2. Informal work conducted by ‘micro-entrepreneurs ’.This type of informal worker tends
to be starting-up fledgling business ventures and using informal work as a short-term risk-
taking strategy to either test-out the business venture or to establish themselves.
3. Informal work by more established small businesses is carried out by formal businesses
and those registered as self-employed.
4. Informal work by friends, family and acquaintances. As the advanced market
economies have become ever more co modified, monetary exchange has penetrated
deeper into areas of everyday life.
- 23 -
Gërxhani (1999) characterizes the informal sector to three main criteria and various
sub-criteria describe ‘the institutional patterns by which the society shapes the informal
sector’. They are political, economic and social.
1. Political aspect of the informal sector is: government regulation; illegal activities; and
national statistics (GNP).
2. The economic aspect of the informal sector are: labor market or status of labor;
unreported income or tax evasion, tax evasion appears to be essential as well; size of
activity, the size of an activity; professional status, informal workers are defined as ‘the
sum of the self-employed, family workers and domestic servants’; regulation or
registration of an activity ;and national statistics or GNP accounts, one reason to study the
informal sector is the distortions it causes in measuring national accounts (GNP).
3. The social one: Its main sub-criteria are: social networks and ease of entry, surveys on
the informal sector indicate that ‘a friend of a friend’ is the key words in this sector.
The size of the informal labor market varies from the estimated 4-6% in the high-income
countries to over 50% in the low-income countries (GDRC, 2006). Shadow economy in
the 1980s was 4-6% in Norway, Holland and Germany but 17% in Spain (OECD, 2004).
The informal sector has the following distinguishing characteristics GDRC, (2006):
1. Characteristics of the people engaged in the informal sector: absence of official
protection and recognition; non coverage by minimum wage legislation and social
security system; predominance of own-account and self-employment work; absence of
trade union organization; low income and wages little job security; no fringe benefits
from institutional sources. The informal sector workforce can be categorized into three
broad groups: (a) owner-employers of micro enterprises, which employ a few paid
workers, with or without apprentices; (b) own-account workers, who own and operate
one-person business, who work alone or with the help of unpaid workers,; and (c)
dependent workers, paid or unpaid, including wage workers in micro enterprises, unpaid
family workers, apprentices, contract labor, home workers and paid domestic workers.
Ghana, ILO (1997) cites that construction workers are mostly aged between 20 and 40.
- 24 -
2. Characteristics of the activities in the informal sector: unregulated and competitive
markets; small scale operation with individual or family ownership; ease of entry;
reliance on locally available resources; family ownership of enterprises ;labor intensive
and adapted technology; absence of access to institutional credit or other supports and
protections. There are two types of informal sector activities the first is coping strategies
(survival activities): casual jobs, temporary jobs, unpaid jobs, subsistence agriculture,
multiple job holding; and the second is unofficial earning strategies (illegality in
business): unofficial business activities and underground activities (GDRC, 2006).
3. Characteristics of the informal sector land and housing: unauthorized use of vacant
public or private land; illegal subdivision and/or rental of land; unauthorized construction
of structures and buildings; reliance on low cost and locally available scrap construction
materials; absence of restrictive standards and regulations; reliance on family labor and
artisan techniques for construction; non-availability of mortgage or any other subsidized
finance(GDRC, 2006).
4. Characteristics of informal credit markets: unregulated and non-subsidized; easy
accessibility; availability in very small size and for short terms; little of no collateral
requirements; flexible interest rates (from very high to no interest at all); highly flexible
transactions and repayments tailored to individual needs (GDRC, 2006).
2.3 Problem facing the informal sector
The informal sector operators face a number of problems. These include: a lack of
knowledge of usable technologies, materials, design, manufacture, business accounting
and administration (Chinyamunzore, 1997) and limited access to capital, inadequate
demand for their goods and services, lack of appropriate equipment, spare parts, and
difficulties in finding worksites (Haan, 2002). Most workers in the informal economy
face greater risks and enjoy fewer opportunities than their counterparts in the formal
economy (GDRC, 2006).
According to FIAS (2005), informal workers in developing countries have few social
rights, with no social security, severance pay, minimum wage, or standards for working
conditions. Moreover, they receive little vocational training. Housing developers, for
- 25 -
example, commonly rely on labor contractors providing very cheap informal labor and
thus have few means and little incentive to train their volatile workforce. For the
economy, the result is low productivity. ILO, (2000) indicate that the informal sector is
outside the scope of social and labor protection. Avirgan, etal, (2005) cite the informal
employment as an employment without worker benefits, or social protection.
Arthur (2005) cites that most of workers in ICE are paid on the basis of a completed task.
The technology level used by the informal construction workers is very low. There is also
mobility between trades, especially when a worker has no job in his/her trade. Forty six
percent (46%) said they work as helpers in other trades while waiting for another job in
their own trade. Most of those who acquired their skills informally would like to further
their skills by getting formal training both at college (theoretically) and on sites
(practically). Very few seemed to be comfortable with the skills they have so far. 21% of
the workers attended post school training, which means vocational training. Most of the
informal construction workers acquire their skills informally.
According to (Devey, etal, 2003), the majority 83.60% of the informal enterprises staff
did not have pension or retirement fund and16.40% of them get pension or retirement
fund. Most (91.60%) of the informal enterprises did not have a membership in trade
union and 44% of the informal contractors’ staff has permanent staff and 56% of them
have temporary staff. 93.90% the owners of the informal enterprises did not register their
business in VAT and 6.1% of them did that. Morris, etal (2004) cite that over 60% of the
respondents had attained grade ten education or higher.
43% of the owners of the informal enterprises said that the lack of investment capital has
negative impacts on their business activities. 84% of the contractors have not used any
kind of credit. Only 25% of those got credit through the banking channel. The duration of
work is long in the informal sector. The majorities (71%) of the owners work more than 8
hours in a day (Bulutay and Taştı, 2002). Moreover, ERF (1998) state that 86.5% of
informal sector members worked over 40 hours a week. ICEG, (2000) indicate that the
- 26 -
most important constraints faced by MSEs are difficulties in accessing credit due to lack
of collateral, technology constraints and issues of training and skills.
The majority of the informal sector members receive no training at all, apprenticeships
account for the highest proportion of those who obtained any form of job training ERF,
(1998).
Seven essential securities which are often denied to informal workers: labor market
security; employment security; job security; work security; skill reproduction security;
income security; and representation security (protection of collective voice in the labor
market through independent trade unions and employers’ organizations and social
dialogue institutions) (Sivananthiran and Ratnam, 2005). International Labour Office
“ILO” (2000) substantial work have not only brought about a better understanding of the
structure and functioning of the informal sector, but have also helped to demystify three
commonly held beliefs that have influenced and even introduced bias into the work of
many analysts. These are: all people engaged in informal activities are poor; the sector is
unorganized and unstructured; informal activities are illegal.
Informal workers, whether employed or autonomous, are not covered by labor legislation
available to formally hired individuals, which ensure regular workplace inspections,
occupational hazards control and workers’ health monitoring and protection (Santana and
Loomis 2004). Construction work is also unsafe. Accidents on construction sites are very
common and the informal construction workers have to bear responsibility themselves to
nurse the aftermaths of the accidents. The high rate of accidents is attributed to lack of
serious ‘employers’ who can be held responsible for the health and safety of the workers.
Lack of understanding of the importance of safety gear, as well as inability to afford it;
increase the vulnerability of the workers to injuries and ill health arising from their work
(Arthur, 2005). The informal sector, emphasizing that half of the world labor force is not
covered by social security, and that only 5-10% of the population in the poorest parts of
the world is covered by a system of retirement insurance, which excludes the majority of
the population in many countries (Odongo, 2001). In Lebanon in 1995 around 54 percent
- 27 -
of the active population was estimated not to be covered by any type of health insurance.
In Turkey, it was found that 81 percent of the employed people were not members of any
social security institution at the time of the survey conducted in 1996, that is, they were
employed in the informal sector (Economic Research Forum, 1998).
(Abdel, 2000) argues that in Egypt, 93% of the informal workers don’t participate at all
in both social & health insurance schemes, 0,54% of them participate in both social and
health insurance schemes, 0,13 % of them participates in heal insurance schemes and 6%
of them Participate in social insurance schemes. The Case of Morocco, Ninety percent of
micro and small enterprises do not apply any “accounting system” and are not registered
in the social security. Wahba and Moktar (2000) quote that in Egypt 36% of non-
agricultural workers in 1998 had no social security coverage, Mitullah and Wachira
(2003) indicate that mostly the informal construction workers have no social security,
health insurance, and are exposed to several health hazards and Devey, etal, (2003) cite
that 96.70% of the informal labors do not have medical aid benefits, 1.1% of them have
self medical aid or health insurance and 2.2% of them have medical self and dependents
aid or health insurance.
On safety matter all trades are at very high risk, as safety is not keenly observed in their
working places either by the employers or by the workers themselves. In most cases there
is no employer to provide the workers with safety gear and they can’t afford to buy it
themselves. Hence the workers are exposed to risk of injury, long-term health problems
and even fatal accidents. Also workers have very low awareness of the safety regulations
at work. Generally both the employers and the workers ignore health and safety issues.
This is due to negligence on the part of employers and ignorance on the part of the
workers (Arthur, 2005). The National Survey of Working Children in the Philippines
found that some 17.6 per cent of young workers aged 5 to 17 considered some aspect of
their work to be dangerous, with the risk of disease cited more frequently than accident
risk. Ninety per cent of informal sector enterprises were not interested in learning about
- 28 -
safety and health (Salter, 1998). The factors hindering the performance of informal
enterprises can be categorized as (Kappel and Ishengoma, 2006):
1. The internal factors which hinder the functioning of informal enterprises include;
• limited human capital (the skills and motivation of employees)
• lack of working capital
• the utilization of obsolete technology and poor location)
2. External factors include;
• lack access to formal financial services
• limited access to business development services
• limited market, poor supply of economic infrastructure and public services and
complex
• burdensome government regulations
3. Inter-firm Factors include;
• the nature of linkage relationships between formal and informal sector
• Governance structures and weak associations.
In most developing countries, the majorities of informal activities are retail-oriented and
create few environmental problems beyond litter and congestion. However, certain types
of informal activities can create severe pollution problems for example leather tanning,
electroplating, metalworking, brick and tile making, printing, auto repair, wood and metal
finishing, mining, charcoal making, textile dyeing, dyestuffs manufacture, and food
(Blackman, 2000).
2.4 The formal and informal sector
There are several distinct features of the informal sector compared to the formal
economy: (1) formal regulations and rules are absent; (2) there is often a higher degree of
flexibility than in the formal labor market; (3) it is not the organization but the form of
payment which differs compared to the formal economy; (4) these activities take place
both within and outside formal contexts and they strongly interact with each-other; (5)
there is no complete information; (6) this sector is highly fragmentary; (7) there is a
- 29 -
combination of various informal activities because sometimes one activity alone does not
produce sufficient income; (8) there is a low entrance threshold to the informal sector; (9)
the price of goods and services in this economy is lower than in the formal one; (10) there
is a lower capital intensity; (11) there is a lower level of productivity; (12) the informal
sector relies predominantly on social/family networks, where subcontracting is its
connection with the formal economy; and (13) sometimes there is an absence of channels
of access to the formal activities (Gërxhani, 1999).
The concept of informality for the purpose of measurement is not easy both because the
two categories of the informal sector overlap and because the border between the
informal and the formal sector is blurry. First, if unofficial earning strategies are
exercised by a low-profit small enterprise with low quality working conditions, then
workers of this enterprise and the enterprise itself can be classified as belonging to both
informal market categories. Second, some formal market jobs or enterprises can be
classified as informal if it is found that they have poor work protection or if the life style
and opportunities they entail are considered undesirable (GDRC, 2006).
Comparison of informal and formal sector earnings can be gleaned from the findings of
the 1996 field survey on informal sector employment in Turkey. These reflect the fact that
17.4 percent of informal sector members earned an income that was less than the
minimum wage at the time of the survey whereas only 1.4 percent of those employed in
the formal sector fell into the same income bracket. The findings also show that some
people earned considerable incomes in the informal sector. This may represent one of the
strongest factors that attract people to the informal sector. Working hours usually exceed
the normal formal sector workday (8 hours); 86.5 percent of informal sector members
worked over 40 hours a week (Economic Research Forum, 1998). There is a high degree
of daily commuting between formal and informal sector jobs. Table 2.3 shows the
distribution of workers and the degree of stability of employment for Egyptian workers in
both the formal and the informal sector (Economic Research Forum, 1998).
- 30 -
Table 2.3 Egypt distribution of the workforce in formal & informal sectors according to
the degree of stability of employment (Percent) Sector/Labor Category Permanent
Labor
Temporary
Labor
Seasonal
Labor
Irregular
Labor
Total
1. Formal
Inside establishments
Outside establishments (self
employment)
2. Informal
Inside establishments
Outside establishments (self
employment)
75
69
83
46
12
4
1
2
8
0
8
9
5
27
8
43
100
100
100
100
(Source: Percent computed by M. Abdel Fadil based on the raw data reported in Soad Kamel Rizk, 1993).
As clarify in the table above, "The distribution of workers and the degree of stability of
employment for Egyptian workers in both the formal and the informal sectors indicate
that moving back and forth between the two sectors is common". According to Mlinga
and Wells (2002) there are numerous and complex links exists between the informal
and formal sectors. The linkages may be divided into economic, social/political,
technological, consumption and credit financing links. Social/political links are indirect
and are institutional in nature. They depend largely on how the two parties accept each
other and to what extent they will use their influences to pressurize the government to
take legal action against one another.
The formal sector traders in many countries have been known to protest against the
presence of informal traders, who they say are able to offer cheap goods and services
because they do not pay licensing fees and taxes, rent office premises, etc. This is also
believed to be true for construction, which is leading to the increased use of informal
- 31 -
contractors in housing projects, particularly by private clients who cannot afford the
expensive formal contractors (Mlinga and Wells, 2002).
The economic linkages involve direct transactions between the two sectors and are
distinguished into ‘‘backward ’’and ‘‘forward ’’linkages. Backward linkages from the
informal sector involve trading of goods produced in the formal sector by the informal
sector. Forward linkages from the informal sector involve the production of goods and
services in the informal sector for use in the formal sector. The technological linkages
involve the transfer of technology and skills between the two sectors. This takes place
mainly as a result of movement of skilled workers, subcontracting and other ways of
exchanging knowledge (Mlinga and Wells, 2002).
The consumption linkages involve direct links between the informal sectors with final
consumers who are in the formal sector. The final consumers may be households whose
income depends fully on the formal sector or government holdings. Finally, the credit
financing linkages mainly refer to the transfer of funds from the formal sector for
investment and development in the informal sector (Mlinga and Wells, 2002). The
dynamics within the informal construction system differ significantly from the formal
conventional system. The formal construction sector has clients that have access to capital
funds and are able to pay the builder on demand. The sector also has teams of
professionals including architects, quantity surveyors and engineers who oversee the
design and construction of a project and act as intermediaries between the clients and the
builders.
Contractors usually are responsible for the construction and completion of the projects
within a specified time, cost and quality. There is also a formal contract agreement that
spells out the responsibilities and legal obligations of each of the parties and that is
enforceable by law (Mitullah and Wachira, 2003).
The scenario within the informal construction system is quite different. Client’s access to
capital funds for projects is highly unpredictable. This implies that construction time is
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unknown and projects often experience a lot of stops and restarts depending on the
availability of funds. The majority of such buildings are constructed with no
consideration of existing by-laws, insurance cover, and other legal requirements. Many
owners of developments do not submit their building plans together with their proof of
title to the land to local planning authorities. Since this is the yardstick used for
documenting construction work, it creates a gap between the recorded statistics and actual
construction (Mitullah and Wachira, 2003).The formal construction industry in
developing countries depends much on the informal sector to provide labor for activities
such as mass concreting, masonry and carpentry works. This is due to the inability of
large firms to employ a permanent labor force due to the lack of a continuous workload.
(Mlinga, and Lema, 2000).
Mlinga (1999), using a classification system and framework for contractors development
attempted to classify Tanzanian contractors on the basis of their size and their
informality. At the interface of informal and formal contractors, there are established
informal contractors and small emerging contractors. Established informal contractors are
taken to mean those informal contractors who possess minimum requirements to register
a company at entry level. Emerging small contractors are those that have just started
business as registered contractors. A large number of small firms are useful as they
provide a framework for the development of the construction industry. To them, large
companies are expected to emerge from this large number of small firms. This argument
could be extended to encourage the existence and promotion of informal contractors, as
they will later develop into strong formal contractors (Mlinga, and Lema, 2000).
The advantages of working on formal sites are perceived as follows: the work is less
strenuous; contracts are honored and payment is assured; contracts are longer; gang
leaders are protected from the wrath of the building owner/developer; there is a better
quality of work due to monitoring and the availability of professionals; and workers are
able to learn and improve their CV. In this context, some see advantages in working
directly with building owners/developers in the informal system. These include the ability
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to negotiate the contract (for example, to bargain for more days and additional pay) as
well as to develop a rapport with the client that can lead to further work. Also payment is
faster and can be higher. The disadvantages mainly concern the behavior of the client,
who may be seen as demanding, unreasonable, nagging, interfering and exploitative.
Sometimes the client refuses to pay, or payment is late. (Mitullah and Wachira, 2003).
2.5 Informal economy
The general characteristics of the informal economy are low capital, skills, incomes,
working conditions and access to organized markets and technology. They are outside the
scope of government regulation and of social and labor protection (ILO, 2000). The
informal economy refers to entrepreneurs who are producing legal goods and services but
who are unregulated in the process of production (Williams, 2005). In economics, the
term informal economy refers to the general market income category (or sector) where in
certain types of income and the means of their generation are “unregulated by the
institutions of society, in a legal and social environment in which similar activities are
regulated.” (GDRC, 2006).
Economic units choose to be partially or completely informal by weighing the costs and
benefits a legal status entails and considering their particular institutional and resource
constraints. In this sense, the choice to be informal is a rational one, a fact which does not
imply that some firms are not forced by their constraints to be either formal or informal
(Loayza, 1995). By looking at the informal sector in terms of the costs of formality itself,
one brings into question the role of the state. It is significant that the two most important
sets of state regulations in terms of their direct effects on citizens--wage/benefit controls
and price controls--are enforced in different ways and for different markets. (Cross J.C
1994). The significance and role that the informal sector can play in the economic
development of a country is a controversial issue. It serves as a vital component of the
free market system by performing a number of functions, such as reducing the bargaining
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power of unions, preventing monopolies, and keeping inflationary pressures, caused by
rising costs of rentals, rigid regulations, and high overheads in check. (Morris, 2004).
Chen (2003) adopts new definition to the informal economy. It is seen as comprised of all
forms of ‘informal employment’ that is, employment without secure contracts, worker
benefits, or social protection. The recent re convergence of interest in the informal
economy, and this new definition of the ‘informal economy’, reflects a fundamental
rethinking of some earlier common assumptions about the ‘informal sector’. Key
elements of this alternative way of thinking are summarized below:
1. Significance and permanence of the informal economy: The informal economy is
growing and is not a short term but a permanent phenomenon; and not just a traditional or
residual phenomenon but a feature of modern capitalist development, associated with
both growth and global integration.
2. Legality or semi-legality of the informal economy: While production or employment
arrangements in the informal economy are often semi-legal or illegal, most informal
workers and enterprises produce and/or distribute legal goods and services.
3. Continuum of economic relations: Production: distribution and employment relations
tend to fall at some point on a continuum between pure ‘formal’ relations (i.e., regulated
and protected) at one pole and pure ‘informal’ relations (i.e., unregulated and
unprotected) at the other, with many intermediate categories in between.
4. Segmentation of the informal economy: The informal economy consists of a wide
range of informal enterprises and employment relations.
Informal employment comprises one half to three-quarters of non-agriculture employment
in developing countries: specifically, 48% of non-agricultural employment in North
Africa, 51% in Latin America, 65% in Asia, and 72% in sub-Saharan Africa. Informal
wage employment is also significant in the developing world, comprising 30 to 40% of
informal employment (outside of agriculture) (Chen, 2003). By some estimates more than
30 percent of the developing world’s GDP and 70 percent of its workers are outside the
official economy (World Bank Group, 2005). The informal sector is an important and
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growing part of the overall economy in most developing countries. For example in Peru,
the sector accounts for 38 percent of GDP and 60 per cent of all man hours worked and
its development is viewed as nothing short of revolutionary. (Mitullah and Wachira,
2003). Many informal enterprises in Third World incomes were just over $8,000
(Stepick, 1991).
The informal sector, which essentially covers the unorganized spectrum of economic
activities in commerce, agriculture, construction, manufacturing, transportation and
services, now absorbs as much as 60% of the labor force in urban areas of developing
countries. The informal sector covers a wide range of labor market activities that combine
two groups of different nature. On the one hand, the informal sector is formed by the
coping behavior of individuals and families in economic environment where earning
opportunities are scarce. On the other hand, the informal sector is a product of rational
behavior of entrepreneurs that desire to escape state regulations (GDRC, 2006).
According to FIAS (2005), avoiding taxes is a key motivation for being informal.
Governments always raise the specter of falling revenues as justification for imposing
new or higher taxes but in fact reducing and simplifying taxes often increases revenues by
encouraging business activities and reducing the incentive for tax evasion.
2.6 Legal and policy issues
Most individuals who operate within the informal economy strive to operate outside of
the legal framework. This is mainly because of the high cost, in terms of time and
information, of complying with regulations (Mitullah and Wachira, 2003). The informal
sector is outside the scope of government regulation in accordance with. (“ILO”, 2000).
FIAS (2005) cite that informality is a common term for the output and workforce of firms
not registered with the government. According to GDRC (2006) the informal sector is a
product of rational behavior of entrepreneurs that desire to escape state regulations.
According to Chen (2003) the overarching policy goals of an informed policy approach
should be to: (1) promote informal enterprises (to increase their assets, productivity and
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competitiveness), (2) improve informal jobs (to secure the rights of workers), (3)
informal workers (to provide insurance coverage for illness, maternity, property,
disability, old age, and death), and (4) promote the ‘voice’ of informal workers (to
promote the organization of informal workers and their representation in relevant policy).
There are four policy areas have particular impact on the informal economy:
macroeconomic policies; labor policies; urban regulations; and social protection measures
(Chen, 2003). The general aims of each policy can be summarized as follows: (1) to
enhance the productive potential of the informal sector, and hence its employment and
income-generating capacity;(2) to improve the welfare of the poorest groups;(3) to
establish an appropriate regulatory framework, including the adoption of adequate forms
of social protection and regulations;(4) to improve the organization of informal sector
producers and workers. (“ILO”, 2000).
2.7 Literature review summary concerning informal construction sector
No local research conducted on the informal construction sector or on the informal
construction contractors or workers. The international research initiatives that are
conducted on informal construction workers or on the informal construction contractors
are mainly limited to small- scale studies or case studies undertaken by international
researchers and International Labor Office, Geneva. The main issues covered by these
studies are:
Mlinga R.S. and Wells, J., 2002. Collaboration between formal and informal enterprises
in the construction sector in Tanzania. Habitat International, 26(2) June. pp. 269-280.
Bigsten A., Kimuyu P. and Lundvall K., 2002. Are formal and informal small firms really
different? Evidence from Kenyan manufacturing, Kenya. Mlinga R S and Lema. N M.,
2000. Informal contractors in Tanzania-their characteristics and reasons for informality.
Tanzania. Mitullah, W. V. and Wachira, I. N., 2003. Informal labor in the construction
industry in Kenya: A case study of Nairobi, Working paper, International Labor Office,
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Geneva. And Jha, K. K., 2002. Informal labor in the construction industry in Nepal.
Working paper 187, ILO.
Although informal establishments dominate the small firm-segment in Kenyan
manufacturing, there are also formal companies with distinct characteristics. Informal
firms are younger, less capital-intensive, almost never run by Asians, pay less skilled
wages and no taxes, have poor access to credit and have less educated managers. The
informal enterprises do not comply with legal obligations concerning taxes, safety and
labor laws. Most of the contractors did not register their business in any organization.
They invest more often and are less efficient than Asian-managed formal firms, but more
efficient than those managed by Africans. This suggests that formality status, independent
of size, matter. Also important is how ethnicity affects these differences and the
graduation of firms from the informal to the formal sectors (Bigsten, etal, 2002).
Mitullah and Wachira (2003) found that informal construction workers are mostly young
men below 45 years of age. They operate under difficult working environment. They have
no formal employment contracts, social security, health insurance, and are exposed to
several health hazards. There are no relevant policies and regulations aimed at addressing
the problems facing the sub sector. The study found that most respondents have primary
and secondary level of education, with none having no formal education. The survey
showed that most workers are not satisfied with their work and most of those employed
within the sector would not want their family members to join the sector. While, 36.70%
of the unregistered contractors desire for their sons to work in this field in the
future because it is a good job inherited from fathers to sons. Some contractors
attributed their good chance to this job. On the other hands, some consider it the
only a source of work available. Construction work is considered to be tedious and
tiresome with work done not being commensurate with payments.
Mlinga. and Wells (2002) indicated that there is a symbiotic relationship between
the two groups of contractors, with registered contractors providing an important
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source of work and income for the unregistered contractors and the latter being an
important supplier of labor to the former. The vast majority of the unregistered
contractors operate with 2–5 skilled employees and the same number of
unskilled. Three quarters of the informal enterprises (unregistered contractors)
interviewed was under sole ownership and one quarter was partnerships. Most of
the unregistered contractors undertake work for private house owners. However,
27.8% of the employers of the unregistered contractor are the registered
contractors and 1.3% of the unregistered contractor's employer is the government.
Approximately one half of the contractors had never undertaken a project above 1
million Tshs (1,250 US$) and around 75 per cent had not undertaken a project
above 5 million Tshs (6,250 US$). The unregistered contractors did not own any
plant or machinery. The technological linkages involve the transfer of technology
and skills between the two sectors. This takes place mainly as a result of
movement of skilled workers, subcontracting and other ways of exchanging
knowledge.
The formal sector traders in many countries have many problems with the
informal traders, who they say are able to offer cheap goods and services because
they do not pay licensing fees and taxes, rent office premises, etc. This is also
believed to be true for construction, which is leading to the increased use of
informal contractors in housing projects, particularly by private clients who
cannot afford the expensive formal contractors. The unregistered contractors
encounter delayed payments, irrespective of the client they work for. Despite this,
the informal part of the construction industry is generally ignored and receives
little support from the government. It is argued that policies to develop the
construction industries of developing countries should address the needs of the
informal sector, where the bulk of the labor force is found, as well as those of the
formal sector.
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Jha (2002) found that the construction sector plays a vital role in providing employment
for a large proportion of the poorest sections of the population in Nepal. For three
quarters of those who are economically active, the main place of work is still the
agricultural sector. But almost half (47%) of those who work in agriculture are considered
to be underemployed. many construction workers are still only employed for a part of the
year in construction work, returning to the villages at planting and harvesting time, a
specialized construction workforce is beginning to emerge. Skilled workers in particular
are continuing to work in construction even during the harvest period, depending upon
other members of the family or neighbors to look after their agricultural fields. Many
other of the more ambitious, resourceful and better educated workers find employment
overseas. It is estimated that 42% of the total Nepalese working overseas belong to the
construction related trades.
Mlinga and Lema (2000) found that the informal construction industry is growing fast
and absorbs the fast growing urban labor reserve. The reasons/motives that led to the
establishment of the businesses are: unavailability of other work (35%); to provide
additional income for the family (15%); released from other work (12%); and the
business provides good income (8%). Most of the ICE had undertaken an average of ten
projects in the last two years. The smallest project had an average value of. 202,000 Tshs
(250US$). While, the largest had an average value of 3,128,000 Tshs (3,900 US$).
Actually, 13% of the ICE had projects whose value was greater that 5 million Tshs (6,250
US$), and 5% had undertaken projects with a value exceeding Tshs. 20 million (25,000
US$). Most of ICE (Informal Construction Enterprises) carried out the following
activities: manual works such as excavation and concreting, steel fixing, masonry works,
carpentry works and welding for registered contractors. About 35% of the Informal
Construction Enterprises (ICE) undertook the construction of complete buildings for
private clients; otherwise, a private client has to employ different ICE to carry out
different activities in the project. However, it is noted that, there are various problems,
which need to be addressed to enable the sector, register its significance to the economy.
Notable problems include lack of capital, limited technical and commercial skills, and an
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insecure operating environment. The important problem of the unregistered contractors is
delayed payments by clients. The main obstacles affecting the development of the
informal sectors include: difficulties in getting customers, unavailability of credit
facilities, lack of investment capital, difficulties in obtaining projects and lack of
financing. 100% of Informal Construction Enterprises (ICE) was not registered by the
Contractors Registration Board (CRB). Their reasons for not registering are: they can
operate without registering in CBR, difficult requirements are needed to register and costs
involved are too high to registered in CBR.
2.8 The informal sector in Occupied Palestinian Territories
The international definitions on informal sector, adopted in 1993, include small and
unregistered enterprises, paid and unpaid workers, or casual workers without fixed
employers (Esim and Kuttab, 2002). In Palestinian Territory the added value of the
informal sector is about 316 million dollars, constituting about seven percent of Gross
Domestic Income (GDI) (Massar Associates, 2003). 8% of households in the Palestinian
Territory practicing economic activities in the informal sector, 70.0% of the operating
establishments were established for Job Creation (PCBS, 2004).The members of the
labour force in the West Bank and Gaza Strip are either self-employed or employees
working for daily wages, most of the construction labor force in Israel are employees
working for daily wages (Abdul Hadi and UNCTAD consultant, 1994). The closure and
other Israeli measures have negatively impacted the Palestinian economy; the survey
results indicate that some of the establishments had permanently closed while others were
temporary closed. In detail, the survey results show that 17.1% of the industrial
establishments were permanently out of operation, 3.6% were temporary closed, and in
the construction activities 23.1% of the establishments were permanently closed and 2.6%
were temporary closed, and in the internal trade activities 14.2% were permanently, and
2.4% temporary closed, and in the services activities 21.6% were permanently and 3.0%
temporary closed, while for transport, storage and communication activities 11.1% were
permanently and 5.1% temporary closed in the year 2003 (PCBS, 2004). The constraints
of occupation, construction and housing have evolved into a major sector of the
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Palestinian economy, playing an important role in the generation of employment and
income. In assuming this role, the sector has also carried significant forward and
backward linkages, ranging from simple furniture manufacturing plants to major
construction materials production and processing industries. Gross domestic capital
formation in the occupied Palestinian territory increased from about $60.5 million in
1972 to about $529.3 million in 1987. The contribution of the construction sector
(classified in national accounts series to include water and electricity works) to the gross
domestic product of the West Bank and Gaza Strip has increased from about $165 million
in 1980 to about $302 million in 1987(Abdul Hadi and UNCTAD consultant, 1994).
In the context of the Palestinian labor market there is a large segment of the population
that is uncovered and unprotected by labor laws (Esim and Kuttab, 2002), including those
who are:
• Self employed without registration of their businesses. at home and outside the
home
• Workers of small enterprises without employment contracts.
• Itinerant or seasonal or temporary jobs on building sites or road works.
• Second jobs or plural activities undertaken by the working poor.
• Street vendors selling vegetables, fruits, processed foods or other home-products
• Street vendors trading purchased goods.
• Home-based workers in industrial subcontracting arrangements.
The informal sector is significant both as a source of employment generation and income.
The sector is now estimated to employ more than 180,000 people and to generate
annually about $300 million. It is a source of self-employment for around 100,000
Palestinians, of which a significant proportion (14 percent), are women. On average, it
contributes more than 50 percent of the monthly income for about 100 thousand
households, constituting about 25 percent of the Palestinian population. Most of
secondary or less education is involved in informal activities in Gaza strip (Massar
Associates, 2003). The number of workers employed in construction activities in the
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West Bank and Gaza Strip increased from about 13,000 in 1970 to about 20,000 in 1989
(Abdul Hadi and UNCTAD consultant, 1994).
20.5% of the working establishments in the informal sector, in which its number 54,885
establishments according to the assigned measures of the survey frame are not officially,
registered anywhere, 93.2% of them are managed by proprietors, and 70.0% of them are
established for generating income. The rate of owners of the working establishments in
the informal sector are 51.1% (they do not employ others with them), while 48.9% are
self employed (at least they employ one person with them), the results indicate that 85.0%
of persons employed are family members, while the remaining are paid employees. As of
the distribution of operators by age, the results show that 10.5% of employers in the
informal sector are less than 30 years old, and 35.7% of them are more than 50 years old,
and the results show that 71.3% of them have experience more than 10 years. (PCBS,
2004).
PMC (2004) cited that 71.3% of employers in the informal sector have experience more
than 10 years. 10.5% of employers in the informal sector are less than 30 years old, and
35.7% of them are more than 50 years old. MAS (2004) found that the percentage of first-
level university degree holders and higher among operators of informal sector enterprises
amounted to 10.8% in the Gaza Strip. The majority of construction workers were young
people. More than half of industrial-activity operators inherited their profession from
their families or learned it from a relative. 20% of them learned it through courses at
work, while a small percentage learned it at industrial schools. The majority (65.8%) of
those surveyed stated that work in this sector assures them sufficient income to cover the
expenses of basic family needs.
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Chapter 3
Methodology
3.1 Introduction
The previous chapter described in some detail the concept and the practices of the informal
sector. This chapter is dedicated to describe different methods and procedures used to carry out
thesis study. Methodology chapter will discuss structure of thesis and the way it was developed.
The chapter will define the methods used for conducting the questionnaire and the research. It
will also show how the researcher could prove or not prove his hypothesis based on the
objectives defined in the research proposal. This chapter will include information about how
the sample was selected, a description of the sample, reliability and validity, and the
instruments being used. In addition, data collection and data analysis procedures will be
provided. The chapter will conclude with the methodological limitations.
3.2 Research study
Through working on producing this thesis, the researcher phased the thesis into four phases.
The first phase included introduction to the thesis and literature review. During this phase,
researcher reviewed literature related to the thesis topic which would support the thesis
hypothesis and strengthen the structure of questionnaire. Second phase of thesis included but
not limited to developing the questionnaire, distribution of the questionnaire, and collection of
data. Questionnaire aimed at extracting data from local unregistered contractors in order to
achieve proposed objectives of thesis.
Third phase of thesis constituted of refining and analysis of data collected. Discussion of such
results is part of this phase. Finally, fourth phase included the conclusion and recommendation
in addition to references used within the thesis. In this research, the researcher used descriptive
analysis methodology through which the researcher attempted to describe the case, analyze
data, show correlation between case components and related opinions, research procedures, and
relative consequences.
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3.3 The research strategy
The research strategy can be defined as the way in which the research objectives can be
questioned (Naoum, 1998). There are two types of research strategies, namely, quantitative
research and qualitative research (Naoum, 1998).
Quantitative approaches seeks to gather factual data and to study relationships between facts
and how such facts and relationships accord with theories and the findings of any research
executed previously (Fellows and Liu, 1997). Qualitative approaches seek to gain insights and
to understand people’s perceptions of “the world" whether as individuals or groups (Fellows
and Liu, 1997). Qualitative research is "subjective" in nature, emphasizing meanings,
experiences and so on. It is used when you have a limited amount of knowledge about the topic
(Naoum, 1998).
The strategy of this research will be built on the quantitative research for its advantages such
as, its economy which offering relatively high validity of results, also, it is saving time as its
quick method of conducting survey (Naoum, 1998). It is also has been selected because it’s
useful for descriptive, correctional, interpretative and evaluative purposes (Burns and Grove,
1987).
3.4 The research design
The term "research design" refers to the plan or organization of scientific investigation,
designing of a research study involves the development of a plan or strategy that will guide the
collection and analyses of data (Polit & Hungler, 1999). Bums & Grove (1997) defined the
term design as "some consider research design to be the entire strategy for the study, from
identifying the problem to find the plans for data collection.
Other limit design to clearly define structural framework within which the study is
implemented". The framework that the researcher creates is the design (Wood & Haber,
1998).The research design is the logical sequence that connects the empirical data produced by
research to the study's initial research questions and ultimately to its conclusions (Yin 1989).
- 45 -
One of the principal purposes of the design is to help avoid the situation in which the collected
data does not address the initial research questions (Robson, 1993).
Data are collected in a standardized form from samples of population and allow the researcher
to carry out statistical inferences on the data, often with the help of computers (Norusis, 1990).
This statistical inference, moving from the particular observations of the sample to the wider
generalizations of entire populations, is a major reason why surveys are popular with
researchers (Oppenheim, 1992).
A structured questionnaire will be used in this research for their advantages. The structured
questionnaire is probably the most widely used data collection technique for conducting
surveys. Questionnaires have been widely used for descriptive and analytical surveys in order
to find out facts, opinions and views (Naoum, 1998), enhancing confidentiality, supporting
internal and external validity, facilitating analysis and saving resources (Pilot and Hunger,
1985). There are some limitations of the questionnaire like it must contain simple questions; no
control over respondents and respondents may answer generally (Naoum, 1998). Figure 3.1
shows the research sequence.
3.5 Research location
The research was carried out in Gaza Strip not including West Bank due to political situation.
Gaza Strip consists of five governorates; the North, Gaza, the middle, Khan Younus and Rafah.
These five areas are considered the territories of Palestinian National Authority (PNA).
Researcher has visited many unregistered contractors. They have not registered in the
Palestinian Contractor Union (PCU) in Gaza Strip for survey distribution and data collection
- 46 -
Figure 3.1 Flow chart of methodology
Object of Study
Reviewing Literature
Extract Questionnaire Factors
Design Questionnaire
Pilot Study
Validity Test
Reliability Test
Distribution and Collection of questionnaire
Analysis using SPSS
Result and Discussion
Conclusion and Recommendations
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3.6 Research population and sample size
The facts on the degree and nature of the unregistered contractors in PCU remain at best, very
irregular and at worst, almost non-existent. No national survey has assessed the extent of the
unregistered contractors in PCU and its characteristics. In this research, the population is not
limited due to no previous studies were determine the population of the unregistered
contractors in PCU in Gaza Strip. This sector is shadow sector. Therefore, the sample of 100
informal construction contactors who have not registered in the Palestinian Contractor Union
was chosen, based on our own experiences, information from registered contractors and
communication with the private sector. These contractors were chosen taking into
consideration their fairly distribution over Gaza Strip.
The term 'sample' means a specimen or part of a whole (population) which is drawn to show
what the rest is like (Naoum, 1998). Sampling defines the process of making the selections;
sample defines the selected items (Burns & Grove, 1987). Similarly, sample is referred to as a
sub heading of a unit that refers to population in statistics terminology.
The main reasons a sample is used lies within low cost and short time that a sample needs in
order to be studied especially when population is very large. Selecting the research sample is
very important and a great care must be taken when choosing the type of sample design. The
number of valid respondents is 80 although number of respondents was 100. After collection of
data, researcher reviewed received questionnaires and found that 20 of them are not returned
the questionnaire.
3.7 Sample method
The objective of sampling is to provide a practical means of enabling the data collection and
processing components of research to be carried out whilst ensuring that the sample provide a
good representation of the population (Fellows & Liu, 1997). The samples were selected
randomly from unregistered contractors who have not registered in the Palestinian contractor
union as indicated above.
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The questionnaire will aim at collecting information about general data of organizations, nature
of the work, economics, experience, challenges, and linkage between the informal and formal
sector, condition of the work, training, health and safety.
3.8 Limitation and boundaries of the study
The construction sector is large and dynamic and a small survey covering a single area within
one informal sector obviously has limitations. Due to time limitation, this research is limited to
informal construction contactors who have not registered in the Palestinian Contractor Union in
Gaza Strip.
Consequently, this study should be viewed as a preliminary study of the informal construction
sector within the informal sector. It cannot be taken to be representative of the construction
sector or the country as a whole. Another limitation is the separation of the country for two
parts which are West Bank and Gaza Strip due to current circumstances. Therefore, the study
was done in Gaza Strip only. The sample size was not enough to cover the needs of survey to
get good results for all Occupied Palestinian Territories.
3.9 Questionnaire design
The questionnaire survey was conducted to determine the opinion of the unregistered
contractors in the field of construction. A twelve pages questionnaire accompanied with a
covering letter were delivered to 100 unregistered contractors. The letter indicates the
objectives of the research and explained to the participants that the results of the questionnaire
would be used to improve the ability of unregistered contractors. The questionnaire has been
design according through the following steps:
1. A comprehensive literature search was conducted to determine and explain some
cornerstones that relate to informal construction sector issues which are: definition of the
informal sector, characteristics of the informal sector, problem facing the informal sector, the
formal and informal sector, informal economy and legal and policy issues.
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2. The draft questionnaire was discussed with supervisor who gave valuable advice and
comments. After modifying the preliminary draft questionnaire, it was submitted to supervisor
to have preliminary approval, and then it was discussed with two statistical experts. Moreover,
six of well known construction engineers to evaluate the content of the questionnaire. Those
were chosen based on their experience and profession in this field which lasts from 6 to 30
years. Modifications, changes, annulments and additions were introduced to the questions and
the final form of the questionnaire was ready to pilot study and test validity content.
3. After the researcher had conducted the required modifications and suggestions on statements
of questionnaire, the questionnaire came into a final version of twelve pages questionnaire.
4. Frequency and descriptive analysis which is most commonly used has been used in this
research. Ordinal scale, which is a ranking or rating data that normally uses integers in
ascending or descending order, has been used to calculate relative index of each factor of
questionnaire. The questionnaire was composed of seven parts to accomplish the aim of this
research, as follows (See Annex 1):
Part one: Respondents profile
Part tow: Field work of unregistered contractor
Part three: Institutional life of unregistered contractor
Part four: Economical aspects and working experience
Part five: Challenges facing the unregistered contractor and their relationship with the
registered ones
Part six: Work conditions and training
Part seven: Health and safety
The questionnaire was classified into close form or restricted type. A twelve pages
questionnaire, accompanied by a covering letter was used for gathering data. The letter
indicated the objectives of the research and explained to respondents that the results of the
questionnaire would be used to improve the ability of unregistered contractors in construction
projects in Gaza Strip.
- 50 -
The questionnaire was prepared in English language (Annex 1). Due to the researcher believe
that it would be much effective and easier to be understood and to get more realistic results, the
questionnaire was translated to the Arabic language and the Arabic language questionnaire is
attached in Annex (2). Questionnaire was designed to be concise and easy to complete taking a
minimal amount of time. In addition, instructions at the beginning of the questionnaire inform
the respondents that the results will be anonymous and at no time will their name be mentioned
in the study. These measures were taken to protect the respondents and the companies where
they work.
Content validity test was conducted by sending the draft questionnaire to six experts in
construction to evaluate the content validity, check reliability, offensiveness of the language,
add more information and to delete unacceptable wording if needed. 100 copies of Arabic final
version of questionnaire have been printed and distributed to unregistered contractors in Gaza
Strip which constitutes the sample size of study.
3.10 Pilot study
Whenever a researcher constructs a questionnaire, it is advisable to complete a pilot study
before collecting the final data form the whole sample. A pilot study provides a trial run for the
questionnaire, which involves testing the wording of the question, identifying ambiguous
questions, testing the technique that the researcher uses to collect the data, measuring the
effectiveness of your standard invitation to respondents' (Naoum, 1998). It is customary
practice that the survey instrument should be piloted to measure its validity and reliability and
test the collected data. A pilot study for the questionnaire was conducted before starting for
gathering information to test the wordings of the questions, make sure that the questions are not
ambiguous, and make sure there are not duplication in the questions and check the length of the
questionnaire.
- 51 -
The researcher distributed the questionnaire to a sample of 6 unregistered contractors. Chosen
sample was invited to participate in the piloting process and they were provided with an
explanation about the study and had been asked to complete the questionnaires. The researcher
asked the chosen sample many questions about some terms and thus has been requested to
modify some wordings of the questionnaire. After this process, some changes, annulments,
additions and modifications were introduced to the questions and the final form of the
questionnaire was ready to distribution.
3.11 Validity of questionnaire
To establish quality of any research, the researcher must deal with the validity and reliability
problem. Validity of a question is determined by whether the question actually measures the
concept of interest (Weisberg and Bowen, 1977).Validity refers to the degree to which an
instrument measures what it is supposed to be measuring. Validity has a number of different
aspects and assessment approaches. Statistical validity is used to evaluate instrument validity
(Pilot and Hungler, 1985). High validity is the absence of systematic errors in the measuring
(Hjertzen and Toll, 2001). When an instrument is valid; it truly reflects the concept it is
supposed to measure (Wood and Haber, 1998).
The researcher assessed the field’s structure validity by calculating the correlation coefficients
of each field of the questionnaire and the whole of questionnaire. Table 3.1 clarifies the
correlation coefficient for each field and the whole questionnaire. The p-values (Sig.) are less
than 0.01, so the correlation coefficients of all the fields are significant at α = 0.01, so it can be
said that the fields are valid to be measured what it was set for to achieve the main aim of the
study.
- 52 -
Table 3.1: Correlation coefficient of each field and the whole questionnaire
No. Item Spearman Correlation
Coefficient
P-Value
(Sig.)
1 Field work 0.412 0.000**
2 Institutional life 0.750 0.000**
3 Economical aspects and working experience 0.358 0.001**
4 Challenges facing the unregistered contractor
and their relationship with the registered ones 0.678 0.000**
5 Work conditions and training 0.565 0.000**
6 Health and safety 0.779 0.000**
** Correlation is significant at the 0.01 level
3.12 Reliability of the research
The reliability of an instrument is the degree of consistency which measures the attribute; it is
supposed to be measuring (Polit & Hunger, 1985). The less variation an instrument produces in
repeated measurements of an attribute, the higher its reliability. Reliability can be equated with
the stability, consistency, or dependability of a measuring tool. The test is repeated to the same
sample of people on two occasions and then compares the scores obtained by computing a
reliability coefficient (Polit & Hunger, 1985).
Cronbach’s Coefficient Alpha is used to test the reliability of the research. The normal range of
Cronbach’s coefficient alpha value between 0.0 and + 1.0, and the higher values reflects a
higher degree of internal consistency. The results show that Cronbach's Alpha coefficient
equals 0.710. This value is considered a good reliability of the questionnaire, so for the entire
questionnaire it indicates a good reliability of the entire questionnaire. Thereby, it can be said
that the researcher proved that the questionnaire was valid, reliable, and ready for distribution
for the population sample.
- 53 -
3.13 Statistical analysis tools
Analysis is an interactive process by which answers to be examined to see whether these results
support the hypothesis underlying each question (Backstorm and Cesar, 1981 cited in Hallaq,
2003). The researcher would use data analysis both qualitative and quantitative data analysis
methods. The Data analysis will be made utilizing (SPSS 15).
The Statistical Package for Social Science (SPSS 15) was applied in processing information
gathered using questionnaires. All of the information gathered during the survey was entered
into the computer package. Once entry was complete, frequency distributions for all variables
were generated to enable basic understanding and analysis. The researcher would utilize the
following statistical tools:
• Cronbach's Alpha for Reliability Statistics.
• Spearman Rank correlation for Validity.
• Frequency and Descriptive analysis.
- 54 -
Chapter 4
Data Analysis and Discussion
4.1 Introduction
The purpose of this chapter is to analysis and discuss the results collected from the
field survey of eighty valid questionnaire filled by unregistered contactors in Gaza
Strip. They are not registered in the Palestinian Contractors Union (PCU). The
collected questionnaires were processed using the Statistical Package for Social
Science (SPSS 15). This chapter is divided into seven parts as follows:
Part one: Respondents profile
Part tow: Field work of unregistered contractor
Part three: Institutional life of unregistered contractor
Part four: Economical aspects and working experience
Part five: Challenges facing the unregistered contractor and their relationship with the
registered ones
Part six: Work conditions and training
Part seven: Health and safety
4.2 Respondents profile
4.2.1 Education level of the unregistered contractor
Table 4-1 shows that the majority (62.5%) of unregistered contractors has a secondary
level education or less, 18.1% of them hold a diploma certificate, 16.7% of the
respondents possess a university degree and 2.7% of them have a graduate level
education. It is noticed that more than one-third (37.50%) of the unregistered
contractors have obtained a diploma certificate, university degree and the graduate
level education. This refers to the difficulties that university graduates face in finding
jobs. Morris, etal (2004) in their findings support this result. They found that over
60% of the respondents had attained grade ten education or higher.
- 55 -
Table 4-1: Education level of the unregistered contractor Education Level Frequency Percentages
Secondary or less 45 62.50
Diploma 13 18.10
University 12 16.70
Graduate level 2 2.70
Total 72 100
N.B: (72 of unregistered contractors out of 80 contractors answered this question)
4.2.2 The unregistered contractor relationship with his employees
Table 4-2 illustrates that the total number of employees in the study sample is 620,
among them 34.80% (in average 3.25 employees) are from the relatives of the
unregistered contractor. However, 65.20% of employees (in average 5.38 employees),
are not relatives to the contractor. This means that the staff members who are not
relative to the contractor are higher than those who are relatives. The differences refer
to the fact that the unregistered contractors prefer to recruit the persons with non
relative relationship with them. It is noticed also that the average of staff working for
the unregistered contractor is 8.63. In accordance with Mlinga and Wells (2002), the
vast majority of the unregistered contractors operate with 2–5 skilled employees and
the same number of unskilled. This finding encourages that 10 workers or less is
sufficient to consider the firm as part of the informal sector.
Table 4-2: The unregistered contractor relationship with his employees
The relationships with the
unregistered contractor
Frequency Percentages Mean
Relatives 216 34.80 3.25
Non-relatives 404 65.20 5.38
Total 620 100 8.63
4.2.3 Experience years of the unregistered contractors
As shown in Table 4-3, 48.10 % of the unregistered contractors in the sample of the
study have been working in this sector for more than 15 years, 24.10 % of them have
been working from 10 to 15 years, 17.70 % of the respondents have been working from
5 to10 years and 10.10 % of them have been working for one year to less than five
- 56 -
years. It is noticed that most (72%) of the unregistered contractors responded have
been working in this sector for more than 10 years. This can be attributed to the
outbreak of Al-Aksa Intifada, where most of the workers had been working in Israel,
started to work in the Palestinian territories due the restrictions imposed by the Israeli
military. PMC (2004) support this finding. They cited that 71.3% of employers in the
informal sector have experience more than 10 years.
Table 4-3: Experience years of the unregistered contractors Experience years Frequency Percentages
More than 15 year 38 48.10
From 10 to15 years 19 24.10
From 5 to10 years 14 17.70
From one year to less
than five years 8 10.10
Less than one year 0 0
Total 79 100
N.B: (No of sample are 80. One is missing)
4.2.4 Field works of the unregistered contractors
Table 4-4 explains that 67% of the unregistered contractors work on the building
sector, 15.5% of them work in road sector, 14.6% of them work in the water and
sewerage sector and 2.9% of the respondents work in the electromechanical sector.
The total frequency is 103 and not 80 according to respond out number. This refers to
the fact that the unregistered contractor may work in more than one field at the same
time. Also, it is noticed that two-third of the unregistered contractors who answered
this question work in the building sector. This refers to the active building jobs at
Gaza Strip mainly after the establishment of the PNA (Palestinian National Authority)
in 1994.
About one-third of the unregistered contractors have worked in the road, water and
sewerage. This refers to the wide development in construction industry after the
establishment of the PNA. Before that date, there was no attention from the IDF
(Israeli Defense Force) regarding the development of infrastructure utilities. Projects
- 57 -
were few and the budgets were small. Some projects were implemented by the
Department of Public Works and municipalities under direct supervision of the civil
administration. However, the percent of those worked at the electromechanical sector
is very small (2.90%).The explanation of this finding is that the electromechanical
sector is limited in Gaza Strip. Restrictions and siege enforced by Israel regarding
mechanism and types of material and industrial plants entering Gaza Strip impede the
development of this sector. Mlinga and Lema (2000) support the above results where,
in their research, most of ICE (Informal Construction Enterprises) carried out the
following activities: manual works such as excavation and concreting, steel fixing,
masonry works, carpentry works and welding for registered contractors.
Table 4-4: Field works of the unregistered contractors Field work Frequency percentages
Building sector 69 67.00
Roads sector 16 15.50
Water and sewerage
sector 15 14.60
Electro-mechanics
sector 3 2.90
Total 103 100
4.2.5 Education level of the unregistered contractor employees
Table 4-5 shows that the majority (88.4%) of the unregistered contractor’s employees
in the sample of this study has a secondary level education or less. This refers to the
limited opportunities of work in Gaza Strip. This is why they revert to the construction
sector particularly after they have lost their work in Israel following Al-Aksa Intifada,
where most of workers used to work inside Israel in the construction sector. Massar
Associates (2003) indicated that most of secondary or less education is involved in
informal activities in Gaza strip. This finding is support the research result.
Meanwhile, 7.58% of them hold a diploma certificate, 3.87% possess a university
degree and 0.15%, less than 1%, has a graduate level education.
MAS (2004) support this result. They found that the percentage of first-level
university degree holders and higher among operators of informal sector enterprises
- 58 -
amounted to 10.8% in the Gaza Strip. Moreover, it can be noticed that the frequency
is 620 but not 80 according to those who answered the questionnaire. The reason
behind this is that the unregistered contractor employees have a varied level of
education.
Table 4-5: Education level of the unregistered contractor employees
Education level Frequency Percentages
Secondary education or less 548 88.40
Diploma 47 7.58
University 24 3.87
Graduate level 1 0.15
Total 620 100
4.2.6 Ages of the unregistered contractor
Figure 4-1 shows that 48% of the unregistered contractors ages range between 30 to 40
years, 37.3% of them are more than 40 years old and 14.70% of them are less than 30
years old. PMC (2004) showed that 10.5% of employers in the informal sector are less
than 30 years old, and 35.7% of them are more than 50 years old. These results
encourage the research findings. It is noticed that the majority (85%) of the
unregistered contractors’ ages are from 30 years to more than 40 years old. The
generation of this age in Gaza Strip has a big family with many sons and daughters.
Therefore, they seek for work at any opportunity to financially support their families.
37.3%48%
14.7%
0102030405060708090
100
Less than 30
years
From 30 to 40
years
More than 40
years
Percentage
N.B: (No of sample are 80. Five are missing)
Figure 4-1: Ages of the unregistered contractor
- 59 -
4.2.7 Ages of the unregistered contractor employees Table 4-6 shows that 75.65% of the unregistered contractor employee’s ages are from
18 to 30 years. It can be justified that this group has the physical ability to work well
in this field. Moreover, this is the age of marriage for most of Gaza Strip youths when
they become responsible for a family. Hence, they look for a job to secure the living
expenses. As well as many previous studies found that informal construction workers
were mostly young men below 45 years of age in accordance with Mitullah and
Wachira (2003). Ghana, ILO (1997) cited that construction workers are mostly aged
between 20 and 40, according to MAS (2004) the majority of construction workers
were young people. Also, it is found that 12.58% of the unregistered contractors’
employees are from 31 to 40 years old; 10.16% of them are less than 18 years old and
1.61% of them are older than 40 years. Lastly, it can be noticed that the frequency is
620 but not 80 according to those who responded the questionnaire. This refers to the
fact that unregistered contractor employees have a varied ages.
Table 4-6: Ages of the unregistered contractor employees
The age Frequency Percentages
Less than 18 years 63 10.16
From 18 to 30 years 469 75.65
From 31 to 40 years 78 12.58
More than 40 years 10 1.61
Total 620 100
4.2.8 Marital status of unregistered contractor
Figure 4-2 illustrates that 96.1% of the unregistered contractors are married. Also, it
is found that 3.9% of them are not married. There is no widow or divorced
contractors. According to our Islamic religion, it is not allowed to adapt western habits
in extra marital cohabitation.
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Married
96.1%
Single
3.9%
N.B: (No of sample are 80. Four are missing)
Figure 4-2: Marital status of unregistered contractor
4.2.9 Marital status of the employees
Table 4-7 shows that 70.48% of the unregistered contactor employees are married,
29.35% of them are singles, 0.17%, less than 1% of them, is divorced and 0% is
widowed. The majority (70.48%) of the unregistered contractor employees are
married. They work in that field to secure the family financial needs and the living
expenses. LaRRI (2004) found that most of the people employed in the SMEs were
single (71%) compared to 27.9% of the respondents who were either married or
cohabitating. This finding is different to the research result. According to our Islamic
religion, it is not allowed to adapt western habits in extra marital cohabitation.
Table 4-7: Marital status of the employees
Marital status Frequency Percentages
Married 437 70.48
Single 182 29.35
Divorced 1 0.17
Widow 0 0
Total 620 100
- 61 -
4.2.10 Owners of the unregistered contractor company
As shown in Table 4-8, 76% of the unregistered contractors companies are owned by
one person. The reason behind that is the amount of capital needed for this type of
work can be made available by one person only. Moreover, 18.70% of their companies
are owned by two persons, 1.3% of their companies are owned by three persons, and
4% of their companies are owned by more than three persons. Mlinga and Wells
(2002) in their findings support this result. They indicated that three quarters of the
informal enterprises (unregistered contractors) interviewed was under sole ownership
and one quarter was partnerships.
Table 4-8: Owners of the unregistered contractor company
Owner Frequency Percentages
One person 57 76.00
Two Persons 14 18.70
Three persons 1 1.30
More than three persons 3 4.00
Total 75 100 N.B: (75 of unregistered contractors out of 80 contractors answered this question)
4.3 Field work of unregistered contractors
4.3.1 Work agreement with the employer
Figure 4-3 illustrates that 17.5% of respondents sign a legal contract with the
employer. Also, 67.5% of the subject contractors sign a written contract with the
employer without legal obligation, and 13.80% of them sign a verbal contract with the
employer. Moreover, 1.2% of the unregistered contractors work for the employer
without a contract. It is understood that more than two-thirds of the contracts are
written but without legal obligation between two parties. This is due to large scale of
competition between unregistered contractors; as a result of lack of work opportunities
and high percentage of unemployment in Gaza Strip. Further more, there is no
monitoring from the government and the relevant departments, which leads the
unregistered contractors to work under any conditions.
- 62 -
Written
contract
67.5%
Verbal
contract
13.8%
Without
contract
1.2%
Legal
contract
17.5%
Figure 4-3: Type of contract written with the employer
4.3.2 Employer of the unregistered contractor
As shown in Table 4-9, 70.90% of the unregistered contractors' employers are private
house owners. Mlinga and Wells (2002) in their findings support this result. They found
that most of the unregistered contractors undertake work for private house owners.
However, 27.8% of the employers of the unregistered contractor are the registered
contractors and 1.3% of the unregistered contractor's employer is the government. It is
noticed that the percentage of respondents replied that unregistered contractor's
employer is government, are very small (1.3%) since this field of works requires an
official papers and documents related to tax, health and banking sectors and these
documents are not available with unregistered contractors.
Table 4-9: The unregistered contractor's employer Employer Frequency Percentages
Private house owners 56 70.90
Registered contractors 22 27.80
Government 1 1.30
Total 79 100 N.B: (No of sample are 80. One is missing)
- 63 -
4.3.3 Joining as unregistered contractors
Table 4-10 shows that 13.80% of unregistered contractors replied that they joined this
sector through their families and relatives. Another 13.1% of them adhered in this
sector through their friends, 25.4% of them joined through contacting with registered
contractors. This is because of the high percent of unemployment in Gaza Strip, which
leads the subject contractors to search any type of related works. In addition, 30.8% of
them linked this sector because of their good reputation.
This is due to the fact that Gaza Strip is formed of small area with respect to other
countries in the world. So, it is not difficult for the registered contractors to know the
unregistered contractors who have good reputation and 16.9% of them joined through
working beyond the green line. The frequency is 130 instead of 80. The unregistered
contractors may choose more than one alternative to join as unregistered contactors.
Arthur (2005) indicated that some are introduced into the sector through friends. Some
are recruited by parents or other relatives as apprentices. Others enter into the industry
through their own volition.
Table 4-10: Joining as unregistered contractors
Joining through: Frequency Percentages
Family 18 13.80
Friends 17 13.10
Contacting with registered companies 33 25.40
Reputation 40 30.80
Working inside the green line (Israel) 22 16.90
Total 130 100
4.3.4 Preferred clients for the unregistered contractor
As shown in Table 4-11, the frequency is 155 instead of 80 because the unregistered
contractor may work with more than one client in the same time. It is noticed also that
47.7% of unregistered contractors prefer to work with the registered contractor,
12.9%of them favor to work directly with the owner, and 5.25% of them desire to
work with the consultants and 34.2% choose to work in private works and with
householders.
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The same result was found by Mlinga and Lema (2000). They stated that about 35% of
the Informal Construction Enterprises (ICE) undertook the construction of complete
buildings for private clients; otherwise, a private client has to employ different ICE to
carry out different activities in the project. It is noticed also that most (82%) of
unregistered contractors prefer to work with householders and registered contractors
because legal obligations are not required from the unregistered contractors which are
needed by other clients.
Table 4-11: Preferred clients for the unregistered contractor Preferred clients Frequency Percentages
Registered contractors 74 47.70
Direct with the owner 20 12.90
The related consultant 8 5.20
Private works (with people) 53 34.20
Total 155 100
4.3.5 Tender pricing system
Figure 4-4 shows that 16.3% of the unregistered contractors work based on lump sum
contract, 42.5% of them work on the unit price contract and 41.3% of them work on
the lump sum and unit price contracts. It is noticed that 42.50% of the unregistered
contractors work with the owner based on the unit price contract. This refers to the
fact that most of the contracts in Gaza Strip are based on the unit price while there
might be some simple items, which cannot be calculated, priced by the lump sum.
Therefore, the registered contractors do not prefer to take the risk and assign the work
to the unregistered contractors by the lump sum criteria because the registered
contractors, originally, accept most of the work from the owners by the unit price and
minor items with the lump sum. So, the unregistered contractor is forced to take the
work with the same way by which the registered contractor took the work from the
employer.
- 65 -
Lump sum
plus unit
price
41.3%
Lump sum
16.3%
Unit price
42.5%
Figure 4-4: Tender pricing system
4.3.6 Nature of the payment
Table 4-12 shows that 62% of the unregistered contractors replied that they get paid
based on completed work quantities. Another 15.5% of them get paid upon receiving
the interim payment. Also, 12.65% of the respondents get weekly payment. Moreover,
5.1% of them obtain monthly payment, 3.8% of them get paid by piece and 1.3% of
them get daily payment. It is noticed also that the majority (62%) of the unregistered
contractors replied that they get paid based on the completed work quantities. This is
because the registered contractor has interim payment from the owner based on the
completed work; therefore the registered contractor cannot take the risk and pay in
advance to the unregistered contractor without securing the approval of the owner or
supervisor for the work done. Arthur (2005) found that most of workers in ICE are
paid on the basis of a completed task. This findings support the research result.
Table 4-12: Nature of the payment Nature of payment Frequency Percentages
By piece 3 3.80
Daily 1 1.30
Weekly 10 12.50
Monthly 4 5.10
According executed quantities 49 62.00
on payment 12 15.5
Total 79 100 N.B: (79 of unregistered contractors out of 80 contractors answered this question)
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4.3.7 Payment format
As shown in Figure 4-5, 66.25% of unregistered contractors replied that the format of
payment to them in response to their work is cash payment, while 33.75% of them
receive cheques and no one of them receives construction materials in response to
executed works. It is noticed that two-third of the subject contractors prefer to receive
payments as cash because most of the unregistered contractor do not deal with banks.
33.75%
66.25%
0
10
20
30
40
50
60
70
80
90
100
Cash Cheque
Percentage
Figure 4-5: Payment format
4.3.8 Allowances for the unregistered contractors
As shown in Table 4-13, 85.5% of the unregistered contractors mentioned that they do
not get any allowances from the registered contractors due to completing works before
deadline. This is because there is no official party protecting this sector because this
sector is shadow sector up to now and the information about it is very limited. There is
no reasonable information about this sector in government departments, Palestinian
Contractors Union (PCU), commerce chamber and in labors unions. It is noticed also
that 14.5% of unregistered contractors responded that they get allowances for
completing their works before deadline. This is an indication that there are few
registered contractors who have moral commitment towards the unregistered
contractors who work with them.
- 67 -
Table 4-13: Allowances for the unregistered contractors Do the unregistered contractors get any allowances in
response to finish the works before deadlines?
Frequency Percentages
Yes 11 14.50
No 65 85.50
Total 76 100 N.B: (76 of unregistered contractors out of 80 contractors answered this question)
4.3.9 Experience sources for the unregistered contractors
As shown in Table 4-14, the frequency is 105 not 80.This is due to the fact that the
subject contractors may get their experience from several sources. The majority
(61.9%) of unregistered contractors replied that they win personal experience
following their gradation from worker, unskilled labor and through skilled labor after
finally becoming unregistered contractors. In addition, 21% out of them get inherited
experience, while 17.1% of them mentioned that they gain the experience through
training courses. Most (84%) of the unregistered contractors get personal and inherited
experiences. MAS (2004) support this result. They found that more than half of
industrial-activity operators inherited their profession from their families or learned it
from a relative. 20% of them learned it through courses at work, while a small
percentage learned it at industrial schools.
Table 4-14: Experience sources for the unregistered contractors Experience sources Frequency Percentages
Having training courses 18 17.10
Inherited experience 22 21.00
Personal experience 65 61.90
Total 105 100
4.3.10 Technological development
As shown in Table 4-15, 86.1% of the subject contractors replied that they use
technological advances in their works, which include instruments, equipment and
management. This is because most of equipment and instruments are imported from
Israel, which is considered an advance country. Also, after establishing the Palestinian
Authority, it became easy to travel outside Gaza Strip, which permits contractors to
grasp the advances in technology. This is continued till Al-Aksa Intifada. Also, it is
noticed that 13.9% of them responded that they do not use technology development in
- 68 -
their works. Arthur (2005) found that the technology level used by the informal
construction workers is very low. This finding is different than others in this research
due to the fact that most of the construction workers in Gaza Strip have their
experiences from working inside the green line (Israel) and most of equipment and
tools are delivery to Gaza Strip from Israel where Israel is a developed country.
Table 4-15: Technological development
Do the unregistered contractors follow technological
development? (Instruments, equipment and
management)
Frequency Percentages
Yes 68 86.10
No 11 13.90
Total 79 100 N.B: (79 of unregistered contractors out of 80 contractors answered this question)
4.3.11 Management organization
Table 4-16 illustrates that most (70.4%) of the subject contractors stated that they do
not have managerial structure. This refers to the fact that the work load of most of
subject contractors are small compared to the registered contractors. They work under
the responsibility of the registered contractors and most of them are managed through
the registered contractors’ organization and many owners do not enforce them to have
management organization because they do not have contract with them. They consider
also that the work for the private owner does not need any management organization.
29.6% of them mentioned that they have managerial system. This is because the
owners may request from the main contractors to submit all the unregistered
contractors documents if they introduce them as subcontractors" unregistered
contractors ".
Table 4-16: Management organization Is there management organization for unregistered
contractors?
Frequency Percentages
Yes 21 29.60
No 50 70.40
Total 71 100 N.B: (No of sample are 80. Nine are missing)
- 69 -
4.3.12 Methods of getting the work
Table 4-17 shows that 70.70% of the respondents indicated that they get the work
through competition because most of the employers are dealing with the lowest bidders
who can execute the works with good quality, lower prices and within the time and
29.3% of the subject contractors get work through direct award.
Table 4-17: Methods of getting the work. Methods Frequency Percentages
Competition 53 70.70
Direct award 22 29.30
Total 75 100 N.B: (No of sample are 80. Five are missing)
4.3.13 Agreement with registered contractor
Table 4-18 illustrates that 68.4% of unregistered contractors mentioned that they get a
contract with the registered contractors after awarding phase. The reason behind that is
the majority of the registered contractors prefer to agree after awarding the works due
to the fact that most of unregistered contractors contacted the registered contractors
after awarding the contract. They compete of each others to take the work with the
lowest prices; therefore, the registered contractors have many alternatives to give the
work to one or more. This, of course lies in the registered contractors benefits. On the
other hand 31.6% of the respondents get agreement with the registered contractors
before awarding phase.
Table 4-18: Agreement with registered contractor The agreement Frequency Percentages
Before awarding 24 31.60
After awarding 52 68.40
Total 76 100 N.B: (No of sample are 80. Four are missing
4.3.14 The ability to deal with supervising staff
Figure 4-6 shows that the majority (98.75%) of the subject contractors replied that
they have the ability to deal with the supervising staff because they have conditions set
by the contract signed by the main contractor which motivate them to force their staff
to cooperate with supervising staff. On the other hand, 1.25% of them answered they
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cannot deal with the supervisory staff. This can be attributed to few of the unregistered
contractors prefer to work without any supervision because they consider this
supervision decelerate the progress of the work and decrease the productivity.
Do you have the ability to deal with supervising staff?
No,1.25%
Yes, 98.75%
Figure 4-6: The ability to deal with supervising staff
4.4 Institutional life
4.4.1 Membership in unions or syndicates other than PCU
Figure 4-7 shows that 52.5% of the unregistered contractors have a membership in
other unions or syndicates; however, in a personal manner but not as a contractor. In
accordance with Table 4-19, the majorities (84.60%) of the respondent have a
membership in labors union, 7.70% of them are registered in engineering association,
5.10% of them are registered in Trades and Manufactures of Electrical Tools Union
and 2.60% of them are registered in Association of Prisoners and Ex- Prisoners
(HUSSAM). Other 47.5% of the respondents do not have any membership because
they believe that these unions or syndicates did not assist and offer any benefits for
them. Bigsten, etal (2002) in their findings support this result. They found that most of
the contractors did not register their business in any organization.
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47.5%
52.5%
0
10
20
30
40
50
60
70
80
90
100
Yes No
Are you member in any union or syndicate?Percentage
Figure 4-7: Membership in union or syndicate
Table 4-19: Registration in unions/syndicates other than PCU
Name of union or syndicate Frequency Percentages
Labors union 33 84.60
Association of engineering 3 7.70
Trades and Manufactures of Electrical Tools
Union 2 5.10
Association of Prisoners and Ex- Prisoners 1 2.60
Total 39 100 N.B: (39 of unregistered contractors out of 42 contractors answered yes)
4.4.2 The benefits of membership
As shown in Table 4-20, 43.50 % of the subject contractors are registered in the
syndicates or unions not in PCU to obtain a financial support. These associations give
financial assistance to their members from time to time. 19% of them are registered in
the syndicates or unions not in PCU to get a health insurance. Furthermore, 13% of
the unregistered contractors are registered in the syndicates or unions not in PCU to
gain training and 13% of them are registered to get support and advices.
Moreover, 6.9 % of the subject contractors are registered in the syndicates or unions to
get information about safety of work and 4.6% of them to get tools and materials like
stationary, clothes, food and promotional materials. It is evident that the majority
(43.50 %) of the unregistered contractors are registered in the syndicates or unions so
as to get a financial support. This is due to the high percentage of unemployment in
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Gaza Strip as a result of repeated border closures and other Israeli measures. The total
frequency is 131 whereas the total of respondents is 80 and that refers to the fact that
one unregistered contractor may be gained more than one benefits from the unions or
syndicates.
Table 4-20: The benefits of membership
The benefits Frequency Percentages
Money 57 43.50
Tools and materials 6 4.60
Training 17 13.00
Information about safety 9 6.90
Support and advices 17 13.00
Health insurance 25 19.00
Total 131 100
4.4.3 Informal construction sector relationship with labors union
Table 4-21 shows that 78.21% of unregistered contractors quoted that there is no
relation between the labor union and the informal construction sector. The reason
behind that is the membership in the labors union does not help the unregistered
contractors for registration in PCU and to be upgraded into formal sector similar to the
registered contractors. Additionally, 21.79% of them replied that there is a relation
between the two parties.
Table 4-21: Informal construction sector relationship with labors syndicate
Is informal constriction sector has a relationship
with labors syndicate?
Frequency Percentages
Yes 17 21.79
No 61 78.21
Total 78 100
N.B: The total number of respondents=80.Missing number was due to not answering this question.
- 73 -
4.4.4 Membership in chamber of commerce
From Table 4-22, it is observed that 79.75% of respondents are not a member of the
chamber of commerce. Devey, etal (2003) supports this result where, in his research,
the majority (91.60%) of the informal enterprises did not have a membership in trade
union. This can be attributed to the fact that the chamber of commerce doesn’t offer
any benefits to the unregistered contractors. Meanwhile, 20.25% of study population
are registered or member of commerce chamber.
Table 4-22: Membership in chamber of commerce
Are the unregistered contractors registered or
member of commerce chamber?
Frequency Percentages
Yes 16 20.25
No 63 79.75
Total 79 100
N.B :( No of sample are 80. One is missing)
4.4.5 The government plans
As shown in Figure 4-8, 90% of the unregistered contractors cited that the government
do not has any plans to develop this sector. During the survey it is found that, the
government departments did not have any related information or data regarding the
informal sector. As well as many previous studies mentioned that the informal sector
is outside the scope of government regulation in accordance with ILO (2000). The
World Bank group (2005) cited that informality is a common term for the output and
workforce of firms not registered with the government; according to GDRC (2006) the
informal sector is a product of rational behavior of entrepreneurs that desire to escape
state regulations. Only 10% have replied that there are plans for development.
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Does the goverment has any plans to devlope
this sector?
Yes, 10%
No, 90%
Figure 4-8: The government plans
4.4.6 PCU support to the informal construction sector
Table 4-23 illustrates that 89.88% of the subject contractors mentioned that the PCU
does not support and develop their sector and 90.79% of them stated that the PCU dose
not take care about their sector as shown in Table 4-24. The survey supports this
result where it was found that the PCU does not have any data about this sector. On
the other hand, it is noticed also that 10.12% of them responded that the PCU supports
and develops their sector as shown in Table 4-23 and 9.21% of them replied that the
PCU cares for their sector as clarified in Table 4-24.
Table 4-23: Support and development
Does PCU show any support and development
for unregistered contractors?
Frequency Percentages
Yes 8 10.12
No 71 89.88
Total 79 100
N.B: (79 of unregistered contractors out of 80 contractors answered this question)
- 75 -
Table 4-24: Care of PCU in the informal construction sector
Do the unregistered contractors think that PCU
care in the informal construction sector?
Frequency Percentages
Yes 7 9.21
No 69 90.79
Total 76 100
N.B: (76 of unregistered contractors out of 80 contractors answered this question)
4.4.7 Registration by the PCU
Table 4-25 illustrates that 76.32% of the subject contractors mentioned that they did
not try to register in the union. The reasons for not registering with PCU are: they can
work with private owners and registered contractors without registering in PCU, they
can not register due to difficult requirements which are needed and costs of
registration are too high. Mlinga and Lema (2000) support these arguments and they
found that 100% of Informal Construction Enterprises (ICE) was not registered by the
Contractors Registration Board (CRB). Their reasons for not registering are: they can
operate without registering in CBR, difficult requirements are needed to register and
costs involved are too high to registered in CBR. However, 23.68% of the respondents
tried to register in PCU.
Table 4-25: Registration at the PCU
Did the unregistered contractors try to register at
the PCU?
Frequency Percentages
Yes 18 23.68
No 58 76.32
Total 76 100
N.B :( No of sample are 80. Four are missing
4.4.8 Resolving the financial and moral problems by PCU
Table 4-26 shows that 80.5% of the unregistered contractors indicated that the PCU
does not involve itself in resolving problems between the unregistered and the
registered contractors. On the other hand, 19.5% of the unregistered contractors
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responded that the PCU participates in resolving the mentioned problems. These
results confirm that the PCU does not support, develop and care in the informal
construction sector. Therefore, most of the respondents did not try to register in PCU.
Table 4-26: Resolving the financial and moral problems by PCU
Does PCU work to resolve the financial and
moral Problems between the registered and
unregistered contractor?
Frequency Percentages
Yes 15 19.50
No 62 80.50
Total 77 100
N.B: The total number of respondents=80.Missing number was due to not answering this question.
4.4.9 Supporting documents
As shown in Table 4-27, the majority (72.37%) of the respondents stated that the
public owner does not request from the registered contractor to submit the supporting
documents of the unregistered contractor before starting the works. These documents
include the curriculum vitae of the unregistered contractors and their companies’
profile. This is because most of public owners care only in the registered contractors,
the party who signed the contract with the owner. Most of the registered contractors do
not want the unregistered contractors to have any document to prove that they work
with registered contractors because they are afraid that the unregistered contractors use
these documents to register in PCU and have a license to work as registered
contractors. Moreover, this will decrease the workload of the registered contractors
which is needed by PCU to upgrade the classification of the registered contractors.
Meanwhile, 27.63% of them mentioned that the owner requests these documents. This
refers to some contracts signed between the owners and registered contractors have
items regarding the supporting documents of the unregistered contactors. Therefore,
the unregistered contractors enforce to submit the unregistered contractors supporting
documents to the owners.
- 77 -
Table 4-27: Supporting documents
Does the owner request from the registered
contractor to submit the supporting documents
of the unregistered one before starting the
works?
Frequency Percentages
Yes 21 27.63
No 55 72.37
Total 76 100
N.B: (76 of unregistered contractors out of 80 contractors answered this question)
4.4.10 Owner assistances
Table 4-28 shows that 55.26% of the unregistered contractors responded that the
public owners do not assist them in getting their rights and payments from the
registered contractors. The reasons behind that is the agreement of work execution
between the unregistered and the registered contractor is signed without any
interference from the owner. Moreover, there are no supporting documents, including
the curriculum vitae, of the unregistered contractors found with the owners that may
help the unregistered contractor in getting his rights and payments from the registered
one. While 44.74% of the respondents replied that the public owners help them in
getting their rights and payments. The explanations of this finding are that the
unregistered contractors may be accepted officially by the owners and this obligates
the owners to assist them in getting their rights and payments from the registered
contractors. Other reason is that the unregistered contractors may suspend their work
due to the registered contractors delay in payments of them. Therefore, the owners may
try to assist the unregistered contractors in getting their rights and payments to resume
their works to avoid any delay of the projects.
- 78 -
Table 4-28: Owner assistances
Does the owner assist the unregistered
contractor in getting his rights and payments
from the registered one?
Frequency Percentages
Yes 34 44.74
No 42 55.26
Total 76 100
N.B: (76 of unregistered contractors out of 80 contractors answered this question)
4.4.11 Issuing the experience certificates
As shown in Table 4-29, 55.13% of the respondents mentioned that the owner does not
issue experience certificates for the unregistered contractor in response for the
executed works done for the registered contractor. It is noticed that the owner does not
give attention to the unregistered contractors. This gap is because the owner pays
attention only to the registered contractor who signs the contract with him. This party
is the one who formally bear the responsibility of executed works. Moreover, 44.87%
of them replied that the owner issues experience certificates for the unregistered
contractor in response for the executed works done for the registered contractor. It can
be justified that the registered contractor may submit the supporting documents of the
unregistered contractor to the owner according to the contract signed between him and
the owner and the owner accept these documents. Therefore, the owner is responsible
to issue experience certificates to the unregistered contractor in response for the
executed works done for the registered one.
Table 4-29: Issuing the experience certificates
Does the owner issue experience certificates for
the unregistered contractor in response for the
executed works done for the registered one?
Frequency Percentages
Yes 35 44.87
No 43 55.13
Total 78 100
N.B :( No of sample are 80. Two are missing)
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4.5 Economical aspects and working experience
4.5.1 Average project value in US$
Table 4-30 shows that 58.23% of the unregistered contractors can implement one
project with average value of less than 50,000 US$. Another 30.38% of the
respondents are able to carry out one project with average value from 50,000 to less
than 100,000US$, 2.53% of them can execute one project with average value from
US$100,000 to less than US$150,000 and 8.86% of them can perform one project with
average value from US$ 150,000 to US$ 200,000. It is noticed that more than half
(58.23%) of the unregistered contractors can implement one project with average value
of less than 50,000 US$.
This refers to the fact that the registered contractor who gets the work from the owner
distributed it to many unregistered contractors based on their capability and to achieve
the registered contractor goal to perform the work with minimum cost and within the
time. The average value of one project executed by the unregistered contractors is
about 57,500 US$. Mlinga and Wells (2002) found that approximately one half of the
contractors had never undertaken a project above 1 million Tshs (1,250 US$) and
around 75 per cent had not undertaken a project above 5 million Tshs (6,250 US$).
This findings is dissimilar than the research result due to the living standards in
Tanzania is lower than the Gaza Strip living standards.
Table 4-30: Average project value in US$
Average project value (US$) Frequency Percentages Mean
Less than 50,000 46 58.23
From 50,000 to less than 100,000 24 30.38
From 100,000 to less than 150,000 2 2.53
From 150,000 to 200,000 7 8.86
Total 79 100 57,468US$ N.B: (79 of unregistered contractors out of 80 contractors answered this question)
4.5.2 Average project duration
Table 4-31 illustrates 61.10% of the unregistered contractors replied that the average
duration of the project is less than half a year, 30.50% of them responded that the
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average duration of the project is from half a year to less than one year, 7.40% of them
responded that the average duration of the project is from one year to less than one
year and a half, and 1.10% of population responded that the average duration of the
project is from one year and a half to two years. It is noticed that 91.6% of the
unregistered contractors completed project of duration less than one year due to the
disintegration of the main project by the registered contractor among several
unregistered contractors according to their field of work. Moreover, the frequency is
95 more than 80 which mean that the unregistered contractors can implement projects
of varied duration. The average duration of one project is about half a year
Table 4-31: Average project duration
Average project duration Frequency Percentages Mean
Less than half of year 58 61.10
From half of year to less than one year 29 30.50
From one year to less than one year and
a half 7 7.40
From one year and a half to two years 1 1.10
Total 95 100 0.54
4.5.3 Annual average value of executed works
Table 4-32 explains that 58.80% of the unregistered contractors can implement annual
projects with average value of less than 100,000 US$ and 23.80% of the respondents
can complete yearly projects with average value from 100,000 to less than 200,000
US$. Another 5% of them can execute projects with average value from 200,000 to
less than 300,000 US$ and 6.30% of the subject contractor be able to perform projects
with average value from 300,000 to less than 400,000 US$. Also, 1.30% can
implement annual projects with average value from 400,000 to 500,000 US$ and 5% of
them can implement projects with value more than 500,000 US$ annually. The average
value of annual projects which can be implemented by the unregistered contractors is
about 132,500 US$.
Mlinga and Lema (2000) indicated that most of the ICE had undertaken an average of
ten projects in the last two years. The smallest project had an average value of.
202,000 Tshs (250US$). While, the largest had an average value of 3,128,000 Tshs
- 81 -
(3,900 US$). Actually, 13% of the ICE had projects whose value was greater that 5
million Tshs (6,250 US$), and 5% had undertaken projects with a value exceeding
Tshs. 20 million (25,000 US$). The difference between the results of this research and
Mlinga and Lema findings refer to the fact that the living standards of Gaza Strip
people are higher than the living standards of people of Tanzania.
Table 4-32: Annual average value of executed works
Yearly works (US$) Frequency Percentages Mean
Less than 100,000 47 58.80
From 100,000 to less than 200,000 19 23.80
From 200,000 to less than 300,000 4 5.00
From 300,000 to less than 400,000 5 6.30
From 400,000 to 500,000 1 1.30
More than 500,000 4 5.00
Total 80 100 132,500 US$
4.5.4 Equipment of the unregistered contractor
Table 4-33 illustrates that the frequency is 236 more than 80. This refers to the fact
that the unregistered contractor may own more than one type of equipment. The entire
unregistered contractors replied that they own at least one type of equipment. Also,
13.56% of them own one mechanical concrete mixer, 11.44% of them own at least two
vibrators and 8.47% of the unregistered contractors own two small compactors.
Another 1.27% of the respondents own one big roller, 2.50% of them own a loader ,
3% of the subject contractors own one small excavator, 1.70% of them own one big
excavator and 2.18% of them own one truck.
Moreover, 14% of the respondents own one pick up, 2.50% of them own one painting
pump, 9.74%of them own one electric generator, 3% own two left pumps, 13.13% of
them owned 48m³ framework wood, 8% of them own two small welding machines and
3% of them own two big welding machines. It is noticed that a high percentage (13%)
of the unregistered contractors own a mechanical concrete mixer or a pick up or 48m³
framework woods, where these equipment and materials are needed mainly in the
building works. Mlinga and Wells (2002) in their findings did not support this result.
They found that the unregistered contractors did not own any plant or machinery. This
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refers to the fact that most of the construction works in Tanzania were executed by
using simple tools.
Table 4-33: The unregistered contractor equipment
The unregistered contractor equipment Frequency Percentages Mean
Mechanical concrete mixer 32 13.56 1.28
Vibrator 27 11.44 2.19
Small compactor 20 8.47 1.50
Big roller 3 1.27 1.00
Loader 6 2.50 1.00
Small excavator 7 3.00 1.14
Big excavator 4 1.70 1.00
Truck 5 2.18 1.20
Tractor 6 2.50 1.00
Pick up 33 14 1.00
Painting pump 6 2.50 1.67
Electric generator 23 9.74 1.26
Left pump 7 3.00 1.57
Framework wood 31 13.14 47.77
Small welding machine 19 8.00 1.84
Big welding machine 7 3.00 1.57
Total 236 100
4.5.5 Equipment value of the unregistered contractors
Table 4-34 explains that 55.13% of the unregistered contractors own equipment with a
value less than 10,000 US$, 24.36%of them have equipment with value from 10,000 to
15,000 US$, 7.69% of them own equipment with value from 15,000 to 20,000 US$ and
12.82% own equipment with value from 20,000 to 25,000 US$. The average Value of
equipment owned by unregistered contractors is about 11,500 US$. This is due to the
fact that most of the unregistered contractors can implement annual projects with
average value of less than 200,000US$ and it is cheaper for them to own equipment
than hire them.
Table 4-34: Equipment value of the unregistered contractors
Value of equipment (US$) Frequency Percentages Mean
Less than 10,000 43 55.13
From 10,000 to Less than 15,000 19 24.36
From 15,000 to Less than 20,000 6 7.69
From 20,000 to Less than 25,000 10 12.82
Total 78 100 11,410 US$ N.B :( No of sample are 80. Two are missing)
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4.5.6 Equipment percentages hired by the unregistered contractor Table 4-35 shows that 35.06% of the respondents hire 25% of equipment needed for
the works, 12.99% of them hire from 25% to 50% of the equipment, 11.69% of the
unregistered contractors hire from 50% to 75% of the equipment and 40.26% of them
hire from75% to 100% of the equipment. It is noticed that they hire about 17% of the
equipment in average and this proportion is small as the unregistered contractors
prefer to own machinery not to rent them due to less cost for the project duration.
They hire the equipment only when the work is different than the usual or the work is
repeated. In this case hiring equipment is cheaper than owning them.
Table 4-35: Equipment percentages hired by the unregistered contractor
Percentage of equipment Frequency Percentages Mean
Less than 25% 27 35.06
From 25% to less than 50% 10 12.99
From 50% to less than 75% 9 11.69
From 75% to 100% 31 40.26
Total 77 100 17.30% N.B: (77 of unregistered contractors out of 80 contractors answered this question)
4.5.7 No. of works or jobs executed during the last 5 years
Table 4-36 shows that a frequency is 3,347 is more than 80 which means that the
unregistered contractors may implement more than one work during the last five years.
Meanwhile, it is observed that 6.42% of the unregistered contractors implemented an
average 22 plastering works in the last five years, 9.62% of them executed fifteen
block works, and 16.4% of them carried out an average 20 concrete work during the
last five years. Another 5.44% of respondents implemented an average of 18 painting
works and 4.75% of them performed an average of 16 tiling works.
Also, 9.17% of the subject contractors completed an average of 13 plumbing works,
9.11% of them implemented average of 14 sewerage works and water works and
10.37% of them implemented an average of 16 electrical works. Furthermore 3.29% of
the respondents finished an average of 10 road works, 4.96% of them implemented an
average of 14 metal works, 4.57% of them executed an average of 22 carpentry works,
and 14.22% of them implemented an average of 30 aluminum works and 1.67% carried
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out an average of three mechanical works. The majority of the works were completed
by the unregistered contractors are building works. This refers to the active building
jobs at Gaza Strip mainly after the establishment of the PNA in 1994.
Table 4-36: No. of works or jobs executed during the last 5 years
No. of works or jobs during the
last 5 years
Frequency Percentages Mean Median
Plastering 215 6.42 21.50 20.00
Block works 322 9.62 15.33 15.00
Concrete works 549 16.40 20.33 20.00
Painting works 182 5.44 18.20 18.50
Tiling works 159 4.75 15.90 12.50
Plumping works 307 9.17 25.58 13.00
Water and external sewerage
works 305 9.11 20.33 14.00
Electrical works 347 10.37 24.79 16.00
Road works 110 3.29 10.00 10.00
Metal works 166 4.96 18.44 14.00
Carpentry works 153 4.57 21.86 25.00
Aluminum works 476 14.22 43.27 30.00
Mechanical works 56 1.67 14.00 3.00
Total 3,347 100
4.5.8 No. of annual projects implemented for the registered contractors
Table 4-37 illustrates that 9% of the respondents replied that they implemented one
project per year for the registered contractor, 17.9% of them implemented two projects
per year and 28.2% of them implemented three projects per year. Another 12.8% of
them implemented four projects per year, 10.3% of the unregistered contractors
implemented five projects per year and 21.80% of them implemented more than five
projects per year. About four works in average can be implemented by the unregistered
contractors to the registered contractors per year.
- 85 -
Table 4-37: No. of annual projects implemented for the registered
contractors
No. of annual projects Frequency Percentages Mean
One work 7 9.00
Two works 14 17.90
3 works 22 28.20
4 works 10 12.80
5 works 8 10.30
More than 5 works 17 21.80
Total 78 100 3.94 works N.B :( No of sample are 80. Two are missing)
4.5.9 No. of annual projects implemented for private house owners
As shown in table 4-38, 2.8% of the unregistered contractors answered that they
implemented one work per year for private house owners, 14.1% of them implemented
two works per year, 14.1% of the respondents executed three works per year, 8.45% of
them implemented four works per year, 8.45% of them implemented five works per
year and 52.1% of them completed more than five works per year for private house
owners. About 5 works in average can be implemented by the unregistered contractors
to private owners. It is noticed that about half of the respondents stated that they
implemented more than five works per year for private house owners. This refers to
the fact that it is easy for the unregistered contractors to get a deal with the private
house owners rather than to get a contract with the registered contractor.
This was assured by Table 4-39. Table 4-39 shows 53.80% of the unregistered
contractors in the sample implemented 328 projects for private house owners yearly
and 46.20% of them implemented 282 projects for registered contractors annually.
Usually, private house owners prefer to hire a contractor with good reputation as
informed by relatives and friend. Work often is implemented without supervision
from a third party. This emphasis the results appeared in Table 4-9 where, 71% of the
unregistered contractors prefer to work in the private business but not for the
registered contractor or government.
- 86 -
Moreover, about 9 works in average can be implemented by the unregistered
contractors to private owners and registered contractors yearly. Mlinga and Lema
(2000) did not support this finding. They found that most of the ICE had undertaken an
average of ten projects in the last two years (5 projects yearly). This proves that the
active construction jobs at Gaza Strip are larger than in Tanzania mainly after
establishment of the PNA in 1994.
Table 4-38: No. of annual projects implemented for people
No. of annual projects Frequency Percentages Mean
One work 2 2.80
Two works 10 14.10
3 works 10 14.10
4 works 6 8.45
5 works 6 8.45
More than 5 works 37 52.10
Total 71 100 4.85 works N.B: (71 of unregistered contractors out of 80 contractors answered this question)
Table 4-39: No. of annual projects implemented for private house owners and
registered contractors
No. of annual projects Frequency Percentages Mean
Private house owners 328 53.80
Registered contractor 282 46.20
Total 610 100 8.79 works
4.5.10 Monthly workdays
Table 4-40 shows that 35.35% of the respondents work less than 100 workdays per
month, 32.89% of them work from 100 to 200 workdays per month, 25% of the
unregistered contractors work from 200 to 300 workdays per month and 6.58% of them
work more than 300 workdays per month. The average workdays per month are about
162 workdays per month. This means that the unregistered contractors work about 18
days per month where the average employees of them is about 9 employees as found in
table 4-2. As a matter of fact, the construction works in Gaza Strip is not continuous
during the year due to the closures of Gaza Strip by IDF from time to time. This leads
to shortage of the construction materials in the local market.
- 87 -
Table 4-40: Monthly workdays (No. of workers per day × no. of workdays per month)
Monthly workdays Frequency Percentages Mean
Less than 100 working day 27 35.53
From 100 working day to less than 200
working day 25 32.89
From 200 working day to less than 300
working day 19 25.00
More than 300 working day 5 6.58
Total 76 100 161.51days N.B: (76 of unregistered contractors out of 80 contractors answered this question)
4.5.11 Purchasing the construction material
Table 4-41 illustrates that 34.8% of the unregistered contractors answered that either
the private owner or the registered contractor purchase the needed materials for work,
25.32% of them stated that the unregistered contractor purchases such material and
40.5% of them replied that the private owner, unregistered contractor and the
registered contractor purchase the needed material.
As clarified, the construction materials purchased by the three party as individual or
group. This is depending on the value and type of the works, the financial capacity of
the unregistered contractors and the agreement between the unregistered contractors
and the clients. In Gaza Strip, the unregistered contractors may supply and construct
the needed materials in some small construction works such as aluminum, carpentry
and steel works. Also, some of unregistered contractors get turn key contract mainly
for private owners.
Table 4-41: Purchasing the construction material
The construction material purchased by Frequency Percentages
The private owner or registered contractor 27 34.18
unregistered contractor 20 25.32
The private owner , registered contractor and
unregistered contractor 32 40.50
Total 79 100 N.B :( No of sample are 80. One are missing)
- 88 -
4.5.12 Percentage of building materials purchased by the unregistered contractor
Figure 4-9 explains that 40% of the unregistered contractors do not purchase the
needed material for the work, 23.80% of them purchase less than 25% of the needed
materials for the work, 11.30% of them purchase from 25 to less than 50% of the
materials, 10% of them purchase from 50 to 75% of the needed materials and 15% of
them purchase from 75 to 100% of the needed materials. The majority (63.80%) of the
unregistered contractors purchase less than 25% of the needed materials for works
.This refers to the limited financial capacity of the unregistered contractors which
prevents them from carrying out the project with its materials. Usually, unregistered
contractors do the workmanship and the employer avails the needed materials except
for small works like aluminum, carpentry and steel works.
40%
23.8%
11.3% 10% 15%
0
10
20
30
40
50
60
70
80
90
100
None Less than
25%
From 25%
to less than
50%
From 50%
to less than
75%
From 75%
to 100%
Percentage
Figure 4-9: Percentage of building materials purchased by the
unregistered contractor
4.5.13 Dealing with banks to fund works as an unregistered contractor
Figure 4-10 explains that 77.5% of the unregistered contractors do not deal with the
banks to fund their works and 22.5%of them deal with banks to fund their works. The
best part (77.5%) of the unregistered contractors does not deal with the banks to fund
their works. This refers to the fact most of the needed materials for the works are
purchased by the registered contractors and the owner. Moreover, as appeared in
Figure 4-3 more than two-thirds of the contracts are written between the unregistered
- 89 -
contractors and the employers without legal obligation. This is why there is no need
for the unregistered contractors to have a bank certificates especially bank guarantee
for the purpose of work execution. Bulutay and Taştı (2002) support these results in
their finings. They found that 84% of the contractors have not used any kind of credit.
Only 25% of those got credit through the banking channel.
Do you dealing with banks?
Yes, 22.5%
No, 77.5%
Figure 4-10: Dealing with banks to fund works
4.5.14 Other financial income
Table 4-42 illustrates that 86.84% of the unregistered contractors have no financial
income except of their income as an unregistered contractor and 13.16% of them
responded they have other financial income. This refers to the difficulties that
construction workers face in finding other works. Most of Gaza Strip economy
depends on construction. The unemployment increase when the construction materials
are not available in the local market due to the restricted movements of the Gaza Strip
residents by IDF.
Table 4-42: Other financial income
Financial income Frequency Percentages
Yes 10 13.16
No 66 86.84
Total 76 100 N.B :( No of sample are 80. Four are missing)
- 90 -
4.5.15 Financial resources
Table 4-43 explains that 3.8% of the unregistered contractors support their work
through bank deals, 60.76% of them use the advance payment from the employer as a
financial support. The unregistered contractors do the workmanship and the employer
avails the needed materials. This is not difficult to cover part of the cost of
workmanship in advance by the employer where most of the employers in Gaza Strip
know the reputation of their unregistered contractors. However, 25.32% of them use
the personnel funding and 10.12% of them use the loans, the advance payments and
the personal support.
Table 4-43: Financial resources
Financial resources Frequency Percentages
Loans 3 3.80
Advance payment from the employer 48 60.76
Personnel funding 20 25.32
Loans, advance payment from the employer and
personal funding 8 10.12
Total 79 100 N.B :( No of sample are 80. One are missing)
4.5.16 Employees of the unregistered contractors
Table 4-44 clarifies that the total number of employees is 620, among them 30.15%
have permanent staff, while 69.85% of them have temporary ones. This refers to the
discontinuous of the construction works in Gaza Strip due to instability of the existing
political condition and shortage of construction materials in the local market. Devey,
etal (2003) found that 44% of the informal contractors’ staff has permanent staff and
56% of them have temporary staff. This findings support the results.
Table 4-44: Employees of the unregistered contractors
The unregistered contractors employees Frequency Percentages
Permanent 187 30.15
Temporary 433 69.85
Total 620 100
- 91 -
4.5.17 Capital investment of unregistered contractors (US$)
Figure 4-11 explains that 53.8% of the unregistered contractors own a capital of less
than 10,000 US$, 16.3% of them have a capital between 10,000 and 20,000 US$,
17.5% of them own a capital between 21,000 and 30,000 US$, 5% of them have a
capital between 31,000 and 40,000 US$ and 7.5% of them have a capital of more than
40,000 US$. The average investment capital of the unregistered contractors is about
15,400 US$.
7.5%5%
17.5%16.3%
53.8%
0
10
20
30
40
50
60
70
80
90
100
Less than
10,000
From 10,000 -
20,000
From 21,000 -
30,000
From 31,000 -
40,000
More than
40,000
Percentage
The average investment capital is 15,381 US$ Figure 4-11: Capital investment of unregistered contractors (US$)
4.5.18 Yearly profit
Table 4-45 shows that 40% of the unregistered contractors yearly profits are less than
5000 US$, 35% of them gain profits from 5000 to 10000 US$, 18.8% of the subject
contractors win profits from 11,000 to 20,000 US$, 1.3% achieve profits from 21,000
to 25,000 US$ and 5% get profits of more than 25,000 US$. In other words, about 75%
of the subject contractors gain profits less than $10,000. The average yearly profits of
the unregistered contractors are about 8,500 US$. According to Table 4-31 58.8% of
the unregistered contractors have yearly works of amounts less than $100,000, which
makes the percent of profit is not more than 10% yearly. Stepick (1991) in his finding
supports this result. He indicated that many informal enterprises in Third World
incomes were just over $8,000.
- 92 -
Table 4-45: Yearly profit
Yearly profit (US$) Frequency Percentages Mean
Less than 5,000 32 40.00
From 5,000 - 10,000 28 35.00
From 11,000 - 20,000 15 18.80
From 21,000 - 25,000 1 1.30
More than 25,000 4 5.00
Total 80 100 8,425US$
4.5.19 The daily rate of the unskilled labors
Table 4-46 shows 26.3% of the subject contractors replied that the daily rate of the
unskilled labor is less than 40NIS (10US$), 66.30% of the respondents mentioned
that the daily rate of the unskilled labor is from 40 NIS (10US$) to less than 60 NIS
(15US$), and 7.5% of them responded that the daily rate of the unskilled labor is
ranging from 60 NIS (15US$) to less than 80 NIS (20US$). It is noticed that two-third
of the population answered that the daily rate of the unskilled labor is from 40 NIS
(10US$) to less than 60NIS (15US$), which is really the daily unskilled labor rates in
construction sector in Gaza Strip. The average daily rate of the unregistered
contractors’ unskilled labor is about 12US$.
Table 4-46: The daily rate of the unskilled labors
Daily rate (NIS) Frequency Percentages Mean
Less than 40 21 26.30
From 40 to less than 60 53 66.30
From 60 to less than 80 6 7.50
More than 80 0 0
Total 80 100 46.25 NIS
4.5.20 The daily rate of the skilled labors (NIS) As shown in Figure 4-12, 5% of the unregistered contractors responded that the daily
rate of the skilled labor is less than 50 NIS (12.50US$), 50% of them answered that
the daily rate of the skilled labor is from 50 NIS (12.50US$) to less than 70 NIS
(17.50US$), 40% of the respondents replied that the daily rate of the skilled labor is
from 70 NIS (17.50US$) to less than 90 NIS (22.50US$), while 5%of the subject
contractors mentioned that the daily rate of the skilled labor is more than 90 NIS
(22.50US$). It is noticed that the majority (90 %) of the subject contractors
- 93 -
mentioned that the daily rate of the skilled labor is ranging from 50 NIS (12.50US$) to
90 NIS (22.50US$). which is actually the daily skilled labor rates in construction
sector in Gaza Strip. The average daily rate of the unregistered contractors’ skilled
labor is about 17US$.
Less than
50 NIS , 5%
More than
90 NIS , 5%
From 70 NIS
to less than
90 NIS, 40%
From 50 NIS
to less than
70 NIS , 50%
The average daily rate of skilled labor is 69.25(NIS)
Figure 4-12: The daily rate of the skilled labors (NIS)
4.5.21 The daily rate of foreman or surveyor
Table 4-47 shows 11.63% of the subject contractors replied that the daily rate of the
foreman or surveyor is less than 60NIS (15US$), 46.51% of the respondents
mentioned that the daily rate of the foreman or surveyor is from 60 NIS (15US$) to
less than 80 NIS (20US$), and 30.23% of them responded that the daily rate of the
foreman or surveyor is ranging from 80 NIS (20US$) to less than 100 NIS
(25US$),while 11.63%of the subject contractors indicated that the daily rate of the
foreman or surveyor is more than 100 NIS (25US$) It is noticed that this question has
been answered by 43 out of 80 of the subject contractors because the unregistered
contractors are not obliged to avail a surveyor or foreman. This is the job of the
registered contractor to nominate those staff in accordance with the contract signed
between him and the owner. The average daily rate of the unregistered contractors
foreman or surveyor is about 20US$.
- 94 -
Table 4-47: The daily rate of foreman or surveyor
The daily rate (NIS) Frequency Percentages Mean
Less than 60 5 11.63
From 60 to less than 80 20 46.51
From 80 to less than 100 13 30.23
More than 100 5 11.63
Total 43 100 78.95 NIS N.B: (43 of unregistered contractors out of 80 contractors answered this question)
4.5.22 The daily rate of the engineer
As shown in table 4-48, 20% of the unregistered contractors responded that the daily
rate of the engineer is less than 80 NIS (20 US$), 37.50% of them answered that the
daily rate of the engineer is from 80 NIS (20US$) to less than 100 NIS (25US$), 35%
of the respondents replied that the daily rate of the engineer is from 100 NIS (25US$)
to less than 120 NIS (30US$), while 7.5%of the subject contractors mentioned that the
daily rate of the engineer is more than 120 NIS (30US$). It is noticed also that this
question has been answered by 40 out of 80 of the subject contractors because the
unregistered contractors are not obliged to avail the engineer. This is the job of the
registered contractor to nominate his staff in accordance with the contract signed
between him and the owner. The average daily rate of the unregistered contractors
engineer is about 24US$.
Table 4-48: The daily rate of the engineer
The daily rate (NISH) Frequency Percentages Mean
Less than 80 8 20.00
From 80 to less than 100 15 37.50
From 100 to less than 120 14 35.00
More than 120 3 7.50
Total 40 100 95.38 NIS N.B: (40 of unregistered contractors out of 80 contractors answered this question)
4.5.23 Allowances for staff leaving their jobs
Table 4-49 shows that 24% of the subject contractors paid allowances to their staff
when they are leaving the work, while 76% of them replied that they did not pay any
allowances to the staff, when the staff member is quitting the work. This supports the
fact that the wok of the unregistered contractors is not continuous which leads to
- 95 -
changing the employees according to the current nature of job. This assures the result
of table 4-43, where about 70% of the employees of the unregistered contractors are
temporary staff. Devey, etal (2003) support this result where, in his research, the
majority 83.60% of the informal enterprises staff did not have pension or retirement
fund and16.40% of them get pension or retirement fund. Also, Odongo (2001) supports
this result. He found that only 5- 10% of the population in the poorest parts of the
world is covered by a system of retirement insurance, which excludes the majority of
the population in many countries.
Table 4-49: Allowances for staff leaving their jobs
Are there any allowances for staff leaving their jobs? Frequency Percentages
Yes 19 24.00
No 60 76.00
Total 79 100 N.B: (79 of unregistered contractors out of 80 contractors answered this question)
4.5.24 The largest financial ability for executing the work
Table 4-50 illustrates that 34.18% of the unregistered contractors mentioned that their
financial ability for executing the works is less than 50,000 US$, 32.9% of them
responded that their financial ability for executing the works ranges from 50,000 to
100,000 US$, 16.45%of them replied that their financial ability for executing the
works varies from 100,000 to 150,000 US$, while 5.10% of them answered that their
financial ability for executing the works extends from 150,000 to 200,000 US$, and
11.3% of the respondents mentioned that their financial ability for executing the works
is more than 400,000 US$. The average financial ability of the unregistered
contractors for executing the works is about 90,000 US$.
Table 4-50: The largest financial ability for executing the work
The largest financial ability (US$) Frequency Percentages Mean
Less than 50,000 27 34.18
From 50,000 to less than 100,000 26 32.90
From 100,000 to less than 150,000 13 16.45
From 150,000 to 200,000 4 5.10
More than 200,000 9 11.37
Total 79 100 90,000 US$ N.B: (79 of unregistered contractors out of 80 contractors answered this question)
- 96 -
4.6 Challenges facing the unregistered contractor and relationship with the
registered contractors
4.6.1 The reasons behind working as unregistered contractors
As shown in Table 4-51, the total frequency is 110, whereas the total of respondents is
80 and that refers to the reality that one unregistered contractor may be selected for
more than one reason to work as unregistered contractor. It is noticed also that 47.28%
of the contractors chose to work as unregistered contractors due to limit financial
capacity, 20% of them refer it as a first step to work as a registered contractor,
17.27% state that the reason as to the unfair governmental laws and regulations and
15.45% answer that they want to avoid taxes. It is noticed that about half of the
unregistered contractors attributed their work in this field as to limit financial capacity
which impede their chance to work as registered contractors. Working as registered
contractors needs high financial capacity due to the high administrative expenses and
registration expenses at the PCU, in addition to expenses related to the establishing a
tax file, a bank account and purchasing of tools and equipments.
As well as many previous studies mentioned that the three, more frequently, cited
reasons of holding a job at the present work for owners in the informal sector are the
following: not being able to find another job (with a share of 39%), having suitable
previous job experience, education and training for the same type of jobs (with a share
of 15%) and intention to be independent (with a share of 13%) in accordance with
Bulutay and Taştı (2002). Mlinga and Lema (2000) cited that the reasons/motives that
led to the establishment of the businesses are: unavailability of other work (35%); to
provide additional income for the family (15%); released from other work (12%); and
the business provides good income (8%). According to FIAS (2005), avoiding taxes is
a key motivation for being informal.
- 97 -
Table 4-51: The reasons behind working as unregistered contractors
The reasons Frequency Percentages
To avoid taxes 17 15.45
To work registered contractor 22 20.00
unfair governmental laws and regulations
19 17.27
Financial capacity 52 47.28
Total 110 100
4.6.2 The relationship between the registered contractors and the unregistered
contractors
Table 4-52 shows that 89.90% of the population responded the relationship between
the unregistered contractor and the registered one is complementary one, while 10.10%
of them stated that the relation between the unregistered contractor and the registered
one is competitive relationship. It is noticed that the majority (89.90%) of the
unregistered contractors responded that the relation with the registered contractors is a
complementary one. This is because the competition chance of the registered
contractor is higher than the unregistered one due to his license from PCU to work as a
registered contractor which enables him to compete for works tendered by
governmental or international agencies that funded most of the construction projects in
Gaza Strip. Unregistered contractors are not allowed to bid for such projects due to
non availability of PCU registration.
Table 4-52: The relationship between the registered contractors
and the unregistered contractors
The relationship Frequency Percentages
Complementary 71 89.90
Competitive 8 10.10
Total 79 100 N.B: The total number of respondents=80.Missing number was due to not answering this question.
4.6.3 Effect on the official economy
Table 4-53 explains that 22.20% of the unregistered contractors responded that their
effect is limited to the reduction of the income taxes due to the lack of any official
documents enforce the unregistered contractors to pay tax, 17.30% of them replied that
they negatively affect in the pricing system. This refers to the lack of any overhead
- 98 -
cost for the unregistered contractors and 8.6% of the unregistered contractors replied
that they help the registered contractors to avoid any obligations towards the
government as most of the registered contractors work is done by the unregistered
contractors which enable the registered contractors to avoid their liabilities towards
registered labors and tax.
Another, 13.60% of the unregistered contractor mentioned that they affect the official
economy regarding degradation of labor rights due to the lack of any liabilities
towards the labors in the laws of work and labors and 17.90% of the respondents
persuaded on the official economy in the self independent, while 20.40% of them
answered they support the national economy. It is noticed also that the frequency is
162 not 80 and this refers to the many varieties of reasons by which the unregistered
contractors affect the official economy.
Table 4-53: Effect on the official economy
Effect on the official economy
in relation to
Frequency Percentages
Less income from taxes 36 22.20
Hurting the pricing system 28 17.30
Help the registered contractors to avoid
governmental obligations 14 8.60
Reduce the labors rights 22 13.60
Self independent 29 17.90
Support national economy 33 20.40
Total 162 100
4.6.4 Work as a registered contractor
Table 4-54 shows that 91% of respondents did not work previously as registered
contractors; meanwhile 9% of study population worked previously as registered
contractors. It is noticed that the majority (91%) of the unregistered contractors did
not work previously as registered contractors. This refers to the fact mentioned in
Table 4-55, where 14.30% of the unregistered contractors change to work as
unregistered contractors to a void taxes , 42.90% of them change to work as
unregistered contractors due to limit financial capacity and 42.90% of them change
due to the problems with partners. The following findings support this result. Bulutay
- 99 -
and Taştı (2002) found that 43% of the owners of the informal enterprises said that the
lack of investment capital has negative impacts on their business activities. Devey, etal
(2003) stated that 93.90% the owners of the informal enterprises did not register their
business in VAT and 6.1% of them did that.
Table 4-54: Work as a registered contractor
Did you work previously as registered
contractor?
Frequency Percentages
Yes 7 9.00
No 71 91.00
Total 78 100 N.B: (78 of unregistered contractors out of 80 contractors answered this question)
Table 4-55: Change to an unregistered contractor
Change to an unregistered contractor due to Frequency Percentages
Avoid taxes 1 14.3%
Limit financial capacity 3 42.9%
Problems with partners 3 42.9%
Total 7 100 N.B: (7 of unregistered contractors out of 80 contractors answered yes)
4.6.5 The training and increasing knowledge
Table 4-56 shows 86.08% of unregistered contractors responded that training and
increasing knowledge is the way to formalize the sector. Meanwhile, 13.92% of them
replied that training and increasing knowledge does not the way to formalize the
sector. They consider that the ways to enter the formal sector are to have a big capital
and the government should develop plans to formalize this sector. The government
does not support and care in the informal sector.
Table 4-56: The training and increasing knowledge Do you think that training and increasing
knowledge is the way to the formal sector?
Frequency Percentages
Yes 68 86.08
No 11 13.92
Total 79 100 N.B: The total number of respondents=80.Missing number was due to not answering this question.
- 100 -
4.6.6 The methods that can be followed to make this sector legal and formal one
with respect to the existing tax system
As shown in Figure 4-13, 43.80% of the population responded that the way that can be
followed to make this sector legal and formal one is to simplify the taxing system and
5% of them stated that the process is to develop the taxing system. It is noticed also
that 46.30% of the respondents replied that the method is to do taxes facilities for
work of low income and 5% of them mentioned that other means can be followed to
make this sector legal and formal one. FIAS (2005) in their findings supports this
result. They stated that governments always raise the specter of falling revenues as
justification for imposing new or higher taxes but in fact reducing and simplifying
taxes often increases revenues by encouraging business activities and reducing the
incentive for tax evasion.
5% 5%
46.3%43.8%
0
10
20
30
40
50
60
70
80
90
100
Simplifying the
taxing system
Developing the
taxing system
Taxes facilities for
w orks of low
income
Others
Percentage
Figure 4-13: The methods that can be followed to make this sector
legal and formal one with respect to the existing tax system
4.6.7 Complaints were raised against the unregistered contractor by a registered
one in tax departments
As shown in figure 4-14, 97.5% of the unregistered contractors mentioned that the
registered contractor did not raise any complaint against the unregistered one in tax
departments. This supports the result which was found in Table 4-51, where the
majority (89.90%) of the unregistered contractors responded that the relationship
- 101 -
between the unregistered contractors and the registered contractors is complementary
relationship. It is noticed also that 2.50% of the unregistered contractors replied that
the registered contractors raised complaints against the registered contractors in taxes
department. However, according to section 4.6.9, no exchange of claims was recorded
in the government departments.
Is any complaint raised against the unregistered
contractor from the registered one in tax departments?
Yes
2.5%
No
97.5%
Figure 4-14: Complaints were raised against the unregistered
contractor by a registered one in tax departments
4.6.8 Competition in the private sector work
Table 4-57 illustrates that 59.50% of the respondents answered that the unregistered
contractors did not compete with the registered contractors in the private sector work.
This refers to the fact that the registered contractors prefer to work with public sector.
It is noticed also that 40.50% of them responded that they compete against registered
contractors in the private sector work. The reregistered contractors may compete with
the unregistered contractors in the private sector when they did not have works with
the public sector. Most of the contracts in the public sectors are awarded to the lowest
bidder through competition methods among the reregistered contractors.
Table 4-57: Competition in the private sector work
Do the unregistered contractors compete of the
registered contractor in the private sector?
Frequency Percentages
Yes 32 40.50
No 47 59.50
Total 79 100 N.B: (No of sample are 80. One are missing)
- 102 -
4.6.9 Exchange complaints and claims
As shown in Table 4-58, 97.5% of the unregistered contractors mentioned that the
registered contractors and the unregistered contractors did not exchange complaints in
the governmental departments, especially in the tax departments, while 2.50% of the
registered contractors and the unregistered contractors exchange complaints in the
governmental departments, especially in the tax departments. Additionally, Table 4-59
shows that 98.70% of the population responded that the registered contractor did not
submit any claim against the unregistered contractor that he has no tax registration and
1.30% of them mentioned that the registered contractor submitted claim against the
unregistered contractor that he has no tax registration. The explanation of these
findings is that the unregistered contractors can not compete with the registered
contractors in the public works. The public works need to have a membership in PCU.
The unregistered contractors do not have this membership. Bigsten, etal (2002)
indicated that the informal enterprises do not comply with legal obligations concerning
taxes. This findings support the above result.
Table 4-58: Exchange complaints
Does the unregistered contractor exchange
complaints with the registered contractor in
the governmental departments, especially in
the tax departments?
Frequency Percentages
Yes 2 2.50
No 77 97.50
Total 79 100 N.B: (No of sample are 80. One is missing)
Table 4-59: The registered contractor claims against the unregistered one
Was any claim submitted against the
unregistered contractor by the registered one
that you have no tax registration?
Frequency Percentages
Yes 1 1.30
No 77 98.70
Total 78 100 N.B: (78 of unregistered contractors out of 80 contractors answered this question)
- 103 -
4.6.10 Projects documents and files
Table 4-60 shows that 65.82% of the unregistered contractors keep the projects
documents and files. This is because documents and files may help them in future
projects especially in cost estimate and the curriculum vitae may be requested by the
future registered contractors before awarding the works. Another, 34.18% of study
population does not keep the projects documents and files. This can be attributed to
the fact that projects are scattered ones with little volume and there is no need to
document them.
Table 4-60: Projects documents and files
Does the unregistered contractor keep the
projects documents and files?
Frequency Percentages
Yes 52 65.82
No 27 34.18
Total 79 100 N.B: (No of sample are 80. One is missing)
4.6.11 Prices agreement with the registered contractor
Table 4-61 illustrates that 74.40% of the respondents answered that the registered
contractor adheres in the prices agreement with the unregistered contractor signed
before the project awarding. It is noticed, too, that 25.60% of them responded that they
do not adhere in the prices agreement with the unregistered contractor before the
project awarding. Some of the registered contractors claim that they where exposed to
high profit loss which forced them not to adhere to the conditions of the contracts
signed with the unregistered contractors. They attributed the loss cause to the time gab
between the bidding phase and the awarding phase. It happened in some cases that the
registered contactors work to squeeze the unregistered contractors using the high
competition between them.
Table 4-60: Prices agreement with the registered contractor
Does the registered contractor adhere in the
prices agreement with the unregistered
contractor before the project awarding?
Frequency Percentages
Yes 58 74.40
No 20 25.60
Total 78 100 N.B: The total number of respondents=80.Missing number was due to not answering this question.
- 104 -
4.6.12 The technical and experience
Table 4-62 shows that 94.81% of the population responded that the unregistered
contractor gains technical and management experience from the registered one. and
5.19% of them replied that they do not obtain any technical and management
experience from the registered contractor. Furthermore, Table 4-63 illustrates that,
65.82% of the unregistered contractors mentioned that the registered contractor
provides their experience to the unregistered contractor, while 34.18% of the
registered contractors do not contribute their experience to the unregistered
contractors. Mlinga and Wells (2002) support this result in their findings. They found
that the technological linkages involve the transfer of technology and skills between
the two sectors. This takes place mainly as a result of movement of skilled workers,
subcontracting and other ways of exchanging knowledge.
Table 4-62: The technical and management experience
Does the unregistered contractor gain any
technical and management experience from the
registered contractor?
Frequency Percentages
Yes 73 94.81
No 4 5.19
Total 77 100 N.B: (77 of unregistered contractors out of 80 contractors answered this question)
Table 4-63: The registered contractor experience
Does the registered contractor provide his
experience to the unregistered contractor?
Frequency Percentages
Yes 52 65.82
No 27 34.18
Total 79 100 N.B: (No of sample are 80. One is missing)
4.6.13 The problems between registered and unregistered contractors
Table 4-64 shows that a frequency is 154 more than 80 which mean that the
unregistered contractors may have more than one problem with the registered
contractors. Meanwhile, it is observed that 36.40% of the unregistered contactors
responded that the decreasing prices of private woks executed by the unregistered
contractor is the main problem between the registered contractor and the unregistered
- 105 -
contractor, 21.40% of them answered that the high labors wages paid by the
unregistered contractors is the main problem, 18.80% of the population replied that
pricing excluding taxes margin by the unregistered contractors is the major problem
between them. Nevertheless, 5.80% of the respondents stated that the registered
contractor complaints against the unregistered contractors at the taxes departments is
the main problem taking place between the registered and unregistered contractors,
21.40% of them mentioned that the registered contractors complaints against the
unregistered contractors regarding quality of works submitted to the employer is the
main problems between the two party and 5.20% of the unregistered contractors
replied that other constrains are the major problem between the parties.
Mlinga and Wells (2002) stated that the formal sector traders in many countries have
many problems with the informal traders, who they say are able to offer cheap goods
and services because they do not pay licensing fees and taxes, rent office premises,
etc. This is also believed to be true for construction, which is leading to the increased
use of informal contractors in housing projects, particularly by private clients who
cannot afford the expensive formal contractors. It is obvious therefore, that findings of
Mlinga and Wells lies in the line of the results mentioned above.
Table 4-64: The problems between registered and unregistered contractors
The problems Frequency Percentages
Low prices of the unregistered contractor 56 36.40
High labors wages paid by the unregistered one 19 12.30
Pricing excluding taxes by the unregistered one 29 18.80
Complaints submitted by the registered contractor
at the taxes department against the unregistered
one
9 5.80
Complaints regarding work quality submitted by
the registered contractor to the owner against the
unregistered one
33 21.40
Others 8 5.20
Total 154 100
- 106 -
4.6.14 The obstacles affecting the development of the unregistered contractor
As shown in Table 4-65, 11.40% of the respondents replied that the financial capacity
of the unregistered contractors is the main obstruction for development of the informal
construction sector, 8.60% of them answered that the unavailability of flexible policies
by the government is the impediment for development of this sector and 10.20% of
them mentioned that the unavailability of institutions or association enhancing this
sector is the blockage for development of the sector.
Another, 4.80% of the population responded that the unavailability of suitable training
programs is the barrier to develop this sector, 10% of them responded that the high
competition between the registered and unregistered contractors in private works
which lead to low prices is the main problem in development of this sector, 13% of
the respondents replied that the existing political conditions is the main problem in
development of the sector and 5.70% of them answered that the work domination by
the registered contractors is the barrier to develop this sector.
Also, 8.70% of the population responded that the none continuous of projects over the
year is the main obstruction for development the sector, 7% of them responded that the
classification criteria set by PCU is the main problem for development of the sector
and 2% of the respondents replied that the non-cooperation with the registered
contractor is the blockage for development of the sector. Furthermore, 1.80% of the
respondents replied that the none existence of enough management experience is the
main problem in development of the sector, 7.30% of them stated that the less work is
the main impediment for development of the sector, 9.10% of them answered that the
low prices of main registered contractor is the main problem of development of this
sector and 0.20%, less than 1%, of the unregistered contractors responded that there
are others obstacles affect the development of this sector. It is noticed as well that the
total frequency is 439 whereas the total of respondents is 80 and that refers to the fact
that one unregistered contractor may respond with more than one obstacles affecting
the development of the unregistered contractors.
- 107 -
As well as many previous studies lie in the line of this result. Mitullah and Wachira
(2003) found that there are no relevant policies and regulations aimed at addressing
the problems facing the informal sector. According to Mlinga and Lema (2000), the
main obstacles affecting the development of the informal sectors include: difficulties
in getting customers, unavailability of credit facilities, lack of investment capital,
difficulties in obtaining projects and lack of financing. ICEG (2000) indicated that the
most important constraints faced by MSEs are difficulties in accessing credit due to
lack of collateral, technology constraints and issues of training and skills.
Table 4-65: The obstacles affecting the development of the unregistered
contractor
The obstacles Frequency Percentages
Financial inability 50 11.40
Unavailability of flexible policies by the
government 38 8.60
Unavailability of institutions or association
enhancing this sector 45 10.20
Unavailability of suitable training programs 21 4.80
high competition lead to low prices 44 10.00
Political conditions 57 13.00
Work domination by the registered contractors 25 5.70
no continuously of projects over the Year 38 8.70
Classification criteria set by (PCU) 31 7.00
Non-cooperation with the registered contractor 9 2.00
None existence of enough management
experience
8 1.80
Less work 32 7.30
Low prices of registered contractor 40 9.10
Others 1 0.20
Total 439 100
4.6.15 The close cooperation
Table 4-66 shows 82.19% of the population responded that there is a close cooperation
between the unregistered and the registered contractors and 17.81% of them answered
that there is no a close cooperation between the unregistered and the registered
contractors. This refers to the fact that the majority of the unregistered contractors
consider that the relationship with the registered contractors is complementary
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relationship and they did not exchange complaints and claims. Moreover, they gain
technical and experience from the registered contractors.
Table 4-66: The close cooperation
Is there close cooperation between the
unregistered contractor and the registered?
Frequency Percentages
Yes 60 82.19
No 13 17.81
Total 73 100 N.B: The total number of respondents=80.Missing number was due to not answering this question.
4.6.16 Supplying the needed labors to the work
As shown in Table 4-67, 36.49% of the unregistered contractors replied that the
registered contractors ask them to supply the needed labors for the work and 63.51%
of the respondents mentioned that the registered contractors do not inquire them to
provide the needed labors to the work.
Table 4-67: Supplying the needed labors to the work
Do you ask the registered contractor to provide
him
with the needed Labors?
Frequency Percentages
Yes 27 36.49
No 47 63.51
Total 74 100 N.B: (74 of unregistered contractors out of 80 contractors answered this question)
4.6.17 The interim payment date
Table 4-68 shows that 64.86% of the unregistered contractors responded that the
registered contractors adhere to the payment date agreed upon with them; meanwhile
35.14% of them replied that the registered contractors do not adhere to the payment
date agreed upon with them. Most of registered contractors justified the issue to the
delay in receiving their payment from the owner, while some others claim that the
current situation may lead to some of these issues. Mlinga and Lema (2000) support
this result. They stated that the important problem of the unregistered contractors is
delayed payments by clients.
- 109 -
Table 4-68: The interim payment date Does the registered contractor adhere to the payment
date agreed upon with the unregistered contractor?
Frequency Percentages
Yes 48 64.86
No 26 35.14
Total 74 100 N.B: (No of sample are 80. One is missing)
4.6.18 The final payment
Figure 4-15 shows that 84.20% of the unregistered contractors responded that the
registered contractors adhere to the final payment agreed upon with them; while
15.80% of them replied that the registered contractors do not adhere to the final
payment agreed upon with them claiming that they had suffer a big loss in the project.
Mlinga and Wells (2002) in their results encourage this finding. They found that the
unregistered contractors encounter delayed payments, irrespective of the client they
work for.
84.2%
15.8%
0
10
20
30
40
50
60
70
80
90
100
Yes No
Does the registered contractor adhere to the final
payment agreed with the unregistered one?
Percentage
N.B: (No of sample are 80. Four are missing).
Figure 4-15: The final payment
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4.7 Work conditions and training
4.7.1 No of daily working hours
Table 4-69 shows that 47.43% of the unregistered contractors work 8 hrs per day,
10.25% of them work 9 hrs per day, and 33.35% of them work 10 hrs per day. Also,
the average number of daily working hours for the unregistered contractors is 9.15 hrs
per day. This can be attributed to the fact that work of the unregistered contractors is
related to the work of the registered contractors, where the unregistered contractors
can not leave the work site before the registered contractors. In many other previous
studies there were great similarities between the results. For example, Bulutay and
Taştı, 2002 found that the duration of work is long in the informal sector. The
majorities (71%) of the owners work more than 8 hours in a day. Moreover, ERF
(1998) stated that 86.5% of informal sector members worked over 40 hours a week.
Table 4-69: No of daily working hours
No. of daily working hours Frequency Percentages Mean
8 37 47.43
9 8 10.25
10 26 33.35
11 1 1.28
12 5 6.41
15 1 1.28
Total 78 100 9.15
N.B :( 78 of unregistered contractors out of 80 contractors who answered this question)
4.7.2 Working days per year
As shown in Table 4-70, 3.9% of the unregistered contractors work less than 100 days
per year, 13.20% of them responded that they work from 100 to less than 200 days per
year, 46.10% of the population work from 200 to less than 300 days per year and
36.80% of the respondents replied that they work from 300 to 359 days per year. Also,
the average number of yearly working days for the unregistered contractors is 243.76
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days per year. It is worthy to mention that figures in this Table reflect the contractor’s
situations at normal times. However, recent instability and siege affect our figures.
Table 4-70: Working days per year
Working days per year Frequency Percentages Mean
Less than 100 3 3.9
From 100 to less than 200 10 13.2
From 200 to less than 300 35 46.1
From 300 to 359 28 36.8
Total 76 100 243.76
N.B: (76 of unregistered contractors out of 80 contractors answered this question)
4.7.3 Non working days per year
As shown in Table 4-71, 52.70% of the unregistered contractors do not work less than
100 days per year, 37.80% of them responded that they do not work from 100 to less
than 200 days per year and 9.50% of the population do not work from 200 to 305 days
per year. Moreover, the average number of yearly non working days for the
unregistered contractors is 107.57 days per year. When asked about the rest days,
some of them mentioned that they own shops, while others either stay home or keep
searching for work. In some cases, they work as a car drivers or seize the time for
studying.
Maintenance of equipments and tools and searching for new tenders have been listed
as one of the rest days activities for the unregistered contractors. These results do not
go alone; it was included in the Arthur (2005) which found that there is also mobility
between trades, especially when a worker has no job in his/her trade. Forty six percent
(46%) said they work as helpers in other trades while waiting for another job in their
own trade.
- 112 -
Table 4-71: Non working days per year
Non working days per
year
Frequency Percentages Mean
Less than 100 39 52.7
From 100 to less than
200 28 37.8
From 200 to 305 7 9.5
Total 74 100.0 107.57
N.B: (No of sample are 80. Four are missing)
4.7.4 Sons work
Table 4.72 shows 63.30% of the respondents answered that they do not wish their sons
to work in this sector in the future. This is because of they consider that the work in
this sector is not comfortable as it do not satisfy their ambition for better future.
Moreover, they prefer to have better life by focusing on education.
Mitullah and Wachira (2003) in their findings support this result. They indicated that
most of those employed within the sector would not want their family members to join
the sector. Construction work is considered to be tedious
While, 36.70% of the unregistered contractors desire for their sons to work in this
field in the future because it is a good job inherited from fathers to sons. Some
contractors attributed their good chance to this job. On the other hands, some consider
it the only a source of work available.
Table 4-72: Sons work
Do the unregistered contractors desire that
their sons work in this field in the future?
Frequency Percentages
Yes 29 36.70
No 50 63.30
Total 79 100
N.B: (No of sample are 80. One is missing)
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4.7.5 The work conditions
Table 4-73 illustrates 5.10% of the unregistered contractors replied that the work
conditions are in very good, 26.60% of them responded that the work conditions are in
good, 39.25% of the population answered that the work conditions are in average,
20.25% of them stated that the work conditions are in poor and 8.80% of the
respondents cited that the work conditions are in very poor. It is noticed that the
majority (71%) of the unregistered contractors replied that the work conditions are
very good, good or average. It can be said that the unavailability of other alternatives
of works enforced them to consider the work conditions in construction are not bad.
Table 4-73: The work conditions
The work conditions Frequency Percentages
Very good 4 5.10
Good 21 26.60
Average 31 39.25
Poor 16 20.25
Very poor 7 8.80
Total 79 100
N.B: (No of sample are 80. One are missing)
4.7.6 Participate in training
Table 4-74 shows that 82.50% of the subject contractors desire to participate in the
training, while 17.50% % of them replied that they do not wish to participate in the
training. It is noticed also in Table 4-75 that 50% of the unregistered contractors who
desire to participate in the training prefer to have training in the site work, while
48.30% of them favor to have training in a training center and 1.70% of the
respondents choose to have training in other methods.
Moreover, in accordance with Table 4-76, 24.67 % of the unregistered contractors
prefer to have training in technical sides, 4.10% of them like better to have training in
managerial sides and 71.23% of the unregistered contractors want to be trained in a
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technical sides and managerial sides in the same time. These results do not go alone; it
was included in the Arthur (2005) found that most of those who acquired their skills
informally would like to further their skills by getting formal training both at college
(theoretically) and on sites (practically). Very few seemed to be comfortable with the
skills they have so far.
Table 4-74: Participate in training
Do you want to participate in training? Frequency Percentages
Yes 66 82.50
No 14 17.50
Total 80 100
Table 4-75: Training mechanism
Training mechanism Frequency Percentages
In the site 30 50.00
Training center 29 48.30
Others 1 1.70
Total 60 100
N.B: The total number of respondents=80.Missing number was due to not answering this question.
Table 4-76: Types of training subjects
Subjects types Frequency Percentages
Technical sides 18 24.67
Managerial sides 3 4.10
Technical sides and Managerial sides 52 71.23
Total 73 100
N.B: (73 of unregistered contractors out of 80 contractors answered this question)
4.7.7 The living level of the labors
Table 4-76 shows 30.77% of the unregistered contractors responded that the living
level of their labors is poor; meanwhile 69.23% of them replied that the living level of
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their labors is middle and no one of the unregistered contractors mentioned that the
living level of their labors is rich. This result is supported by Mitullah and Wachira
(2003) where they found that most workers are not satisfied with their work. MAS
(2004) indicated that the majority (65.8%) of those surveyed stated that work in this
sector assures them sufficient income to cover the expenses of basic family needs.
Table 4-77: The living level of the labors
Living level Frequency Percentages
Poor 24 30.77
Middle 54 69.23
Rich 0 0.0
Total 78 100
N.B: (No of sample are 80. Two are missing)
4.7.8 Encourage from the unregistered contractors towards employees
Figure 4-16 shows that 87.84% of the subject contractors responded that they
encourage their labors to improve their skills and invents, while 12.16% of them
replied that they do not support their labors to enhance their skills and invents.
Is there any encourage from the unregistered
contrasctors towards the labors to enhance their skills
and invents?
No
12.16%
Yes
87.84%
Figure 4-16: Encourage from the unregistered contractors towards employees
- 116 -
4.7.9 Knowing laws and regulations of work and workers
Table 4-78 shows that 91.14% of the subject contractors know that there are laws and
regulations for work and workers. Most of the unregistered contractors in Gaza Strip
have sufficient knowledge to know about this either from their ex-work or from
communications with other colleagues. However, 8.86% of them replied that they do
not know that there are laws and regulations for work and workers.
Table 4-78: Knowing laws and regulations of work and workers
Do the unregistered contractors know that there
are laws and regulations of work and workers?
Frequency Percentages
Yes 72 91.14
No 7 8.86
Total 79 100
N.B: (No of sample are 80. One is missing)
4.7.10 Following the regulations and laws
Table 4-79 shows that 56.41% of the unregistered contractors follow the regulations
and laws in their works regarding work and workers. However, from the experiences at
construction sites in Gaza Strip, it is totally believed that most of registered and
unregistered contractors ignore the regulations and laws in their works regarding work
and workers. While 43.59% of them replied that they did not respect the regulations
and laws in their works regarding work and workers. Bigsten, etal (2002) stated that
the informal enterprises do not comply with legal obligations concerning labor laws
which support this finding.
Table 4-79: Following the regulations and laws
Do the unregistered contractors follow the regulations
and laws in their works regarding work and workers? Frequency Percentages
Yes 44 56.41
No 34 43.59
Total 78 100
N.B: (No of sample are 80. Two are missing)
- 117 -
4.7.11 keeping the skilled labors
Table 4-80 shows that 70% of the subject contractors keep their skilled labors during
times of no work. If this percentage happened to be true, then most of the said
employees may be from the contractors family, otherwise, this percentage might be
exaggerated. While 30%of them replied that they do not retain their skilled labors
during times of no work. A strong reason for that is the inability to secure payment for
them due to the little profit they gain as mentioned previously. Other reasons might be
the ability to recruit workers is not difficult where many workers are still unemployed
particularly in this current hard situation.
Table 4-80: keeping the skilled labors
Do the unregistered contractors
keep the skilled labors during
times of no work?
Frequency Percentages
Yes 56 70.00
No 24 30.00
Total 80 100
4.7.12 Getting training for labors
Figure 4-17 shows that 6.30% of the unregistered contractors responded that their
labors got training on their expense or on the expense of other party, while 93.80% of
them replied that their labors did not get training on their expense or on the expense of
other party. The absent of any financial support to cover this activity is the main
reason behind this behavior. In some cases, there are no specialized training institutes
to carry suitable workshops. Therefore, workers only have the chance to be trained
during the work from their own experiences. In a parallel line, ERF (1998) found that
the majority of the informal sector members receive no training at all, apprenticeships
account for the highest proportion of those who obtained any form of job training.
Also, Arthur (2005) found that 21% of the workers attended post school training,
which means vocational training. Most of the informal construction workers acquire
their skills informally.
- 118 -
Do the unregistered contractors labors get training cources
on your expence or on the expense of other party?
93.8%
6.3%
0
10
20
30
40
50
60
70
80
90
100
No Yes
Percentage
Figure 4-17: Getting training for labors
4.8 Health and safety
4.8.1 Responsibility of safety and site conditions
Table 4-81 illustrates that 55.8 % of the unregistered contractors answered that the
registered contractor is responsible about safety and site conditions. This is justified
that the main contractor is the only responsible party regarding safety and site
conditions. Therefore, unregistered contractor depends on registered contractor in this
regard. Moreover, it is noticed that 18.2% of the unregistered contractors responded
that the owner is responsible about site safety and work conditions and 26% of them
replied that responsibility of site safety and work conditions is the unregistered
contractors’ liability.
This means that a considerable percentage (26%) of unregistered contractors are aware
of their responsibility regarding site safety and work conditions in addition to the
responsibility of the owner and the registered contractors. Arthur (2005) indicated that
as the ‘employers’ of informal construction cannot be held responsible for the health
and safety of the workers. It is obvious therefore, that findings of Arthur lies in the
line of the results mentioned above.
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Table 4-81: Responsibility of safety and site conditions
Responsibility of safety and
site conditions
Frequency Percentages
Owner 14 18.2
Registered contractor 43 55.8
unregistered contractor 20 26.0
Total 77 100
(77 of unregistered contractors out of 80 contractors who answered this question)
4.8.2 Safety rules
Table 4-82 shows that 53.3% of the unregistered contractors responded that there are
rules for safety at site. Safety rules at site include instructions from supervisors, daily
warning and distributed leaflets. Meanwhile 46.7% of them replied that there are not
any rules for safety at site. Arthur (2005) supports this result. He found that health and
safety matters on construction sites in most cases comprise only advising caution as
opposed to attempting to eliminate hazards or provide the workers with protective
gear. However, from the experience at construction sites in Gaza Strip, it is totally
believed that the safety rules are not found in the construction site.
Table 4-82: Safety rules
Are there any rules for safety at site? Frequency Percentages
Yes 40 53.3
No 35 46.7
Total 75 100
N.B: The total number of respondents=80.Missing number was due to not answering this question.
4.8.3 Safety tools in site
As shown in Table 4-83, 34.2% of the population cited that the education is the most
important tool in the site, 38.2% of them responded that the protective clothes is the
major tool in the site, 14.5% of the unregistered contractors mentioned that the
warning signs is the main tool in the site and 13.2% of them answered that there are
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other safety tools in the site which include shuttering and helmets in addition to what
has been mentioned above.
Most often, unregistered contractors mentioned the adherence to safety regulations and
instruction is a major tool to enhance site safety. Also, the use of safety wears such as
gloves, helmets….etc is another tool. In some cases, training is necessary for the
workers. Over all that, safety tools should be available at site for workers use.
However, from the experiences at construction sites in Gaza Strip, it is totally believed
that most of registered, unregistered contractors and workers ignore the labors safety
gear. It became a common practice not to use any tools.
Table 4-83: Safety tools in site
Safety tools Frequency Percentages
Education 26 34.2
Protective clothes 29 38.2
Warning signs 11 14.5
Others 10 13.2
Total 76 100
N.B: (76 of unregistered contractors out of 80 contractors answered this question)
4.8.4 Responsibility about any damages at site
Figure 4-18 shows that 59.50% of the subject contractors responded that they are
responsible about any damage at the site. This rise from their duties at site regarding
safety of workers. While 40.50% of them replied that they are not responsible about
any damage at the site.
- 121 -
Are the unregistered contractors responsible about
any damages at site?
Yes
59%
No
41%
N.B: (No of sample are 80. One are missing)
Figure 4-18: Responsibility about any damages at site
4.8.5 Suspension of work due to accident
Table 4-84 shows 97.3% of the unregistered contractors responded that there are no
suspensions of work due to accident happened with them or with their employee at
site, meanwhile 2.7% of them replied that there are suspension of work due to accident
happened with them or with their employee at site.
Table 4-84: Suspension of work due to accident
Are there any suspension of work due to accident
happened with the unregistered contractors or
with their employee at site?
Frequency Percentages
No 72 97.3
Yes 2 2.7
Total 74 100
N.B: (No of sample are 80. Six are missing)
4.8.6 Workers insurance
As shown in Table 4-85, 48.1% of the unregistered contractors cited that their labors
have no workers insurance and 51.9% of them replied that their labors have workers
insurance. Due to the insurances cost and the workers temporary status, insurances are
usually given by the registered contractors as stipulated in their contracts with the
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owners. Usually, the main contractors insure some number of workers without
specifying their names and this help any worker who might be subjected to accident.
Table 4-85: Workers insurance
Are there any insurance for workers? Frequency Percentages
No 38 48.1
Yes 41 51.9
Total 79 100
N.B: (No of sample are 80. One is missing)
4.8.7 Health insurance
Table 4-86 shows 39.7% of the respondents answered that there is a health insurance
for their labors and 60.3% of them replied that there is no health insurance for their
labors. Mitullah and Wachira (2003) found that mostly informal construction workers
have no social security, health insurance, and are exposed to several health hazards.
This finding supports the research result. It is noticed that 60.30% of the unregistered
contractors responded that their labors have health insurance. This refers to the fact
that most of Gaza Strip labors registered in labors syndicate to cover them and their
families by health insurance. This supports the result which was found in Table 4-26,
where about 19% of the unregistered contractors mentioned that they registered in the
labors syndicate to have health insurance.
Unregistered contractors explained that the labors syndicates do the insurances; others
claimed that the government does not care about the insurances. However, many
different reasons were stated among them: there is no permanent work, the period of
work is short, and instability of the works, limited financial capacity, the continuous
changes of the labors, decreasing the prices and every worker is responsible about him.
- 123 -
Table 4-86: Health insurance for labors
Is there health insurance for labors? Frequency Percentages
No 47 60.3
Yes 31 39.7
Total 78 100
N.B: (78 of unregistered contractors out of 80 contractors answered this question)
4.8.8 Social insurance for labors
Table 4-87 illustrates that 84.10% of the unregistered contractors responded that their
labors do not have any social insurance. The following findings support this result.
ERF (1998) found that 81 percent of the employed people in Turkey were not members
of any social security institution; they were employed in the informal sector. Wahba
(2000) stated that 36% of non-agricultural workers in Egypt had no social security
coverage. Odongo (2001) indicted that the informal sector, emphasizing that half of
the world labor force is not covered by social security. Avirgan, etal (2005) cited that
the informal employment as an employment without worker benefits, or social
protection. ILO (2000) mentioned that the informal sector is outside the scope of
social and labor protection. FIAS (2005) cited that informal workers in developing
countries have few social rights, with no social security.
While 15.80% of the unregistered contractors answered that their labors have social
insurance. Some of the unregistered contractors do not deal with the social insurance
while others consider it the responsibility of the main contractor. It can be said that the
limited financial capacity, decreasing the prices, bad political and social situations,
instability of work conditions and the discontinuity of works. Unregistered contractors
consider the insurance as a financial burden on them as it constitutes part of the
salaries, in addition that some contractors did not know about the insurance.
- 124 -
Table 4-87: Social insurance for labors
Is there social insurance for labors? Frequency Percentages
No 64 84.2
Yes 12 15.8
Total 76 100
N.B: (No of sample are 80. Four are missing)
Table 4-88 shows 84.60% of the unregistered contractors did not register in a social
insurance and 15.40%of them registered in a social insurance. It is noticed that the
majority (84.60%) of the unregistered contractors did not register in the social
insurance .This supports the result which was found in Table 4-86, where about 84%
of the unregistered contractors labors did not have any social insurance. Some
unregistered contractors did not have the chance to do this while others seem to be
careless about it as they never hear about the registration. Some others complained
about the cost in these circumstances of no work.
Table 4-88: Registration in social insurance
Is the unregistered contractors registered in
social insurance?
Frequency Percentages
No 66 84.6
Yes 12 15.4
Total 78 100
N.B: (No of sample are 80. Two are missing)
As shown in Table 4-89, 88% of the unregistered contractors mentioned that there
is no health supervision from the Local Authorities and Ministry of work for their
workers. Meanwhile, 12% of them replied that Local Authorities and Ministry of work
are monitored the health of their labors. The government careless animate the
unregistered contractors and their labors to challenge legal obligations concerning
safety. Bigsten, etal (2002) support this result .they indicated that the informal
enterprises do not comply with legal obligations concerning safety.
- 125 -
Table 4-89: Health supervision of labors
Is there health supervision from (Local
Authorities, Ministry of Work) for Your
labors?
Frequency Percentages
No 66 88.00
Yes 9 12.00
Total 75 100.00
N.B: (No of sample are 80. Five are missing
4.8.9 The environmental damages
Table 4-90 shows 54.50% of the unregistered contractors did not take any precautions
to relief or stop any environmental damage through their work; meanwhile 45.50% of
them take the necessary safety measures to relief or stop any environmental damage
through their work.
Table 4-90: The environmental damages
Are there any precautions to release or stop
any environmental damages by the
unregistered contractors?
Frequency Percentages
No 42 54.5
Yes 35 45.5
Total 77 100
N.B: (77 of unregistered contractors out of 80 contractors answered this question)
4.8.10 Labors insurance items in the contract
As shown in Table 4-91, 34.70% of the unregistered contractors replied that there is no
item about labors insurance in the contract signed between the unregistered contractor
and the registered one, while 65.30% of them responded that the signed contract
between the two parties include an item about the labors insurance. It is known that
the owner enforce the main contractors to cover the insurances according to the
contract. Verbal contracts and high competition between contractors may lead to
ignore this item of insurance.
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Table 4-91: Labors insurance items in the contract
Does the contract signed between the
unregistered contractors and the registered
ones include any item about labor insurance?
Frequency Percentages
No 26 34.7
Yes 49 65.3
Total 75 100
N.B: (79 of unregistered contractors out of 80 contractors answered this question)
4.8.11 Workers wearing the following tools and clothes during work
Table 4-92 shows that 7.30% of the unregistered contractors’ labors wear the
protection belts during work, 15.50% of them wear protection glasses during work and
15.10% of the labors wear head helmet. Moreover, 19.60% of the labors wear special
shoes during work, 11.80% of them wear protective clothes during work and16.30% of
the labors wear protective gloves during work. Furthermore, 12.70% of the labors wear
protective mask and 1.70% of them wear other protective tools and clothes. It is
noticed also that the frequency is 245 not 80. This refers to the fact that the labors of
the unregistered contractors may wear more than one protective tools and clothes in
the same time.
However, from the experiences at construction sites in Gaza Strip, it is totally believed
that most of registered, unregistered contractors and workers ignore the labors safety
gear. Most of them are at risk, as safety is not strongly observed in their working
places. In most cases there is no employer to provide the workers with safety gear.
Therefore, the workers are exposed to risk of injury, health problems and even fatal
accidents. The accidents are attributed to lack of serious ‘employers’ who can be held
responsible for the health and safety of the workers. Lack of understanding of the
importance of safety gear, as well as inability to afford it; increase the vulnerability of
the workers to injuries and ill health arising from their work. Also workers have very
low awareness of the safety regulations at work. It became a common practice not to
use any of the above mentioned tools.
- 127 -
Table 4-92: Workers wearing the following tools and clothes during work
Tools and clothes Frequency Percentages
Protection belts 18 7.30
Protection glasses 38 15.5
Head helmet 37 15.10
Special shoes 48 19.60
Protective clothes 29 11.80
Protective gloves 40 16.30
Protective mask 31 12.70
Others 4 1.70
Total 245 100
4.8.12 Disciplinary actions
Table 4-93 illustrates that 14.50% of the unregistered contractors replied that they did
not take any disciplinary actions against labors that are carless in implementing safety
rules at the site, and 85.50% of them responded that they took the necessary corrective
actions against labors that are carless in implementing safety rules at the site. Some of
these penalty measures are verbal disciplinary measures, repeated oral instructions, or
it might reach to termination of the contract.
Table 4-93: Disciplinary actions
Are there any disciplinary actions taken by the
unregistered contractors against workers who
are careless in implementing safety rules at the
site?
Frequency Percentages
No 11 14.50
Yes 65 85.50
Total 76 100
N.B: The total number of respondents=80.Missing number was due to not answering this question.
- 128 -
4.8.13 Safety measures pricing
As shown in Figure 4-19, 31.20% of the unregistered contractors answered that they do
not take into consideration the safety measures during pricing the work and 68.80% of
them take into consideration the safety measures during pricing. The main reason is
the high competition between contractors as this item will negatively affect their
prices. Usually, the main contractor is responsible about such an item.
31.2%
68.8%
0
10
20
30
40
50
60
70
80
90
100
Yes No
Do the unregistered contractors consider the safety
measures, during pricing?
Percentage
N.B: (77 of unregistered contractors out of 80 contractors answered this question) Figure 4-19: Safety measures pricing
4.8.14 Reading specifications of safety measures
Table 4-94 shows that 20.50% of the unregistered contractors replied that they read the
safety measures specifications before and during the implementation, while 79.50% of
the population does not read these specifications. Most of the unregistered contractors
consider this as a responsibility of the main contactor. Others claimed that they never
seen the specifications. Being proud about their experience, some contractors think
that they know every thing in this regard. Salter (1998) lies in the line of the results
mentioned above. He stated that ninety per cent of informal sector enterprises were not
interested in learning about safety and health.
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Table 4-94: Reading specifications of safety measures
Do the unregistered contractors read the
specifications regarding safety measures before
and during implementation?
Frequency Percentages
Yes 16 20.50
No 62 79.50
Total 78 100
N.B: (No of sample are 80. Two are missing)
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Chapter 5
Conclusion and Recommendations
5.1 Introduction
This chapter includes the conclusion and recommendations that would help to identify
the informal construction sector in Gaza Strip. The main objective of this study was
to find the role and significance of the unregistered contractors to the economy. The
study also aimed at finding the output of the unregistered contractors and to determine
problems and weakness facing them. Finally, the research aims at discovering the
linkage between the of the unregistered contractor and the of the registered one.
5.2 Conclusion
This part of thesis concludes the main findings; the respondents profile, field work of
unregistered contractors, institutional life of them, economical aspects and working
experience, challenges facing the unregistered contractor and relationship with the
registered contractors, work conditions and training and health and safety.
5.2.1 Respondents profile
This study indicated that the unregistered contractors are mostly young men from 30
years to more than 40 years old. Most of them are married and has a secondary level
education or less. They have been working in this sector for 13 years in average and
most of them work in this field for more than 10 years. The majority of the
unregistered contractors work in building sector and they do not have any partners.
The data showed also that the majority of the unregistered contractors’ employees’
ages are from 18 to 30 years. They are married and hold a secondary level education or
less. Likewise most of them are not relative to the contractors.
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5.2.2 Field work of unregistered contractors
The survey showed that most of the unregistered contractors have written contracts
with the employers without any legal obligations. The work is based on the unit price
contract and the unregistered contractors get paid based on completed work quantities.
The format of payment to them in response to their work is cash payment and they do
not get any allowances from the registered contractors due to completing works before
deadline. They get a contract with the registered contractors after awarding phase, get
the work through competition and they have the ability to deal with the supervising
staff.
Moreover, most respondents’ employers are private house owners and they prefer to
work with householders and registered contractors. Furthermore they gain personal
experience and joined this sector through their good reputation, contacting with
registered contractors, working beyond the green line, their families and relatives and
their friends. They follow technological advances in their works and do not have
managerial structure.
5.2.3 Institutional life
The findings illustrated that reasonable percentage of the unregistered contractors have
a membership in the union or syndicate other than Palestinian contractors union
(PCU). Despite that they judge there is no relation between the labors union and the
informal construction sector. The majority of them register in such related unions in
order to obtain a financial benefits and a health insurance. Moreover, the study
revealed that PCU does not support and develop their sector, does not take care about
their sector; does not involve in resolving the problems between them and the
registered contractors. Therefore, they did not try to register in the PCU and also they
are not registered or member of commerce chamber.
As another finding, employers do not request from the registered contractors to submit
the supporting documents of the unregistered contractors before starting the works.
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Sensible percentage of the unregistered contractors consider that the employers do not
assist them in getting their rights and payments from the registered contractors and do
not issue experience certificates for them in response for the executed works done for
the registered contractor. Nearly all of the respondents deem that the government does
not have any plans to develop this sector.
5.2.4 Economical aspects and working experience
It was found that the average value of one project executed by the unregistered
contractors is about 57,500 US$ and the majority of them can execute one project with
average value of less than 50,000 US$. The average duration of one project is about
half a year and most of them responded that the average duration of one project
implemented by them is less than half a year. Meanwhile, they can implement annual
projects with average value of about 132,500 US$ and sensible percentage of them can
implement annual projects with average value of less than 100,000 US$ .The major
works of these projects during the last five years are building works including;
plastering works, block works, concrete work, painting works, tiling works, plumbing
works, electrical works, metal works, carpentry works and aluminum works. A
reasonable percentage of the unregistered contractors own a mechanical concrete
mixer, a pick up and framework wood. Works carried out by unregistered contractors
are implemented for householders and registered contractors.
Regarding investments, results indicated that the average investment capital of the
unregistered contractors is about 15,400 US$ and most of them have a capital of less
than 20,000 US$. The average yearly profits for the unregistered contractors is about
8,500 US$ and the majority of them win profits less than 10,000 US$ yearly.
Furthermore, the average financial ability of the unregistered contractors for executing
the works is about 90,000 US$ and the majority of them have financial ability for
executing the works with value less than 100,000 US$. The average workdays per
month of the unregistered contractors staff is about 162 days per month and nearly all
of the respondents work less than 300 workdays per month (No. of workers per day ×
- 133 -
no. of workdays per month) and most of their staff are temporary staff. Considerable
percentage of them has equipment with a value less than 10,000 US$ and the average
value of equipment owned by them is about 11,500 US$. They hire about 17% of the
equipment and reasonable percentage of them indicated that they hire less than 25%
of equipment needed for the works. Moreover, most of the construction materials
needed to the works is purchased by the registered contractors and the owners, where
the unregistered contractors executed these works to the registered contractors and the
private owners.
The findings showed that the majority of the unregistered contractors do not deal with
banks to fund their works and they use the advance payment from the employers as a
financial support. Also, most of them have no financial income except of their income
as unregistered contractors. The average daily rate of the unregistered contractors
unskilled labor is about12US$, 17US$ for skilled labor, 20US$ for foreman or
surveyor and 24US$ for the engineer. Moreover, Most of them replied that the average
daily rate of the unregistered contractors unskilled labor is from 10US$ to less than
15US$, from 12.50US$ to 22.50US$ for skilled labor, from 15US$ to less than 25US$
for foreman or surveyor and from 20US$ to less than 30US$ for the engineer. The
majority of the unregistered contractors did not pay any allowances to their staff, when
the staff member is leaving the work upon the request of the unregistered contractors.
5.2.5 Challenges facing the unregistered contractor and relationship with the registered
one
Results illustrated that most of the unregistered contractors have complementary
relationship with the registered contractors. There is a close cooperation between the
unregistered and the registered contractors and the registered contractors did not raise
any complaint against the unregistered contractors and they did not exchange
complaints in the governmental departments. Most of the registered contractors did not
submit any claim against the unregistered contractors who have no tax registration.
Also, the majority of the registered contractors adhere in the prices agreement with the
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unregistered contractor signed before the project awarding and in the interims and
final payment agreed upon with the unregistered contractors. The unregistered
contractors gain technical and management experience from the registered contractors.
Most of the unregistered contractors did not work previously as registered contractors
due to tax and limited financial capacity.
Results of this study indicated that most of the unregistered contractors may have more
than one problem with the registered contractors such that decreasing prices of works
executed by the unregistered contractor, high labors wages paid by the unregistered
contractors, pricing excluding taxes margin by the unregistered contractors and quality
of works. A reasonable percentage of the unregistered contractors considered that
there are many obstructions for development the informal construction sectors. These
obstacles include, the financial capacity of the unregistered contractors, the
unavailability of flexible policies by the government, the unavailability of institutions
or association enhancing this sector, the unavailability of suitable training programs,
low prices, the political conditions, the work domination by the registered contractors,
discontinuous projects over the year, the classification criteria set by PCU and less
work. The unregistered contractors effects on the official economy regarding reduction
of the income taxes, the pricing system, avoiding any obligations towards the
government, degradation of labor rights, self independent and supporting the national
economy.
The findings showed that most of the registered contractors did not compete with the
unregistered contractors in the private sector work. Also the registered contractors did
not ask the unregistered contractors to supply the needed labors for the work.
Meanwhile, the majority of the unregistered contractors kept the projects documents
and files. Most of the unregistered contractors believe that the training, increasing
knowledge, simplify the taxing system, developing the taxing system and doing taxes
facilities for work of low income are the ways to formalize the informal construction
sector.
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5.2.6 Work conditions and training
This study was also found that the unregistered contractors work 9.15 hrs per day in
average, 243.76 days per year and do not work 107.57 days per year in average. Most
of them desired to participate in the training in the site work or in a training center and
they prefer to be trained in technical and managerial sides in the same time. The
reasonable percentage of the unregistered contractors considered that the work
conditions are in average conditions and they do not wish that their sons work in this
sector in the future.
The study showed that the living standards of the unregistered contractor labors are in
middle level and they encouraged their labors to improve their skills and knowledge.
Most of the unregistered contractors kept their skilled labors during times of no work
and their labors did not get training on their expense or on the expense of other party.
5.2.7 Health and safety
The findings showed that reasonable percentage of the unregistered contractors
believed that the registered contractors are responsible about safety and site conditions
in addition to their responsibility about any damage at the site and they know that
there are rules for safety at site. Some of them considered that the most important
safety tool in the site is the protective clothes and the others believed that the
education and the warning signs are the most important tool in the site. The majority
of unregistered contractors stated that there are no suspension of work due to accident
happened with them or with their employee at site and a reasonable percentage of them
did not take any precautions to relief or stop any environmental damage through their
work.
The results of this study indicated that sensible percentage of the workers of the
unregistered contractors have labors insurance. Moreover, the signed contract between
unregistered and registered contractors includes an item about the labors insurance.
Most of unregistered contractors did not cover their staff by health and social
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insurances. The majority of the unregistered contractors did not register in a social
insurance. Most of the unregistered contractors’ labors wear the protection glasses,
head helmet, special shoes, protective clothes, protective gloves and protective mask
during work. The majority of the unregistered contractors took the necessary
corrective actions against labors that are careless in implementing safety rules at the
site and most of them take into consideration the safety measures during pricing.
Furthermore, they read the safety measures specifications before and during the
implementation.
However, from the experiences at construction sites in Gaza Strip, it is totally believed
that most of registered, unregistered contractors and workers ignore the labors safety
gear. Most of them are at risk, as safety is not strongly observed in their working
places. In most cases there is no employer to provide the workers with safety gear.
Therefore, the workers are exposed to risk of injury, health problems and even fatal
accidents. The accidents are attributed to lack of serious ‘employers’ who can be held
responsible for the health and safety of the workers. Lack of understanding of the
importance of safety gear, as well as inability to afford it; increase the vulnerability of
the workers to injuries and ill health arising from their work. Also workers have very
low awareness of the safety regulations at work. It became a common practice not to
use any of the above mentioned tools.
5.3 Recommendations
The inherent characteristics of informal construction sector and the lack of a
supporting environment impede the chances for growth and development, and suggest
the need for more aggressive development strategies and policies. The informal
construction sector needs access to credits, facilities and flexible forms of training.
Only then will the sector be able to play its full potential in terms of employment
creation and local economic development. Despite the constraints facing informal
construction sector, there is potential for efforts to effect transformation. The
following main areas of intervention can be identified.
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5.3.1 Integration of the informal construction sector into the development process
So far, development programs, whether governmental or donor ones, appear to have
neglected to incorporate policies and strategies targeting the informal construction
sector. However, today the need for development approaches exists. Even if break
through in the political situation occurs in the foreseeable future, there is no guarantee
that the informal construction sector will quickly gain supported.
The flexibility of informal construction sector and his ability to absorb shocks and
adapt to dramatic changes, qualify it to be the vehicle for survival of many of
unregistered contractors for several years to come. This is not to suggest that the
informal construction sector is the alternative development strategy for Palestinians,
but rather it is the alternative survival strategy at this stage of economic hardship and
challenges, and could continue to remain a vital economic factor, even were peace and
stability to return. Intervention in policy formulation and assistance programs,
therefore, to specifically target this sector not only to keep it functioning, but also to
encourage it and to support its transformation into more sound businesses, with higher
potential for growth and development, could be a useful national economic
investment.
5.3.2 Financing and credit
In order for unregistered contractors to grow and expand, they need to increase their
capital. This is not possible without financing sources, given that these types of
enterprises do not accumulate capital. Credit programs might be designed to focus on
informal construction sector, with flexibility in the design and requirements of the
credit products. Moreover, the legal environment of micro lending should be
developed and policies must be formulated, in order to build a micro finance industry
that also helps feed this significant sector in Gaza Strip. Experience internationally has
demonstrated that access to liquid and safe (micro) savings services are just as
important, and in some cases more important, than access to micro credit products.
Some attention needs to be paid to the issue of access to savings services. However,
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the Palestinian laws do not allow non-bank credit institutions to offer saving services,
with only banks allowed doing so, but banks are not yet interested in micro savers. As
such, the need to address this issue is important to the development of the informal
sector.
5.3.3 Training and technical assistance
The study has shown that the unregistered contractors and their labors have generally
not had any formal training. The low level of education and the lack of managerial
require integrated programs to help informal construction sector upgrade and develop.
Demand driven training and technical assistance programs, primarily focusing on
upgrading the skills of unregistered contractors and the structure of the enterprises,
may help in sustaining these enterprises and assisting in the transformation process.
The assistance may take the form of modified training activities targeting certain
segments in the fields of management, technical, professional skills and knowledge.
In addition, programs that target the upgrading of the tools and machines used in
production, may also help in expanding the opportunities for growth and development.
Furthermore, the development of mechanisms that help improve part of the weaknesses
resulting from the nature of relationships between the unregistered contractors and the
employers would also strengthen the sector and increase profitability. Such
mechanisms may include the creation of networks between clusters that balance each
other and increase bargaining power. The collaboration between formal and informal
contractors should not be seen as a source of jobs, but as a training opportunity,
providing both technical and managerial skills to the informal contractors.
Government policies should be geared towards promoting this collaboration in
anticipation that it will lead to the development of more feasible small-scale
contractors.
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5.3.4 Organizing
There is a need for the informal construction sector to get organized. As discussed in
this study, most of those working within the informal construction sector either do not
belong to any association, or belong to associations which do not engage in support
and policy influence. This weakens their voice to advocate and pressure their
employers and other relevant bodies for their rights. Consequently, there is a need to
expose unregistered contractors to the benefits of belonging to associations which
have the potential to engage in advocacy and to influence policy. Associations and
syndicates of labors would be able to petition and represent the unregistered
contractors and workers interests: for example, in areas relating to insurance, training,
wages, terms and conditions of work. Associations can further facilitate unregistered
contractors and workers inclusion in labor negotiations.
5.3.5 Legal and policy issues
In Gaza Strip, informal construction sector does not receive support from the
government. The government should aim to create an enabling environment for the
informal construction sector to operate. This involves setting up a system that
promotes the sector’s activities and protects the right of those involved in the sector.
One possibility which is posed for consideration here is to establish a parallel
registration system. It is suggested that there might be two categories. The smallest
category would be an artisan practicing his own skills without employing workers
while the largest category might be a well established informal contractor capable of
employing several workers and carrying out several projects at a time with maximum
value of individual projects being half the maximum value for contractors registered in
PCU.
The proposed registration system would be able to summarize most of the contractors
that are currently classified as informal. It would then be possible to design
programmes by the government to assist and develop the informal construction sector.
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However, the programmes on offer would need to be appropriate and attractive to the
informal construction contractors if they are to be persuaded to register. Appropriate
strategies should be formulated that would encourage the emerging informal
contractors to grow to a level where they will have the resources and the capability to
formalize their businesses.
Regulating bodies such as the PCU should take positive steps to educate the
unregistered contractors on the benefits of legalizing their businesses. In other words,
bodies such as the PCU should create an environment that encourages informal
contractors to register. For example, as discussed above, they can set lower classes
that will accommodate contractors with little capital.
Most individuals who operate within the informal construction sector struggle to
operate outside of the legal framework. This is mainly because of the high cost, in
terms of time and information, of complying with regulations. Thus, there is a need to
streamline regulatory and administrative regimes in order to minimize not only the
cost of compliance but also the time required to process papers. This would encourage
many of those operating within the informal construction sector to comply with
necessary legal requirements. This will not only generate resources for relevant
authorities in terms of service fees but will also improve the operations of the sector.
As a result, they operate on insecure employment terms, with their chance largely lying
with registered contractors and owner. In order to improve employment conditions
within the sector, there is need to re-examine the work and workers rules and
regulations in relevant authorities, especially the definition of employment. The
absence of employment legal contracts within the informal construction sector does
not cancel out the need for protection through the legal framework, such as workmen’s
compensation and other entitlements such as sick and annual leave. The informal
construction sector should entrance for legal protection without necessarily
transforming its status to that of formal construction sector.
- 141 -
Therefore, government should formulate policies that will encourage the informal
contractors to grow and acquire resources that will eventually enable them to
formalize their businesses. Policies may include the following:
A. Drafting laws to create an appropriate legislative framework:
1. Social insurance law
This law includes staff working in the informal construction sector where both
unregistered contractors and their employees pay monthly subscription fees for the
social insurance institutions for the sake of covering the work injuries and death in
addition to the age insurance. According to this project, administration council should
be formed to represents the three work parties: government, employers and workers.
This project should be similar to the cases in most of the Arab countries. At those
countries, it is allowed for workers in the informal sector to pay monthly subscription
fees for the benefit of the services provided by the institution like work injuries, death
and age. Also, non availability of social insurance is one of the most important
problems faced by workers in the informal construction sector. The social insurance
law will give security for the future of those workers and encourage more workers to
inter this sector.
2. Law of association organization
The association, according to the law, should works to achieve several goals including
organizing the job practicing, improving the academic and professional level of
members. Moreover, it should activate and support the scientific research in this field
and it has to plan and develop the curriculum for the construction vacation. The
association will also support workers in this field and involve in discussion of
common subject among Arab and international countries. Exchanging of information
and experience and coordination and cooperation between official entities in Palestine
is a vital goal of this association knowing the association as professional in its field.
- 142 -
B. Establishing specialized professional institutions to provide oversight of the sector
There is no much data on labors in the construction sector because of the random
nature of the work and job change. In addition, there is no clear definition to the
construction sector labors and the weakness of the labors unions. Therefore, there is a
need to establish institutions to serve the labors sector protect their rights and develop
them technically. Some of these institutions are:
1. Social security institutions
It works on the financial coverage of the work injuries, death and aging. Its work
depends on the law of social insurance which is already explained above. Therefore, it
is necessary to issue this law in order to proceed in establishing such important
institution which has similar counterpart institutions in the Arab World.
2. Specialized laborers courts
These courts concern workers in the informal sector. They work on protecting the
labors and their rights. Field are protecting from unjustified separation from work,
suspension of their wages and forcing them to unsuitable work. These courts aim at
expediting the decision taken in labor cases because these cases can not be postponed
when related to the labor wages and rights. Moreover, these courts work to settle
dispute in labor and work field. They are parallel to the existing government courts in
the case that these will be a court for every governorate and a court for the whole
country.
3. Specialized vocational unions
It is necessary to establish vocational unions to frame all labors in similar job together
such unions should work on developing labors of this sector professionally by
arranging for training workshops. It also prepares tests to evaluate the educational
level of the applicant and prevent any disqualified applicant to work in this sector in
coordination with some municipalities and institutions. It also establishes a unified
- 143 -
system for work measurements to avoid any future problem between the labor and the
employers.
Such vocational unions might have a leading role in developing the level of the
construction sector labors. It can establish a work force pricing system which will
prevent unjust competition; thus, it enhances the level of this job to a degree than
adheres to the technical specifications.
4. Construction training centers
Those centers are specialized in specific construction jobs like: framework, tiling,
plastering, electrical and sanitary installations. They educate candidates by means of
specialized courses. These courses outline the basics for every job, describe the
needed specifications, teach the basis on which contract between labor and employers
is made and focus a job ethics. Those centers might be distributed in the whole
country and they award the student a certificate to work in the job after fulfilling all
needed graduation exams.
5. Institution for job practicing
It is necessary to establish a procedure to allow labor of such construction job to work.
These procedures maintain a standard level of professional qualification for labor who
wants to work. This mechanism will help enhance the quality of construction work
and set standards to evaluate the performance.
6. Awareness regarding vocational education
Students should be encouraged to apply for the vocational schools after completing
their secondary education. These schools award a diploma degree in varieties of
specializations.
7. Activation of the role of the Palestinian Standards Institution (PSI)
There is a need to publish and distribute the specifications prepared on the
professionals working in the construction sector. There should be also other
institutions responsible about implementing these specifications and monitoring and
- 144 -
checking the adherence to these specifications. The PSI should have an important role
in reviewing and approving these specifications.
Finally, it is necessary to activate the role of the Ministry of Housing and Public
Works (MHPW) to monitor this sector by preparing laws and regulations which save
labors and employers rights. The MHPW will monitor the work situations and settle
any dispute between parties. It is necessary to settle any dispute between parties. It is
necessary to set tests for labor in this field from specialized institutions in order to
make sure that they have the needed education and experience. This will guarantee the
quality of the services provided and the safety of the people.
5.3.6 Health and safety
Another key area that needs to be addressed is health and safety. There is need to plan
means of enforcing the occupational health regulations in informal construction
operations in order to reduce the exposure of workers to workplace hazards. This calls
for some education for workers on ways of minimizing the risk of accidents on-site.
They should be encouraged to use work processes that reduce occupational hazards
while improving working environments and output. Meanwhile, government should
play an active role in ensuring adherence to basic health and safety standards as well
as the basic provisions of the labor laws and the social security laws. Further research
may be needed in this area.
5.3.7 Information and linkages
Information is an important resource which informal labors lack. Generally, the
workers do not have adequate information on market needs. This limits their
opportunities in the job market as well as their ability to bargain for better terms. Lack
of information has partly contributed to workers accepting low wages and poor
working conditions.
- 145 -
Establishing central points where potential clients can advertise for workers, and also
access market information, has a potential of improving employment within the sector.
There is also a need for organizations of informal sector to collaborate and create
linkages with relevant institutions such as micro-finance institutions, labors unions,
training institutes, universities, non-governmental organizations (NGOs), PCU and
other civil society organizations.
5.4 Further studies and limitations
There are several areas of future research that could be explored in relation to this
topic. The most important is that the findings of this survey provide the researchers
with new information that may be used to develop a realistic strategy model regarding
population and distribution of the unregistered contractors in OPT.
The facts on the degree and nature of the informal construction sector remains at best,
very irregular and at worst, almost non-existent. No national survey has assessed the
extent of the informal construction sector and its characteristics. As a consequence, it
is not known how many businesses currently conduct some or all of their trade in the
informal construction sector, the sector affected and the types of business and people
level to using informal work. Until comprehensive research is done, it will be difficult
to know whether policy initiatives are targeting the major sectors where this work
succeeds and the principal types of informal work and worker.
The historical targeting of the registered unemployed and completely underground
businesses, when we now know that they constitute only a small proportion of all
informal work, provides an indication of the need for more research. It is now widely
accepted that surveys of household ‘managing strategies’ generate reliable data on the
extent and nature of informal work. These investigate households as both suppliers and
customers of informal work, along with their motives. A representative national survey
to gather data could fill many of the significant gaps in understanding, including the
sectors in which informal work occurs, where it is common, who engages in such work
- 146 -
and why. It would also inform under-explored issues such as the relationship between
the informal economy and the lifecycle, local ‘work cultures’, employment histories
etc.
The main limitation of this research lied in the possibility that the responding
unregistered contractors withholding commercially sensitive information which may
affect their future competitiveness. In order to remove this possibility, respondents
were not required to state their names in the questionnaire, and the contractors should
be selected carefully.
Another limitation is the separation of the country for two parts which are West Bank
and Gaza Strip due to current circumstances. Therefore, the study was done in Gaza
Strip only. The sample size was not enough to cover the needs of survey to get good
results. It is better to repeat this study in ordinary circumstances to have a
comprehensive research including the two parts of the country and also, to compare
the results of the two studies.
Recently, the political instability and siege imposed on Gaza Strip completely stopped
all construction sector activities. Therefore, no data can be collected for this period.
Result reflect normal working times.
- 147 -
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- 153 -
LIST OF ANNEXES
ANNEX 1 ENGLISH VERSION QUESTIONNAIRE
ANNEX 2 ARABIC VERSION QUESTIONNAIRE
- 154 -
ANALYSIS OF THE INFORMAL CONSTRUCTION SECTOR "UNREGISTERED CONTRACTORS" IN THE GAZA STRIP
يف قطاع غزة"املقاولني الغري مسجلني" حتليل قطاع اإلنشاءات الغري رمسي
يف قطاع غزة"املقاولني الغري مسجلني" حتليل قطاع اإلنشاءات الغري رمسيأستبيان حول
1FجTت( )
Prepared by
Eng. Mustafa Fawzi El Kurd
Supervised by
Prof. Dr. Adnan Enshassi
Professor of Construction Engineering and Management
A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master in
Civil Engineering - Construction Management
June, 2007
The Islamic University - Gaza Higher Education Deanship Faculty of Engineering Department of Civil Engineering Construction Management
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- 155 -
Annex 1
Dear unregistered contractors,
Subject: Questionnaire about the analysis of the informal construction Sector in
the Gaza Strip
Construction sector is considered to be one of the main sources of income and
employment in Gaza Strip. In many countries, it is described in most of the
countries as containing large number of labors and unregistered contractors.
The study aims at understanding the environment and conditions of the
contractors in Gaza Strip unregistered in Palestinian Contractors Union (PCU) in
order to find out how to enhance their work conditions and increase their
protection. Therefore, we appreciate your answer to the questions in this
questionnaire. Please be informed that all personal information supplied is a top
confidential issue. Thank you for your cooperation.
The Questionnaire is comprised of the following components:
Part 1 : Respondents profile
Part 2 : Field of work of unregistered contractors
Part 3 : Institutional Life.
Part 4 : Economical aspects and working experience
Part 5 : Challenges facing the unregistered contractor and relationship
with the registered one
Part 6 : Work conditions and training
Part 7 : Health and safety
- 156 -
Part 1 : Respondents profile 1. The administration position of the questionnaire filler
a- Owner of company
□ b- Employee in the company
□
2. Name of unregistered contractor /company (optional)
-----------------------------------------------------------------
3. The education Level of the unregistered contractor a- Secondary or Less
□
b- Diploma □
c- University
□ d- Graduate level
□
4. Number of the company's employees
a- Relatives □ b- Non-relatives □
5. How many years are you working in this field
a- Less than one year
□ b- From one year to less than five years
□
c- From 5-10 years
□ d- From 10-15 years
□
e- More than 15 year □
6. company field of work (in general ) more than one answer can be chosen
a- Buildings
□ b- Roads
□
c- Electromechanical
□ d- Water and sewerage
□
e- Others (Mention) □
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7. Number of the unregistered contractors employees according to their education level
a- Secondary or Less
□ b- Diploma
□
c- University
□ d- Graduate level
□
8. How old is the unregistered contractor?
a- Less than 30 years
□ b- From 30-40 years
□
c- More than 40 years
□
9. No. of unregistered contractor employees according to their age
a- Less than 18 years
□ b- From 18-30 years
□
c- From 31-40 years
□ d- More than 40 years
□
10. Marital status of unregistered contractor
a- Married □ b- Single □
c- Divorced □ d- Widow □
11. No. of unregistered contractor employees according to their marital status
a- Married □ b- Single □
c- Divorced □ d- Widow □
12. unregistered contractor company owner
a- One person
□ b- Two Persons
□
c- Three persons
□ d- More than three persons
□
- 158 -
Part 2 : Field of Work of unregistered contractors
1. Type of contract signed with the owner
a- Legal contract
□ b- Written contract
□
c- Verbal contract
□ d- Without contract
□
e- Other □
2. Owner of work
a- Private □ b- Contracting company □
c- Government
□ d- Other (Mention)
□
3. How you worked as unregistered contractor? More than one answer can be chosen
a- Through the family
□ b- Through friends
□
c- Through contracting registered companies
□
d- Through reputation
□ e- Through working inside the green line (Israel)
□
f- Through others (Mention) ………………………………
□
4. Whom you work with? More than one answer can be chosen
a- Registered contractors
□ b- Direct with the Owner
□
c- The related consultant
□ d- Private works (With people)
□
e- Others (Mention) □…………………………………
5. Work done through contract:
a- Lump sum
□ b- Unit rate
□
c- a+b □ d- Others (Mention) …………. □
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6. How are you paid as unregistered contractor?
a- By job □ b- Daily □
c- Weekly □ d- Monthly □
e- According executed quantities
□ f- on payment □
g- Others (Mention) □…………………………..
7. What kind of payment you receive?
a- Cash □ b- Cheque □
c- Construction materials
□ d- Other (Mention) ………… □
8. Are you given any allowances in response to executing work before deadline?
a- Yes □ b- No □
9. What are the sources of the unregistered contractor's experience? More than one answer can be chosen
a- Having training courses
□ b- Inherited experience
□
c- Personal experience □
10. Do you follow technological development in Your Works? (Instruments, equipment and management)
a- Yes □ b- No □
11. Is there management structure in your company?
a- Yes □ b- No □
12. How can you get work?
a- competition
□ b- Direct award
□
13. When the work is dealt with registered contractor?
a- Before awarding
□ b- After awarding
□
- 160 -
14. What are the institutions you work with through the registered contractor? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 15. Mention the contracting companies (Registered contractors) that you usually you work with them? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 16. Do you have the ability to deal with supervising staff?
a- Yes □ b- No □
If it is no, Why? ………………………………………………………………………………
- 161 -
Part 3 : Institutional Life: 1. Are you member in any union / syndicate?
a- Yes □ b- No □
If the answer is yes, clarify …………………………………………………………. If the answer is no, clarify …………………………………………………………... 2. What are the benefits that are gained from the Institution? more than one answer can be chosen
a- Money □ b- Equipment □
c- Training □ d- Information about safety □
e- Support and advices
□ f- Health insurance
□
G- Others (Mention) …………. □
3. Are You registered or member of the chamber of commerce?
a- Yes □ b- No □
If the Answer is no, clarify…………………………………………………………. 4. Does The Palestinian Contractors Union (PCU) show any support and development for Un-registered contractors?
a- Yes □ b- No □
5. Does the government have any plans to develop this sector?
a- Yes □ b- No □
6. Is there any relationship between labors syndicate and the unregistered contractors?
a- Yes □ b- No □
7. Do you think that PCU care about the unregistered contractors?
a- Yes □ b- No □
8. Did you try to register at the PCU?
A- Yes □ B- No □
- 162 -
9. Does PCU work to resolve the financial and moral problems, if exit, between the registered contractor and unregistered contractor?
a- Yes □ b- No □
10. Does the owner request from the registered contractor to submit the supporting documents of the unregistered contractor before Initiating Works?
a- Yes □ b- No □
11. Does the owner aid the unregistered contractor in getting his rights from the registered contractor?
a- Yes □ b- No □
If the answer is no, clarify …………………………………………………………. 12. Does the owner issue experience certificates for the unregistered contractor in response for the executed Works done for the registered contractor?
a- Yes □ b- No □
If the answer is no, clarify ………………………………………………………….
- 163 -
Part 4 : Economical Aspects and Working Experience
1. Average project value in US$
a- Less than 50,000 US$
□ b- From 50,000 US$ to less than 100,000 US$
□
c- From US$100,000 to less than US$150,000 □
d- From US$ 150,000 to US$ 200,000 □
2. Average project duration (more than one project can be chosen)
a- Less than half of year
□ b- From half of year to less than one Year
□
c- From one year to less than one year and a half □
d- From one year and a half to Two Years □
3. Average value of yearly work of the company
a- Less than US$100,000
□ b- From US$100,000 to Less than US$200,000
□
c- From US$200,000 to Less than US$300,000 □
d- From US$300,000 to Less than US$ 400,000 □
e- From US$ 400,000 to US$ 500,000 □
f- More than US$ 500,000 □
4. No. of Equipment that owned by the unregistered contractor, more than one answer can be chosen
Mechanical concrete mixer □
Vibrator □
Small compactor □
Big compactor □
Small excavator □
Loader □
Big excavator □
Truck □
Pick up □
Painting pump □
Electric generator □
- 164 -
Left pump □
Framework wood (cubic meter) □
Big Welding machine
□
Small welding machine □
Other (Mention) …………………………………………. …….
5. value of equipment owned by the company in US$
a- Less than US$10,000 □
b- From $10,000 to US$15,000 □
c- From $15,000 to Less than US$20,000 □
d- From $20,000 to US$25,000 □
6. Percentage of equipment rented by the company
a- Less than 25% □
b- From 25% to less than 50% □
c- From 50% to less than 75% □
d- From 75% to 100% □
e- None □
- 165 -
7. No. of works/jobs executed by you during the last 5 years
□ Plastering □ Painting works
□ Water & external □ Block works
□ Plumping works □ Sewerage works
□ Concrete works □ Tiling works
□ Electrical works □ Road works
□ Metal works □ Carpentry works
□ Aluminum works □ Mechanical works
Other (Mention) …………………………………………. …….
8. No. of projects implemented by you yearly for the registered Contractor
a- One work
□ b- Two works □ c- 3 Works □
d- 4 Works
□ e- 5 Works □ f- More than works □
g- None □
9. No. of projects implemented by you yearly for people
a- One project
□ b- Two projects □ c- 3 projects □
d- 4 Projects
□ e- 5 Projects □ f- More than 5 projects
□
g- None □
10. How many working days do you work per month? (No. of workers per day * no. of working days per month)
a- Less than 100 working day □
b- From 100 working day to less than 200 working day □
c- From 200 working day to less than 300 working day □
d- More than 300 working day □
11. Who buy the needed materials?
a- The owner or registered contractor □
b- Un-registered contractor □
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c- a + b □
12. What is the percentage of building materials purchased by your side?
a- None □
b- Less than 25% □
c- From 25% to less than 50% □
d- From 50% to less than 75% □
e- From 75% to 100% □
13. Do you deal with banks to fund your works?
a- Yes □ b- No □
If the answer is yes, why? …..…………………………………………………………. If the answer is no, why? ……………………………………………………………… 14. Are there any financial income for the Sub-contractor?
a- Yes □ b- No □
If the Answer is Yes, why? …..…………………………………………………………. 15. What is your way to finance Your Work?
a- Loans □ b- Advance payment from the
owner □
c- Personnel funding
□ d- a + b + c
□
Others (Mention) …………………………………………. ………………………….
16. No. of company employees
a- Permanent
□ b- Temporary
□
- 167 -
17. Capital of unregistered contractor
a- Less than $10,000 □
b- From $10,000 to 20,000 □
c- From $21,000 to less than 30,000 □
d- From $30,000 to $40,000 □
e- More than $40,000 □
18. Yearly profit
a- Less than $5000 □
b- From $5000 to $10,000 □
c- From $11,000 to $20,000 □
d- From $20,000 to $25,000 □
e- More than $25,000 □
19. What is the average daily un- skilled labor rate at your company?
a- Less than 40 NIS □
B- From 40 NIS to less than 60 NIS □
c- From 60 NIS to less than 80 NIS □
d- More than 80 NIS □
20. What is the average daily skilled labor rate at your company?
a- Less than 50 NIS □
b- From 50 NIS to less than 70 NIS □
c- From 70 NIS to less than 90 NIS □
d- More than 90 NIS □
21. What is the average daily rate for foreman or surveyor at your company?, If it do exist
a- Less than 60 NIS □
b- From 60 NIS to 80 NIS □
c- From 80 NIS to less than 100 NIS □
d- More than 100 NIS □
22. What is the average daily rate for engineer at your company?, If he Exist
- 168 -
a- Less than 80 NIS □
b- From 80 NIS to less than 100 NIS □
c- From 100 NIS to less than 120 NIS □
d- More than 120 NIS □
23. Are there any allowances for staff leaving their jobs?
a- Yes □ b- No □
If the answer is no, why? ……………………………………………………………… 24. What is your maximum financial capacity for Projects implementation in a good manner?
a- Less than $50,000 □
b- From $50,000 to less than $100,000 □
c- From $100,000 to less than $150,000 □
d- From $150,000 to $200,000 □
e- More than $200,000 □
- 169 -
Part 5 : Challenges Facing the unregistered contractor and the relationship with the registered one 1. What are the reasons behind working as unregistered contractor?, More than one answer can be chosen?
a- Avoiding taxes □
b- To be registered contractor □
c- Un-just governmental laws □
d- Financial capacity □
Other (Mention) …………………………………………. …….
2. Do you think that the relationship between the registered contractor and the unregistered contractor is?:
a- Complementary
□ b- Competitive
□
Other (Mention) …………………………………………. …….
3. Do You think that the unregistered contractor has influence on the official economy? in relation to: (More than one answer can be chosen)
a- Less income from taxes □
b- Harm the organized pricing □
c- Help the registered contractors to avoid governmental obligations
□
d- Reduce the employee formal rights □
e- Help the citizen depends on himself □
f- Support national economy □
Other (Mention) …………………………………………. …….
4. Did you worked previously as registered contractor
a- Yes □ b- No □
- 170 -
If the answer is yes, why you change to a Un-registered contractor?, More than one answer can be chosen
a- Avoiding taxes □
b- Limited financial capacity □
c- Losing the ability of completion □
d- Problems with ex-partners □
e- Others (Mention) …………………………………………. …….
5. Do You think that training and increasing knowledge is the way to the formal contracting sector
a- Yes □ b- No □
If the answer is No, Why? ……………………………………………………………… 6. What are the means that can be followed to make this sector legal and formal one?
a- Simplifying the taxing system □
b- Developing the taxing system □
c- Taxes facilities for works of low income □
d- Others (Mention) ……………………………………………………………….
□
7. Is any complaint raised against you from a registered contractor regarding competition in taxes department?
a- Yes □ b- No □
8. Do you compete of the registered contractor in the private sector work?
a- Yes □ b- No □
9. Do You exchange complaints with the registered contractor in the governmental departments, especially the tax departments?
a- Yes □ b- No □
If the answer is Yes, clarify ……………………………………………………………
- 171 -
10. Did any registered contractor submit a claim against you as you have no tax registration?
a- Yes □ b- No □
If the answer is Yes, clarify …………………………………………………………… 11. Does the unregistered contractor Keep the Projects Documents and Files?
a- Yes □ b- No □
If the answer is No, why? …………………………………………………………… 12. Does the registered contractor adhere to the prices agreed upon with the unregistered contractor before the project awarding if done by the owner?
a- Yes □ b- No □
If the Answer is No, why? …………………………………………………………… 13. Does the unregistered contractor gain any technical and Management experience from the registered contractor?
a- Yes □ b- No □
14. Does the registered contractor supply his experience to the Un-registered contractor?
a- Yes □ b- No □
15. What are the problems taking place between the registered contractors and unregistered one? More than one answer can be chosen:
1. Decrease in the prices of woks executed by the Un-Registered Contractor
□
2. High Labors wages paid by the Un-registered contractor □
3. Pricing excluding taxes margin by the unregistered contractor
□
4. Complaints submitted by the registered contractor at The Taxes department against the unregistered contractor
□
5. Complaints regarding quality of wok submitted by the registered contractor to the owner against the Un-registered contractor
□
6. Others (Mention) …………………………………………………………………
□
- 172 -
16. What are impedances affect the development of the unregistered contractor? More than one answer can be chosen:
1. Financial inability □
2. Unavailability of flexible policies by the government □
3. Unavailability of institutions or association enhancing this sector
□
4. Unavailability of suitable training programs □
5. high competition lead to low prices □
6. Political conditions □
7. Work domination by the registered contractors □
8. no continuously of projects over the Year □
9. Classification criteria set by Palestinian Contractors Union
□
10. Non-cooperation with the registered contractor □
11. None existence of enough management experience □
12. Less work □
13. Low prices of main registered contractor □
14. Others (Mention) ……………………………………………………………… 17. Is there close cooperation between the unregistered contractor and the registered one?
a- Yes □ b- No □
18. Do you ask the registered contractor to supply him with needed Labors?
a- Yes □ b- No □
19. Does the registered contractor adhere to the payment date agreed upon with the unregistered contractor
a- Yes □ b- No □
If the answer is No, why? …………………………………………………………… 20. Does the registered contractor adhere to the final payment agreed upon with the unregistered contractor?
a- Yes □ b- No □
If the answer is No, why? ……………………………………………………………
- 173 -
Part 6: Work Conditions and Training 1. How many hours do you work a day? ................................................................................
2. How many days do you work a year? ................................................................................. 3. How many non working days in the year? ........................................................................ 4. What do you do, when you have no work? ......................................................................
5. Do you whish that your sons work in this field in the future?
a- Yes □ b- No □
If the answer is Yes, why? …………………………………………………………… 6. How can you evaluate the work conditions regarding the psychological aspects?
a- Very good □ b- Good □
c- Averaged □ d- Poor □
e-Very poor □
7. Do you want to participate in training?
a- Yes □ b- No □
If the answer is Yes, What kind of training mechanism do you wish?
a- In the site □ b- Training center □
c- Others (Mention) …………………………………………………………………….
8. What kind of subjects do you want to be trained on?
a- Technical sides
□ b- Managerial sides
□
c- a+b
9. Is There any encourage from you towards your labor to enhance their skills and invents?
a- Yes □ b- No □
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10. What is the living level of you labors?
a- Poor □ b- Middle □ c- Rich □
11. Are there any laws or regulations for work & workers
a- Yes □ b- No □
12. Do you respect the regulations and laws by the National Authority in your works regarding work & workers
a- Yes □ b- No □
13. Do you keep the skilled labors during times of no work?
a- Yes □ b- No □
If the answer is No, why? …………………………………………………………… 14. Do your labors get training courses on your expense or on the expense of another party?
a- Yes □ b- No □
If the answer is No, why? ……………………………………………………………
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Part 7 : Health and Safety 1. Who is responsible about the work safety and site conditions?
a- Owner □ b- Main contractor □
c- You □ d- Other
(Mention)…………………………
2. Are there any rules for safety at site?
a- Yes □ b- No □
If the answer is Yes, clarify …………………………………………………………… 3. What are safety tools on site?
a- Education □ b- Protective clothes □
C- Warning signs
□ d- Others (Mentions)…………………….
4. Are you responsible about any damages at site?
a- Yes □ b- No □
If the answer is Yes, clarify …………………………………………………………… 5. Are there any suspension of work due to accident happened with you or your employee at site?
a- Yes □ b- No □
If the answer is Yes, How many days or month or year have you been suspended? …………………………………………………………………………………. 6. Please explain the accident? ………………………………………………………………………………………………………………………………………………………………………… 7. Please state the reason of the accident? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 8. Please state how this accident was managed? ……………………………………………………………………………………………………………………………………………………………………………………………… 9. How can the safety conditions at the site be enhanced? ……………………………………………………………………………………
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10. Are there any insurance for workers at your side?
a- Yes □ b- No □
If the answer is No, Why?............................................................................................................................................................................................................................................................................................................ 11. Is there health insurance for labors?
a- Yes □ b- No □
If the answer is No, Why?............................................................................................................................................................................................................................................................................................................ 12. Is there social insurance for labors?
a- Yes □ b- No □
If the answer is No, Why?............................................................................................................................................................................................................................................................................................................ 13. Is there health supervision from (Local Authorities, Ministry of Work) for Your labors?
a- Yes □ b- No □
14. Is there any precautions to release or stop any environmental damage by you through your work?
a- Yes □ b- No □
15. Is your company registered in social insurance?
a- Yes □ b- No □
If the answer is No, Why?...................................................................................................... 16. Does the contract signed between you and the registered contractor includes an item about labor insurance?
a- Yes □ b- No □
If the answer is No, Why?...................................................................................................................................................................................................................
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17. Do your workers wear the following tools and clothes during work?, More than one answer can be chosen?
Protection belts
□ Protection glasses
□
Head helmet □ Special shoes □
Protective clothes
□ Protective gloves
□
Protective mask
□ Others (Mention)...............................................
18. Are there any disciplinary actions taken by you against workers who are careless in implementing safety rules at the site?
a- Yes □ b- No □
If the answer is Yes, these action include:
a. Deduction of one- day wages □
b. Firing from work □
c. Stopping from work for a certain period of time □
Other (Mention) …………………………………………. …….
If the answer is No, Why?................................................................................................................................................................................................................................................................. 19. Do you take into consideration safety measures, during pricing?
a- Yes □ b- No □
If the answer is No, Why?................................................................................................................................................................................................................................................................. 20. Do you read the specifications regarding safety measures before and During implementing works?
a- Yes □ b- No □
If the answer is No, Why?.................................................................................................................................................................................................................................................................
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ANALYSIS OF THE INFORMAL CONSTRUCTION SECTOR "UNREGISTERED CONTRACTORS" IN THE GAZA STRIP
يف قطاع غزة"املقاولني الغري مسجلني" حتليل قطاع اإلنشاءات الغري رمسي
يف قطاع غزة"املقاولني الغري مسجلني" حتليل قطاع اإلنشاءات الغري رمسيأستبيان حول
Prepared by
Eng. Mustafa Fawzi El Kurd
Supervised by
Prof. Dr. Adnan Enshassi
Professor of Construction Engineering and Management
A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master in
Civil Engineering - Construction Management
June, 2007
The Islamic University - Gaza Higher Education Deanship Faculty of Engineering Department of Civil Engineering Construction Management
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- 179 -
Annex 2
بسم اهللا الرحمن الرحيم
نالمقاولين الغير مسجلي/ اإلخوة
استبيان حول تحليل قطاع اإلنشاءات الغير رسمي في قطاع غزة :لموضوعا
إن قطاع اإلنشاءات في . يعتبر قطاع اإلنشاءات من المصادر الرئيسية إلى العمالة والدخل في قطاع غزة
. الغير مسجلين والمقاولين معظم الدول يوصف بأنه يحتوي على عدد كبير من العمال
إتحاد مقاولين في قطاع غزة الغير مسجلين في الراسة هو فهم ظروف وشروط إن الهدف من هذه الد
وعليه نثمن . لكي نستطيع أن نحدد أين وكيف يمكن تحسين ظروف عملهم وزيادة درجة حمايتهمالمقاولين
علماً بأن المعلومات الشخصية التي يتم. لكم ردكم وإجاباتكم على القضايا المطروحة في هذا االستبيان
.الحصول عليها منكم سوف تكون سرية ، وشكراً لتعاونكم
:يتكون هذا االستبيان من األجزاء التالية
السيرة الذاتية : الجزء األول
لطبيعة العمل للمقاول الغير مسج: الجزء الثاني
الحياة المؤسسية: الجزء الثالث
وخبرة العملةالنواحي االقتصادي: الجزء الرابع
و العالقة مع المقاول المسجللالتحديات التي تواجه المقاول الغير مسج: الجزء الخامس
ظروف العمل والتدريب: الجزء السادس
الصحة واألمان: الجزء السابع
أخوكم مصطفى الكرد
- 180 -
للمقاول الغير مسجلالسيرة الذاتية: الجزء األول
:المركز اإلداري لمن يقوم بتعبئة االستبيان. ١
موظف الشركة- ب ب الشركة صاح- أ ):اختياري(الشركة / لاسم المقاول الغير مسج. ٢
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
:لالمستوى التعليمي للمقاول الغير مسج. ٣ دبلوم - ب فأقل ي ثانو–أ دراسات عليا- د جامعي- ج
:ظفو الشركة موعدد. ٤
غير األقارب- ب أقارب –أ
كم سنة تعمل في هذا المجال؟. ٥ أقل من سنة- أ
سنوات٥ من سنة إلى اقل من - ب سنوات١٠إلى اقل من سنوات٥ من - ج
ة سن١٥ سنوات إلى اقل من ١٠ من - د سنة١٥ أكثر من - هـ
يمكن أختيار أكثر )بشكل عام(مل الشركةطبيعة ع . ٦ :أجابة من
طرق- ب مباني- أ مياه ومجاري - د كهرميكانيك- ج - - - - - - - - - - - - - - - - - - - - - - - - - - )حدد(هـ أخرى
- - - - - - - - - - - - - - - - - - -
حسب المستوى لعدد موظفي المقاول الغير مسج. ٧
التعليمي دبلوم - ب فأقل ي ثانو–أ دراسات عليا- د جامعي- ج
؟لكم عمر المقاول الغير مسج. ٨ سنة ٣٠ أقل من –أ سنة ٤٠سنة حتى ٣٠ من- ب سنة ٤٠ أكبر من - ج
حسب العمرلعدد موظفي المقاول الغير مسج. ٩
سنة ١٨ أقل من –أ سنة ٣٠سنة حتى ١٨ من- ب سنة ٤٠سنة حتى ٣١ من- ج سنة ٤٠ أكبر من - د
لالحالة االجتماعية للمقاول الغير مسج. ١٠ أعزب- ب متزوج - أ
أرمل- د مطلق- ج
حسب الحالة لعدد موظفي المقاول الغير مسج. ١١
االجتماعية أعزب - ب متزوج - أ
أرمل- د مطلق- ج
لمالك شركة المقاول الغير مسج. ١٢
شخصين - ب شخص واحد - أ أشخاص٣ أكثر من - د أشخاص٣ - ج
- 181 -
:لطبيعة العمل للمقاول الغير مسج: الجزء الثاني
ع صاحب العملنوع العقود التي يتم توقيعها م. ١
ا عقد مكتوب- ب عقد قانوني - أ بدون عقد - د عقد شفوي- ج
- - - - - - - - - - - - - - - - - - هـ أخرى
رب العمل. ٢
شركة مقاوالت - ب خاص - أ- - - - - - - - - - - - - )حدد( أخرى - د الحكومة- ج
- - - - - - - - - - - - -
يمكن أختيار كيف تعرفت وعملت كمقاول غير مسجل ؟ . ٣
من أجابة أكثر من خالل األصدقاء- ب من خالل العائلة –أ من خالل ذهابك إلى الشركات المسجلة- ج من خالل السمعة- د
األخضر سابقا الخط من خالل العمل داخلهـ - - - - - - - - - - - - - - - - - - )حدد(ـ من خالل شئ آخرو
مع من عادةً يكون عملك؟ يمكن أختيار أكثر من أجابة .٤
المالكمباشرة مع- المقاولين المسجلين ب–أ
المكلف االستشاري- ج )األهالي( األعمال الخاصة- د
- - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى - هـ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
:هل يتم العمل بعقد. ٥ بسعر الوحدة - ب المقطوعة - أ ب+ أ- ج
- - - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى- د - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
كيف يتم الدفع لك كمقاول غير مسجل؟ . ٦ ي أسبوع- ج يومي- ب بالقطعة –أ
حسب الكميات المنفذة هـ شهري- د المستخلص على- و - - - - - - - - - )حدد(أخرى- ز
ما هو شكل الدفعة التي تتسلمها عادة ؟ .٧
شيك- ب نقدي–أ
- - - - - - - - - - )حدد( أخرى- د بناء مواد- ج
ءك أي عالوات؟ على سرعة انجاز األعمال هل يتم إعطا .٨
قبل الوقت المحدد؟ ال- ب نعم–أ
؟ يمكن لما هي مصادر الخبرة لدي المقاول غير مسج. ٩ أختيار أكثر من أجابة
الحصول على دورات تدريبية - أ ة الشخصيخبرة ال- ج بالتوارث- ب
التطورات التكنولوجية في عملكم هل يتم مواكبة. ١٠ ؟) والمعدات واإلدارة األدوات( ال- ب نعم - أ
م؟ هل يوجد هيكلية إدارية لشركتك. ١١ ال- ب نعم - أ
كيف يتم الحصول على األعمال؟ . ١٢
التكليف المباشر- المنافسة ب- أ
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متى يتم االتفاق مع المقاول المسجل على تنفيذ األعمال؟. ١٣
بعد الترسية- قبل الترسية ب- أماهي المؤسسات التي تعمل معها من خالل المقاول . ١٤
الغير مسجل؟
- - - - - - - - - -
التي عادة ) المقاول المسجل(أذكر شركات المقاوالت . ١٥ تعمل معها؟
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل لديك قدرة للتعامل مع طاقم اإلشراف بشكل جيد؟. ١٦
ال- ب نعم–أ - - - - - - - - - - - - - - - - - - - - - ، لماذاالإذا كان الجواب
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
ةالحياة المؤسسي: الجزء الثالث هل أنت عضو في أي اتحاد أو نقابة ؟ .١
ال- ب نعم–أ - - - - - - - - - - - - - - - - - - - - إذا كان الجواب نعم، وضح
- - - - - - - - - - - - - - - - - - - - - ، وضحالإذا كان الجواب - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
ما هي المنافع التي يتم كسبها من المؤسسة؟ يمكن . ٢
أكثر من أجابةأختيار تدريب- ج أدوات - ب نقود–أ معلومات عن األمان هـ دعم ونصائح- د - - - - - - - - - )حدد( أخرى– ز تأمين صحي - و
هل أنت مسجل أو عضو في الغرفة التجارية ؟. ٣ ال- ب نعم–أ
- - - - - - - - - - - - - - - - - - - - - - ، وضحالإذا كان الجواب
هل يبدي إتحاد المقاولين أي دعم وتطوير للمقاولين . ٤ الغير مسجلين؟
ال- ب نعم–أ
هل يوجد لدي الحكومة خطط لتطوير هذا القطاع؟. ٥
ال- ب نعم–أ هل لنقابة العمال عالقة بالمقاولين الغير مسجلين؟. ٦
ال- ب نعم–أ
هل ترى أن إتحاد المقاولين يهتم بالمقاولين الغير . ٧
مسجلين؟ ال- ب نعم–أ
هل حاولت التسجيل في أتحاد المقاولين؟. ٨
ال- ب نعم–أ - - - - - - - - - - - - - - - - - - - - ، وضحالإذا كان الجواب
ادية واألخالقيةهل يقوم إتحاد المقاولين بحل المشاكل الم. ٩
العالقة إن وجدت بين المقاول المسجل والغير مسجل؟
ال- ب نعم–أ
هل يجبر المالك للمشروع المقاول المسجل بتقديم . ١٠والوثائق الثبوتية للمقاول الغير مسجل قبل مباشرة األوراق
األعمال ؟
ال- ب نعم–أ - - - - - - - - - - - - - - - - - - - ح، وضالإذا كان الجواب
هادات الخبرةهل يقوم المالك للمشروع بإعطاء ش. ١٢ هل يساعد المالك للمشروع المقاول الغير مسجل في. ١١
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؟المسجل الحصول على مستحقاته من المقاول ال- ب نعم–أ
- - - - - - - - - - - - - - - - - - - - - ، وضحالإذا كان الجواب - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
للمقاول الغير مسجل نظير األعمال التي قام بها لصالح
المقاول المسجل؟
ال- ب نعم–أ - - - - - - - - - - - - - - - - - - - - ، وضحالإذا كان الجواب
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
و خبرة العملةالنواحي االقتصادي: الجزء الرابع
مة المشروع الواحد بالدوالرمعدل قي. ١ دوالر٥٠٠٠٠ أقل - أ
دوالر١٠٠٠٠٠ أقل من – ٥٠٠٠٠ من - ب دوالر١٥٠٠٠٠ أقل من – ١٠٠٠٠٠ من - ج دوالر٢٠٠٠٠٠ – ١٥٠٠٠٠ من - د
معدل مدة المشروع الواحد يمكن أختيار أكثرمن أجابة. ٢
أقل من نصف سنة- أ أقل من سنة– من نصف سنة - ب أقل من سنة ونصف–ة من سن- ج سنتان – من سنة ونصف - د
معدل األعمال السنوية للشركة .٣ أقل من مائة ألف دوالر- أ
من مائة ألف إلى أقل من مائتي ألف دوالر- ب ألف دوالرة من مائتي ألف إلى أقل من ثالثمائ- ج إلى أقل من أربعمائة ألف دوالرة من ثالثمائ- د
ألف دوالرةمائة إلى خمسمائ من أربع- هـ ألف دوالرة خمسمائن أكثر م- و
يمكن لعدد المعدات التي يملكها المقاول الغير مسج. ٤ أكثر من أجابة أختيار
رجاج خالط باطون ميكانيكي مدحلة كبيرة مدحلة صغيرة
حفار صغير كباش شحن حفار كبير سيارة نقل عمال تراكتور
مولد كهربائي مضخة دهان )٣م(خشب طوبار مضخة رفع
ماكنة لحام صغيرة ماكنة لحام كبيرة - - - - - - - - - - - - - - - - - - - - - - - - - - )حدد(أخرى
- 184 -
قيمة المعدات التي تملكها الشركة بالدوالر. ٥ دوالر١٠٠٠٠ أقل من - أ
دوالر١٥٠٠٠ – ١٠٠٠٠ من - ب دوالر٢٠٠٠٠ أقل من – ١٥٠٠٠ من - ج دوالر٢٥٠٠٠ – ٢٠٠٠٠ من - د
الشركة النسبة المئوية للمعدات التي تستأجرها. ٦
%٢٥ أقل من - أ %٥٠ أقل من - % ٢٥ من - ب %٧٥ أقل من - % ٥٠ من - ج % ١٠٠ - % ٧٥ من - د
هـ ال يوجد
سنوات في٥عدد األعمال التي تم تنفيذها من قبلكم آخر . ٧ :الحاالت اآلتية ؟
قصارة بناء أعمال باطون أعمال دهان
راميكا أعمال سباكةأعمال بالط وك أعمال مجاري خارجية ومياه أعمال كهربائية
أعمال طرق أعمال حدادة أعمال نجارة أعمال ألمنيوم
- - - - - ) حدد(أعمال ميكانيكي أخرى - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
عدد األعمال التي يتم تنفيذها من قبلكم سنويا لحساب . ٨ . المسجل المقاول
عمل٢ - ب عمل واحد - أ أعمال٤ - أعمال د٣ - ج
أعمال٥ أكثر من - أعمال و٥هـ ال يوجد - ز
التي يتم تنفيذها من طرفكم سنويا عدد المشاريع . ٩
.لحساب األهالي مشروع ٢ - ب مشروع واحد - أ
مشاريع٤ - د مشاريع٣ - ج مشاريع ٥ أكثر من - مشاريع و٥هـ
ال يوجد - ز
عدد (في الشهركم يوم عمل يعمل العاملين لديكم . ١٠
؟ )العاملين في اليوم ضرب عدد أيام العمل في الشهر يومية١٠٠ أقل من - أ
يومية ٢٠٠ يومية إلى أقل من ١٠٠ من - ب يومية٣٠٠ يومية إلى أقل من ٢٠٠ من - ج يومية٣٠٠ أكثر من - د
للعمل؟ةمن يشتري المواد الالزم. ١١
ب المالك أو المقاول مسجل–أ
لالمقاول الغير مسج- ب ب+ أ- ج
رفكم؟ طما هي نسبة مواد البناء التي يتم شراءه من . ١٢
ال يوجد - أ %٢٥ أقل من - ب %٥٠ أقل من - % ٢٥ من - ج %٧٥ أقل من - % ٥٠ من - د
%١٠٠ - % ٧٥ من - هـ
- 185 -
هل يتم التعامل مع البنوك لتمويل أعمالكم ؟. ١٣
ال - نعم ب- أ - - - - - - - - - - - - - - - - - - - - - إذا كان الجواب نعم، لماذا
- - - - - - - - - - - - - - - - - - - - - - ، لماذا الإذا كان الجواب
هل يوجد لمقاول الباطن أي مصادر دخل أخرى ؟. ١٤
ال- نعم ب- أ - - - - - - - - - - - - - - - - إذا كان الجواب نعم، وضح
ما هي طريقة التمويل إلعمالكم؟. ١٥ دفعة مقدمة من صاحب العمل - قروض ب- أ
ج+ب+ أ- د تمويل شخصي - ج - - - - - - - - - - - - - - - - - - - - - - - - )حدد(هـ أخرى
عدد العاملين في الشركة . ١٦ مؤقت- ب دائم - أ
؟ل للمقاول الغير مسجلمقدار رأس الما. ١٧ دوالر١٠٠٠٠ أقل من - أ
دوالر٢٠٠٠٠ – ١٠٠٠٠ من - ب دوالر٣٠٠٠٠ أقل من – ٢١٠٠٠ من - ج دوالر٤٠٠٠٠ –٣١٠٠٠ من - د
دوالر٤٠٠٠٠ أكثر من - هـ
مقدار الربح السنوي. ١٨ دوالر٥٠٠٠ أقل من - أ
دوالر١٠٠٠٠ – ٥٠٠٠ من - ب دوالر ٢٠٠٠٠ أقل من – ١١٠٠٠ من - ج دوالر٢٥٠٠٠ –٢١٠٠٠ من - د
دوالر ٢٥٠٠٠ أكثر من - هـ
كم متوسط أجرة العامل اليومية الغير فني لديكم؟. ١٩
شيكل٤٠ أقل من- أ شيكل٦٠ أقل من – شيكل ٤٠ من - ب شيكل٨٠ أقل من – شيكل ٦٠ من - ج شيكل٨٠ أكثر من - د
؟كم متوسط أجرة الفني اليومية لديكم. ٢٠ شيكل٥٠ أقل من- أ
شيكل٧٠ أقل من – شيكل ٥٠ من - ب شيكل٩٠ أقل من – شيكل ٧٠ من - ج شيكل٩٠ أكثر من - د
كم متوسط أجرة المراقب أو المساح اليومية لديكم؟ . ٢١ شيكل؟٦٠ أقل من- أ
شيكل٨٠ أقل من – شيكل ٦٠ من - ب شيكل١٠٠ أقل من – شيكل ٨٠ من- ج شيكل١٠٠ أكثر من - د
كم متوسط أجرة المهندس اليومية لديكم؟ أن وجد؟. ٢٢ شيكل٨٠ أقل من- أ
شيكل١٠٠ أقل من – شيكل ٨٠ من - ب شيكل١٢٠ أقل من – شيكل ١٠٠ من - ج شيكل١٢٠ أكثر من - د
أعمالهم؟هل يتم تعويض الموظفين لديكم عند انتهاء . ٢٣
ال- ب نعم - أ - - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال لماذا ؟
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
سليم؟ماهي اكبر قدرة لديكم لتنفيذ مشاريع بشكل. ٢٤
دوالر٥٠٠٠٠ أقل من - أ دوالر١٠٠٠٠٠ أقل من – ٥٠٠٠٠ من - ب دوالر١٥٠٠٠٠ أقل من – ١٠٠٠٠٠ من - ج دوالر٢٠٠٠٠٠ –١٥٠٠٠٠ من - د
دوالر٢٠٠٠٠٠ أكثر من - هـ
- 186 -
سجلال و العالقة مع المقاول لالتحديات التي تواجه المقاول الغير مسج: الجزء الخامس
ب التي تجعلك تعمل كمقاول غير مسجل؟ ما هي األسبا. ١ أختيار أكثر من أجابة يمكن
الهروب من الضرائب –أ ل أن أصبح مقاول مسج- ب عادلة رالقوانين الحكومية الغي- ج اإلمكانيات المادية- د
- - - - - - - - - - - - - - - - - - - - - - - - - - )حدد(هـ أخرى
ل والغير هل تعتقد أن العالقة بين المقاول المسج. ٢ :؟عالقة المسجل هي
تنافسية - ب مكملة لبعض–أ - - - - - - - - - - - - - - - - - - - - - - - - )حدد(أخرى_ ج
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل تعتقد أن المقاول الغير مسجل يؤثر على االقتصاد . ٣
:ختيار أكثر من أجابة؟ يمكن أالرسمي من ناحية تقليل الدخل من الضرائب–أ يشوه التسعير المنظم- بسجلين على التهرب من االلتزامات المن يساعد المقاولي- ج
الحكومية تقليص الحقوق المنصوص عليها للعاملين - د
هـ يساعد المواطن في االعتماد على النفس قتصاد الوطنيدعم لال_ و - - - - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى- ز
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل كنت في السابق مقاول مسجل؟. ٤ ال- نعم ب- أ
؟لإذا كان الجواب نعم لماذا تحولت إلى مقاول غير مسج : يمكن أختيار أكثر من أجابة
ضرائب التهرب من ال- ا اإلمكانيات المادية المحدودة- ب عدم المقدرة على المنافسة- ج خالف مع الشركاء السابقين- د
- - - - - - - - - - - - - - - - - - - - - - - - - )حدد(هـ أخرى - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
ريق لدخول هل تعتقد أن التدريب وزيادة المعرفة هي الط.٥ ؟قطاع المقاوالت الرسمي
ال - نعم ب - أ - - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال لماذا ؟
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
ما هي الوسائل التي يمكن إتباعها ليصبح هذا القطاع . ٦
ورسمي؟ قانوني تبسيط النظام الضريبي –أ تطوير النظام الضريبي- ب تسهيالت ضريبية على األعمال قليلة الدخل- ج - - - - - - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى- ز - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- 187 -
هل تم تقديم أي شكوى ضدكم من قبل مقاول مسجل. ٧
؟الضريبةالعمل لدائرة بخصوص المنافسة في ال - ب نعم - أ
هل يتم المنافسة بينكم وبين المقاول المسجل في . ٨
التي تخص القطاع الخاص؟ األعمال
ال - ب نعم - أ
هل يتم تبادل الشكاوى بينكم وبين المقاولين المسجلين .٩
؟مية وخاصة دائرة الضريبةفي الدوائر الحكو ال- نعم ب- أ
- - - - - - - - - - - - - - - - - - إذا كان الجواب ب نعم وضح - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل تم تقديم أي شكوى ضدكم من قبل مقاول مسجل. ١٠
بخصوص عدم وجود ملف ضريبي يخصكم؟ ال - ب نعم - أ
- - - - - - - - - - - - - - - - - - إذا كان الجواب ب نعم وضح - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل المقاول الغير مسجل يحتفظ بوثائق وسجالت .١١ المشاريع؟
ال - ب نعم - أ - - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال لماذا ؟
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يلتزم المقاول المسجل باألسعار المتفق عليها مع . ١٢الغير مسجل قبل ترسية العطاء إذا تم ترسية العطاء المقاول
قبل المالك؟ عليه من ال- ب نعم - أ
- - - - - - - - - - - - - - - - - إذا كان الجواب ب ال لماذا ؟ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يكتسب المقاول الغير مسجل خبرة من النواحي . ١٣ واإلدارية من المقاول المسجل ؟ الفنية
ال- ب نعم - أ
هل المقاول المسجل يقوم بتقديم خبراته للمقاول الغير. ١٤ مسجل؟
ال- ب نعم - أ
ما هي المشاكل الموجودة بين المقاول المسجل و الغير . ١٥
:مسجل؟ يمكن أختيار أكثر من أجابة انخفاض األسعار لألعمال من قبل المقاول الغير مسجل - ١
األجرة المرتفعة المعطاة للعمال من قبل المقاول الغير - ٢ .مسجل
بار للضريبة من قبل المقاول التسعير بدون إعطاء أي اعت- ٣ .لغير مسجلا تقديم الشكاوي لدائرة الضريبة من قبل المقاول المسجل- ٤
.ضد المقاول الغير مسجل الطعن في جودة العمل الذي يقوم فيه المقاول الغير- ٥
مسجل من قبل المقاول المسجل أمام المالك للمشروع أو من زيمثله
عيق تقدم المقاول الغير مسجل؟ ما هي اإلعاقات التي ت. ١٦
:يمكن أختيار أكثر من أجابة العجز المالي- ١ فقدان سياسة التشجيع من الحكومة- ٢
عدم وجود جمعيات أو مؤسسات ترعى هذا القطاع- ٣
عدم وجود برامج تأهيل وتدريب- ٤
زيادة المنافسة يؤدي إلى تقليل األسعار- ٥
)ر السياسياالستقرا( الوضع السياسي- ٦
االحتكار للعمل من قبل المقاول المسجل - ٧ عدم االستمرارية في وجود مشاريع على مدار العام - ٨ سياسة التصنيف المعتمدة من قبل اتحاد المقاولين - ٩
عدم التعاون مع المقاول المسجل- ١٠
- 188 -
- - - - - - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى- ٦ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
عدم وجود خبرة إدارية كافية- ١١ قلة األعمال- ١٢ )الرئيسي( انخفاض أسعار المقاول المسجل - ١٣ - - - - - - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى- ١٤
جد تعاون وثيق بين المقاول الغير مسجل هل يو. ١٧ والمقاول المسجل؟
ال- ب نعم - أ
هل تم الطلب من المقاول المسجل بتوفير العمال للعمل . ١٨ لديه من قبلكم؟
ال- ب نعم - أ
لمتفق هل يلتزم المقاول المسجل بمواعيد الدفعات ا. ١٩
عليه مع المقاول الغير المسجل؟ ال- ب نعم - أ
- - - - - - - - - - - - - - - - - إذا كان الجواب ب ال لماذا
هل يلتزم المقاول المسجل بدفع الدفعة النهائية . ٢٠
للمقاول الغير المسجل؟ ال- ب نعم - أ
- - - - - - - - - - - - - - - - - ال لماذا إذا كان الجواب ب
ظروف العمل والتدريب: الجزء السادس
- - - - - - - - - - - - ؟ عدد األيام التي تعملها في السنة. ٢ - - - - - - - - - - - - - - - - - كم ساعة تعمل في اليوم ؟. ١
- - - - - - - - عدد األيام التي ال تعملها فيها في السنة؟. ٣
- - - - - - - - - - ك عمل؟ماذا تعمل عندما ال يكون عند. ٤ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل ترغب أن يعمل أوالدك في المستقبل في هذا . ٥
المجال؟ ال- ب نعم–أ - - - - - - - - - - - - - - - - - - إذا كان الجواب نعم، لماذا ؟ - - - - - - - - - - - - - - - - - ؟ إذا كان الجواب ب ال، لماذا
النفسية؟ةوف العمل من الناحيكيف تعتبر ظر .٦
جيدة- ب جيدة جداً–أ ضعيفة - د متوسطة- ج
هـ ضعيفة جداً
هل ترغب عمل تدريب لكم؟ . ٧ ال- ب نعم–أ
ريبإذا كان الجواب نعم، ما هي الطريقة التي ترغبها في التد مركز تدريب - ب في الموقع–أ - - - - - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى- ج
ما هي الموضوعات التي ترغب في التدرب عليها. ٨ نواحي فنية - أ
نواحي إدارية - ب ب+ أ- ج
- 189 -
هل يوجد تشجيع للمهارات واالبتكارات لعمالكم من . ٩
قبلكم؟
ال- ب نعم - أ
ما هو المستوى المعيشي للعمال عندكم؟. ١٠
غني- متوسط ج- فقير ب- أ
هل تعرف أن هناك أنظمة وقوانين للعمل والعمال؟. ١١
ال- ب نعم - أ هل يتم إتباع األنظمة والقوانين المتبعة من قبل .١٢
الوطنية في عملكم والخاصة بالعمل والعمال؟ السلطة ال- نعم ب- أ
هل تحتفظ بالعمال المهرة عند عدم وجود عمل لديكم؟. ١٣ ال- ب نعم - أ
- - - - - - - - - - - - - - - - - - - - - إذا كان الجواب ال، لماذا - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يتم عمل دورات تدريبية لعمالكم على نفقتكم أو . ١٤ طرف آخر؟نفقة أي
ال- ب نعم - أ - - - - - - - - - - - - - - - - - - ٠٠ إذا كان الجواب ال، لماذا
الصحة واألمان: الجزء السابع
من المسئول عن أمان العمل وظروف الموقع. ١ ل الرئيسي المقاو- ب المالك–أ - - - - - - - - - - )حدد( آخر- د - د أنت- ج
هل يوجد أي لوائح لألمان في الموقع ؟. ٢ ال- ب نعم–أ
- - - - - - - - - - - - - - - - إذا كان الجواب نعم، وضح
ما هي أدوات األمان في الموقع؟. ٣ مالبس حماية- ب التعليم–أ - - - - - - - - - - - )حدد( آخر- د إشارات تحذير- ج - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل أنت مسئول عن أي خطر في األمان في الموقع؟ .٤ ال- ب نعم–أ
- - - - - - - - - - - - - - - - - - إذا كان الجواب نعم، وضح - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
عك أو معهل تم توقيفك من العمل بسبب حادث وقع م. ٥ موظفيك في الموقع؟
ال- ب نعم–أ إذا كان الجواب نعم،
- - - - - - - - كم يوم أو شهر أو سنة تم توقيفك
الرجاء وضح الحادث .٦ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
الرجاء أذكر السبب لوقوع الحادث . ٧ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
الرجاء أذكر كيف تم إدارة الحادث . ٨ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- 190 -
كيف يمكن تحسين ظروف األمان في الموقع؟. ٩ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يتم التأمين على العاملين عندكم؟. ١٠
ال- ب نعم - أ - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال، لماذا
هل يتم عمل تأمين صحي للعمال؟ . ١١
ال- ب نعم - أ - - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال، لماذا - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يتم عمل تأمين اجتماعي للعمال؟. ١٢ ال - نعم ب- أ - - - - - - - - - - - - - - - - اإذا كان الجواب ب ال، لماذ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
وزارة - السلطات المحلية(هل يتم المراقبة الصحية. ١٣
لعمالكم؟ ) العمل ال- ب نعم - أ
هل يتم اتخاذ أي احتياطات لتخفيف أو منع أي تلوث . ١٤
بيئي من قبلكم خالل عملكم؟ ال - ب نعم - أ
هل شركتكم مسجلة في أي تأمين اجتماعي؟. ١٥ ال- نعم ب- أ
- - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال، لماذا - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
كم وبين المقاول المسجل هل يشمل العقد الموقع بين. ١٦ بند يشمل التأمين على عمالكم؟
ال- نعم ب- أ - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال، لماذا
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يتم ارتداء األدوات والمالبس اآلتية من قبل عمالكم . ١٧ : من أجابةأثناء العمل؟ يمكن أختيار أكثر
األحزمة الواقية النظارات الواقية الطاقية الواقية الحذاء الخاص
المالبس الواقية القفازات الواقية - - - - - - - - - )حدد(كمامة واقية أخرى
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يتم اتخاذ أي أجراء من قبلكم لمن يستهتر من . ١٨ عمالكم بتطبيق احتياطات األمان في الموقع؟
ال- ب نعم - أ : يشمل؟بهل العقاإذا كان الجواب نعم،
فصل من العمل - خصم يوم عمل ب- أ توقف عن العمل لمدة محدودة - ج - - - - - - - - - - - - - - - - - - - - - - - - - - )حدد( أخرى- د
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال، لماذا
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يتم األخذ بعين االعتبار احتياطات األمان أثناء . ١٩
التسعير؟ ال - نعم ب- أ
- - - - - - - - - - - - - - - - - - إذا كان الجواب ب ال، لماذا - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
هل يتم قراءة الموصفات قبل وخالل التنفيذ وخاصة . ٢٠
احتياطات األمان ؟ ال- ب نعم - أ
- - - - - - - - - - - - - - - - - إذا كان الجواب ب ال، لماذا