http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.24Change: 0.09
R/$ = 10.57Change: 0.03
Au 1306.12 $/ozChange: -6.51
Pt 1486.50 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 07, 2008

Contractor promises proactive engagement with competition body in construction sector probe

Back
 
Construction|Engineering|Africa|Aggregates|Cement|Flow|Murray & Roberts|PROJECT|Africa|South Africa|Cement|Construction Group|Construction-services|Flow|Steel|Transport|Competition Commission|Brian Bruce|Infrastructure|Ricoh Caplio R30 Digital Camera
construction|engineering|africa-company|aggregates|cement-company|flow-company|murray-roberts|project|africa|south-africa|cement|construction-group|construction-services-industry-term|flow-industry-term|steel|transport-industry-term|competition-commission|brian-bruce|infrastructure|ricoh-caplio-r30-digital-camera
© Reuse this



Leading South African construction group Murray & Roberts (M&R), which is listed in the JSE and has a market capitalisation of more than R30-billion, says it has adopted a "proactive" policy of engagement with South Africa's competition authorities, which have initiated an investigation into possible anticompetitive practices in the construction industry.

Speaking last week CEO Brian Bruce indicated that it was dealing with requests for information from the Competition Commission and that it would not be a "defensive player" in the unfolding processes.

He refused to be drawn on whether this engagement could result in an application for corporate leniency, saying only that "we are going to be proactive".

"We are not hiding under a tree, we are not going to deny issues, and we will deal with issues as they arise," Bruce said.

The company stressed, though, that "it would be incorrect to assume that corrupt practices are endemic to the industry and its associates".

Late last year, it emerged that the Competition Commission had set up a sizable multidisciplinary team to review the construction-materials and -services sector as a precursor to a full-scale investigation into possible anticompetitive practices in the industry.

Major areas of concern identified related to consistently high rates of price increases for many products, such as bricks, aggregates, cement and reinforcing steel; high levels of concentration and barriers to entry in the construction-materials market; and significant transport costs, which lowered the threat of import competition.

The commission was also concerned about the high levels of concentration in the construction-services sector, and the opportunity this offered for bid rigging, which if left unrestrained, could add to the costs associated with government's R500-billion-plus, five-year public infrastructure roll-out.

In a separate interview with Engineering News, Bruce stressed that, while there was a tendency towards negotiated contracts, there was still a strong competitive element in the sector.

"This [negotiated contracts] usually involves the preselection by the client of two or three preferred partners, which have to go through some initial hurdles. These hurdles are designed to choose the one most suited to go forward," he explained, adding that the key competitive element in these instances related to the economic viability of the project itself.

He acknowledged, though, that historical practices of similar contractors partnering to ensure work flow in the context of a market in decline, would probably be an anathema in the current environment.

"As we move forward into a growing market, it is incumbent on as many players as possible to grow their capacities, so as to be able to deal with the project in their own right and only alliance, or partner, with other players who bring a different set of skills into the mix."

He suggested that market participants with similar capabilities would probably no longer even consider partnering. "I think today, that would be viewed as anticompetitive," he concluded.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Video News
More
 
 
Latest News
Nersa's Thembani Bukula
Updated 2 hours 17 minutes ago A standardised tariff for electricity resellers is needed to avoid consumers being overcharged, energy regulator National Energy Regulator of South Africa (Nersa) said on Tuesday. "The pressing problem right now is that there is a standardised tariff that they...
Economic Development Minister Ebrahim Patel
Updated 2 hours 25 minutes ago Economic Development Minister Ebrahim Patel says government will be prioritising six ‘I’s as part of its “radical economic transformation” agenda for the coming five years. Delivering his Budget Vote in Parliament on Tuesday, Patel said the six components...
Venetia mine
Updated 2 hours 37 minutes ago In what could be the single-largest contract awarded to construction major Murray & Roberts (M&R) since the Eskom power build programme, M&R subsidiary M&R Cementation has secured a R2.6-billion contract to develop an underground mine beneath diamond major De...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Bob Skinstad
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks