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Discrepancies in tendering process putting construction industry at risk

QUALITY INFRASTRUCTURE WSP Consulting’s involvement with the Green Buildings Council, provides the firm with the opportunity to shape the industry in terms of setting benchmarks for good practice

ROAD INFRASTRUCTURE Michael Bouwmeester says lowest prices offered by firms has made it increasingly difficult to provide a sustainable working environment in which projects can be delivered on time and within budget

15th November 2013

By: Zandile Mavuso

Creamer Media Senior Deputy Editor: Features

  

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The current emphasis on the procurement of consulting engineering services, based on the lowest price offered by the competing firms, has put the sustainability of the consulting engineering industry at risk, says international consulting engineering firm WSP Consulting.

WSP Group Africa divisional director Michael Bouwmeester notes that it is becoming increasingly difficult to provide a sustainable working environment in which projects can be delivered on time and within budget, as a result of the challenge presented by current procurement practices in the industry.

Tenders being awarded to consulting firms because of the lowest price offered as opposed to value added, leads to poor performance and a poor quality outcome, making the industry less competitive and less sustainable.

“We are aware of several projects being planned; however, there appear to be difficulties in procuring the work from public-sector bodies, resulting in long-lead times and continual challenges pertaining to the availability of work,” he says.

In January, the Built Environment Professions Grouping (BEP) – comprising the Association of Construction Health and Safety Management, the Association of South African Quantity Surveyors, Consulting Engineers South Africa (Cesa), the Institute for Landscape Architecture in South Africa, the South African Black Technical & Allied Careers Organisation and the South Africa Institute of Architects – collectively voiced its concerns on the lack of infrastructure delivery in South Africa and the inadequate mechanisms used to procure professional services.

“While BEP welcomes government’s revised infrastructure budget in terms of the 18 Strategic Integrated Projects (Sips) as a positive move, the group argues that the barrier to infrastructure delivery lies in the lack of transparency during the procurement processes involved in allocating professional services and tenders,” reports Cesa.

The South African government adopted a National Infrastructure Plan in 2012 that intends to strengthen the delivery of basic services and to transform the economic landscape of the country, while creating a significant number of new jobs. The plan also supports the integration of African economies.

In his 2013 Budget speech, Finance Minister Pravin Gordhan noted that government, starting from 2013/14, would invest R827-billion in the building of new infrastructure and in the upgrading of existing infrastructure over the three years, as part of the 18 Sips.

“These investments will improve access for South Africans to healthcare facili- ties, schools, water, sanitation, housing and electrification investment through the construction of ports, roads, railway systems, electricity plants, hospitals, schools and dams, which will contribute to faster economic growth. The biggest spend of the investment in infrastructure will continue to come from State-owned power utility Eskom, which will invest R205.1-billion over the next three years. Eskom’s new power stations, Medupi and Kusile, are expected to start producing electricity in 2014 and 2015 respectively,” said Gordhan.

Cesa, however, points out that the lack of transparency in the procurement process manifests in the form of obscure decision-making processes and the unequal distribution of professional services, bols- tered by a high potential for corruption and weak accountability mechanisms, as well as a lack of scrutiny when allo- cating public funds.

Bouwmeester adds that, owing to the nature of the construction industry, it is difficult to have a good idea of future project flow and, therefore, plan accordingly for skills development, recruiting young graduates and providing employment opportunities.

However, WSP states that, through its current projects involving roads and stormwater, property developments, mining, fibre-optics and water infrastructure, the firm has been able to provide employment for more than 100 employees.

He notes that if the infra- structure projects that comprise the 18 Sips that have been promised by government can be delivered quickly enough to support the consulting engineering and construction industry, there could be an increase in employment in the sector, leading to economic growth.

“There is an ever-increasing importance placed on sustain- able, green solutions that reduce not only design and construction impact on the environment but also maintenance needs and life-cycle impact. In many cases, these are greater than the initial design impact. Through our involvement with the Green Buildings Council, WSP has had the opportunity to shape the industry in terms of setting benchmarks for good practice,” highlights Bouwmeester.

WSP welcomes the opportunity to provide support and expertise for the public sector to deliver construction projects in South Africa and to ensure the successful delivery of the required infrastructure to build and develop the country.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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