Inside Track September 2004 - Inside by sdsdfqw21


									                                                                                                                  September 2004
                     Keeping you informed

           he South African                                                                                        Africa and establishes it as the
           Association of                                                                                          highest on the continent and
           Consulting Engineers                                                                                    amongst the highest in the world.
           (SAACE) recently                                                                                            In the sub-category for
recognised the outstanding                                                                                         Engineering Excellence for proj-
achievements of its members                                                                                        ects with a value less than R5-
when it announced the winners                                                                                      million there was only one entry,
of its annual SAACE Glenrand                                                                                       but the innovation of the project
MIB Excellence Awards for 2004                                                                                     earned Jeffares & Green a com-
at the Sandton Hilton in a glitter-                                                                                mendation from the adjudication
ing event attended by more than                                                                                    panel for its Schools Play-pump
400 guests.                                                                                                        Programme. This is a simple,
    Winners were named in seven                                                                                    sustainable, win-win develop-
categories and four commenda-         President of SAACE, Craig Clarke and his wife, Alsona, at the SAACE          ment initiative undertaken by the
tions were presented in a year        Glenrand MIB awards ceremony with Andile Sangqu of Kagiso Trust              Dept of Water Affairs and
                                      Investment, sponsor of the Young Engineer Award.                             Forestry at primary schools in
when total entries received
amounted to an impressive 37.         two previous commendations in              This project was technically      rural KwaZulu-Natal.
    Says Craig Clarke, president      this category in 2001 and 2002.        different to anything undertaken          ILISO Consulting, which has
of SAACE: “This year saw the              This year the most hotly con-      in this country before and dealt      grown from a staff complement
introduction of a new category        tested category was for                with the largely unpredictable        of 50 to a current staff of 150,
aimed at the young professionals      Engineering Excellence for proj-       natural phenomenon of rockfalls.      was named as Young Company
in our industry. This is in line      ects exceeding R5-million with a           The first commendation was        of the Year. Its growth has been
with SAACE’s initiatives to           total of 15 entries being received.    awarded to BKS, PD Naidoo &           achieved largely organically, but
establish a Young Professionals           Due to the high quality of         Ass and ARQ for the Nelson            this has been augmented by
Forum which aims to increase          entries and the close results          Mandela Bridge. Not only was          small strategic acquisitions.
the involvement of under 35 year      recorded by the adjudication           the cable-stayed bridge project a         The award for International
old engineers and technical staff     panel, two commendations were          South African first, the construc-    Business Developer of the Year
in the affairs of the association.    made in this category in addition      tion process involved innovative      was given to Ingérop Africa.
    “We recognise that these          to the winner.                         designs, economic empowerment,        From a mere 5% of income
young professionals are the               The winner for Engineering         job creation, training and oppor-     being generated outside South
future of the industry and this       Excellence was the Chapman’s           tunities for small businesses.        African borders in 1995, this
focus is aimed at revitalizing the    Peak Engineering Group, con-               The second commendation           firm has by 2004 grown the pro-
industry and ensuring that we are     sisting of Melis Du Plessis            was awarded to the Mohale             portion of turnover it generates
able to position consulting engi-     Consulting, Zietsman Lloyd and         Consultants Group submitted by        beyond our borders for the first
neering as a profession of choice     Hemsted, Stewart Scott and Vela        Stewart Scott for the Mohale          time to more than 50%.
for this generation.”                 VKE for The Rehabilitation of          Dam which is a 145m high con-             In the category for Visionary
    In the category of Business       Chapman’s Peak Drive in Cape           crete faced rockfill dam designed     Client of the Year, a total of six
Excellence, for the second con-       Town for the Western Cape              to store water from the               nominations were received. The
secutive year, Bigen Africa was       Provincial Administration and          Senqunyane River. It is the first                          Continued on page 3
named as winner. This follows its     Entilini Concession.                   dam of its height in Southern

                                                                                                                    Risk Management Committee
                                                                                                                    Prepares Up-To-Date Guidelines          2
                                                                                                                    Proudly SA looks for profit in World Cup 3
                                                                                                                    SAACE Glenrand MIB
                                                                                                                    Excellence Award Winners              4/5
                                                                                                                    Kagiso Trust Investment Aligns
All the entrants for the Young Engineer of the Year. (Back from left) Johan van Schalkwyk, manager School of        with Young Engineers                     5
Consulting Engineering and member of the Young Professionals Forum Committee; Mathieu Du Plooy of WSP
Consulting Engineers; Bruce Morton of Ninham Shand; Johan Kruger of Africon. (Front from left) Chris Wise of        Getting Money Back for EPWP Training 6
Jeffares & Green Consulting Engineers; Beate Scharfetter of Bigen Africa; Graham Pirie, executive director of       Joint SAACE / SAFCEC Conference - PE 7
SAACE; Clint Koopman of ILISO Consulting; Neresh Pather of PD Naidoo & Associates and Balibeng Dube of
Asakheni Consulting. (Absent: Sunil Rupee of tpa Consulting)

- Chairman Risk Management Committee

           eon Furstenburg is a        design team and the executive
           qualified civil engineer,   committee for the consortium
           having completed a          responsible for the Braamhoek
           BSc (Wits) in 1979 in       Hydroelectric project for Eskom.
water engineering, before com-            Having been awarded a bur-
pleting his MSc (Wits) in 1983         sary from the Johannesburg City
and has worked in water during         Council he completed his studies
his entire career specialising in      before joining Binnie and
large dams, hydraulics, spill-         Partners. Later he joined the
ways, water resource planning          former Watermeyer Legge
and hydrology systems.                 Piesold Ullman, which later
                                                                                Leon Furstenburg, Chairman of SAACE’s Risk Management
    Notably he was involved in         became Knight Piesold, as an
                                                                                Committee, dedicated to managing risk.
the Tugela Vaal Planning Study         engineer and where he has since
and was part of the detail design      progressed to the position of       mittee which lasted almost five     spending time on his back under-
team for Katsi Dam focusing on         managing director of the            years. He recently became           neath his rebuilt Landrover
the hydraulic designs and spill-       Southern African operations with    involved in the Association’s       which he uses for his frequent
way. Internationally, his experi-      responsibility for South Africa,    affairs when he took over           escapes to the bush in Central
ence includes being part of the        Swaziland, Botswana, Lesotho        Chairmanship of the Risk            Mocambique or to the dunes of
technical review team for the          and Mocambique. He is also a        Management Committee.               Namibia. Leon is married with
Berg River Dam Project and part        member of the international             Leon has two major hobbies      three children, two girls and a
of the engineering construction        board of Knight Piésold.            in life, one of which is cabinet    boy, the eldest are now studying
team for the Ntimbali Dam in              His commitment to the            making where he enjoys crafting     at RAU and the youngest daugh-
Botswana near Francistown. He          Association goes back to his        furniture out of yellowwood,        ter is in Grade 9.
is currently a member of the           involvement with the water com-     blackwood and teak. The other is

    Risk management committee prepares up-to-date guidelines
   The risk management committee, of which Leon                            and risk. The construction          British and French firms have.
Furstenburg is chairman, is charged with considering                       industry has been in a soft mar-    Tied funding has had a lot to do
                                                                           ket since the late 1980s making     with this and this is something
issues and providing guidance to firms with respect to                     it probably the longest soft mar-   which has worked against South
the management of risk.                                                    ket ever experienced. This has      African firms.
     Says Furstenburg: “The pri-       scope and risk.                     led to a situation where fees           “For firms wanting to work in
mary issue facing firms at the            “Firms must definitely not go    have not kept pace with increas-    Africa, the risk scenario’s are
moment is that they are put            into this blind, for this reason,   ing risk and responsibility.        very different. I always say that
under pressure to reduce fees, as      the risk management committee           “There are great expectations   there are three things to check:
a result they are put under time       has been reviewing all the guide-   that with government’s alloca-      the banker, the banker and the
pressures and it is in situations      line documents in light of the      tions for infrastructure invest-    banker.
such as this that the firms are        changes in legislation.             ment that there will be an              “Also there are different lev-
exposed to increased risk, possi-         “The idea is to review all       upturn, however, I believe that     els of understanding when it
bly to the point of increasing the     guideline documents and date        when the upturn happens firms       comes to contracts and different
chances of oversights or even to       stamp them, so that every firm is   need to be a bit more selective     expectations about the role of the
the point of inducing failures.        consulting the most up-to-date      about what to tender for.           consultant. Furthermore, a lot of
    “As the legal environment          guildelines.”                       Selective bidding will be healthy   firms also underestimate the
becomes more sophisticated, an            The review process was con-      for the market.                     impact of logistics and lack of
increasing number of clients are       ducted by past president, Ivor          “For too long clients have      support in even the small things
also trying to devolve more            Evans, and all guidelines have      been able to insist on having       such as difficulties associated
responsibility to consultants.         been vetted by Glenrand MIB.        things their way by cutting fees    with telecommunications and
The new occupational health and        The reviewed guidelines are cur-    and devolving risk. Selective       travel.
safety regulations (OHS) are a         rently being circulated amongst     bidding will assist in restoring        “Other risks to consider are
prime example of this where for        committee members for com-          some balance between scope of       the local fiscal arrangements
a very small additional fee con-       ment. The intention is to publish   work, risk and fees.                which can be quite varied and
sultants are asked to take on the      the new guidelines, incorporat-         “Firms also need to diversify   often local legislative changes
role of safety officer. Our feeling    ing OHS as a new topic, in a        and start playing in the interna-   can materially affect the amount
is that the risk associated with       bound document within the next      tional market in a meaningful       of tax to be paid. Exchange rate
this is not in line with the fee       two months.                         way. There are some local firms     fluctuations on long-term proj-
and that this kind of work should         Says Furstenburg: “Life is all   which have had success, but         ects can also negatively affect
be properly quantified and the         about balance and there must be     overall South African firms have    the profitability of projects.”
fee should be in line with the         a balance between fees, work        not reached the stage which the

PROUDLY SOUTH AFRICAN                                                              Proudly South African is an exciting campaign to promote
                                                                               South African companies, products and services which are

                                                                               helping to create jobs and economic growth in our country.
                                                                                   Supported by organised labour, organised business, gov-
                                                                               ernment and community organisations, Proudly South African

IN SOCCER WORLD CUP PLANS                                                      is the way for every South African to do something concrete
                                                                               to support job creation, and help build our young nation.
                                                                                   At the heart of the campaign is the Proudly South African
By Martin Feinstein, chief executive of Proudly South African                  logo. Companies who meet the standards set by Proudly
                                                                               South African can use the logo to identify themselves, their
The Proudly South African campaign is undertaking a comprehen-
                                                                               products and services.
sive investigation of the licensing, merchandising and procurement
plans for the 2010 Soccer World Cup to identify where manufactur-                  The criteria which must be met before the logo can be
ing opportunities are for local companies.                                     used are:
                                                                               1. The company’s products or services must incur at least

             ecisions worth hun-       of 150 000 jobs.
             dreds of millions of          However, companies globally         50% of their production costs, including labour, in South
             rands are going to be     are already planning on how to          Africa, and be “substantially transformed” (in other words a
             made in the next few      capitalise on the event, lobbying       product that is merely imported and re-packaged would not
years, and local companies who         for contracts and preparing to          be eligible).
employ South Africans need to          pitch products, services and pro-       2. The company and its products or services must meet high
know who is making those deci-         motional ideas to the organisers.       quality standards.
sions, how they will be made               We therefore aim to identify
                                                                               3. The company must be committed to fair labour and
and where the opportunities are        who will be deciding what to
                                                                               employment practices.
for local products.                    buy, and who will be deciding on
    We want to avoid a repeat of       the awarding of licensing rights.       4. The company must be committed to sound environmental
the Cricket World Cup, when we         This will all lead to a detailed        standards.
felt a kick in the guts when virtu-    opportunity report, which will be           By meeting these standards, consumers can be re-assured
ally every store or stand, often a     circulated to Proudly South             that companies and their products carrying the Proudly
stone’s throw away from com-           African member companies.               South African symbol are of a high quality and socially
munities with enormous jobless             The correct identification of       responsible - not to mention supporting the local economy.
populations, was selling memo-         what business opportunities were            The campaign is not just for businesses and companies.
rabilia made in Asia when it           available to local companies is
                                                                               Membership is open to a wide range of organisations that
could have been made locally.          critical to leveraging the job cre-
                                                                               want to support South African companies and products.
    The investigation will look at     ating potential of the event.
previous World Cup procurement             As an example, we recently          NGOs, sports organizations, education and health institu-
and merchandising, and will then       investigated the local manufac-         tions, government departments at local, provincial and
focus on the local opportunities       ture of clothing for the South          national level, publications, even individuals - all can join
as well as the likely contract and     African Olympic team and found          the campaign as members.
licensing processes to be fol-         that of a budget of close to               Editor’s Note: The South African Association of Consulting
lowed by the organisers.               R2-million for competitive,             Engineers (SAACE) is a Proudly South African member.
    The Soccer World Cup is the        casual and formal clothing, only
second biggest sporting event          around R800, 000 was spent
after the Summer Olympics, and         with local manufacturers.
soccer is by far the world’s most      Ironically, when we cheer our
popular sport, with 204 FIFA           national team at the Olympics,              Proudly South African week is 19th - 26th
member nations.                        they will be competing in spon-           September this year. And it’s for everyone -
    In addition, staging the event     sored clothing made by factory           members of the campaign, of course, but also
could bring some R3-billion into       workers in other countries.             for all South Africans, everywhere, to take part.
the country and create in excess

Contined from page 1

winner of the Visionary Client         fessionals in the industry - Young        The Young Engineer of the             Says Graham Pirie, executive
award was named as ERWAT, the          Engineer of the Year - attracted      Year was named as Clint               director: “We are pleased that
East Rand Water Care Company,          nine nominations. These young         Koopman of ILISO Consulting.          this year’s competition attracted
which was founded as a Section         engineers were required to com-           In the category of Journalist     such interest from our member
21 company by the Eastern              pile a presentation which included    of the Year, the winner was           firms and it demonstrates that
Gauteng Services Council to ren-       their profiles, some projects and     named as Gerald Garner of Civil       the prestige attached to the event
der a cost effective wastewater        details of their community            Engineering Contractor for his        has grown substantially over the
treatment service to local authori-    involvements. Each underwent an       series of profiles and in-depth       years. We continue to believe
ties on their behalf. This client      interview process with a fully rep-   interviews with leading consult-      that the recognition that results
was nominated by ARQ                   resentative panel of judges during    ing engineers and a commenda-         from the awards goes a long way
Consulting Engineers.                  which each nominee was assessed       tion was awarded to Helene le         to building a positive reputation
    The newest category intro-         in terms how well they embody         Roux of Engineering News for          for the consulting engineering
duced for the first time this year,    the spirit of consulting engineers    her series of topical articles on     industry in South Africa.”
which is aimed at the young pro-       of the future.                        issues facing the industry.
                     AWARDS 2004

                                                                  SAACE GLENRAND MIB EX

                                                                                     Engineering Excellence:
                                                                                     The Chapman’s Peak Engineering Group for The
                                                                                     Rehabilitation of Chapman’s Peak Drive which incorporat-
                                                                                     ed high-energy rockfall catch fences and an undercut-cliff
                    Business Excellence:                                             rockfall half tunnel structure. (From left) Louis Melis,          Young Company of the
                    Bigen Africa has grown from being a regional consulting          managing director of Melis du Plessis Consulting                  ILISO Consulting was named
                    engineering practice to being a market leader in the provi-      Engineers; Arthur Taute, CEO of Vela VKE; Theo Adams,             Year for its growth over the la
                    sion of engineering solutions in Southern and West Africa.       regional managing director of Stewart Scott Western Cape;         makes it one of the larger blac
                    (From left) Francois Swart, CEO of Bigen Africa; Nolitha         Rufus Maruma, chairman of Stewart Scott; David                    sulting engineering practices i
                    Fakude, non-executive board member of Bigen; David               Campbell, divisional director of Construction Indemnity           Felix Fongoqa, managing dire
                    Campbell, divisional director of Construction Indemnity          Consultants - a division of Glenrand MIB; Tom Hemsted,            and David Campbell, division
                    Consultants - a division of Glenrand MIB and Craig               structural engineer of Zietsman Lloyd and Hemsted and             Indemnity Consultants - a div
                    Clarke, president of SAACE.                                      Craig Clarke, president of SAACE.

                Engineering Excellence Commendation:
                BKS, PD Naidoo & Ass and ARQ for the Nelson Mandela Bridge which
                was a South African first. (From left) Frans Kromhout, director of BKS;         Journalism Commendation:
                Pankaj Bhulla, engineer at PD Naidoo & Ass.; Aligasen Naidu, CEO of PD          Helene le Roux of Engineering News for her series of topical articles on
                Naidoo & Ass.; Raimund Miller, director of ARQ; David Campbell,                 issues facing the industry. (From left) David Campbell, divisional director
                divisional director of Construction Indemnity Consultants - a division of       of Construction Indemnity Consultants - a division of Glenrand MIB; and
                Glenrand MIB and Craig Clarke, president of SAACE.                              Helene le Roux of Engineering News.

                Engineering Excellence Commendation:
                Stewart Scott and the Mohale Consultants Group for the Mohale Dam - the         Engineering Excellence Commendation:
                first dam of its height in Southern Africa, the highest on the continent and    Jeffares & Green for its Schools Play-pump Programme. This is a simple,
                amongst the highest in the world. (From left) Junior Potloane, CEO of the       sustainable, a win-win development initiative undertaken by the Dept of
                Lesotho Highlands Development Authority; Vic Prince, CEO of Stewart             Water Affairs and Forestry. (From left) Trevor Field of Roundabout
                Scott; David Campbell, divisional director of Construction Indemnity            Outdoor; Peter Waldron of Jeffares & Green; David Campbell, divisional
                Consultants - a division of Glenrand MIB and Craig Clarke, president of         director of Construction Indemnity Consultants - a division of Glenrand
                SAACE.                                                                          MIB and Craig Clarke, president of SAACE.

 Year:                              International Business Developer of the Year:                   Visionary Client:
d as Young Company of the           Ingérop Africa has grown the proportion of turnover it          ERWAT manages and operates 20 wastewater treatment
ast few years which now             generates beyond our borders for the first time to more         works, servicing the needs of three metropolitan munici-
 ck-owned and managed con-          than 50%. (From left) Carlos Bonete of Ara-Sul; David           palities, more than 2000 industries and some 3,5-million
 in the country. (From left)        Campbell, divisional director of Construction Indemnity         people. (From left) Patrick Twala, group managing direc-
ector of ILISO Consulting           Consultants - a division of Glenrand MIB; Ivor Evans,           tor of ERWAT; Alan Parrock, Pr Eng at ARQ and David
nal director of Construction        chairman Ingérop Africa and Danisa Zulu, managing               Campbell, divisional director of Construction Indemnity
vision of Glenrand MIB.             director of Ingérop Africa.                                     Consultants - a division of Glenrand MIB.

                                                                                       YPF - KAGISO TRUST
                                                                                       INVESTMENT ALIGNS
                                                                                       WITH YOUNG ENGINEERS
                                                                                                 he South African Association of Consulting Engineers is
                                                                                                 pleased to announce that Kagiso Trust Investment Company
                                                                                                 (KTI), part of the Kagiso Trust (KT), has aligned itself with
                                                                                                 the Young Professionals’ Forum (YPF) through its sponsor-
                                                                                       ship of the Young Engineer of the Year Award for 2004.
            Journalist of the Year:                                                        Due to the involvement of KTI, the Young Engineer of the Year
            Gerald Garner of Civil Engineering Contractor for his series of pro-       will be able to attend the FIDIC Conference in Copenhagen, Denmark
            files and in-depth interviews with leading consulting engineers.           in September this year.
            (From left) Gerald Garner of Brooke Pattrick; David Campbell, divi-            Kagiso Trust was established in 1986 as a non-profit agency to
            sional director of Construction Indemnity Consultants - a division of      work with people to achieve a society which would offer liberty, jus-
            Glenrand MIB and Craig Clarke, president of SAACE.
                                                                                       tice and freedom from poverty. The Trust soon became the largest
                                                                                       black-led development agency in
                                                                                       South Africa and by the mid 1990’s
                                                                                       KT was handling funds in the region
                                                                                       of R300-million a year.
                                                                                           Says Eric Molobi, chairman Kagiso
                                                                                       Trust: “KTI was formed in 1993, as a
                                                                                       subsidiary of KT, after the Kagiso
                                                                                       trustees concluded that donor funding
                                             Young Engineer of the Year:               would be significantly reduced once
                                             Clint Koopman of ILISO
                                                                                       there was a new dispensation. The
                                             Consulting is a 33 year old profes-
                                             sional engineer who is currently a        business was set up with US$15-m
                                             shareholder and director of ILISO         from J.P. Morgan in the United States
                                                                                                                               Clint Koopman, winner of the
                                             Consult-ing with responsibility for       with an objective to expand its capital
                                                                                                                               Young Engineer of the Year award
                                             the management of the                     through strategic investment in new or and Andile Sangqu of Kagiso
                                             Bloemfontein office.                      existing businesses.                    Trust Investment, sponsor of the
                                                                                       Continued on page 7                     prize for the young engineer.

           he EPWP is an initia-                                           drains and side walks should be         a skills programme by the
           tive to create temporary                                        done using labour intensive con-        CETA. What this means is that
           work opportunities for                                          struction (LIC) methods.”               the programme/material has been
           the unemployed, using                                               In order for the labour-inten-      registered with SAQA and
public sector expenditure, build-                                          sive infrastructure programmes          accredited by the CETA’s ETQA.
ing on existing government                                                 to be implemented, contractors              “The course therefore trans-
infrastructure and social pro-                                             will need to be trained in the use      lates into unit standards and
grammes that are known to be                                               of LIC.                                 credits contributing to a qualifi-
successful and with an emphasis                                                Says Van Schalkwyk: “The            cation. Therefore, the CETA has
on relatively unskilled work                                               Department of Public Works has          committed to pay R 250.00 per
opportunities combined with                                                also put in place guidelines for        credit per learner who completes
training or skills development,                                            appropriate designs and tender          the programme successfully.
says Johan van Schalkwyk, man-                                             documentation for LIC infra-            The NQF 5 is equivalent to 8
ager: School of Consulting                                                 structure programmes.                   credits and the NQF 7 equal to
Engineering.                                                               Municipalities are to select sec-       20 credits.
    “Funds for EPWP pro-                                                   tions of the guidelines and insert          “This means the CETA will
grammes will be allocated to                                               them in the tender documentation        reimburse R2000 per NQF 5
national departments, provinces                                            for labour intensive projects.          qualification and R5000 per NQF
                                      Johan van Schalkwyk, manager:
and municipalities through the        School of Consulting Engineering         “In order to develop the            7 qualification. Firms with suc-
normal budgeting process, with                                             capacity of the construction            cessful candidates merely need to
infrastructure allocations            will identify infrastructure proj-   industry to manage labour-inten-        complete the necessary forms
amounting to R15-billion over         ects through the IDP process and     sive projects, the additional con-      and submit it to the CETA.”
five years. Hence, the                use that to identify projects that   ditions mentioned above also                There are currently at least
Department of Public Works            are suitable for labour intensive    include an eligibility require-         three accredited training service
(DPW) does not have a fund for        methods.                             ment for the appointment of con-        providers.
funding EPWP projects.                   “Business plans do not need       tractors and consulting engi-               For further information,
    “The EPWP infrastructure          to be submitted to the National      neers, i.e. that key staff involved     contact:
projects will be funded through       DPW as funds come directly to        in the project must undergo spe-            CETA ETQA - Gerhard
the Municipal Infrastructure          municipalities. The MIG will         cial NQF-accredited training            Smith (011) 265 5912.
Grant (MIG) that the municipali-      have conditions attached that        programmes in LIC.                          Learnerships and Skills
ties will be allocated by Treasury    activities such as low volume            “The DPW’s EPWP LIC                 programmes - Christoph Heil
through DPLG. Municipalities          roads, trenching, stormwater         training has been developed into        (011) 265 5906.

IBDS - upcoming missions to Angola
   The IBDS is in the middle of       year. These workshops will focus     the offerings of
planning its first government-        on where the opportunities in        the Export
supported mission to Angola,          those markets are, how new           Marketing and
which is planned for                  entrants should introduce and        Investment
September/October. Says Roelof        market their services in that        Assistance
van Tonder, IBDS: “In addition,       country and finally, how to influ-   Scheme.
there is also government support      ence and deal with the key deci-     Previously access
for a mission to another African      sion makers that allocate work.      to these offerings
country and/or the African                Cooperation with DTI has         required moun-
Development Bank envisaged            reached an advanced stage, and       tains of motiva-
for early in the 2005. In order to    there have been a number of          tions and some
make sure that it adds value to       major changes in government          fancy footwork.
the mission, the IBDS has inter-      policy that the IBDS will contin-    This, for example,
acted with the NEPAD                  ue to use to enhance business        has allowed the
                                                                                                 The Nova Vida Housing Development near Luanda in
Secretariat, Foreign Affairs,         opportunities for its members.       IBDS and some of
                                                                                                 Angola. Picture courtesy of Africon.
Development Bank of Southern          These changes came about             its members to
Africa and other private and          because of continued lobbying        participate in a mission to the          government.
government entities.                  by SAACE, SAFCEC, and other          World Bank.                                  “Our cause has been helped
   “In addition, the IBDS has         services industries.                     “The effect of these policy          by the fact that government
recently successfully facilitated         These selected services indus-   changes means direct financial           departments’ response to
contact between IBDS members          tries are now accommodated in        support for certain business             NEPAD, and its objectives relat-
and Saudi Arabia, the                 the new organisational structure     development activities of our            ed to infrastructure, has been
Mocambican Roads Agency,              (effective 01 May 2004) of the       industry internationally.                very weak at a practical level. It
China, Japan and Iraq.”               Department of Trade and              Lobbying government in this              can be argued that these changes
   The IBDS is also finalizing        Industry.                            regard has become easier as they         in policy are only the beginning
the content of a workshop, com-           Says Van Tonder: “The most       realise the critical role that our       and will start showing practical
plementing the Country Risk           recent change in government          industry can play in the develop-        benefits to our industry over the
Seminar staged earlier in this        policy was to provide access to      ment of Africa, if supported by          next year or two.”

- Port Elizabeth 17-19 October

          or the first time the         sponsored SAFCEC Golf Day at          ernment-sponsored infra-
          annual conference will        Humewood Golf Club - which is         structure development
          be a joint effort between     consistently ranked as one of         currently underway in the
          SAACE and SAFCEC -            South Africa’s Top 10 golf            country. The day concludes with      be the experiences of Sibusiso
making it a much larger event           courses. The late Bobby Locke         a Welcome Reception and Golf         Vilane, who was the first black
and an excellent opportunity for        considered the course to be the       Prizegiving.                         South African to summit Mt
networking between consulting           best in South Africa and said that        The Conference Programme         Everest.
engineers and contractors. Set          it compared favourably with the       will be officially opened on            This will be followed by the
for 17 - 19 October at the              top links courses in the British      Monday, October 18 by a local        SAFCEC AGM and thereafter
Tsitsikamma Conference Centre,          Isles.                                politician and speakers will         the evening’s proceedings will
in the friendly city of Port                For the non-golfers, a site       include: Danny Jordaan of the        be drinks and a themed dinner
Elizabeth, it promises to be a          visit to the Industrial               South African Football               dance with entertainment.
highlight on this year’s calender.      Development Zone of Coega is          Association’s 2010 bid commit-          Tuesday October 19 will be
     With a population comprising       planned, with buses departing at      tee reviewing infrastructure         dedicated to the SAACE AGM
over one million, Port Elizabeth is     around midday. The Coega IDZ          requirements and opportunities       and SAFCEC Council meetings.
South Africa’s fifth largest city in    is integral to realizing South        around 2010; Rudolf Gouws            For those who are not required
terms of population and the sec-        Africa’s vision to be a manufac-      covering an economic overview        to participate in these proceed-
ond largest in terms of area. The       turing centre for the world. It       of fixed investment; Pepi Silinga    ings, it has been proposed that
city is an important centre for the     was the first IDZ to be estab-        of Coega providing insight into      the SAACE School of
automobile industry and a major         lished in South Africa and con-       IDZ’s and in particular the          Consulting Engineering should
transport hub. It was incorporated      sists of 11 000 hectares of indus-    Coega IDZ; Andrea Brown              present a 3-in-1 workshop with
into the Nelson Mandela Metro-          trial land situated 20 km east of     addressing developments in the       speakers covering Quality
politan Municipality in 2001.           the city. It is located adjacent to   Construction Industry BEE            Management, Occupational
    The programme kicks off on          the Port of Ngqura - the new          Charter process and Len Dekker       Health and Safety Regulations
Sunday 17 October with the              deepwater port on the Coega           who will unpack the procure-         and Risk Management. It is
Barloworld Equipment-                   River, which is the largest gov-      ment legislation. In addition,       hoped that the relevance of this
                                                                              Anthony Pascoe will offer a          workshop will encourage more
continued from page 5                                                         mentoring case study and the         young professionals to partici-
                                                                              motivational talk of the day will    pate in the conference.
    Says Graham Pirie, executive director of SAACE: “We are pleased
to have the support of KTI, particularly with its focus on the young
                                                                              FEEDBACK FROM
professionals in our industry. KTI’s endorsement of the association’s
efforts to promote engineering as a profession amongst young people
will add a great deal of weight to our initiatives such as the YPF.
    “As part of the sponsorship, KTI has been invited to join the YPF
                                                                              PRESIDENTIAL VISITS
                                                                                  Unfortunately, during the past       “Most of these reports have
committee and we trust that it will bring both its sound business and
                                                                              few weeks the association has        emanated from the Eastern Cape,
investment knowledge, as well as its experience in social development
                                                                              received a number of reports         Mpumalanga and Limpopo and
to this forum, thereby ensuring that the engineers of the future are cog-
                                                                              from client bodies, as well as       seem to occur particularly in
nisant of poverty alleviation, community development and sustainabil-
                                                                              members, regarding instances of      small rural district councils
ity in the design of infrastructure.”
                                                                              persons without the necessary        where we suspect that the local
                                                                              competences being appointed to       politicians and officials lack the
Cooperation for international initiatives                                     undertake work of an engineering
                                                                              nature, says Craig Clarke, presi-
                                                                                                                   necessary experience to assess
                                                                                                                   the capabilities of candidates or
   The IBDS initiated a meeting between SAFCEC, ECSA, SAICE and               dent of SAACE.                       are unaware of the qualification
the IBDS with a view to initiating a coordinated approach to engaging             “The reports are so numerous     requirements of a consulting
government agencies and relevant counterparts in Africa. It has been          and widespread that they can no      engineer.
agreed that all four parties would, in the spirit of the objectives of        longer be dismissed as unsub-            “It also appears that they do
NEPAD, from now on cooperate when engaging with counterparts in               stantiated rumours and it is         not understand that they have a
Africa - starting with Mozambique and Angola.                                 becoming an increasing concern       responsibility to ensure that only
   The starting point of cooperation will be the compilation of a tem-        for the association.                 competent persons with appropri-
plate of individually produced documents that will list the contributions         “We have had reports of          ate qualifications are appointed as
that the respective organisations can make to the development of the          school teachers and medical prac-    consulting engineers.
engineering profession in African countries.                                  titioners appointed as “consult-         “We therefore appeal to our
   The basic premise of this cooperation is that it will allow the IBDS       ants” to carry out the duties of a   members to come forward with
(and its partners) to make contact with all the pre-eminent engineering       consulting engineer. We have also    factual information concerning
related decision makers in Africa, and offer them assistance that will        heard of university or technikon     these allegations, in order to
help them with the development of our profession. All four organisa-          drop-outs, with incomplete quali-    assist the association in taking
tions have already started the process of engaging Africa and all the         fications, being appointed as con-   this up at a departmental level
parties are, therefore, well placed to start coordinating their activities.   sulting engineers.                   with the relevant authorities.”

    Message from Graham’s desk

      nternationally the trend in                      The status quo is that consult-                  expect the highest possible stan-                           er, the consultants must become
      consulting engineering in                    ants and clients both regard pub-                    dard of service from his consult-                           more skillful negotiators.
      developed countries is to                    lished fee scales as the maximum                     ing engineer.                                                   Consultants should compile
      move away from fixed fee                     from which to negotiate down-                            However, the nature of the                              proper costing systems and
scales and to promote Quality                      ward which means that appropri-                      assignment must determine serv-                             recognise and walk away from
Based Selection (QBS) processes                    ate cost accounting is almost non                    ice, deliverables and fees and                              deals where the risk outweighs
based on qualifications, technical                 existent. The only way this can                      professional services must be                               the reward. It is all about apply-
merit and expertise. The United                    be remedied is to gradually relin-                   profitable for firms in order to                            ing sound business principles.
States has laws which require                      quish fee scales and hourly tar-                     ensure sustainability. To do this                               SAACE has been advocating
engineering services to be pro-                    iffs in a phased approach over a                     firms must “sell” value added, be                           thorough risk management and
cured based on qualification and                   period of time and at the same                       realistic about risk and realise                            promoting the implementation of
which outlaw competitive bid-                      time institute QBS systems of                        that fee discounting is self-                               professional quality management
ding based on price alone.                         procuring services.                                  defeating.                                                  systems in order to assist with
    Nevertheless, in developing                        The challenge remains to                             There is a debate that centres                          managing risk. As a result, the
countries such as South Africa                     educate clients through an indus-                    on whether or not consultants                               only way to reduce fees safely is
there is room for a parallel sys-                  try wide approach on under-                          know when to say no to a client                             also to reduce the scope of work.
tem with published fee scales,                     standing the price vs risk/reward                    or whether, in a market which                               We understand that consultants
coupled with a roster system,                      relationship and the consultant’s                    has long been in decline, they                              are often pressed to come within
being applied on routine small                     ability to add value.                                have become so desperate for                                a certain budget, but it is vital
projects, while a competitive                          The selection of the correct                     work that they would accept it at                           that in doing so they review the
quality based selection process is                 consulting engineer, together                        a loss or a risk.                                           scope of work in order to meet
more applicable to large and                       with the other members of the                            There is no doubt that fee dis-                         the client’s request.
complex projects.                                  professional team, is probably                       counting compromises quality                                    Reducing the scope of work
    In South Africa, consulting                    the single most important deci-                      and when quality is compro-                                 may also increase risk and con-
engineers find themselves oper-                    sion that a client will make dur-                    mised risk is increased.                                    sultants have a responsibility to
ating in an increasingly competi-                  ing the course of any project and                        Successful professional serv-                           inform the client of all the impli-
tive environment. This is charac-                  the success of the project                           ices depend on adequate time                                cations of reduced scope.
terised by many uncompromis-                       depends on obtaining the most                        spent by staff with appropriate                                 Adhering to fee guidelines
ing clients pursuing cost-based                    appropriate quality of profes-                       expertise. Forcing the fees down                            and being more selective about
selection (CBS) rather than qual-                  sional service.                                      unreasonably compromises quali-                             accepting discounted fees, will
ity and cost-based selection                           The best project results will                    ty, so the solution lies in a fair                          be the first step in moving from
(QCBS). As a result, the con-                      only be achieved where there is                      price for a fair service.                                   a position where professionals
sulting firm is pressured to                       complete mutual confidence and                           For the foreseeable future, the                         are selling time to one where
reduce fees leading to fee dis-                    trust between the consulting                         current guideline fees will remain                          they are selling value.
counting which invariably com-                     engineer and the client, while                       a basis for negotiation between                                 For more information contact:
promises quality.                                  the client has every right to                        the consultant and client, howev-                           Graham Pirie on (011) 463-2022

    Editor’s note                                                                                                                 CALENDER OF EVENTS
                                                                                                                                     Important dates to diarise

 Dear readers,
                                                                                                         Date                  Event                                                      Venue
 In this bumper issue we are proud to announce the winners of the                                        September              *Risk Management Seminar                                     TBC
 annual SAACE Glenrand MIB Excellence Awards. This glittering
 event on the SAACE calender was one of the best attended yet and                                        12-15 September FIDIC                                                               Copenhagen, Denmark
 the winners in all categories are to be commended on their willing-                                     15-16 September *Quality Management Workshop                                        Cape Town
 ness to participate and have their projects or companies placed under
 scrutiny by the adjudication panel.                                                                     October (TBC)          *Client Consultant Relationship Seminar                      TBC
     We are also pleased to have as our guest contributor in this issue,                                 13-14 October          *Quality Management Workshop                                 Durban
 Martin Feinstein, CEO of Proudly South Africa, commenting on the
 World Cup 2010 and highlighting the need for South African compa-                                       17 - 19 October        Joint SAACE / SAFCEC Conference                              Port Elizabeth
 nies to benefit out of events of this nature. He shares with us what he                                 19 October             *3-in-1 Workshop - Quality Management,
 believes can and should be done to ensure that SA companies and not
                                                                                                                                Occupational Health and Safety, Risk Management Port Elizabeth
 foreign companies benefit.
     Once again I hope that this issue of Inside Track meets your                                        November               *Occupational Health and Safety                              TBC
 expectations. Please submit articles, letters of request to
                                                                                                         6 November             Annual Consultants’ Relay                                    Pretoria
 The Editor                                                                                              *School of Consulting Engineering - for more information call Johan van Schalkwyk (011) 463-2022

              Published by SAACE. St James House, Hampton Park North, Georgian Crescent, Bryanston Telephone: (011) 463-2022 Edited by Primary Focus Communications Telephone: (011) 726-1109

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