Construction World June 2022

CONSULTING ENGINEERS

With world-class standards being applied to aspects of national infrastructure, there is the need for world-class contractors to complete these projects (Image: SRK Consulting)

BUILD MORE CAPABILITY TO UNDERPIN TRANSFORMATION

To ensure that Mining Charter directives on procurement and enterprise development lead effectively to economic transformation, a better planned approach to capacity-building is needed.

“W hile South African mining companies are complying with the charter’s requirements, it is clear that this process can raise costs and performance risks to unsustainable levels,” said Steve Bartels, partner and Civil Engineering Technologist at SRK Consulting. “This can occur particularly in large, complex projects where specific expertise and experience is scarce.” In its efforts to engage the services of empowered service providers, mining companies often struggle to find players with the necessary balance sheet, technical knowledge-base and record of similar past projects. Bartels pointed out that one of the results is that mines look to partners such as consulting engineers to support and guide the inexperienced contractor. “Consulting engineering firms like SRK have, of course, much to contribute in the sphere of strategic advice and technical studies – and we provide this service to large and small companies,” he said. “However, the building of the necessary skills and experience to perform large engineering contracts from mines is a process that can’t be rushed – and South Africa is not giving enough focus to nurturing and growing this technical capacity among emerging contractors.” He highlighted that successful projects are built not only on good technical expertise but also on solid financial foundations with meticulous project planning and execution skills. Many aspects of preparation and implementation take decades of experience to fully equip an individual or a business to conduct professionally. Bartels’ insights are based on his direct involvement in government efforts to empower emerging businesses. In the 1990s, he was engaged in provincial government initiatives to systematically guide and develop the growth of emerging contractors in the road-building sector. This led to various constructive strategies that began to steadily improve the capability of committed new players wanting to add value in this industry. He has seen the potential impact on emerging contractor development and growth from his experience with emerging contractor development programmes, labour-intensive construction programmes and poverty alleviation programmes. “The regulations in place to promote local and preferential procurement are valuable instruments for change in the right direction,” he said. “They can lead to challenges, however, when the experience and capacity is still being developed to fill the opportunities created.” Among his concerns is that the disproportionate burden of decision-making falls on the procurement department of

mining companies or other large firms who issue engineering contracts. This can lead to insufficient focus on the technical aspects of the project, and the specific human and capital resources required. “A balance needs to be established between the procurement processes that consider competitive pricing and legislative compliance of contractors verses their technical experience, knowledge and ability to successfully complete a project which is driven by the technical aspects of procurement. ,” said Bartels. “This creates considerable risk for the client who issues the tender and can also set the contractor up for failure. If the contractor fails, then so do the Client and consultant.” Beyond the individual contracts themselves, this process can also have a broader impact on industry. If emerging contractors are not supported and nurtured into a position of strength before being provided with economic opportunity, it is difficult to retain a robust foundation of quality for engineering performance. He noted the high standards that are demanded for the construction of South Africa’s national roads, for example, where there are opportunities for all tiers of contractors. “With world-class standards being applied to aspects of our national infrastructure, there is the need for world class contractors to complete these projects,” he said. “Similarly, the recent Global Industry Standards for Tailings Management (GISTM) demand the highest level of expertise becoming difficult to develop and retain the necessary levels of experience for these kinds of projects. He highl ighted that there was no short cut to developing the business capabil ity and related engineering expertise for the modern economy. It was for this reason that SRK made mentoring an important aspect of its skills development efforts. “Consulting engineers can contribute in many ways to the building of capabil ity among emerging contractors and consultants,” said Bartels. “In projects where this is possible, the overall design can ensure a place for different levels of skill and experience, for instance.” The careful assessment, monitoring and development of contractors’ performance is also important, and needs to be well planned and consistently implemented. The aim of these initiatives is to ensure that emerging contractors grow sustainably while meeting stringent engineering and other standards – thus ensuring that cl ients achieve value for their investments.  in designing and constructing tailings facilities.” Even in the consulting engineering field, it is

40 CONSTRUCTION WORLD JUNE 2022