Construction World September 2018

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The G20 initiative recently launched its ‘Public Private Partnership (PPP) Contract Management Tool’ – a free online resource that provides practical, user-friendly guidance for public officials in charge of managing PPP infrastructure projects after financial close, through construction and operations. CEO of the Global Infrastructure Hub, Chris Heathcote, said that governments need to focus on the importance of managing PPP infrastructure projects to ensure that the public is receiving the full benefit of the infrastructure services. “A great deal of attention is paid to the preparation, procurement and negotiation processes of PPPs”, Heathcote said. “However, this is only the start of delivering a successful project, and in many ways the hard work begins after financial close. Simply signing a PPP contract and letting it run its course will not automatically lead to the private sector delivering the public service to the level of quality expected, and has the potential to undermine the entire process of project preparation and procurement.” Governments need to monitor the obligations of a private sector operator and ensure that scope changes are managed effectively to ensure value for money and minimise the risk of disputes, according to the Global Infrastructure Hub. Governments also need to ensure that community stakeholders are consulted in relation to disruptions through construction and operations. The aim of the ‘PPP Contract Management Tool’ is to help government officials address these types of challenges and prevent potential setbacks and disruptions throughout the construction and operations phases of a project. Heathcote stressed that procuring authorities need to ensure PPP contract management teams are well-resourced, and that adequate training is provided to the officials responsible for handling both day-to-day management issues, and the significant challenges that can arise, such as requests for renegotiation. “Our research finds that up to 48% of PPP contracts globally are renegotiated within the first 12 years. The key issues associated with renegotiation are that they don’t typically benefit from a competitive tender process and often lack transparency. “Therefore, it’s important that the government’s contract management team has the capacity and resources required to successfully manage a renegotiation.” The Global Infrastructure Hub tool, which has been created with global professional services consultancy Turner & Townsend, provides practical guidance to increase the quality of PPP infrastructure investments internationally. Murray Rowden, Regional Managing Director, Americas & Global Head of Infrastructure at Turner & Townsend, said: “Public Private Partnerships offer a huge opportunity to unlock infrastructure Stronger public sector oversight and contract management are essential to realising the true value of investment through public private partnerships (PPPs), according to new guidance from the Global Infrastructure Hub. • More successful management after contract signature and financial close essential to realising value of infrastructure PPPs. • Nearly half of global PPP contracts require renegotiation within the first 12 years. • Public sector need to upskill to monitor and help deliver more successful programmes. • New tool from the G20’s Global Infrastructure Hub with Turner & Townsend to improve contract management practices. Effective management essential to unlocking PPPs

The entered sites were audited using the MBSA auditing system which measures both legal and physical on-site compliance. The audit comprises two components, with the first being a full audit of all of the documentation required in terms of the law and the second entailing a site walk-through to observe the behaviour and conditions on site. Of this year’s Competition, Bester says, “Generally, the sites scored well with most achieving an MBSA 5-star rating, meaning that they scored more than 90%.” He adds that although there were some accidents reported, no serious ones have occurred on the audited sites. “Last year saw more injuries reported, but fortunately these were not of a serious nature. The reduced number of injuries reported this year suggests that there has been an improvement, however one must bear in mind that the sites competing in the Competition are leading in the Health and Safety sector.” These sites have been entered in the National Safety Competition and will compete against the country’s five other Master Builder regions, with an MBSA representative visiting each to perform further audits and establish the winners in each category. The prize giving ceremony will coincide with the annual MBSA Congress, which is taking place in Port Elizabeth this year, from 9 to 11 September. “We at the MBAWC wish all of our region’s winners the best of luck for the National Competition,” concludes Bester.  Health and Safety Competition are in. This year’s Competition attracted 40 entrants from all over the Western Cape. These sites have been undergoing audits since April by MBAWC Occupational Health and Safety Manager, Deon Bester, who is also an accredited Master Builders South Africa (MBSA) Lead Auditor. Western Cape’s safest building sites announced The results of the 2018 Master Builders Association Western Cape’s (MBAWC) annual Regional Occupational