Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business / Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: This mini-study project is a review of South African and International practices for the
procurement and remuneration of consulting engineering services. The manner in which
engineering services have been procured from professionals in the built environment over the
last decade in South Africa has varied considerably within the public sector. Historically
government and professional associations published time based and percentage fee based
scales.
In 1997 the government published a Green Paper on Procurement Reform. This paper called
for the uniformity of procurement policies throughout all industries. In 2000, a statutory body,
the Construction Industry Development Board (CIDB) was established. The CIDB has
developed procurement regulations based on the government guidelines for the construction
industry. Compliance with these regulations became mandatory as of 14 November 2005 for
organs of state who solicit tender offers such as national, provincial and local government
institutes.
Within the private sector, services have been procured on an ever increasing basis based on a
negotiated fee with an agreed scope of works and involvement.
The importance of this study is that no single procurement system has been proven worldwide
to be optimal. The CIDB have set the rules and now it is up to the construction industry
to develop a framework of practice that is sustainable and competitive.
The study is a systematic investigation to establish the facts about the new government
procurement policies and regulations for the South African construction industry. The
guidelines and proposals of associations such as the South African Association of Consulting
Engineers SAACE), the International Federation of Consulting Engineers (FIDIC) and The
World Bank are reviewed. Personal interviews are conducted with South African consulting
engineers to investigate opinions on the latest reforms and practices. Procurement and
remuneration practices in various other developed and developing countries are also
reviewed.
From the review it was found that the pertinent measures for the procurement and
remuneration of consultants were project categorisation, consultant selection criteria.,
procurement processes, procurement procedures, cost based procurement approaches, the use
of professional fee scales and the cost weighting of consultant remuneration.
Trends that emerged from the study were the move in international practices away from the
use of professional fee scales. Although the Quality Cost Based Selection (QCBS) approach is
still used widely internationally, there is an increase in emphasis and move towards a Quality
Based Selection (QBS) approach. Internationally there has been a trend to simplify the
process and criteria for the selection of consultants. An important debate identified was
whether the use of professional fee scales in South Africa should be eliminated and the
determination of professional fees be left to market forces.
The review found that although the CIDB had done immense work in the formulation of the
new regulations to meet government reform policies, there were certain short comings that
needed to be addressed. These included implementation, education of public officials in
consultant evaluation, dealing with the tremendous shortage of public officials to do
consultant evaluation and the simplification of processes.
The study produces a comprehensive comparative table of institutional and practitioners
inputs with respect to the identified consultant procurement and remuneration measures. The
significance of this table is that it can be used to formulate or adjust existing frameworks. It is
proposed that such revised frameworks be monitored and studied to optimise the objective of
sustainability and competitiveness in the procurement and remuneration of consulting services
in South Africa. / AFRIKAANSE OPSOMMING: Hierdie mini navorsingsprojek bied 'n oorsig van die Suid-Afrikaanse en lntemasionale
praktyke vir die werwing en vergoeding van raadgewende ingenieurs. Die manier waarop
ingenieursdienste gewerf word van professionele persone in die konstruksiebedryf oor die
laaste dekade in Suid-Afrika het aansienlik verskil binne die openbare sektor. In die verlede
het die staatsdiens en professionele instansies tydgebasseerde en persentasievergoedingskale
gepubliseer.
In 1997 het die Regering 'n "Groenpapier" oor werwing en hervorming gepubliseer. In
hierdie dokument word 'n oproep tot uniformiteit van werwingsbeleid deur alle deelnemers
gedoen. In 2000 is 'n statutere liggaam, die "Construction Industry Development Board
(CIDB)", gestig. Die CIDB het werwingsregulasies ontwikkel wat gebasseer is op die regering
se riglyne vir die konstruksiebedryf. Hierdie regulasies het sedert 14 November 2005 vir
tenders aan staatsliggame soos nasionale, provinsiale en plaaslike regerings verpligtend
geword.
Binne die privaatsektor word dienste op 'n toenemende basis op 'n onderhandelde basis
vergoed.
Daar is gevind dat daar geen enkel werwingsisteem wereldwyd is wat as optimaal bewys is
nie. Die CIDB het die reels neergele en dit is nou die verantwoordelikheid van die
konstruksiebedryf am 'n praktykgerigte raamwerk te ontwikkel wat beide volhoubaar en
kompeterend is.
Die navorsing is 'n stelselmatige ondersoek om vas te stel wat die regering se werwingsbeleid
en regulasies vir die Suid-Afrikaanse konstruksiebedryf is. Die riglyne en voorstellings van
instansies soos die van die Suid-Afrikaanse Assosiasie vir Raadgewende Ingenieurs
(SAACE), die "International Federation of Consulting Engineers (FIDIC)" en Die Wereldbank
is ondersoek en vergelyk. Persoonlike onderhoude is gevoer met Suid-Afrikaanse
raadgewende ingenieurs om 'n ondersoek na opinies te doen oor die onlangse hervorming
van praktyke. Werwings- en vergoedingspraktyke in verskeie ander lande is ook ondersoek.
Hierdie ondersoek het uitgewys dat die pertinente metings vir die werwing en vergoeding van
raadgewende ingenieurs projek kategorie, wenvingsprosesse, werwingsprosedures, koste
gebaseerde benaderings, die gebruik van professionele vergoedingskale en die koste van
vergoeding, is.
Tendense wat na vore kom vanuit die navorsing, is die intemasionale praktyk om weg te
beweeg van professionele vergoedingskale. Alhoewel die Kwaliteit Koste Gebasseerde
Seleksie benadering nog steeds wyd gebruik word intemasionaal, is daar 'n toename in die
beklemtoning en beweging na die Kwaliteit Gebasseerde Seleksie benadering. Daar is die
neiging intemasionaal om die proses en kriteria vir die seleksie van konsultante te
vereenvoudig. 'n Belangrike debat wat geidentifiseer is, is of die gebruik van professionele
vergoedingskale in Suid-Afrika geelimineer moet word en of die vasstelling van professionele
vergoeding deur markkragte bepaal moet word.
Die navorsing het bevind dat alhoewel die CIDB heelwat werk gedoen het in die formulering
van nuwe regulasies om te voldoen aan regerings hervormingsbeleid, dat daar sekere
tekortkominge is wat aangespreek moet word. Hierdie sluit in: implementering, die opleiding
van openbare amptenare in konsultant evaluering. die hantering van die geweldige tekort aan
openbare amptenare om die konsultant evaluerings te doen en die vereenvoudiging van
prosesse.
Die navorsing produseer 'n omvattende vergelykende tabel van institutionele en die
praktykvoerder se insette ten opsigte van die geidentifiseerde konsultant werwings - en
vergoedingsmeetmiddels. Die belangrikheid van hierdie tabel is dat dit gebruik kan word om
te formuleer of om aanpassings te maak aan bestaande raamwerke. Dit word voorgestel dat
sulke hersiende raamwerke gemonitor en bestudeer word om sodoende die doelwit van
onderhoudbaarheid en kompeterendheid in die werwing en vergoeding van konsulterende dienste in Suid-Afrika te optimaliseer.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/70388 |
| Date | 03 1900 |
| Creators | Davies, Bram |
| Contributors | Smith, Johan, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 59 p. : ill. |
| Rights | Stellenbosch University |
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