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<td colspan="3" style="font-family:Verdana, Arial, Helvetica, sans-serif;font-size:11px;color:#FFFFFF;padding-right:6px;padding-bottom:2px;" align="right"><a name="top"></a>06 October 2006</td>
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<td style="color:#00587E;font-family:Verdana, Arial, Helvetica, sans-serif;font-size:11px;"><a href="#sh139" style="color:#00587E;font-family:Verdana, Arial, Helvetica, sans-serif;font-size:11px;text-decoration:none;">News from the CEO</a></td>
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<td style="color:#FFFFFF;font-family:Verdana, Arial, Helvetica, sans-serif;font-size:11px;font-weight:bold;padding-left:10px;"><a name="sh139"></a>News from the CEO</td>
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<p>The President of SAACE and I have just returned from the <strong><em>International Federation of</em></strong> <strong><em>Consulting Engineers (FIDIC) Conference</em></strong> held at the end of September in Budapest, Hungary. 20 South African delegates attended the conference. In my opinion this was one of the most successful and informative FIDIC conferences that I have attended. The conference had the theme "Where the Roads Meet", and included a number of excellent presentations dealing with industry issues looking at the local, regional and global status of engineers. A number of workshops were held dealing with project implementation, procurement best practices and emerging issues facing the industry at large. Of particular interest were topics related to the consulting engineering firm of tomorrow where there were debates around what the average consulting engineering firm would look like in 2020. In depth discussions were held relating to the new mechanisms for project delivery; developing and using the skills of design professionals; as well as business opportunities in new markets. At a more detailed level, seminars were held on the FIDIC Design - Build - Operate contract, quality procurement and risk responsibilities in infrastructure development. All of the presentations are available on <a href="http://www.fidic.org/">http://www.fidic.org/</a>. <br /><br />I believe that the reason that this conference was different and had more impact than in previous years was in part due to the improved business opportunities in most countries as well as the fact that Consulting Engineers are becoming much more aggressive in defining their role in the marketplace. Statements were made at the conference such as:</p><ul><li>"We are in business and need to act as such",</li><li>"In any other business with the scarcity of skill, which is an international phenomena, the price would have already gone up", </li><li>"We must raise our prices and pay more to staff allowing us to become more innovative", </li><li>"Do not be embarrassed to be in business, its only the clients that say we are too expensive, while other professions think that we are so stupid", </li><li>"Choose your clients and do not take the project at any cost", </li><li>"Don't look outside for excuses we have only ourselves to blame"</li><li>"It is time to fire bad clients"<br /><br /><br /></li></ul><p>In essence what the delegates were saying is that business model needs to change and the traditional approach to consulting engineering has become highly inappropriate. While diversification in looking for new business opportunities does obviously involve exploring new markets in the sense of geographic diversity and including a wider range of disciplines in the business portfolios, it has become far more important for consulting engineers to move up the value chain and begin to operate like management consultants where the business model does work. It is important for consulting engineers to hone and develop their skills from way beyond the technical to position themselves at the top of the food chain and become more proactive, and entrepreneurial and sensitive to clients needs. Consulting Engineers are superb at portraying the bad news but never shout about their successes and certainly do not like to talk about profitability. However, profit has been too low for too long, design has become cheap and there is a need for the industry to move away from being perceived merely as a commodity. The emphasis should be on the value added service to the client and to be seen as the trusted Advisor. It seems that the internal dynamic is for firms to get larger in order to handle the ever increasing complexity and size of projects which is becoming more prevalent. Not only is the business model changing but different ways of contracting dictating whole life involvement through PPPs and PFIs are on the increase requiring a greater awareness of the risk and reward dynamic. Although firms are getting larger, the independent consulting engineer will always have a role as "Independence" is a marketable commodity'.<br /><br />The message is clear that the industry must stop responding to market change and commence taking the lead. There are three types of enterprises:</p><ul><li>Those that make things happen;</li><li>Those that watch things happen; and</li><li>Those that wonder what happened<br /><br /></li></ul><p>Where would you like to be? The conference highlighted the importance of soft skills and noted that human resources is becoming a critical factor. It is not an item on the Agenda - it is this Agenda. We need to look ofter our staff. A clear message also came through that it is critical to ensure that quality is not overridden by cost and that quality must become a key factor in our National Procurement processes.The Canadians have achieved a major success in getting their public sector clients to embrace QBS. <br /><br />At my Directors meeting held on Saturday, of the 66 countries present at the conference, 42 directors attended the meeting. FIDIC contracts; quality based selection processes; project sustainability; professional liability and design/build topics were discussed. The message that once again came through, is that demand is going up and supply is going down and that it was time to fire bad clients and stop undercutting one another, "We know who the enemy is and it's us".<br /><br />South Africa was prominent in the Young Professionals (YPF) programme, with the Association's young engineer of the year, David Freeme ably supported by last year's winner, Khelane Ndwandwe, doing South Africa proud in their interactions and presentations. <br /><br />The Group of Africa Member Association's (GAMA) meeting also held during the conference was also more productive than normal with the adoption and approval of a new constitution allowing it to become a more effective regional body representing the views and needs of Africa. The newly adopted constitution will be formalized at the next GAMA AGM and conference to be held in Botswana in March 2007, but this still requires final confirmation. <br /><br /><em>"Opportunity comes to everyone, success comes to the Prepared"</em></p><p><em><strong>Graham Pirie</strong></em></p>
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<ul><li><strong><em>The Joint Building Contracts Committee - </em></strong>A JBCC technical meeting was held on the 4<sup>th</sup> of October 2006. The following issues were part of the agenda:<br /><br /><br /></li><ul><li>The JBCC is currently amending its suite of documents to conform to the CIDB requirements, in order for it to be accepted as a CIDB best practice. In this regard, certain clauses of the Preliminaries are being moved to the Principal Building Agreement. This is to fulfil the requirement that all contractual clauses be contained in the same document. Other changes are being made, pertaining to among others, the incorporation of a Form of Offer and Acceptance. The amended documents will be submitted to CIDB for sanctioning.<br /><br /></li><li>The State Clauses applicable to the Minor Works Agreement, the N/S Subcontractor Agreement and the Principal Building Agreement, will all be contained in a separate addendum document.<br /><br /></li><li>There have been discussions between the compilers of the PROCSA / SAPOA Professional Service Provider Agreement and the JBCC concerning the possibility of JBCC printing and distributing that agreement. The different stakeholders will be approached in this regard. The compilers of the above agreement are also in the process of discussions with the CIDB, in order for the agreement to be accepted as a CIDB best practice.<br /><br /></li></ul><li><strong><em>Advisory note for the week- </em></strong><strong>Consulting Engineers' Responsibility And Liability For Pollution And Environmental Damage (search code 99/1)<br /><br /></strong>The advisory notes on the SAACE website cover a wide field of topics, ranging from business practice to risk management. They can be found at <a href="http://www.saace.co.za/">http://www.saace.co.za/</a> Under advisory notes, go to advisory notes for members, and do a search or view the whole list of topics.<br /><br /></li></ul><p>Contact Quentin Koen at (011) 463 2022 or email: <a href="mailto:quentinkoen@saace.co.za">quentinkoen@saace.co.za</a></p>
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<ul><li><strong><em>70<sup>th</sup> IMESA Conference -</em> </strong>We are only left with one working day before the conference takes place from the 10th - 13th of October. The Conference will take place in the Arena Hall of the Soweto Campus, University of Johannesburg. To find out whether your registration has been confirmed please contact Cilla Taylor on (012) 667 - 3681. <br /><br /></li><li><strong><em>Mayoral Reception / Presentation of Excellence Awards - </em></strong>The Association will be one of the sponsors for the upcoming IMESA/SAACE Excellence in Municipal Engineering Achievements Awards. The Awards will take place on the <strong><em>10<sup>th</sup> October, 2006 in the Arena Hall if Soweto Campus, University of Johannesburg</em></strong>. <strong><em>Clr. Amos Masondo, the Executive Mayor</em></strong> invites all delegates to attend the reception which will incorporate the presentation of the IMESA/ SAACE Excellence in Municipality Engineering Achievement Awards, 2006. Both presidents of the Association,<strong><em> Dr. Tjaart van der Walt (IMESA) and Mr. Webster</em></strong> <strong><em>Ndodana</em></strong> <strong>( SAACE)</strong> will be presenting the Awards. To reserve your seat please contact Cilla Taylor on (011) 667 - 3681. <br /><br /></li><li><strong><em>Construction Conference -</em></strong> This years Construction Conference will be held at the ICC in Durban from 29th - 31st October, 2006. We are pleased to announce that the keynote address at the Conference will be given by our own Minister of Public Works, Minister Thoko Didiza. Member firms are urged to register to attend this event as it is a platform to meet the key players in the Construction Industry.<br /><br />Sponsorship and exhibition opportunities are still available. For more information on sponsorship and exhibition opportunities please contact Bruce Waters of Zazise on (011) 482 - 1244 <br /><br /></li><li><strong><em>Useful info - <br /></em><br /><em>SAACE/Glenrand MIBExcellence Awards 2007</em>- </strong>NB: In order to produce a video of good quality, member firms who would like to participate in next years Excellence Awards they must observe the following requests: <br /><br />1) Video Footage: All footage supplied by client should preferably be on Betacam or DVCam. Mpeg and DVD footage is second prize, but must be of a very high quality. <br /><br />2) Photos: We need a minimum of 20 pictures of each Nomination Company or project. These should be in jpeg format please at 300 dpi resolution or greater. <br /><br />3) Logos; Again all companies making submissions should send corporate logos as jpegs in 300 dpi or greater resolution.<br /><br />Should you wish assistance in choosing a video production company to assist you, please let us know. <br /><br /><strong><em>SAACE Directory of Firms - </em></strong>I n order to produce the directory on time member firms who wishes to advertise in it they must observe the following requirements: <br /><br /><strong>Full page<br /></strong>Page size 297x210mm with 3mm bleed<br />Print area 267x180mm<br /><br /><strong>Half page<br /></strong>Print area 128x180mm<br /><br /><strong>Quarter page<br /></strong>Print area 128X85mm<br /><br />Material requirements:</li></ul><ol><li>Closed PDF files (fonts converted to paths) CMYK @250>300 DPI </li><li>JPEG files in CMYK @250>300 DPI </li><li>TIFF files in CMYK @250>300 DPI </li><li>Word docs to sizes indicated above<br /></li></ol><p>Advertising prices will be fowarded to you early in November. <br /></p><p>Should you require more information, please contact Sipho Momoti (011) 463-2022 or e-mail: <a href="mailto:siphom@saace.co.za">siphom@saace.co.za</a></p>
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<ul><li><strong>ECSA - </strong>IDoEW, the following documents are available on request, and one should take some time out to get to grips with this process. The documents are:<br /><br /><br /></li><ul><li>Proposed regulations, introductory document,</li><li>Proposed regulation published by the minister,</li><li>Explanatory memorandum (CBE), </li><li>The thinking behind the proposals by ECSA and </li><li>The code of practice issued by ECSA.<br /><br /></li></ul><li><strong><em>Life Long Learning Solutions -</em></strong> <strong><em>Next Programme:</em></strong> The CIDB and capacity building will be broadcast on the 1<sup>st</sup> of November 2006.This programme on the CIDB will be the last recording for 2006 in this series of 10 DVD's. Please remember that this series will ensure one credit in category one, the compulsory category, as per ECSA's CPD policy. Please make sure that you complete the validation tests of <u>all 10 programmes</u> before the end of January 2007. <strong>This 2006 series will move to category 3 in 2007 and a new series of 10 programmes will be created for category 1.<br /><br /></strong></li><li><em><strong>HR Forum - </strong></em>The focus of the HR form will shift again to the CETA pertaining to CPD funding and the conversion of the qualifications into learnerships. A HR forum will also try its best to get the CETA to agree to "ring-fence" the BEP skills levies. <br /><br /></li><li><strong><em>Hot site for the week - </em></strong>Find "larger than life" Engineering projects on: <a href="http://dsc.discovery.com/convergence/engineering/archives/archives.html?clik=Extreme%20Engineering_leftnav">http://dsc.discovery.com/convergence/engineering/archives/archives.html?clik=Extreme%20Engineering_leftnav</a><br /><br /></li><li><strong><em>SCE CPD Programme for 2006</em> - </strong>For information on the full programme please go to: <a href="http://www.saace.co.za/school/calendar.php4">http://www.saace.co.za/school/calendar.php4</a> . <br /><br /></li></ul><p><em>Send your suggestions, seminars issues, requests and advice to Johan van Schalkwyk on (011) 463-2022 or email: <u><a href="mailto:johanv@saace.co.za">johanv@saace.co.za</a>.</u></em></p>
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<p>The IBDS is continuing it efforts to strategically position its members to benefit from the very positive outlook for infrastructure spending in Africa. As you know, <strong><em>Nepad</em></strong> is one of the key drivers of infrastructure development in Africa. According to the Nepad Secretariat records show that the Africa's GDP growth rate reached 5.15% in 2004 up from 4.4% in 2003 and 3.7% in the previous five years. To attain a growth rate of 7% will require doubling investment to US$20 billion a year in infrastructure. The Nepad Secretariat reports that "Both the <strong><em>AfDB and the World Bank</em></strong> have responded positively to NEPAD through their increase to <strong><em>IDA and ADF</em></strong> resources for regional projects and putting in place internal institutional arrangements in response to NEPAD. They have in the last three years mobilized financing amounting to US$2.2 billion" However, two key issues have so far inhibited South African participation in Nepad projects. Firstly reliable access to project information and secondly the fact that there are no new sources for funding Nepad projects. </p><p>At the Cross Sectorial meeting held last week, the <strong>Nepad Business Foundation</strong> <strong>(NBF)</strong>addressed the first of the two problems by agreeing to establish a "Project Management Office". While it is still early days, I am excited by this development since the initiative is supported by some major corporate members of the NBF. Since the IBDS is an active participant in the NBF should benefit from this project when it comes on line some time next year. </p><p>The second problem of course is a little more difficult but this is being addressed as well. From a financial point of view it is interesting to note that some African governments have responded by seeking ways of mobilizing domestic resources such as pension funds in support of regional projects. Both Nigeria and South Africa have agreed to contribute USD 500 million (R 3.5 billion @ R7 to the dollar) for the establishment of an Infrastructure Project Preparation Facility and on-going discussions with other states are promising. </p><p>Lack of capacity in Regional Economic Communities (SADC, COMESA, ECOWAS etc) remain the biggest problem and is largely responsible for the lack of implementation on (in particular regional) infrastructure development in Africa. In Nepad's first review of its Short Term Action Plan on Infrastructure (2004) the severe lack of capacity in the REC's were again identified as the main cause of inaction on Nepad projects. </p><p>This issue is being address in part by the brief of the consultants responsible for drafting the Nepad Medium to Long Term Strategic Framework (MLTSF) for Infrastructure development. They have to find solutions on how to capacitate REC's and how to get the Private Sector involved in Nepad projects. </p>In conclusion, the IBDS through its involvement in the NBF is trying to ensure access for its members to a South African based capacity to monitor the projects and sources of finance that will evolve from the above developments<br /><br />For further information, please contact Roelof van Tonder on (011) 463-2022 or <a href="mailto:roelofvt@saace.co.za">roelofvt@saace.co.za</a><br /><br />
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<p style="color:#000000;font-family:Verdana, Arial, Helvetica, sans-serif;font-size:11px;line-height:14px;">
Graham Pirie<br>
<strong>South African Association of Consulting Engineers</strong><br>
E-mail: jeans@saace.co.za <br>
Tel: +27 (11) 463-2022<br>
Fax: +27 (11) 463-7383<br>
P O Box 68482. Bryanston. 2021<br>
Website: <a href="http://www.saace.co.za" target="_blank" style="color:#01577D;font-family:Verdana, Arial, Helvetica, sans-serif;font-size:11px;text-decoration:underline;">www.saace.co.za</a>
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