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var textForPages =["INSIDE TRACK December 2016\n“CESA Infrastructure INDABA 2016“\n","Contents\nCesa Member Firms Ready to Partner with Government to Reduce Irregular Expenditure....3 Times Still Tough for Consulting Engineering Industry........................................................7 Young Engineer’s Perspective - Dr Gabrielle Wojtowitz...................................................9 Knight Piésold Consulting Engineers: Claiming the Future for Aspiring Engineers............11 CESA congratulates Royal HaskoningDHV on Connecting Lives for 135 years................13 Fast Track your Young Professionals...............................................................................15\nFront cover picture “CESA President Lynne Pretorius anked by KwaZulu-Natal Of ce of the Premier: DDG Strategic Planning Frikkie Brooks and Chairman of the South African Nuclear Energy Corporation Dr Kelvin Kemm.”\nDATE\n1 February\nDATE\n15-16 August 16 August\n2 September 5 October\nDATE\n7-10 May\nPRESIDENTIAL VISITS\nPresident’s Breakfast - Gauteng\nEVENTS\nYoung Professionals Sustainability Imbizo / Conference CESA Aon Engineering Excellence Awards\nCESA Consultants Relay\nPresidential Golf Challenge\nOTHER INDUSTRY EVENTS\nFIDIC-GAMA Conference 2017 - Cape Town\nEvents Calendar\nSAVE THESE DATES!\n","People. Projects. Insight.\nTake your Engineering Firm to the Cloud! Why are firms moving to the cloud? Cloud-based solutions provide small to mid-sized businesses\nwith access to world-class systems & infrastructure at an affordable cost, with minimal IT overhead.\nMobile Timesheets & Expenses Project Management Client Relationship Management Resource Planning Fee Estimates & Billing Full Financial Accounting Reporting\nR299 R300\nper user*\nper employee\nper month\nper month*\nMobile apps available for download\nwww.silversoft.co.za info@silversoft.co.za 011 656 5298\n*Terms and conditions apply. Enquire at info@silversoft.co.za Prices may be subject to change.\n","Cesa Member Firms Ready to Partner with Government to Reduce Irregular Expenditure\nThe Annual CESA Infrastructure Indaba was held on the 7th and 8th November 2016 at the Elangeni Maharani Hotel,\nin Durban. Under the theme: ‘Working towards improved delivery of infrastructure and engineering services,’ the Indaba created a platform for dialogue between Consulting Engineers, Contractors and Clients alike - working together to improve the quality of services, the construction industry has to offer. The Indaba also deliberated and addressed #WhatMustRise to be able to employ graduates and students seeking in-service training, a prerequisite to their development as future competent practitioners in the eld of engineering.\nDuring her address, CESA President Lynne Pretorius reiterated that CESA will actively partner with stakeholders to improve on the process of infrastructure delivery in South Africa. “Despite a challenging environment, it is imperative that we form partnerships with those role players with whom we share similar values,” stated Pretorius.\nShe pointed out that in meeting the development challenges of our country, CESA has to partner with Government. “Our industry presents a particular skill set that is required in the delivery of infrastructure to meet South Africa’s social and developmental goals. Unlocking project and business opportunities requires us to partner with government. This is particularly relevant in implementing an improved procurement environment for the consulting engineering profession,” said Pretorius.\nOne of the resolutions taken at the Indaba was that CESA will assist client bodies such as KZN Province, who participated in the Indaba in ful lling their vision and mission in support of improved service delivery.\nIt is in this spirit of working and partnering with Government that CESA views as ‘disheartening and concerning’, the report of the Auditor General, Kimi Makwetu, on National and Provincial departments’ audit outcomes. The report revealed that irregular expenditure has increased by nearly 80% to R46,36-Billion in the 2015-2016 nancial year. The main reason for the increase in irregular expenditure was the continued non-compliance with supply chain management regulation and lack of consequence management.\nIrregular expenditure represents expenditure incurred for the procurement of goods and services without following prescribed processes or adhering to good contract management principles. Tenders are awarded to service providers without the prerequisite competence and delivery track record and insuf cient attention to quality and value for money.\nOne de nite potential source of this irregular expenditure is in the commissioning of professional engineering services where insuf cient planning is done to provide de nitive scopes of work for such service providers to respond accordingly. Inadequate contract management through the infrastructure delivery process is another. The new standard for infrastructure procurement and delivery management launched by National Treasury this year, supported wholeheartedly by CESA seeks to enforce the adherence to best practices in this process.\nTo address these sources of leakage, CESA welcomes a strengthened relationship with the public sector to achieve a win- win situation. Chris Campbell, CESA CEO stated, “We would even go as far as encouraging public sector client bodies to require such professional service providers to be members of industry associations such as ours, so that we can become a trusted advisor to them while keeping our industry members honest”.\n“The unfortunate thing is that not all consulting engineers are registered with a body like CESA. There is no accountability for those who choose to y under the radar,” cautioned Campbell.\n","","","Aon Risk Solutions Personal Product Solutions\nYou wouldn’t design your dream home without an architect, right?\nThe same applies to Household and Motor Insurance. You need the right specialist to protect your lifestyle – you need an Aon expert.\nOur team of experts have experience in arranging insurance for those with a little more to protect, and take pride in spending the time required to understand the individual requirements of each client.\nFor preferential benefits as a CESA member, contact us today and we will conduct a needs analysis to ensure that your hard earned assets are protected. Experience the best in insurance protection backed by professional advice, incomparable service and, of course, the personal touch.\nquoterequest@aon.co.za\n0800 400 400\nSMS ‘Professional’ to 31762 and we will call you back* www.aon.co.za\n* Standard rates apply.\nAon South Africa (Pty) Ltd is an Authorised Financial Services Provider (FSP #20555).\nAon Private Clients\nRisk. Reinsurance. Human Resources.\n","Times Still Tough for Consulting Engineering Industry\nThe CESA Bi-annual Economic and Capacity Survey for the period January to June 2016, indicates that times remain tough. Con dence levels amongst rms have deteriorated over the last few years, alongside modest increases in fee earnings. The outlook for gross xed investment has deteriorated and expected to fall behind GDP growth in the next three years.\nThree key factors continue to in uence the global outlook - these are the gradual slowdown and rebalancing of the Chinese economy; lower prices for energy and other commodities; and the gradual tightening of US monetary policy.\nAt a presentation held during the CESA Infrastructure Indaba, Elsie Snyman, CEO of Industry Insights stated, “The South African economy has faced several headwinds in 2016, some of which were expected, while others were not. Global factors play a much bigger role than may be suggested, with the sluggish global economy offering little relief in the demand for South African goods and services which has waned considerably over the last 2-3 years”.\nContractors have for some time reported on the slow pace by which contracts are awarded, as well as the slow roll out of government projects. This creates disconnect between opinions expressed by engineers and contractors, where projects are in planning stages, supporting earnings in the consulting engineering industry, but implementation is slow.\nTransformation of the Industry – signi cant progress\nThe appointment of Black executive staff (including Black, Asian and Coloured staff) increased to 40.8 percent from 39,5 percent and 38,0 percent in the previous two surveys. The appointment of Black executive staff has steadily increased from 28,1 percent in the June 2012 survey. This shows real signi cant progress in terms of industry transformation. There has also been a steady improvement in the appointment of women at an executive level.\nBusiness Con dence - low\nCon dence in the consulting engineering sector generally lags business sentiment. Business con dence is currently at 42 as at the 3rd quarter of 2016. This continues to depict negative market sentiment which does not bode well for private sector xed investment. Business con dence is negatively impacted by poor economic growth, threatened by a looming recession, increase in political instability, tightening of monetary policy alongside a sharper than expected increase in in ation.\nGross Fixed Capital Formation - deteriorating\nGrowth in Gross xed capital formation lagged GDP growth in 2014, and contracted by 0.3 percent on average for the year, compared to a 1.5 percent increase in economic growth. Investment in xed capital formation showed a mild recovery\nin 2015, up 1.4 percent on average, supported by a 6 percent increase in investment by general government. Investment growth from SOEs and the private sector remained muted, increasing by 0.8 percent and 0.4 percent respectively.\nFee earnings - muted\nFee earnings in the rst six months of 2016 fell marginally by 0.2 percent compared to the last six months of 2015, following the increase of 6.0 percent in the previous period. Larger rms reported a stronger decline of 5.3 percent, while medium and smaller size rms improved earnings by 15.1 percent and 10.6 percent respectively. This follows a similar trend reported in the previous survey whereby larger rms recorded more muted growth compared to a more robust increase in earnings by the medium and smaller size rms. Fee income stabilized at R25 billion, annualised, at current prices as at June 2016. Respondents expect earnings to increase by 6 percent in nominal terms during the last six months of 2016, compared with the rst six months of the year.\nThe contribution to fee earnings by the private sector improved slightly to 41.0 percent (from 40.3 percent in the December 2015 survey), but is largely on par with the average over the last 2-year and 5-year period.\nThe public sector remains the most important client to the industry, but due to the decrease in central government (down from 5.9 percent in December 2015 to 4.0 percent in the current survey), the contribution by the public sector moderated to 58 percent from 60 percent.\nPayment- a serious issue\nPayment remains a serious issue, having a broad based effect on rms operating in the industry. After having shown some improvement in the December 2015 survey, the percentage of fees outstanding for longer than 90 days as a percentage\n","of total estimated income (including late payments) deteriorated to an average of 25 percent from 23.0 percent and 24.5 percent in the previous two surveys. At 25 percent, this is the highest recorded level since 1999.\nIndustry Con dence Levels – well below average\nCon dence levels among rms has deteriorated over the last few years, alongside modest increases in fee earnings. The current weakening in the con dence index, depicting less than satisfactory conditions, may therefore predict weaker growth in earnings. In the December 2015 survey, con dence levels fell to its lowest level in 16 years, signi cantly weaker in the last six months of 2015, compared to expectations in the June 2015 survey. Since then there has been some improvement with the net satisfaction rate improving to 75 percent in the rst six months of 2016 (from 39.4 percent in the December 2015 survey), with similar levels projected for the next 12 months. Levels remain well below the average over the last ve years, and is recovering from historically low levels, surpassed only by the 1998/99 recession caused by the Asian nancial crisis.\nIndustry Challenges - Procurement the biggest challenge\nRegulation issues, including the procurement of consulting engineering services, remain one of the biggest challenges faced by the industry. Unrealistic tendering fees remain a concern for members, while the extended time it takes in which to nalise a proposal is affecting pro tability in the industry. The quality of technical personnel is argued by some rms to have deteriorated, putting greater risk on the built environment sector. Skills shortage is regarded as one the most signi cant institutional challenges faced by the private and the public sector.\nThe involvement of non-CESA members in government tenders and procurement continues to threaten the standard and performance of the industry. Firms from across South African borders are tendering at rates that are not competitive for local rms.\nUnlocking greater private sector participation is seen as a critical element to fast track delivery which will support engineering fees and as such engineering development in the industry. Many of the projects highlighted in the NDP can be carried out by the private sector through public-private partnerships.\nService delivery, especially at municipal level remains a critical burning issue. Lack of attention to maintain infrastructure poses a serious problem for the industry with infrastructure being left to deteriorate to such a state, that maintenance becomes almost impossible.\nFraud and corruption is affecting the ethos of our society, with a lot of talk and little action accompanying the growing evidence of corruption. CESA is aware that members are under pressure from contractors and corrupt of cials, to certify payment for work not completed. This is regarded as an extremely serious matter for CESA and as such will be relentless in holding those in power accountable.\nQuality Management System (QMS)\nChris Campbell, CEO of CESA stated, “All CESA member rms are required to have a QMS as a condition of CESA membership”. In the survey the majority of rms reported to have a QMS system in place (97 percent). While all the larger rms have the QMS in place, 93% of the micro enterprises that responded to the survey, currently comply, up from 88 percent in the December 2015 survey.\nFor a copy of the CESA Bi-annual Economic and Capacity Survey please visit:\nhttp://www.cesa.co.za/becs\nElsie Snyman\n","Young Engineer’s Perspective - Dr Gabrielle Wojtowitz\nAs “Young Engineer of the Year 2016”, I had the privilege of attending the FIDIC International Infrastructure Conference\nin Marrakesh, Morocco from 25th to 27th September 2016. This amazing opportunity was sponsored by Airports Company South Africa (ACSA). This vibrant diverse city located at one of the historical gateways to Africa from the western world\nwas the perfect location to host a conference attended by representatives from over 100 countries. Due to its location,\nthe conference this year also served as a joint GAMA (Group of Africa Member Associations) conference. FIDIC is the International Federation of Consulting Engineers and strives to be the recognised international authority on issues relating to best practice.\nThe theme for this year’s conference “Engineering for the challenges of climate change” is key to our global situation at present. The effects of climate change are severe and affecting humanity and our planet at a rate a lot faster than originally predicted. The message throughout the conference was how we as engineers have an obligation to limit deterioration as well as respond to the changed circumstances. We are innovators, role models, broad thinkers and trusted advisors who potentially have the power to change policies and strategies.\nI found the development of climate neutral cities in Sweden particularly interesting. Water challenges and renewable energy along with the need for infrastructure in Africa formed part of this theme. Global trends which emanated throughout the conference included the drive for diversity and integrity in the industry, sustainability and how digitisation and innovation are driving change. Another key global trend (which one presenter termed as) the rise of the goddess (which I loved) highlighted the empowerment of women within the industry. As a geotechnical engineer, wife and mother this touches the very essence of who I am.\nThe development of Young Professionals is one of the main objectives of FIDIC and I witnessed this throughout the three days. The conference attracts industry leaders and decision makers from the consulting engineering industry, politicians and international development banks. This led to interesting and thought provoking discussions over lunch and coffee as well\nas allowed me to network with and meet some interesting professionals. I would like to sincerely thank Airports Company South Africa (ACSA) for giving me the opportunity to attend the FIDIC conference. It was a valuable amazing experience. Thank you to CESA and Aon for my award.\n","MAKE\nPROFESSIONAL BANKING\nHAPPEN\n...with a banking experience from Nedbank that works as hard as you do and caters for\nboth you and your family.\nWhether you are operating as a specialist in your eld, quickly climbing the corporate ladder or simply looking for a professional banking experience that emphasises\nconvenience, quality and exibility, our Professional Banking package is the answer. With dedicated relationship bankers, tailored nancing options and 24/7 service, we care about making banking more professional\nfor you and your family.\nThis o ering enables your nancial aspirations, comes with the rewards and lifestyle bene ts you deserve and is\n exible to grow as your needs grow.\nContact us today on 0860 555 222 to arrange an appointment. Alternatively email us at professionals@nedbank.co.za.\n#ThingsThatReallyMatter Nedbank Ltd Reg No 1951/000009/06. Authorised nancial services and registered credit provider (NCRCP16).\n15176\n","Knight Piésold Consulting Engineers: Claiming the Future for Aspiring Engineers\nEducation lies at the very core of community and social development in South Africa. The true success of these projects rests not only in the nancial support, but also in the ability to address the speci c circumstances of students. Knight Piésold’s CSI project Bokamoso means “their future” provides a customised programme that truly makes a difference in the education sphere.\nDennis Ndaba, CESA’s Strategic Communicator was invited to attend the launch of the project on the 25th October 2016 at MH Joosub Secondary based in Lenasia, previously a trade school that offered courses including mechanics and engineering science. However, 22 years ago the school adopted a full academic programme and has since tried to expand the number of skills it could offer its pupils.\nAs part of its commitment to education, Knight Piésold Consulting saw an opportunity to help the school grow its facilities and develop the pupils and recently partnered with them, agreeing to invest in its Mathematics and Science departments. Access to technology and telecommunications is mired in poverty, as it does not come free or cheap. This is one of the various reasons why the Bokamoso project will be reopening the learning centre at MH Joosub Secondary and will be reintroducing computer studies to the learners.\nKnight Piésold will be handing over 24 computers to the school in early 2017 as we believe that investing in technology and innovative programmes for the bene t of education and special-needs facilities is the great equaliser of our times. In addition to the computer lab which will serve as a key learning centre, chemistry sets, chemicals, and Maths, Science and Chemistry study guides were given to the school.\nIn a country where hope can often be circumscribed through poverty and dire socioeconomic circumstances, every opportunity for education is vital. As a company, we are passionate about maths and science education and recognise its importance in producing a prosperous, skilled work force in South Africa.\nBokamoso engineering a better future, for aspiring engineers!\n","TOGETHER WE HAVE EMPOWERED OVER 50 000 SMALL BUSINESSES\nAs an Old Mutual customer you are part of our great story. Together, we are changing South Africa for the better. We invest our customers’ funds into small business projects that deliver great returns, while helping to build the dreams of small business owners so that they give their families a great future.\nJoin us today and invest in a greater future for us all. www.oldmutual.co.za\nINVESTMENTS I SAVINGS I PROTECTION\nOld Mutual is a Licensed Financial Services Provider.\nFCB10021207JB/E\n","CESA congratulates Royal HaskoningDHV on Connecting Lives for 135 years\nCESA’s Marketing and Events Manager, Bonolo Ngodi was honoured to be invited to attend Royal HaskoningDHV’s 135-year celebration at their of ces in Woodmead in October.\nRoyal HaskoningDHV has been connecting people for 135 years. They are proud of these connections. Together they have helped contribute to a better society and improved people’s lives with work underpinned by their sustainable values and goals.\nThey connect through friendships, meetings and contacts with colleagues, clients and partners. The company’s projects connect people, communities, countries and continents. Virtually they connect, exchanging insight and experiences online. Internally, they are connected by a common passion; to deliver excellent projects that enhance society.\nRoyal HaskoningDHV’s connections span time and space; with a global network and a local focus bene ting the people they work with and for. Past generations at Royal HaskoningDHV have taught them and they have learnt from them, building on their knowledge to create a leading position. And there is a strong connection with future generations - visible in the company’s commitment to create a more sustainable world for our children and our children’s children.\nThese are times of diversity and challenge in which the connections between people, cultures and ideas are closer and more important. Over the next 135 years the company’s continued success will develop through more connections, integration, partnerships and collaboration.\n‘Connecting lives – it’s our history and our future’ – Royal HaskoningDHV\n","","Fast Track your Young Professionals\nCESA’s 2017 ‘Business of Consulting Engineering’ (BCE) programme is open for registration. We encourage all member rms to invest in their future leaders by enrolling them in the 2017 BCE programme.\nThe BCE Programme has had excellent results since its inception in 2012 as evidenced by the rave reviews of past students and the accelerated progression of BCE graduates within rms. In addition to adding signi cant value to the participating rms and their graduates, the programme has the proven potential to:\n• Keep students abreast of industry trends\n• Improve levels of innovation\n• Improve BBBEE ratings\n• Meet career developmental needs • Retain promising staff within rms\nEarly application is encouraged as the intake for 2017 is limited to ONLY twenty students.\nBCE PROGRAMME INFORMATION\nClick here\nhttp://www.cesa.co.za/cce\nBCE APPLICATION FORM\nClick here\nhttp://www.cesa.co.za/node/173\nFor more information about the programme contact the Manager of the CESA School of Consulting Engineering at cce@cesa.co.za\n","","Consulting Engineers South Africa (CESA)\nPhysical Address\nBalvenie\nKildrummy Of ce Park\nc/o Witkoppen and Umhlanga Rd\nPaulshof\nJohannesburg, South Africa\nPostal Address\nPO Box 68482\nBryanston\nJohannesburg, South Africa 2021\nContacts\nTel: +27 (011) 463 2022 Fax: +27 (011) 463 7383 Email: general@cesa.co.za Website: www.cesa.co.za\n"];