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CESA CONFERENCE 2014Project Outlook for Consulting Engineers

Gaillard Rossouw

10 November 2014

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> Safety Moment

Safety

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> The Longest Drive – The Accolade

Header

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> The Longest Drive – What Actually Happened!

Header

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> Sources of Work for Consultants

Work?

Government

Sector

State Owned

Companies (SOC)

Private SectorMunicipalitiesProvincial

Government

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> Sources of Work for Consultants (Procurement)

Work?

Publicly Advertised

Tenders

Client Relationships

Direct Appointments

Invited TenderUnsolicited Bids

Variation Orders

“Manufacturing” Projects

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> Challenges Facing the Consulting Engineer in SA

Challenges

Extreme Competitive

Pricing

Discounting of

Professional Fees

Re-TenderDelay in Project Award

Lack of Appropriate

Skills

Large Bids and

Forming Alliances

Industrial Action

(Indirectly)CorruptionMisappropriation

of

Funds

Lack of Funding to Complete Projects

Low Professional Fees Leads

to Poor Quality Delivery

Lack of

or

Slow Decision Making

Late Payment

(Cash Flow)

High Workload and

Deteriorating Profitability

Poor Administration

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> The Ever Changing Goal Posts and Unfair Advantage

Outlook

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> The Outlook – From the Media and Industry

Outlook

“The unexpected slow start to the economy, weakened by the relentless labour strike action in the platinum industry and a contraction in the manufacturing

sector, raises fears that government will not be able to  deliver on its infrastructure expenditure programmes as was projected in the 2014/15 Budget

in February 2014.”

Engineering News – Quarter 2, 2014

“In emerging economies there has been a tightening of monetary and financial conditions since May 2013. This is due to issues such as spill over from rising bond rates, and improved prospects in advanced economies. Other factors include reassessment of medium-term growth prospects and greater investor concerns about vulnerabilities.”

SA Forum of Civil Engineering Contractors Report 2nd Quarter 2014 - State of the South African Civil Industry

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> The Mighty Liberator – The National Development Plan

Outlook

When Trevor Manuel presented his long-awaited National Development Plan, which calls on all South Africans – from the political elite to the man in the street – to work together to eliminate poverty and

reduce inequality by the year 2030.

Mail & Guardian – 16 August 2012

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> Where to from Here - The Way Forward – Sink or Swim

Outlook

Or

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> Africa Tug-o’-war

Tug-o-War

Then Now

2 / Best projectsAfrica> >

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Gautrain, South Africa

MadridThank you