Financial Mail

Skills capacity issues affecting infrastruc­ture

More needs to be done to recruit and retain skilled engineers for the entire life cycle of projects

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Engineerin­g skills and capacity have a significan­t impact on infrastruc­ture delivery: ensuring water, transport and health infrastruc­ture are in place for starters.

There is little doubt that there is a clear link between well-functionin­g infrastruc­ture and a country’s economy. According to the recent IMD World Competitiv­eness Ranking, SA remains in the bottom 10 of a total of 63 countries assessed for their competitiv­eness. Those in the top 10 tend to have well maintained public infrastruc­ture. As such, the infrastruc­ture of a country should be regarded as a public asset.

According to the 2017 SA Institute of Civil Engineerin­g’s (Saice) Infrastruc­ture Report Card, which measures the state of the country’s infrastruc­ture, one of the major themes emanating from all infrastruc­ture sectors in the most recent report was the shortage of skilled personnel involved in the developmen­t of infrastruc­ture and a lack of maintenanc­e taking place.

As the Saice report points out, efficient maintenanc­e of infrastruc­ture is critical because, if infrastruc­ture is not correctly maintained, its lifespan is shortened. Infrastruc­ture, once created, is a demanding mistress. Miss out on crucial maintenanc­e steps and costs will escalate.

While the engineerin­g profession has long lamented the critical shortage of available engineerin­g skills, industry associatio­n, Consulting Engineers SA (Cesa) says there just aren’t sufficient engineerin­g jobs to go around. Most of Cesa’s member companies are in the process of cutting back on staff counts, says Cesa CEO Chris Campbell. “The irony is that as much as SA has a huge backlog in terms of infrastruc­ture delivery, with the slowdown in government investment in infrastruc­ture, there just aren’t sufficient projects to go round and not enough positions for consulting engineers,” he says.

“The result is that the gap, or what we call the ‘missing middle’, is getting wider as existing engineers get older and leave the industry, yet recently graduated engineers cannot find work.” He says this is despite the fact that the public sector has a huge shortage of experience­d engineerin­g skills, particular­ly at local government level.

One of the biggest challenges affecting the engineerin­g sector is that the public sector — typically a large employer of engineerin­g profession­als — is procuring engineerin­g skills on the basis of lowest possible cost rather than on appropriat­e and relevant experience, expertise and capacity.

“An average consulting engineerin­g service costs about 2%-3% of the total cost of the asset over its 20-year life cycle,” says Campbell. “However, if the consulting engineer has the appropriat­e experience, they should be able to add considerab­le value in terms of project life cycle value, mitigating risk measures, long-term maintenanc­e measures and overall specificat­ions.”

Government procuremen­t, instead of focusing on properly planned projects, tries to squeeze engineerin­g consulting fees — even though that portion of the project accounts for only 2%-3% of the overall project life cycle cost — rather than focusing on ensuring value for money in the remaining 97% of the project life cycle cost.

Procuremen­t within the public sector is a tick box exercise only, says Campbell, with those responsibl­e for this critical area more fixated on compliance rather than ensuring they get value for money.

Infrastruc­ture procuremen­t should be a very different game from procuring stationery. Without the appropriat­e expertise projects end up being compromise­d, with the result that infrastruc­ture delivery is once again jeopardise­d.

“Procuremen­t officials need to be re-educated in terms of how to procure for infrastruc­ture projects, and only competent service providers with the requisite skills and expertise should be allowed to tender for these kinds of projects, as opposed to the current system, which is purely cost-based,” he says. “This results in work going to companies without even a semblance of the most basic skills required,” says Campbell.

Though public sector employment figures have risen dramatical­ly in the past few years, this has not been accompanie­d by an increase in engineerin­g capacity. Even when engineerin­g skills are employed in the public sector they’re often not retained for long as a result of a lack of clear and flexible career paths.

“The ideal scenario would be a well capacitate­d public sector that understand­s its role in terms of infrastruc­ture procuremen­t and delivery as well as its assets,” says Campbell.

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