SA duo for contractors grading review
MBABANE – Proposed major changes that will change the face of the country’s construction industry are about to be implemented.
This follows the shortlisting of consultants to provide services for the review of the contractor registration and grading criteria. A joint venture involving Olive Green Consulting – Procurement Dynamics has been named as the successful bidders at this stage with a proposed contract price of E547 670. A local firm styled Korsch Consulting was the only other bidder, but it was said to be unsuccessful due to what was termed a score below the minimum requirement. The minimum score is usually 70 per cent.
This is as per an intention to award notice which was posted on the Eswatini Public Procurement Regulatory Agency (ESPPRA) website. The information was posted as per Section 45 (3) (b) of the Public Procurement Act No.7 of 2011. Established in 2001, Procurement Dynamics (Pty) Ltd (also known as PD Consulting) is said to be 100 per cent black-owned and managed consulting firm specialising in engineering design, economic development and delivery management.
Olive Green Consulting, on the other hand, said to be a dynamic consulting firm headquartered in Johannesburg, South Africa. Its aim, according to its online profile, is to grow into a leading consultancy in Africa, creating sustainable and effective solutions for challenges in the infrastructure and economic development sectors.
Meanwhile, late last year, it was announced that the Construction Industry Council (CIC) was embarking on the process of reviewing grading of contractors with intent to improve standards.
For construction firms, for instance, the current contractor categorisation and grading process is determined by best annual turnover, largest contract and available capital. Best annual turnover is determined by the best turnover over a period of three years.
Largest
The largest contract is determined by the largest contract undertaken and completed for projects done in your class of construction works (completed during the three years immediately preceding the application). Then available Capital is the sum of total equity and retained income or any form of surety from recognised financial institutions over a period of three years.
The grading is used by project owners to qualify a tender to be considered for a particular construction works contract. For example, if you are registered as a grade B2, you will be considered for general building works of a value to a maximum of E25 million.
The council, through Chief Executive Officer (CEO) Nhlanhla Dlamini had invited competent and reputable consultants to carry out an in-depth analysis of existing contractor grading criteria and development of new grading criteria that addresses existing gaps.
In the request for proposal (RFP) which was issued by Eswatini Public Procurement Regulatory Agency (ESPPRA), it was explained that the registration and grading criteria was intended for use by project owners to qualify prospective tenderers considered for construction works; support risk management in procurement of construction services; reduce administrative burden to clients engaged in construction procurement services; and for establishing a register of contractors. In addition, the criteria should ensure a refined grading tool that allocates contractors according to the deserved value of work.
This may include, but not limited to; trading space or premises to promote formal business setting in construction; construction plant and equipment capacity and professional capacity. Last but not least, it should provide more currency and credibility of the CIC registration certificate. It was stated that the proposed registration and grading criteria review was aimed at developing a registration and grading criterion that factors financial capability to ensure financial capacity of the contractor.
It also seeks to develop a registration and grading criterion that factors in technical capacity of the contractor in delivering construction projects and to develop a registration and grading criterion that factors in contractor performance standards for the industry.