workshop no. 3 - fidicissues for workshop discussions (contd) 3. how successfully have firms worked...

The Challenge for Consultants in Developing Economies

FIDIC 2004goba moahloli keeve steynconsulting engineers & project managers

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goba moahloli keeve steynconsulting engineers & project managers

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WORKSHOP NO. 3

“To understand the challenges facing consultants,

come and visit the Cradle of Humankind”

WORKSHOP NO. 3

“To understand the challenges facing consultants,

come and visit the Cradle of Humankind”



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• Introduction • Developing Economies• Assumptions about consulting engineers• Business development • Operational risks• Growth and sustainability• Financial risks• Key challenges• Examples of Professional Associations• Meeting the challenges• Conclusion

• Introduction • Developing Economies• Assumptions about consulting engineers• Business development • Operational risks• Growth and sustainability• Financial risks• Key challenges• Examples of Professional Associations• Meeting the challenges• Conclusion



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ROAD K146, KATLEHONGROAD K146, KATLEHONG MAPHIKE ROADMAPHIKE ROAD

MOOKI STREET: ORLANDO EAST AND KLIPSPRUIT SIDEMOOKI STREET: ORLANDO EAST AND KLIPSPRUIT SIDE

ZOLA, PIMVILLE/KLIPSPRUIT AND NALEDI, SOWETO

ZOLA, PIMVILLE/KLIPSPRUIT AND NALEDI, SOWETO



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PLANNING & DESIGN & GUIDELINES FOR PUBLIC

TRANSPORT INTERCHANGE IN

GAUTENG

PLANNING & DESIGN & GUIDELINES FOR PUBLIC

TRANSPORT INTERCHANGE IN

GAUTENG

CITY OF JOHANNESBURG -ROSEBANK TAXI RANKCITY OF JOHANNESBURG -ROSEBANK TAXI RANK

GAUTENG DEPARTMENT OF HOUSING 7TH ALL AFRICA GAMES ATHLETES' VILLAGE

GAUTENG DEPARTMENT OF HOUSING 7TH ALL AFRICA GAMES ATHLETES' VILLAGE

INTEGRATED TRANSPORT PLAN 2003/2008

ESIKHAWINI HOUSES, FLATS & HOSTELSESIKHAWINI HOUSES, FLATS & HOSTELS



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RAIL WAGON TIPPLER RAIL WAGON TIPPLER

STACKER/RECLAIMER STACKER/RECLAIMER CRUSHER CRUSHER

MALTINGS PLANTMALTINGS PLANT

TRANSFER HOUSE TRANSFER HOUSE

WHEAT MILLWHEAT MILL



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DURBAN METRO WATER SERVICES -WATER SERVICES DEVELOPMENT PLANDURBAN METRO WATER SERVICES -WATER SERVICES DEVELOPMENT PLAN

CITY OF JOHANNESBURG - ALEXANDRA RENEWAL PROJECT : BULK WATER SUPPLY INVESTIGATION CITY OF JOHANNESBURG - ALEXANDRA RENEWAL PROJECT : BULK WATER SUPPLY INVESTIGATION

MAGUGA DAM, SWAZILANDMAGUGA DAM, SWAZILAND



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M1/CARR ST INTERCHANGEM1/CARR ST INTERCHANGE

NANDI DRIVE INTERCHANGE

KWAZULU- NATAL

NANDI DRIVE INTERCHANGE

KWAZULU- NATAL

NELSON MANDELA BRIDGENELSON MANDELA BRIDGE



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Map of SAMap of SA

Namibia

BotswanaMozambique

Swaziland

Zimbabwe

Lesotho

Vioolsdrif

Springbok

N1

WorcesterSwellendam

George

Beaufort West

Harrismith

Winburg Ladysmiith

Piet RetiefVolksrust

ErmeloSprings

Middelburg

Komatipoort

Maputo

Beitbridge

Warmbaths

Colesberg

Middelburg

Britstown

Hanover

Three Sisters

Kimberley

Warrenton

Ramatlabama

Skilpadshek

Port Shepstone

Pietermatizburg

Bloemfontein

Durban

Port ElizabethCape Town

Eastern Cape

Mpumalanga

Kwazulu /Natal

North

Northern CapeProvince

Province

Province

Province

Province

Free State

ProvinceWestern Cape

EC

UpingtonNakop

N7

N7

N10

N10

N10

N10N

1 N9

N9

N2

N2

N2

N2

N3

N5

N11

N11

N4

N4

N3

N1

N1

N1

N1

N1

N14

N14

N8

N8

N6

N12

N12 N

17

N12

N12

N7

West ProvinceN14

Vryburg

Johannesburg

N18

Northern Province

Groblersburg

N17

N11

PretoriaN4

Gauteng

N2



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ASSUMPTIONS ABOUT CONSULTING ENGINEERSASSUMPTIONS ABOUT CONSULTING ENGINEERS

• capability

• “successful image”

• high fees

• professionalism

• different interests

• capability

• “successful image”

• high fees

• professionalism

• different interests



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BUSINESS DEVELOPMENT

• Procurement policies

• Legal framework • Political risks• Economic risks • Client’s own abilities

• Competition

BUSINESS DEVELOPMENT

• Procurement policies

• Legal framework • Political risks• Economic risks • Client’s own abilities

• Competition



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OPERATIONAL RISKS

• Staffing and structuring of one’s company

• IT (Hardware, Proman, ACCPAC, Autocad, Prokon, etc)

• Quality management

• Performance monitoring and action

OPERATIONAL RISKS

• Staffing and structuring of one’s company

• IT (Hardware, Proman, ACCPAC, Autocad, Prokon, etc)

• Quality management

• Performance monitoring and action



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GROWTH AND SUSTAINABILITY

• Policies and procedures • HR skills development - / appraisals • Potential staff• Empowerment

GROWTH AND SUSTAINABILITY

• Policies and procedures • HR skills development - / appraisals • Potential staff• Empowerment



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FINANCIAL RISKS

• Own capital• Borrowings • Fees, WIP• Debtor• Creditors

FINANCIAL RISKS

• Own capital• Borrowings • Fees, WIP• Debtor• Creditors



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KEY CHALLENGES

1. Normal challenges• Staffing• Fees• Financing turnover• Financing staff and IT

2. Environmental challenges • Poor client capacities and

capabilities• Lack of transparent procedures• Lack of fair competition

KEY CHALLENGES

1. Normal challenges• Staffing• Fees• Financing turnover• Financing staff and IT

2. Environmental challenges • Poor client capacities and

capabilities• Lack of transparent procedures• Lack of fair competition



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EXAMPLES OF PROFESSIONAL ASSOCIATIONSEXAMPLES OF PROFESSIONAL ASSOCIATIONS

Voluntary Associations(individual members)(e.g. SAICE, SAIEE, SAAE etc)

• Professional and ethical

matters

• Relations with other

bodies

• Career guidance

• Social events

• Journals and magazines

• Policy influence

• Capacity building

programmes

• Encouraging excellence

Voluntary Associations(individual members)(e.g. SAICE, SAIEE, SAAE etc)

• Professional and ethical

matters

• Relations with other

bodies

• Career guidance

• Social events

• Journals and magazines


• Capacity building

programmes


FIDIC members(Company/Association membership)(e.g. SAAE, GAMA)

• Code of Conduct

• Client liaison

• Marketing


• Guidelines for fees,

selection of consultant


• Identifying opportunities

• Professional Indemnity

Insurance

FIDIC members(Company/Association membership)(e.g. SAAE, GAMA)

• Code of Conduct

• Client liaison

• Marketing


• Guidelines for fees,

selection of consultant


• Identifying opportunities

• Professional Indemnity

Insurance

Legislated Councils(Appointed individuals)(e.g. ECSA, CBE)

• Professional registration

• Legal matters• Investigations• Guideline International

recognition of qualifications

• Engineers Mobility Forum

• Fees• Generation of standards • Accreditation of tertiary

educational programmes

Legislated Councils(Appointed individuals)(e.g. ECSA, CBE)

• Professional registration

• Legal matters• Investigations• Guideline International

recognition of qualifications

• Engineers Mobility Forum

• Fees• Generation of standards • Accreditation of tertiary

educational programmes



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MEETING THE CHALLENGES

• Institutional capacity building

• Investment in education and training

• Skills transfer

• Performance benchmarking

MEETING THE CHALLENGES

• Institutional capacity building

• Investment in education and training

• Skills transfer

• Performance benchmarking



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(pty) ltd

CONCLUSION

• Developing economies will see huge change

• Opportunities for winning contracts

• Business opportunities and rewards for the long term

CONCLUSION

• Developing economies will see huge change

• Opportunities for winning contracts

• Business opportunities and rewards for the long term



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Issues for Workshop Discussions:

1. How have various firms dealt with the various challenges? During tender stage, and post tender?

2. How can local and foreign firms co-operate for long term mutual benefits?

Issues for Workshop Discussions:

1. How have various firms dealt with the various challenges? During tender stage, and post tender?

2. How can local and foreign firms co-operate for long term mutual benefits?



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Issues for Workshop Discussions (contd)

3. How successfully have firms worked in Joint Ventures or through sub consultancy agreements and how equitably did they share risks?

4. How can local and foreign firms act jointly on lack of transparency and unfair competition?

Issues for Workshop Discussions (contd)

3. How successfully have firms worked in Joint Ventures or through sub consultancy agreements and how equitably did they share risks?

4. How can local and foreign firms act jointly on lack of transparency and unfair competition?

workshop no. 3 - fidicissues for workshop discussions (contd) 3. how successfully have firms worked...

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