August 2011
In an insightful article Ronald Smith argues that the lack of healthy commercial competition (specifically construction), leads to corruption. He says, "Many years of involvement with contracts at all levels have convinced me that the only thing that drives down prices is a tenderer's fear of competition. If tenders are opened in public, and everyone knows the prices and the awards, then fiercely jealous competitors will cry out if anything is amiss. The bright glare of competitors forces everyone to be honest."
The focus this month falls on precast concrete products and shopping malls & office developments.
The local purchase of South Africa's landmark V&A Waterfront is now complete. Also in the Western Cape, the Public Investment Corporation Real Estate Managers has earmarked R260-million for a total overhaul of the well-known Centre Point Shopping Centre in Milnerton, while Mauritius's first regional shopping centre is being developed by leading South African property investment and development company Atterbury, bringing a mix of world-class international, South African and local Mauritian retail to Africa's top-rated country in the World Bank's ‘Doing Business 2010' report.
From left to right: Cape Town's iconic V&A Waterfront, an artist's impression of Centre Point Shopping Centre in Milnerton, and Bagatelle - Mall of Mauritius.
The spotlight on precast concrete products reveal that due to the increasing high cost of available land within close proximity to existing commercial nodes, ‘one-house-one-plot' developments are becoming increasingly less feasible in most urban areas and how precast innovation can assist with this problem.
Regarding specific products, Rocla has recently launched the Rebloc system which offer permanent and/or temporary barrier separation on the sides and middle of roads or placed as required during road works.
Keeping pace with international trends urban upgrades are opting to use Corobrik clay pavers to bring life and vibrancy to urban landscapes.
From left to right: The Steenberg Social Housing Project's parking area with permeable paving in foreground, Rocla's Reboc system and Corobrik pavers' colour and texture which was ideal for the upgrade of the PE city centre.
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The destruction of competition
By Ronald Smith
Corruption is done in secret, in breach of the rules. The more rules, the more opportunity for tenderers and for officials tasked with awarding contracts to impose their own interpretations of those rules.
Construction entities merge to form super-construction company
Construction companies Murray & Roberts and Concor, part of the Murray & Roberts Group, have merged to form a single company called Murray & Roberts Construction effective 1 July 2011.
Tender awarded for Western Aqueduct - Phase II
Phase II of the Western Aqueduct (WA) project has finally been given the go-ahead with the tender having been officially awarded to the Esorfranki/Cycad Pipelines Joint Venture.
Tendering in South Africa - a scary business?
By Manglin Pillay, CEO of the South African Institution of Civil Engineering
In the civil engineering industry tendering comes with the territory. The construction of every infrastructure project is preceded by a tender process. However, entering this process has become a minefield.
