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The liberalisation of South Africaıs building industry is central to the reconstruction and development process, and construction management (CM) has rapidly established itself as one of the most powerful tools available to help attain that goal.
Indeed, says Simon Harwood, MD of specialist CM company ASA Construction Services, one of the major distinguishing features of CM as a method of building procurement is its ability to further economic empowerment opening doors previously closed to small, low-turnover building contractors and systematically equipping them to compete in the mainstream.
"CM for empowerment operates on the basis of a large project being broken up into smaller packages, each to be handled by a separate contractor, and the purposeful sourcing of suitably skilled contractors from local communities, who are then assisted to tender for the available work.
"On site, the successful contractors work as independent members of a construction team, rather than as sub-contractors. This creates a non-adversarial environment and facilitates the rapid transfer of further management knowhow that is of lasting, quantifiable benefit to the individual enterprises."
The application of CM in this way, notes Harwood, has already paid massive human resource dividends for ASA Construction Services clients such as Eskom, the Airports Company and the SA Rail Commuter Corporation (SARCC).
"On the multimillion rand Katlehong station project, for example, more than 67 percent, by value, of all the work contracts awarded in the past year have gone to small, medium and micro contractors (SMMEs). They, in turn, have hired labourers through the local RDP office for a total of 120 000 manhours.
"Thus Intersite, which is managing the project for the SARCC, has been able to ensure a dual benefit for the local community: a direct financial injection as well as the restoration of commuter rail links suspended since the early Nineties."
On another project, the building of a client service centre for Eskom, ASA Construction Services was successful in letting 63 percent of the construction work packages to local SMMEs and in making up 50 percent of the professional team from emerging black companies. And on the development of a distribution facility airside at Johannesburg International Airport, 79 percent of the total fee went to black building professionals, while half the construction expenditure went to small contractors.
"However," says Harwood, "our aim is not just to provide work for SMMEs in the short term, but to enable them to compete successfully with big and even multinational companies - and reduce their reliance on joint ventures and other alliances which often deliver only pseudo-empowerment."
There are many willing to testify to companyıs success in meeting this aim, but their comments are probably best summed up by Peter Motaung, of Motaung Homes: "Working on this project (Kwesine station) has really given me the opportunity to improve my business. Iıve learned how to build a proper relationship with suppliers, co-ordinate material deliveries and work schedules, improve cashflow, and compile proper progress reports and payment claims.
"I can also see the bigger project picture now where we fit into a whole programme of work - and that helps me manage my employees better, and more profitably."
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