SMMES
BUSINESS UNUSUAL SANRAL is pioneering change in construction through joint ventures with small business

ONE of the biggest challenges facing emerging enterprises in the construction industry is competing with established companies for big projects.
In an attempt to level the playing field, SANRAL has introduced a contractual clause that actually requires big companies to partner with small businesses when bidding for construction projects. It’s part of the agency’s vision of empowering small businesses to grow and contribute to infrastructure development.
The joint venture (JV) condition was first introduced with the awarding of two contracts for the rehabilitation of sections of the R573 Moloto Road, a major route linking Gauteng, Mpumalanga and Limpopo.
According to Nontobeko Mathenjwa and Lawrence Chauke, SANRAL Project Managers on Moloto Road, this project is the first of its kind and took a lot of planning and consultation.
Mathenjwa said: “This is a SANRAL initiative. We had no reference or prior experience of implementing this model. It was really exciting to practically develop words and phrases to incorporate into our procurement documents. I’m glad it’s working and opening up the industry to small business.”
In the Limpopo section of the project, a contract was awarded to two partners, KPMM and Chauke Business Enterprise (CBE). On the Mpumalanga section, a contract was awarded to a JV involving four companies: Raubex Construction, Themolo Business Enterprise, Khuluphala Tradings and Biz Afrika.
Although it was business unusual for big companies, they agree that it’s a great initiative. And it is clear that there will be no compromises on quality.
Kevin Padayachee, Operational Director for KPMM, said: “We’re happy to take on emerging companies, but they have to play ball and make use of such opportunities. That means no compromise on quality and reliability, so it’s important to attract the right partners for the JV.”
Emerging companies agree that the JVs mean empowerment and they have become more efficient and professional in their offerings. Adam Chauke, owner and managing member of CBE, said: “It’s not easy to form partnerships with big companies and sometimes they don’t like to empower us for fear of competition. But thanks to SANRAL, the likes of KPMM are now required to approach us. It’s truly remarkable. It opens up the industry and affords us the opportunity to grow.” Through the JV, he is able to benefit from mentorship and shared resources.
From the experience gained on the project, the SMMEs will be able to increase their grading at the Construction Industry Development Board (CIDB) and compete for bigger contracts in future.
SANRAL will continue to support this initiative and start introducing it for all other projects going forward.

TSOLO COMMUNITY MEMBERS & YOUTH BENEFIT FROM PROJECT

MORE than 100 jobs have been created on the construction of a 5.5km walkway, along national route R396 from Tsolo to the N2 intersection in the Eastern Cape. SANRAL is constructing the walkway to maintain and improve local pedestrian infrastructure and at the same time deliver holistic community development.
SANRAL Project Manager Lindelani Tsanwani said: “This project is intended to benefit the community in various ways. It will make pedestrians safer on the R396.”
Youth and SMME development is an important component of the project. “The project is offering training for SMMEs and their supervisors at NQF Level 4 and foremen at NQF Level 2. This will help the growth of the SMMEs and improve their operations,” he said.
According to Ntombikayise Mdlalana, an SMME contractor, this project was not just good for the community, but also for skills development. “This is a very important project for me, especially since my goal is to advance from level 1 CIDB grading to level 3,” he said.
Athulisiwe Dywili, another SMME contractor, said: “The project has given women an opportunity to participate in the field of construction, which was previously dominated by men.” Before working on the project Dywili was unemployed. “This will give me more skills and help me put food on the table for my family. It’s a nice opportunity for me.”
This project has created 120 jobs and benefits unskilled, unemployed locals. Apart from that, it aims to train 32 students in the field of construction. The SMMEs and students are not only trained in construction, but also in first aid, health and safety, and fire-fighting.
“The SANRAL project is benefitting TVET students, SMMEs and locals by enhancing their skills and assuring their safety when using the road from Tsolo,” said Tsanwani.