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. The contracts required big
contractors to bid as JVs with smaller
companies for the project.
According to Nontobeko Mathenjwa
and Lawrence Chauke, SANRAL Project
Managers on Moloto, 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.”
On 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. 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.”
THE RIGHT PARTNERS: Kevin Padayachee (KPMM) and Adam Chauke (CBE)
are the successful JV partners contracted to upgrade R573 Moloto Road in Limpopo.
It was really exciting to practically develop words and phrases
to incorporate into our procurement documents.
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 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.
Sidewalks on N8
Pedestrians using the sidewalks that
have been constructed along a
section of the N8 in Mantsopa local
municipality in the Free State are feeling
safer walking along this busy stretch
of road and many are grateful for the
development.
SANRAL’s Eastern Region Project
Manager, Rajesh Dookie, said that
SMME sub-contractors who were
employed on the project exhibited an
eagerness to learn and executed the
work on schedule and with exceptional
quality. The construction is worth R3.1m. Samuel Mpele of KS Mpele
Construction, who earned R956 000,
said that he was “happy and proud”
to have been involved in the project.
He employed 12 people during eight
months.
David Malapo, owner of DNC
Construction, who received R1m, said
he had gained valuable knowledge and
experience working on his first SANRAL
project. “I used eight employees. I look
forward to more work from SANRAL so
that I can create meaningful jobs,”
he said.
Proper sidewalks have been constructed for pedestrians along a section of the N8
at Mantsopa local municipality.