Small and emerging contractors will benefit greatly from contracts and work packages on the N2 Wild Coast Road project. More than 30% of the value of the R9bn project will go to emerging businesses.

SANRAL has put in place various mechanisms to ensure local SMMEs participate extensively and local labour is used wherever possible.

Goals for the participation of SMMEs and local employment have been included in all conventional construction contracts. Minimum targets for the participation of local labour and SMMEs have been set, with penalties for non-achievement and incentives for those companies that exceed the targets. Within each contract, there are sub-targets designed to benefit groups with specific gradings issued by the Construction Industry Development Board (CIDB), as well as for enterprises that are:

• Black-owned
• Woman-owned
• Youth-owned
• Owned by military veterans
• Owned by rural businesses

In addition, the SMME participation guidelines set out clear participation goals for enterprises that deliver non-civil engineering services such as plant, material, transport, security, accommodation, catering, the provision

of goods and services and CIDB-graded building contractors.

A thorough analysis was done of the number and capacity of potential contractors and suppliers in each of the municipal areas close to the construction and specific targets were set for local participation in each sub-category.

All design contracts will include emerging consultants.
Design consultants are also required to appoint an independent community liaison specialist with sufficient local knowledge and experience to support the project.

SANRAL will unbundle the large contracts on all sections of the road construction project. That means there will be at least seven contracts to construct relocation structures allocated to contractors holding 5-7 general building gradings and at least seven contracts to build local access roads to enterprises with 5-7 civil engineering gradings.

Thus, more than 30% of the value of the entire greenfields project will be allocated to SMMEs through participation goals and unbundled contracts issued by SANRAL.

Local socio-economic development is a key component of the N2WCR project. All contracts will be measured against SANRAL’s procurement policy, which is designed to encourage the participation of emerging micro enterprises and qualifying small enterprises.