The plan that drives SANRAL’s transformation and procurement processes

All of SANRAL’s projects are guided by a commitment to small, medium and micro enterprise (SMME) development, a 14-Point Plan that prioritises community engagement, a Transformation Policy that seeks to advance black business, and an overall strategy aligned to the government’s National Development Plan.

The Transformation Policy sets clearly defined targets for black contractors, professionals, and suppliers to participate in all projects that SANRAL commissions. The aim is to ensure that those previously marginalised sectors including women, young people, people with disabilities and black contractors play a meaningful role and succeed in the construction industry.

SANRAL believes that it is time for black South Africans – African, Indian and Coloured persons – who were previously excluded from benefitting from massive infrastructure projects – to benefit alongside the well-established industry players.

The 14-Point Plan explained

 SANRAL’s 14-Point Plan puts its Transformation Policy into action in the following way:

  1. A Project Liaison Committee (PLC) is established for each project, as a platform for project communication, subcontracting, procurement, and facilitation of employment.
  2. The PLC includes SANRAL, contractors, engineers, community leaders, and other stakeholders, ensuring unbiased representation.
  3. A Project Liaison Officer (PLO), who is supported by the PLC, is appointed to facilitate communication and address project and community matters.
  4. Specific local areas are identified for the project to focus on, in consultation with the PLC.
  5. A database of contractors, subcontractors, consultants and suppliers is developed with the PLC’s input and approval, ensuring compliance with legislation.
  6. A local labour list is created that is agreed on and signed off by the PLC, and fair selection processes are established.
  7. The approved databases are handed over to the contractor to carry out recruitment of subcontractors following an open tender process, and for recruitment of local labour.
  8. Contractors conduct transparent tender processes following government guidelines, with public opening of received bids, announcement of bidders and prices. Bid details are shared in PLC meetings.
  9. Tender process appeals go to SANRAL for independent review by the Transformation Unit.
  10. Contractors and suppliers’ skills are evaluated with PLC input before subcontracting, ensuring quality. Local labour skills are assessed before recruitment.
  11. Training and support is provided for contractors before subcontracting, guided by the PLC.
  12. The PLC identifies deliverable areas of work for local service providers; for areas lacking local capability, opportunities are provided for locals to learn.
  13. Drawing up formal contracts between the main contractor and subcontractors is overseen by the PLC and consultants.
  14. The PLC facilitates transparent communication, managing the expectations of local businesses and communities, and ensuring inclusivity and

We hope that this gives insight into SANRAL’s 14-Point Plan and how SANRAL drives transformation in the construction industry through its procurement policy and practices.