Big boys forever!


Big boys forever!

The construction industry will continue to display tender regard for the companies which have always dominated at the feeding trough.

One of the most jarring pictures of the recent construction industry tender-collusion drama was that of Sanral boss Nazir Alli appearing in smiling solidarity with the guilty industry bosses at the press conference at which they made a show of apologising to the public.

The industry big boys decided way back that Alli – once an engineer at Ninham Shand (now Aurecon) – would be the ideal person to ensure that the advent of democracy did nothing to upset their lucrative businesses.

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Submitted by : Wayne Duvenage of Randburg on 2013-09-08 10:18:42
Peter, I find your comments interesting. Are you implying that SANRAL - being the experts they ought to be in this space - should realistically not allow themselves to be hoodwinked by collusive construction company behaviour. I too find it hard to believe that Sanral allowed the costs of the GFIP to increase from their estimated R6,8bn in 2006, to over R17,9bn some 5 years later. i.e. R100mil / km, which mostly consisted of a few centimetre resurfacing of an existing infrastructure. Will you be ably to impart some insight in this regard for us?.
 
Submitted by : Peter Brauteseth of IZOTSHA on 2013-09-05 15:24:50
It does not have to be this way, any Professional Quantity surveyor worth his salt can and should/must be able to justify an individual selling rate for each and every item in a bill of quantities, which in turn governs the construction contracts final selling price.
All items are basically priced as follows:
Labour, Plant and Material costs totalled, then divided by a daily target which will give the unit cost. Added to that unit cost would be a normal overhead cost of say +20% and a +5 to 20% mark up, depending on the quantity involved.
As an "old Quantity Surveyor" who worked for a large contractor, I used to do these calculations, day in and day out to justify any of our additional rates with the client. That was always part of the contract in the old days. Simple, gentlemanly stuff. Don't let anybody bullshit you!!! They have most probably, accidentally - on purpose, left those clauses out these days. Mans greed, knows no bounds!!

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