30% or any other target for that matter is NOT the challenge, creating an equitable mechanism to achieve the target should be the focus of our attention.
We should be concentrating on the HOW and amending project execution models to include “incubation initiatives”.
Although noble in its ideology, the horse-blanket approach of imposing a certain percentage of subcontracting is very one-dimensional. There are a number of inherent flaws in the approach which will inevitably cause tension, breakdown trust and in fact have the opposite to the desired outcome
In order to "achieve" these targets, Employers (contractual for Client and in this case SOE's and other governmental clients) impose the requirement on the Contractor. As a business the Contractor is already bogged down with a myriad of non-technical requirements which detract from the actual safe execution of a quality end product.
The challenge cannot be unilaterally placed on the Contractors shoulders. Contractors by definition are geared to execute technical projects to ensure quality outcomes.
The onus of achieving high levels of local participation should sit squarely in the employers mandate. Early-stage stakeholder engagement at the environmental feasibility stage should be clear and decisive. Stakeholder expectations need to be manage
30% participation is achievable however a more creative and structured approach is required.
In the early 1990's the implementation of safety was a huge challenge in the industry. Compliance was shocking. Draconian measures and threats of long jail terms for CEO's had a limited effect. When legislation was amended and renders were floated with a full safety specification and a means by which it could be factored into the price(good old BOQ), contractors had a clear understanding of what was required and could price accordingly.
Similarly, a vehicle to allocate proper resources to managing and mentoring smme's would assist to ensure that the contractor is able to manage his risk and add real value to the sustainability of these businesses.
This Hardhat Opinion is written by Kevin Reid do you agree with him? comment below or would you also like to share your opinion regarding the Construction and Built Environment industries send us your Hardhat Opinion here
ABOUT KEVIN REID
Kevin Reid is a Construction Professional with over 32 year s experience, manly on civil concrete structures
He is the Founder of Integrated Enterprise Management (I E M), a Construction Management Services business that offers support to contractors in ensuring sustainability and longevity.
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