Navigating New Procurement Rules and Their Impact

In the complex world of tenders and procurement, every action triggers a reaction, and recent developments have certainly set the stage for significant change.

The South African National Roads Agency (SANRAL) has recently made headlines with the suspension of its Chief Financial Officer and Head of Supply Chain Management. Allegedly, these suspensions are tied to concerns about the new procurement policy that the SANRAL Board introduced in May 2023. This policy brought about a noteworthy shift by placing greater emphasis on factors such as black ownership and subcontracting.

Traditionally, SANRAL used a bidder’s B-BBEE rating to assign 10 or 20 points to assess compliance with the State-Owned Enterprise’s preferential procurement requirements. Companies achieving a Level 1 B-BBEE rating, the highest and most sought-after empowerment status, were automatically granted the maximum points. However, in May, SANRAL revamped the scoring system, elevating the importance of black ownership and subcontracting. Under this new system, black ownership and subcontracting now account for five points (or 10 points in the case of an 80/20 scoring model) and four points (or eight points in the case of an 80/20 model), respectively, in tenders using the 90/10 scoring regime. This change effectively diminishes a bidder’s B-BBEE rating to just one point for a 90/10 tender (valued at over R50 million) or two points for an 80/20 tender (valued between R30,000 and R50 million). SANRAL, however, staunchly defends its new tender scoring system, citing its commitment to constitutional economic transformation and its goal to foster growth among black-owned construction companies, thereby improving their CIDB grading and advancing 100% black-owned firms within the construction industry.

The South African construction sector, which has invested billions over the past decade to enhance its empowerment profiles and engage with the government, finds itself facing unique challenges. This industry, now only 20% of its former size due to economic weaknesses, is grappling with turbulence. For instance, in July, construction firm Haw & Inglis (H&I) secured an interdict preventing SANRAL from awarding two tenders for which H&I had submitted bids. In a follow-up application, supported by WBHO and 11 other construction companies, including Raubex and Stefanutti Stocks, H&I has challenged the new scoring system on the grounds that it was implemented without proper consultation and is unconstitutional and irrational. In response, SANRAL maintains that it had the authority to modify the scoring criteria and that the list in the act was not exhaustive. Asithandile Ben-Mazwi, the Acting Head of Supply Chain Management, emphasized that it falls within the prerogative of state entities to determine criteria and their relative weights in tender documents. SANRAL asserts that its decision to abandon the previous scoring system in favor of the new one was made after careful consideration, grounded in legislative and policy considerations. Additionally, SANRAL argues that if the courts side with the construction firms, it could signify an overreach of judicial authority.

Meanwhile, on a different front, the National Treasury has presented a new Public Procurement Bill to Parliament, which opened for public comments last week. This bill seeks to revamp the preferential procurement system by allowing for the implementation of “one or more preference points systems.” It also permits certain contracts to be earmarked for designated groups to promote localization and subcontracting. Stakeholders are encouraged to submit written feedback on the bill by 11 September 2023. The bill’s summary highlights the fragmentation of public procurement regulations across various laws governing public administration in South Africa.

Sources:
Daily Maverick
IOL
News24


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About Debbie Wessels

I started at Leads 2 Business in April 2008 in the tenders Department and transferred to the Projects Department during the same year. I was appointed Head of Department for Projects from February 2011 to March 2022. April 2022 I started a new adventure as Content Regulator.

How Wind Turbines Work

Modern wind turbines take advantage of the latest technology to capture energy from moving air and convert it to electricity.

Wind turbines need to be carefully placed across a site to harness as much energy as possible. To choose the best possible layout, planners must analyse the wind conditions of the landscape. Like the wings of an aeroplane, wind turbine blades exert a force which disrupts the airflow. Bigger, longer blades are able to capture more energy.

To harness the strong winds found offshore, tremendous engineering challenges are being overcome. Machinery needs to be protected from the corrosive salt water of the sea. New designs are being made for deeper water conditions and specialised ships are assembling the wind turbines. Electricity substations are built offshore and power lines are installed underwater to carry the electricity from offshore wind turbines to the national grid onshore.

Improved technologies are allowing operation and maintenance to take place regardless of the weather conditions.

Source: Our Future Energy


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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

The Metaverse and the Building Industry

What is the Metaverse?

We currently consume the internet predominantly in 2D forms like mobile devices, PCs, TVs, wearables and other connected devices.

The “metaverse” is essentially the next, 3D version of the internet, a virtual universe that can be experienced like the real world. Technologies such as virtual reality (VR), augmented reality (AR), mixed reality (MR), and their developing successors extended reality (XR), NFTs, AI, 3D design, holography, IoT, 5G and 6G, cloud and edge tech assemble to make up the metaverse.

Leading metaverse companies in 2022 include Meta, Roblox, Microsoft, The Sandbox, Nike, Google, Amazon, Snapchat, Apple and Autodesk. Games like Fortnight and Minecraft have also incorporated some parts of the Metaverse giving us a brief idea of what it will look like in future.

Metaverse Practicality

Global revenue opportunity in the metaverse is set to reach as much as $800 billion by 2024 alone according to Bloomberg.

The Metaverse has the potential to revolutionise almost every industry with major implications for how we collaborate and work together. Key players benefitting from and creating this world will be those in the Architecture, Engineering, Building, Construction and Property industries. Examples include city co-development and co-design, as seen in Singapore, or enhanced city development initiated by the University of Pretoria.

Some of the workflows that have already been impacted by using VR and AR and will be significantly impacted in the future include:

  • Remote Collaboration
  • Planning & Design
  • BIM Coordination
  • Analytics
  • Forecasting
  • Simulations
  • Finalising
  • Presentations

Using digital tools like CAD and BIM is not something new to construction and although simple 3D models could take hours of detailed manual input, 3D modelling remains very efficient and productive while also aiding in the ability to analyse environmental changes

In addition, virtual construction sites can also remain structurally sound and protected from natural causes in contrast to their real-world counterparts. There are no restrictive physical laws like zoning and also an endless supply of resources. The possibilities are essentially endless for those wanting to unleash their creativity plus people and businesses are already willing to pay large amounts for land in metaverse so theirs a lot of potential to make money.

Metaverse Hurdles

One of the biggest hurdles the Metaverse has to overcome is data privacy and security, can this be overcome? Only time will tell. Some others also include:

Conclusion

Professionals in the Building and Construction and related industries will be at the fore of metaverse and digital twinning adoption using immersive models to present their concepts to developers/owners/investors. Potential clients will have the ability to walk through virtual representations of their real-world physical system to understand all the design aspects and increase overall efficiency in the building processes. In addition, Virtual real estate will relate to large investments and the potential for even larger profits. Digitally these virtual sites will need development and the same professionals we employ on physical construction sites will be required to build and design a virtual dream home, office, mall, hospital or stadium.

The metaverse will open a world of possibilities for the built environment changing the way projects are developed from conceptual to completion. This will include cultivating new skills and perspectives on both 3D and Digital technology which will lead to new job opportunities for professionals. What could go wrong?

 

Sources:
Glaholt
ZDnet
The Wild
EY
Constructible
World of Porr
HW
Construct Konnect


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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

Fact vs Fiction in Construction & Building

Fact vs Fiction BIM

BIM (Building Information Modeling) is a common topic in the construction industry. If you have been in the construction industry for more than 10 years, then you would most likely have experienced the conflicting points of view under the BIM Topic. However, with the hype and everyone’s conflicting input, its difficult to separate facts from half-truths, exaggerations and just plain fiction.

BIM in a nutshell involves the creation of intelligent 3D digital models to plan and manage construction projects. Compared to traditional drawings, BIM allows a much higher level of accurate and accessible information which is shared with stakeholders to make better and more efficient decisions. It goes well beyond fancy-looking digital pictures, seeing as it’s a process that impacts the construction project workflow as a whole, from initial estimating and bidding stages to completion and ongoing facility maintenance. This way of working transforms project delivery, construction, and design in several ways.

It is a collaborative process that allows architects, engineers, real estate developers, contractors, manufacturers, and other construction professionals to plan, design, and construct a structure or building within one 3D model.

Fiction

Common Fictional Points raised by sceptics and ill-informed naysayers (sourced from the Construction Timble and LIDAR News) :

BIM is not affordable due to the amount of money spent on software
BIM is time consuming as it consumes a lot more time to draw up plans in 3D
BIM is not suitable for smaller companies because its more suited for large projects which is handled by ‘Big’ companies
BIM affects job opportunities by phasing humans out of the construction industry roles
BIM doesn’t have a good return on Investment (ROI); its used for just the design and construction process and its too difficult to learn and not worth the effort or cost

At the other extreme, there are the so-called “experts” with their own exaggerated fictional points to oversell BIM :

BIM erases human error fully, therefore errors and inefficiencies disappear when adopting BIM
BIM increase profits, and it will INSTANTLY skyrocket profit margins
BIM will resolve every problem that’s ever plagued a project

Fact

BIM is beneficial to architects, designers, engineers, contractors, owners and/or the client – as published in the 14/02/2017 BIM article on LiDAR News web page.

It contains most of the data needed for building performance analysis.

BIM has a good return on investments (ROI). Some firms are concerned about the cost of incorporating BIM, however many report an incredible ROI; most BIM software manufacturers do not require purchase of annual subscriptions, and often provide low-cost monthly rental fees, so the cost involved in adopting BIM is reasonable. However, like with everything else in life, it helps to plan ahead – and approach it smartly by taking small steps when implementing BIM, choose steps appropriate for your company and take them one at a time, or run a BIM test on a pilot project to see how your firm does, which can then be used to prepare for BIM implementation

BIM is suitable for small, medium and large companies : classifying BIM as valuable for large firms/companies is a common misconception. Small firms/companies can benefit from collaboration and efficiencies of BIM even more that larger companies. BIM allows small firms to sell ideas more easily to clients with 3D visualization, it increases design accuracy and coordinates designs efficiently with other disciplines.

BIM is NOT just for the design and construction process : Owners can implement it in the project standards to benefit from post-construction features like asset management, facilities maintenance and overall building operations. BIM is future proof as the inevitability of software changes will not affect BIM data because it never expires

BIM can easily be mastered with the help of several free resources and tutorials available online; the software companies also provide both short and extensive tutorials, along with monthly training updates, and there are many short tutorial videos available to help overcome obstacles.

BIM improves design with the visualization of the finished product which produces more effective and elegant designs.

BIM allows clients to truly understand their buildings with dimensional accuracy to provide a sense of scale for clients to experience prior to building / renovation. This feature provides a true sense of what the space will feel and look like before hand, reducing misunderstandings, and it helps increasing energy efficiency by predicting power consumption and light use along with other similar factors.

BIM provides efficient data exchange to aid ongoing building management, tracking and predicting maintenance cost, reduce duplicate work, improve design accuracy, resolve issues instantaneously, save time by automating lower-value tasks, and ultimately allowing more time for design and client service.

I thought I had a pretty good grip on what BIM involves – how and for whom its beneficial – before I started this blog, when in reality I had it completely upside down and all my facts crossed.

It’s interesting how hearsay and individuals own personal opinions voiced as facts (their facts), distorts itself as true facts, essentially having your brain file away someone else’s personal opinion as truth, under the gullible notion of ‘they said its fact – so it must be so’.

Everyone has their own opinions and their own versions of truth from their point of view and position – which is great. Individuality is a gift – and it keeps us evolving. Just be careful that you don’t file away someone else’s truth as your truth

On that note, i am happy to report that at the end of my research through the half truths and actual truths surrounding BIM I feel confidently educated – and may I dare to say impressed.

Its a nifty tool that can be as great, beneficial and as profitable as the person wielding it chooses for it to be. At the end of the day, irrespective of how hi-tech or revolutionary something is, it depends just as much on how well its used for your benefit. Put half efforts in and get scraps back – that’s the way of the universe.

Fun BIM Facts:

Did you know? The concept of BIM has been in development since the 1970s, but it only became an agreed term in the early 2000s.
BIM is a relatively new technology in an industry typically slow to adopt change.
BIM software is used by individuals, businesses and government agencies who plan, design, construct, operate and maintain buildings and diverse physical infrastructures, such as water, refuse, electricity, gas, communication utilities, roads, railways, bridges, ports and tunnels.
MLIT announced ” BIM will be mandated for all of its public works from the fiscal year of 2023, except those having particular reasons”. – FactSnippet No. 995,864 – en.wikipedia.org

Fact or Fiction: Building and Construction

1. Concrete and mixed rubble make up nearly 50% of all building-related construction and demolition debris.
Fact:
While concrete and mixed rubble make up nearly 50% of all demolition debris, wood constitutes 20 to 30% of the construction waste stream.

2. Plastics make up 5% of construction waste.
Almost Fact: Plastics actually make up a fraction of all construction waste. The total ranges from 1 to 5%.

3. About 14 tons of concrete are used in constructing a typical 2,085-square-foot home.
Fact: A home of that size requires about 14 tons of concrete during construction — most of it for its foundation.

4. It’s possible to recycle dirt.
Fact: Soil can be recycled as a landfill cover or as soil for farming.

5. Spent foundry sand can be used as an aggregate in concrete.
Fact: The sand from iron, steel or aluminium foundries is not hazardous and can be recycled as an ingredient in cement.

6. Some homes are made out of recycled bottles.
Almost Fact: Plastic lumber made from recycled bottles can be used in building benches and other outdoor structures.

7. According to the EPA, construction materials that are most frequently recycled include shingles, plastic piping and glass.
Fiction: Concrete, asphalt, metals and wood are the materials most frequently recovered and recycled from construction sites.

8. Concrete is a mixture of sand and steel.
Fiction: Concrete is a manufactured mixture of cement and water, with pieces of sand and stones mixed in. It hardens to a solid form that is fire-resistant, and it can be poured into moulds to create many different shapes.

9. Plywood is made of multiple layers of wood.
Fact: Layers of thinly sliced wood glued together to form the versatile building material called plywood. Each layer, or ply, is placed with its grain at right angles to neighbouring layers.

 

Sources:
Constructible
Lidar News
Fact Snippet
How Stuff Works


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About Jackie Van Zyl

My epic journey at Leads 2 Business started September 2008, as a Researcher / Data Capturer in the Tenders Africa Department. I joined Customer Relations in 2011, where I have had the great pleasure of being part of the Dynamic L2B Admin Department [From 2011 to present]. I deal with the Registration and Administration details of New Account Activations, and Existing Account Upgrades, etc. I also assist with client & staff queries. I’m a ‘think-out-of-the-box’ individual and an excellent problem solver. I am hardworking, meticulous, efficient, friendly and always happy to help! I look forward in assisting you with any queries you might have

The Differences between Residential & Commercial Construction

Commercial and residential construction makes up a significant portion of the construction industry. One houses people while the other provides the infrastructure for their daily needs. There are notable differences between residential and commercial construction aside from their uses.

The infrastructure and building systems required, building materials, funding sources and time of completion are different for residential than for commercial.

Commercial structures typically tend to be larger in scale and serve a larger number of people, though it might not always be the case. Whereas residential structures are usually smaller in size and are built for individuals and families.

Commercial construction includes; land investments, office buildings, storage units, retail space, and industrial buildings. Where residential construction includes, single-family homes, detached homes, townhouses, duplexes etc.

Both commercial and residential properties require a permit and must adhere to the building code requirements.

Regulations in commercial property construction are greater and generally stricter than in residential construction.

Safety is important for both residential and commercial structures. They are designed to handle emergency situations appropriately to ensure there are no fatalities. Today’s structures need to have the most effective and reliable safety measures in place in case of an emergency or accident. The concerns for residential construction tend to be less, however, this does not mean safety is not important for both residential and commercial structures.

Generally, commercial projects have greater complexity in terms of permits and codes because these buildings need to take into account a lot more than residential properties.

Every building design calls for different building materials. This means that each project will require an entirely unique set of materials in terms of both quality and quantity.

The cost of building commercial structures is significantly higher than residential buildings, even if they are of comparable size.

Commercial construction is typically larger scale and requires the use of specialized and sophisticated equipment.

Commercial projects take relatively shorter periods to complete than residential, and a homeowner takes time to rethink some decisions throughout the construction period.

The customization of design is another factor that sets the two types of construction apart. In residential buildings. The owner can be creative and personalize the layout. In commercial structures, everything must be in agreement with the pre-set standards and guidelines.

The location of either a residential or a commercial structure matters a lot. There are suitable and appropriate places for commercial facilities, just as there are those suited for residential structures. Acquiring land close to the road is more expensive than airing a piece of land on the periphery of the City. Commercial projects are usually set on a massive budget from the onset of the project. Comparing the purchase of land near roads or closer to urbanized centres is costlier than buying land on the outskirts.


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Why Construction Foundations are Key for any Building

Foundations are the first part of any construction. They are incredibly important to the durability of a building, and if not completed correctly, they can affect the strength and resilience of the building once completed. In short, without a stable foundation, a building will not be reliable nor last a long time.

Now, unless you’re trying to build a little one-story home, we can all agree that you cannot create a building without a solid foundation. Even in such cases, a foundation might be helpful because it offers more structural stability and support.

Supports Your Building

The main reason for constructing a foundation for a building is to sustain the structure of the building. A huge area of the earth can support the weight of the building thanks to the foundation. This stops the structure from settling into the ground.


Prevents and Resists Movement

Foundations, especially deep foundations, help anchor the building deep into the ground. This not only makes the building more stable but also resists the structure from having lateral movements.

Provides Flat Ground for Construction

Another wonderful advantage of laying a foundation for your building is that you must first level the ground to lay the foundation. This makes building construction much simpler, especially in rocky and hilly terrain.

Given the aforementioned factors, your home or building won’t last very long without the proper foundations, putting your investment and financial security in danger. It just has a single crack before things start to deteriorate. After that, it is only a matter of time. To stay informed about building issues that require immediate attention, it is crucial to conduct professional property inspections on a regular basis.

If you have any additional points to add comment below…


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About Devika Suresh

I started at Leads 2 Business in January 2010 (12 Years ago). I am presently Deputy HOD of L2Q. I started in the Daily Tenders Bills department and worked my way up to the L2Q department.

Infographic: How do Solar Panels Work

With Loadshedding in full swing, and with summer around the corner, now couldn’t be a better time to make the switch to solar. After all, sunshine is a renewable source of energy that won’t be running out anytime soon. And it’s freely available.

Although the initial cost of solar in South Africa is pricey you can expect a return on your investment on average within 7 years and it is a positive differentiator when selling property.

The question is, how does solar power work? Understanding how solar energy works can give you an even greater appreciation for the benefits that this system offers. So, here’s a look at how solar power works.

 


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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

Infographic: What is a Smart City

A smart city uses cloud-based data and technology to create a more efficient, sustainable, and better quality of life for the people who live there. A smart city alleviates traffic jams and improves resource management by “talking” to its citizens to make data-informed decisions in real time. Smart cities are not a shiny thing of the future: they’re ever-present today.

According to the IDC, smart city technology is expected to grow to $135 billion by 2021. If flying taxis or driverless cars are our future transportation, smart cities are taking population growth and urbanization risks by storm.

Below, we assess the benefits of smart cities and how they can improve the lives of their citizens. For a look at what exactly makes a city “smart” and the world’s leading smart cities, jump to the infographic.

What makes a city a smart city?

A smart city, also called an eco-city or sustainable city, has a system of sensors, networks, and applications to collect data that help connect and improve the city.

To address issues as diverse as traffic congestion and energy use, a smart city uses Information and Communication Technology (ICT) and Internet of Things (IoT) systems to connect the data that optimizes every layer of the city. This data helps trigger actions to streamline urban services, reduce costs, and improve people’s overall quality of life.

Think of it like this: the city talks to you. It tells waste management when a trash bin needs to be emptied or commuters when there’s an open parking spot nearby.

The data also improves communication between the people who live there, the city, and the government. This connectivity helps build a more efficient and sustainable infrastructure. In some cities, a mobile app is used where citizens can check updates in real-time.

Why do we need smart cities?

According to the UN, over 40 megacities with more than 10 million people will exist by 2020, with 68% of the world population projected to live in urban areas by 2050. While some megacities are already struggling to deal with the influx of residents, smart cities are a solution to help make urban areas easier to live in. Better yet, they can help create a more sustainable future.

Jesse Berst, the Chairman of the Smart Cities Council, said it best: “Cities are our hope for the future. If you’re in the U.S. or Europe, 80 percent of us live in cities already. We can’t solve the planet’s problems unless we solve them in cities.”.

Read more: The Zebra

 

Source: The Zebra


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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

The Importance of a Feasibility Study

What is a feasibility study for the construction industry?

In order for a project to succeed, it’s always beneficial to conduct a feasibility study, which outlines what contributors can expect from the project prior to devoting resources, time, or budget. New ideas may also emerge from a feasibility study that could completely alter the scope of a project. Rather than rushing into a project and discovering it won’t succeed, it’s better to make these decisions in advance. A preliminary study gets undertaken in the very early stages of a project.

These studies are prone to take place when a large project has been proposed such as a shopping centre, lifestyle estates and hotels, etc. The process gets used when there could be some doubt or disagreement in regard to the proposed development. These studies can determine whether or not the project is viable, remediations for the site or the best location to construct the proposed development.

The feasibility study plays a large role when considering and planning potential projects. The geologic hazards, hydrogeological conditions, Environmental Impact Assessment (EIA), Fault Studies & Seismicity, etc determine if a project is viable to move forward.

The Geologic hazard is for the design team to determine the best plans for your site.

The Hydrogeological conditions are the groundwater conditions.

The EIA is the impact it will make on the environment once the project moves forward.

Depending on the scope of work of your proposed project, the design engineer will determine if the EIA should be completed, and the Fault Studies & Seismicity of the geologic conditions are determined by the scope of work.  In most cases, government entities require the EIA to comply with the local laws and regulations. Feasible studies depend on the scope of your project and its functioning demands.

Performing a Feasibility Study ensures that time, money and energy won’t be wasted on the Project. There are five main aspects:

  • Technical Feasibility – The engineering team will determine if this project would be possible in a technical way.
  • Economic Feasibility – The cost-benefit analysis will determine if the project will be economically viable.
  • Legal Feasibility – This will handle your legal matters such as planning permissions etc.
  • Operational Feasibility – How well the proposed project resolves issues and has viable solutions.
  • Scheduling Feasibility – This is one of the most important aspects in my opinion. This is to determine a timeline for the proposed project, and whether it would be able to be completed on time and within the budget.

Upon completion of the feasibility study, various scenarios, as well as their implications, strengths and weaknesses, will be analyzed in detail. Due to the many, many factors explored in the study, it may still be difficult to decide whether to proceed, but with the accumulation of information, decision-makers will be empowered to make informed, educated decisions without second guessing.

 

 

Sources
CDMG
ORS

Small Business Chron
Sports Facilities
Go Bridgit
Extension IA State


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Breaking Down a Project Lead

What is a project lead?

I would define a project lead as first-hand data obtained by our team of researchers from industry deal makers, that can be applied by our subscribers in order to identify opportunities and secure work contracts.

How do we obtain our leads?

As a Regional Content Researcher, it is my job to know what is happening where and when. We source leads by using extensive research methods, which are but are not limited to the following:

a. Desktop research by analyzing non-numerical data (e.g., social media, videos, news articles, etc)

b. Telephone – We as researchers conduct data collection via ongoing face-to-face and (or) ongoing phone discussions. The contact timing lasts from the conceptual phase of the project to completion. Unless there are contractual changes to the professional teams.

We use these methods to gather in-depth insights into the industry. Our methods ensure that we source quality and timely leads.

What are the stages of a project lead?

These are the following stages of a project. For more details on the stages read: Pertinent Project Stages

  • Conceptual
  • Procedural
  • Design
  • Tender
  • Awarded
  • Underway
  • Complete
  • Postponed, Cancelled or L2BShelved

Who would benefit from receiving project leads?

A company/Individual that would benefit from our leads is one that looks to achieve the following:

  • Expand their project pipeline – The way our website is designed and all the other services and features we offer – when used properly, in conjunction our leads, it can simplify and hasten any company’s pipeline.
  • Grow their network within the industry. The more industry professionals a sales rep meets, they essentially are building brand visibility and awareness.
  • Boost their revenue – when used correctly our leads can maximize a company’s ability for reaching financial targets.

If you’re interested in receiving Project Leads from us check out our Pricing Page and sign up today.

Sources
Blackridge Search
L2B
MediaBoom
Sendoso


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