Preventing corruption on government infrastructure projects | Infrastructure news

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Quantity surveyors are best placed to stem corruption in government infrastructure projects, according to the Association for South African Quantity Surveyors (ASAQS).

The association weighed in on the R50 billion that will be spent to fund national and provincial economic infrastructure requirements. This was announced by Finance Minister Pravin Gordhan during the National Budget 2017 last week Wednesday.

According to the Auditor-General report on local government audit outcomes for the 2014/15, infrastructure was one of the items that municipalities struggled with most to correctly measure and disclose in the financial statements over the past five years.

Auditor-General Kimi Makwetu also recently released three performance audit reports dealing with pharmaceuticals, water infrastructure and urban renewal projects. The Auditor-General reported in some instances the required skilled personnel were not appointed at the start of a project.

“The first step is for both government officials as well as the ordinary taxpayer to understand what the role of a professional Quantity Surveyor (QS) is,” Larry Feinberg, executive director of ASAQS said.

“Globally, construction projects are highly susceptible to cost-overruns, owing to a number of factors,” Feinberg added.

He pointed out that here in South Africa, as in many other countries, “we have the additional problem of corruption, where due process is flouted in order to benefit connected individuals or companies, often during the construction process itself”.

“The person best placed to identify deviations from the original tender in terms of both scope and pricing is the QS and, as such, they act as the client’s watchdog,” he explained. “In the case of public projects, we should remember, the client is ultimately the taxpayer, whose money is being spent – or wasted, in some cases.”

Feinberg said that in order to have the greatest impact, QS’s should be involved right from the initiation stage of the project and should also be involved in the planning and feasibility reports in addition to the approval of the actual procurement strategies.

He explains that one of the key issues in any project is to ensure that the tender is awarded to the right contractor at the right price.

“QS’s play a critical role here because they are trained to manage the financial and legal processes of a project,” Feinberg explained. “During the design stage the QS’s estimate is the tool to ensure the design remains within the budget.”

During the procurement stage the QS produces the Bills of Quantities (BoQ) on which fair and equitable tenders are based. The BoQ is the ultimate document that provides the client with the knowledge of how much the project is going to cost before construction begins, which is invaluable in judging the tenders before they are awarded.

According to the ASAQS, a QS’s professional experience and training makes them the best people to evaluate tenders.

“The BoQ acts as the baseline for the entire project,” Feinberg said. “Any subsequent additions or omissions to the project would also be assessed and costed using the BoQ as the guideline.”

He explained that the QS then acts as watchdog throughout the course of the project: monitoring progress against the BoQ, authorising payments as work is completed, noting deviations from the tender and, ultimately, producing the final account and be able to defend it to any stakeholder.

National, Provincial and Local Authorities (NPLA’s) are woefully short of experienced and professional QSs thus finding themselves not having enough bandwidth and experienced professional QS’s to manage the many projects at any given time, Feinberg said.

“Professional QSs are bound by a code of conduct and if they are found to have contravened it, they will lose their licence to practice as a QS,” Feinberg added.

“This combination of professional discipline, skill and experience makes them the best persons to ensure that a tender is awarded to the right contractor—and that the project is delivered on time and on within budget. In this way, they serve both the NPLA’s and its ultimate boss, provider the taxpayer.”

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