The Gauteng Department of Infrastructure Development (GDID) has cemented what it calls a ground-breaking agreement with its contractors to improve on project delivery.

The agreement, which will put in place a set of radical measures aimed at improving efficiency and accountability, follows months of intense engagement between the department and construction service providers.

According to Infrastructure Development MEC Jacob Mamabolo, the set of protocols will bring transparency, openness and visibility to the project management environment and support the fight against corruption, bribery and dishonesty. It will also assist communities who bear the brunt of delays in infrastructure delivery.

Agreed upon measures

The measures agreed to include the adoption of a Project Readiness Matrix – an internationally recognised project management tool will ensure that projects comply with, and meet, minimum standards at each stage of project implementation. It will assist in removing uncertainties, clearing delays and reduce confusion – all factors that impact on the quality, cost and time of project delivery.

Service Level Agreements (SLAs) will also be adopted to eliminate wasteful and irregular expenditure and ensure that government money is properly accounted for. The SLAs will also enforce quality control on all aspects of construction and ensure that projects are completed on time and within in budget.

The SLAs will be designed in such a way that they can be used as a forecasting tool for monthly planning. Expenditure is to be monitored by linking invoices to agreed-upon milestones and outputs. This will ensure that the GDID can estimate and anticipate claims to be made and targets to be achieved. This will further ensure that accruals are reduced and avoid bulk claims which are seen as fiscal dumping, especially towards the end of financial year

With forecasted invoices and milestones in place, the department will also be in a better position pay its invoices within 30 days, thereby reducing bribery and corruption in processing contractor invoices.

It was also agreed that invoices with disputes relating to the quality of work would not be considered for 30 day payment and that these would need to be resolved before being considered for the  30 day payment countdown.

Furthermore, the SLAs will see job creation, through the Extended Public Works Programme, becoming a critical area of compliance and performance for every project entered into with the GDID.

Contractors will also be required to provide opportunities for graduates in the construction sphere to gain experience or in-service training. The meeting agreed that many scarce and critical skills are needed by the building industry and that GDID could play an active role in developing and enhancing these skills. It was agreed that GDID would establish a database of university graduates in the new year and work with contractors to create or explore opportunities on construction projects.

The meeting agreed to meet on a quarterly basis to review progress and to allow contractors to engage with the MEC.

Challenges ahead

During his engagement with service providers Mamabolo noted that while the GDID has taken significant strides forward by putting in place systems and technology to increase efficiency, changing the behaviours and attitudes of officials remained a challenge.

Mamabolo welcomed positive feedback from suppliers who expressed their appreciation for the ongoing engagements with the department saying it was “a new chapter” to have an open communication channel with the GDID and to be treated as partners rather than service providers.