Summary of presentation by Ivor G. Evans, President, 1999/2000, SAACE

1. BACKGROUND

In February 1999 the Office Bearers and Council of the SAACE met for two days to plan strategic directions for the SAACE to take, at the entry to the new millenium, and amid national and global situations of significant and rapid change in our industry. The meeting culminated in the adoption of four pillars to support SAACE's forward-thinking strategy into the new century:

• A closer partnership with government
• A wider membership, aimed at the built environment Promotion of South African consulting engineering industry in the international arena Establishment of a "School of Consulting Engineering"

The theme of the SAACE President for this year 2000 is "Realising the African Renaissance". Our country's President, Thabo Mbeki enunciated the concept of an "African Renaissance" in 1999, stating that against the background of events and circumstances which have led to the present malaise in Africa, a key task of the renaissance must be "Achieving sustainable economic development that results in the continuous improvement of the standards of living and the quality of life of the masses of the people." He went on to say: "We must also pay attention to the intelligentsia, the professionals, the trade unions, business people to bring them into the popular struggle for Africa's rebirth".

In presenting our theme for 2000 at the SAACE AGM last October, 1 as President stated that to realise the renaissance means to make the revival an actuality. In our country and beyond, the consulting engineers are among the most relevant role players in this process. They are in the forefront of planning, designing, and building for sustainable development which can improve living conditions and create economic opportunities for all people. At the same time, to indeed make the revival an actuality, the SAACE must continue to represent with vigour the business interests of its members. Our members' focus must be on meeting the needs of our clients and the community through services which add value, and the focus of our association must be to equip our members to be able to add that value.

The SAACE theme of "realising the renaissance" therefore takes the concept a step further, into the realm of implementation and physical delivery - with the conviction that consulting engineers have a vital role to play in the rebirth and revival of this continent. Almost any effort to raise standards of health, education, and quality of life, coupled with enhancement of infrastructure, employment opportunities and community development, will depend in some way on the contribution of the consulting engineer. The implementation of the above theme by the SAACE rests on physical delivery inside each of the four pillars -which now become thrusts - listed above. One of these thrusts, and the subject of this presentation, is the establishment and development of the School of Consulting Engineering of the SAACE.

2. THE SAACE SCHOOL OF CONSULTING ENGINEERING (S.C.E.)

The South African Association of Consulting Engineers comprises an association of nearly 400 member firms, who collectively employ nearly 12 000 people in the RSA. Unlike the 1earned societies" such as the Institutions of Civil, Electrical and other disciplines of Engineers, which have individual membership, SAACE consists of member firms and represents their business interests as opposed to technology-related affairs.

Virtually since its inception the SAACE has been involved in education services for its members. For many years the Association has operated an Education and Training Committee. Under its auspices numerous courses have been run. Two of the most well known. which have been presented annually for several years, are "Handling Projects in a Consulting Engineer's Practice," and, "Business Finances for Non-Financial Managers." Both of these typify the topics which are relevant to the business operations of a consulting practice - with accent on management and finance. 

The School of Consulting Engineering will build on this existing system as a foundation, but a number of factors relevant at the present time need to be taken into account:-

a) The widening of the criteria for member company membership of SAACE, but with inclusion of other built environment professionals, demands a focus on consulting business issues, without necessarily having an engineering bias.

b) The perceived interest in what the School has to offer, by member associations of other countries such as in GAMA, requires the topics and material to be relevant in a general, and international context, without concentrating in all cases on circumstances in South Africa.

c) Changes to labour related legislation in South Africa now coming into force, include the Department of Labour's new Skills Development Strategy, Skills Development Act and Skills Development Levies Act. These measures are intended to help bridge the gap between education and training, and the workplace.

From 1 April 2000, each company with annual turnover exceeding R500 000 p.a. will be required to register with a Sectoral Education and Training Authority (SETA). 27 SETA's have been designated. Ail registered companies shall each pay a levy of Y2% of annual payroll. After servicing costs and contributions to other national skills development funds, the balance is paid over to each SETA in proportion to member levy amounts paid. Consulting Engineering firms will be registered with the Construction SETA (CETA) along with contractors and construction-related companies.

Employers will initially be able to access 50% of the levy payments made over to CETA. This access will be through a series of grants (A, B, C and D) made to employers provided designated training procedures and skills development actions are followed.

In this context it is important to ensure that the material and courses to be presented by the S.C.E. meet the needs of employers in RSA to comply with the requirements being set down to access the above grants, and so recover up to an estimated 40% of the levy paid. This is not expedted to constrain the S.C.E.'s course material to address skills shortages which are specifically South African, nor to skills levels lower than say, international good practice. In other words, it can be assumed that the material and courses to be offered by the S.C.E. will be relevant also to non South African consulting firms, seeking to develop their skills as professionals in business, to the highest level of adding value to client service, and of operating a profitable business.

3. IMPLEMENTATION OF THE S.C.E.

The functions of the S.C.E. have in essence already commenced - the courses offered by the Education and Training Committee mentioned above continue to be offered. In August 1999 a oneday "Globalisation Workshop" was presented in Johannesburg designed to assist member firms to operate internationally and to export their services. About 100 delegates attended and the workshop will be repeated in Cape Town during April 2000.

However, in order to grow the S.C.E, concentrated energy and effort are required - beyond that of a voluntary committee. By the time this paper is presented, an Acting Director will have been appointed, to be based at the SAACE offices in Johannesburg, and tasked with establishment and launch of the S.C.E. He will be reporting to a Steering Committee, which is already in place.

For information of readers the key tasks for which the Acting Director will be responsible are envisaged to include:

• Conduct a survey among member firms, client body and other industry stakeholders, as to the types and levels of training and instruction needed.
• Assess the sufficiency of training courses offered by other institutions and determine courses and material which can best be presented by S.C.E.
• Determine most suitable manner of presentation (e.g. duration, frequency, cost, outsourcing arrangements) for member firms, including suitability for skills levy recovery, and compliance with legal accreditation requirements.
• Set up communication channels and liaison between S.C.E., CETA, key CETA members, the Alliance of Development Professionals (ADP) in South Africa, and Consulting Engineering associations beyond South Africa, (such as GAMA).
• Consider options for the most suitable organisation and operating structure of the S.C.E. and set up the structure or vehicle to be used. (Note: SAACE policy is for a future Director to share in the risks and profits of the venture.)
• Investigate venues suitable for S.C.E. presentation.
• Prepare a business plan for the S.C.E., with budgets for 2000 and next 2 years. (Note: SAACE policy is for the S.C.E. to operate in a financially self-sufficient manner.)
• Prepare an annual Training Plan for the years 2000, 2001.
• Set up an implementation programme with milestones plus first year's timetable, and initiate appropriate publicity and advertisements.

Finally it may be of interest (or even whet the appetite!) to show at this stage a range of topics which it is envisaged could be presented by the S.C.E., as being generally unique to our industry and worthy of presentation:

• Handling Projects in a Consulting Engineer's Practice
• Business Finances for non-Financial Managers
• Training of reviewers to undertake Peer Reviews
• Quality Management Applied in the Consultant's office as a prelude to ISO Certification.
• Introduction to Environmental legislation and practice in South Africa, affecting Consulting Engineers.
• Project management techniques applied to consulting engineering assignments.
• Human resources management and professional development for consulting practices.
• Engineering economics and principles of economic viability of engineering projects.
• Guidelines for submission of technical and financial proposals to international funding agency rules.
• Risk Management and Insurance for the Consulting Engineer
• Implications of the Occupational Health and Safety Act for Consulting Engineers
• Role of the Consulting Engineer in ISD (institutional and Social Development) plus promotion of entrepreneurial skills in engineering projects.
• Current methods and future trends in dispute resolution in engineering contracts and on engineering projects.
• Towards standardised contract documentation in South Africa and choice of appropriate contract forms.
• Quantity Surveying for Consulting Engineers - opportunities and limitations
• The management of technical, financial and other risk in PFI's (Private Funding Initiatives) and PPP's (Public-Private Partnerships) applied to infrastructural and engineering projects.
• An overview of current RSA labour legislation affecting Consulting Engineers and requirements to be observed to ensure best practice.
• The planning of industrial engineering projects from a logistics viewpoint to ensure optimum flow of goods, information, and people.
• Value Engineering and its application in a consulting engineering practice.
• Structures for effective knowledge transfer and experiential exposure of P.D. consulting firms working in association with established consultants.
• "The Business of a Professional Services Firm -a Guide to Practice," as seen by FIDIC and the World Bank.

The School of Consulting Engineering presents a challenge which the SAACE is taking up with determination and energy. It's success will demonstrate in a unique manner the role of the consulting engineer in the realisation of the African Renaissance.

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