MoU levels the playing field for smaller contractors
INFRASTRUCTURE NEWS / 24 OCTOBER 2018 - 19.55 / STAFF REPORTER
The South African National Roads Agency (Sanral) has signed a Memorandum of Understanding with Wirtgen Group South Africa that will give smaller contractors the boost they need to be able to compete for major Sanral-owned projects.
Through the agreement small to medium construction contractors will have full access to the Wirtgen Group’s full suite of leading equipment brands, as well as financing, training and logistics.
Louw Kannemeyer, Engineering Executive at Sanral says this is an important step in the broader national aim to transform the construction and engineering sectors and enable emerging black contractors, including enterprises owned by women and the youth, to participate more fully in major projects.
Filling industry gaps
“Infrastructure development will be a major contributor to the efforts to attract investment to the country and was singled out at the recent Job Summit for its ability to create employment and stimulate economic activity.
“We are delighted that a global leader in construction such as Wirtgen is stepping up to fill major gaps in the industry that constrain the growth of smaller contractors and impose barriers on their ability to tender for major work packages,” says Kannemeyer.
Waylon Kukard, National Sales Manager at Wirtgen South Africa notes that equipment is one of the major success factors for contractors in the execution of their projects.
“If contractors are not well equipped, the country also faces the danger of sub-standard road infrastructure.”
Through the agreement emerging contractors will be able to purchase or lease the sophisticated machinery required to meet the high standards that are in place within the South African road construction environment.
“We are confident that this MoU will increase the number of participants across the value chain of the road construction sector and contribute to fair competition,” says Kannemeyer.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER