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News & Press: 2018 News Items

Development of a State Owned Construction Contract

Friday, 08 June 2018  
Posted by: Bert vd Heever
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National Treasury recently conducted a review of state institutions’ contract management systems, and one of the areas identified as part of enhancement for contract management is the construction industry and the use of the current Standard form of Construction Contracts.

On this basis, they are currently conducting an on-line survey to collect data and ascertain areas of needs and challenges.

The ASAQS was represented at a workshop held in March this year, where Treasury indicated that stakeholder involvement and input is a significant aspect of this exercise. We therefor ask our members to please participate in this survey and give their considered opinion where the survey permits one to do so. Some of the key issues to consider when answering the survey will be whether you believe that transformation should be encapsulated in the construction contract or in the procurement process or whether the current JBCC, NEC or FIDIC contracts apportion risk fairly between the contractor, consultants and employer?

The request we received from Treasury follows:


Dear Participant,

National Treasury recently conducted a review of state institutions’ contract management systems, in terms of which, a number of areas had been identified for improvement.  One particular area identified was a Standard form of Construction Contract utilised by the state.  A need was identified for a standardised agreement within the public sector arena that will be simple to use and understand and, which are informed by the requirements of the state. 

As a result, National Treasury embarked on a project for the review of the current infrastructure contract documents presently being utilised by government entities in the country and is currently engaged in developing/customising a public sector-specific suite of contracts that align both to the key transformational objectives within the country as well as that of the objectives of the CIDB.

As part of this process, National Treasury has sought to identify challenges that are presently being experienced through the utilization of the current contracts.   Accordingly, a survey has been developed in order to obtain the viewpoints of the actual users of these contracts within the industry.  As a user of the current contracts, you have been invited to participate in this web survey, the link to which is as follows: 

https://www.surveymonkey.com/r/SY2CG8L

The survey is voluntary and will require approximately 15 minutes to complete. All information is submitted on an anonymous basis.  If you choose to participate, please answer all questions as honestly as possible.  The information received will be invaluable to National Treasury gaining further insight into the status quo from a wide spectrum of users.

Please note the link will only be available for a period of two weeks from receipt of this mail and will be closed on 22 June 2018.

Your participation is highly appreciated.

Kind regards

Galaletsang Matseliso

Director: SCM Commercial Contracting

Office of the Chief Procurement Officer

Tel: (012) 406 9187 /Cell:  082 873 3226 / email: Galaletsang.Matseliso@treasury.gov.za