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The Procurement of Consulting Engineering Services separate cost centre, known as the “War Chest”, to
(PCES) course was discontinued by CESA for most fund the investigation and legal challenge of extreme
of the period under review pending a major revision in cases of procurement irregularities. Initially a 10%
view of the changing procurement environment. The levy was added to the subscriptions of member
revision was completed and published in the form of firms to fund this initiative, and a funding application
a supplement to the PCES Manual and a number of has been submitted to the Siemens Integrity Fund
courses were presented. The course continues to be for an additional R11 million spread over five years
well-received and does a great deal to improve the (commencing October 2014).
business environment on behalf of our members as
As part of its learning curve in investigating and
well as public awareness of CESA.
legally challenging procurement irregularities, CESA
Members of the Committee participated again in engaged with service providers, initially a major legal
drafting and workshopping the ECSA 2014 Guideline firm and subsequently with a forensic audit firm. The
Fees as required by the Engineering Professions aim has been to develop cost-effective procedures
Act (EPA) and Council for the Built Environment. In and processes that will enable CESA to create
particular the new method of determining percentage massive public awareness around procurement
fees proposed by CESA was improved upon in view irregularities that will severely embarrass offenders
of the numerous queries dealt with by CESA on both as individuals and organisations.
behalf of ECSA. The large number of fee queries
The Construction Sector Charter Council (CSCC)
resulted in the development of a CESA Practice Note
firmed up its establishment with the appointment of
to explain and clarify the new format, philosophy and
a permanent CEO and a Chairperson of the Council,
methodology of the ECSA Guideline Fees. A revision
an ex-President of CESA, as well as occupying
of the ECSA 2013 Guideline Fees was also submitted
permanent offices. Following an enquiry by CESA,
by CESA to ECSA in July 2013, and was accepted
the CSCC strongly indicated that the only BEE
and published in the Government Gazette.
Code to be used by the Construction Sector is the
A formal application, largely funded by dti, for the Construction Charter and invited BEP members to
services of Built Environment Professionals (BEPs) report cases of non-compliance to the CSCC. Earlier
to be “Designated as Local” in terms of Section 9 of in the year, CESA assisted the CSCC with a survey of
the PPPFA was submitted to the dti in conjunction its members firms regarding their scorecards. CESA
with the Built Environment Professions Export also commented extensively on the proposed revised
Council (BEPEC). The dti have initially turned down Generic Code, both through its membership of BUSA
the application but have indicated that there are a and directly to the dti, however nothing further has
number of other alternative options available that will been heard.
facilitate the development of local BEPs. These will
Again, the CESA Contracts Section (“Bookroom”)
be pursued in due course.
has been very active during the year; selling contract
The influence of the CESA Procurement Position documentation from the JBCC and FIDIC suites as well
Paper presented to National Treasury in 2012 as the GCC 2010, CESA Short Form of Agreement,
was reflected in the first draft of the revised PFMA PROCSA Forms of Agreement and the CESMM3-SA
Regulations, which included a separate procurement Civil Engineering Standard Method of Measurement.
process for the Construction Sector. CESA collated CESA has been extensively involved in the revision
and submitted extensive comment on the first draft of the JBCC Principal Building Agreement and
and this process represents an ongoing effort to have associated contracts, which are due for publication in
scope uncertainties, the influence of quality of work early 2013. The CESA publication entitled “The CESA
and the developmental nature of procurement in our Form of Agreement for Sub-Consultancy Services”
industry recognised in the regulations. saw a 2013 reprint (with minor cosmetic corrections).
CESA also has a Committee representative on the
As in previous years CESA continued to receive and
PROCSA Committee responsible for amendment
advise/intervene on numerous queries/ complaints,
and expansion of these Forms of Agreement. CESA
particularly with respect to non-compliance by organs CESA Annual Review 2012 / 2013
continued to receive and advise on numerous queries
of state with cidb and Treasury requirements which
in this regard.
are somewhat confusing. The high levels of non-
compliance and blatant disregard of regulations In the contract drafting arena, the Committee has
caused the Board to approve the establishment of a overseen the revision of the popular CESA Form of

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