Bosch Holdings Enginuity July 2009 | Page 2

A word from our Chairman When questioned by a student as to why the economic exam questions were the same as previous years, the lecturer responded, “It’s quite simple – every year we change the answers”. I believe this epitomises the current economic climate, particularly in the construction industry, which remains uncertain. In buoyant times, markets attract a plethora of ‘wannabees’, who believe price and connections are everything. Quality and delivery are immaterial. Hence, the sorry state of many of South Africa’s industries. The current economic conditions, and fortunately an increasing requirement for quality and value, tend to have changed the culture of our market. There still, however, remains a concern over the range of consultant tender prices that can only lead to one of two conclusions. Firstly, consultants are buying the contracts to secure work to provide for their surplus resource capacity. This can lead to a lowering of standards – you get what you pay for. Secondly, the vagueness of many tender documents and increasing risks being passed to consultants results in low tenders to secure appointments, followed by a contractual claims approach to recover what was left on the table. Neither of these is sustainable and has long term negative impacts on our profession, in addition to the challenges of funding the attraction, retention and development of the next generation of engineers. Within the above we, however, remain expectant that the CIDB proposals for legislation for the competitive selection of professional service providers will move the industry to a selection process based primarily on quality, capacity, preferencing and value, rather than just price. It has been reported elsewhere in this edition of Enginuity that Bosch Projects, supported by Stemele Bosch Africa and Munitech, has established a Skills Development Academy, which will provide and oversee formal training programmes for EIT’s and candidate engineers, to obtain professional registration. It is planned to expand the Academy to incorporate personnel from our clients and other business stakeholders. I am also pleased to report that both SBA and Bosch Projects have been successful, following their re-certification in 2008, in their first surveillance in 2009 and will now be recertified under the new ISO 9001 / 2008. This supersedes the previous ISO certification. In their own way, both these initiatives remain key in our commitment to quality and skills development. As a Group, we recently held a strategy workshop to review our future direction and to set guidelines for Group companies, who will be holding their strategy workshops shortly. We have had an extremely successful few years (turnover has grown 400% in the last four years) and we have learnt many lessons on how to manage a growing and diversified Group. The changing economy has caused us to reconsider our vision and s