The Civil Engineering Contractor April 2019 | Page 41

and are not willing to negotiate. Small business
owners find themselves in the difficult position
of either taking the project and carrying the risk,
or declining the contract. The tender/quotation
phase is so important, as this is when risks are
identified and either qualified or priced accurately.
The contracting terms and conditions are specified,”
she says.
On the other hand, she cautions that subcontractors
shoot themselves in the foot by signing contracts
without understanding their terms. “They are not
making themselves aware of what’s available to them
in terms of negotiating. Often, they don’t negotiate
as they are perceived to be in a position of weakness.
It’s a lack of commercial skills. They either don’t
want to read the contract themselves, or they read
the contract but have a lack of understanding of the
contents, or they begrudge spending money on a
lawyer to read the contract for them — and they
sign what is presented to them,” she shares.
The next stage
Some of the cases that she has come across show
a lack of resolve for disputes that arise from non-
payment. Moloi points to the Green Paper published
in 1998, titled “Creating an Enabling Environment
for Reconstruction, Growth and Development in
the Construction Industry”. This was followed by a
White Paper of the same name in 1999.
The White Paper proposed the introduction of
certain recommendations on alternative dispute
resolution. Pursuant to the White Paper, the cidb
was established by way of the Construction Industry
Development Board Act, 2000 (Act No. 38 of
2000) (the CIDB Act), and certain regulations were
publishewd thereunder. These papers prompt a
radical shift in dispute resolution proceedings;
part of the shift including the need to protect
subcontractors in the unequal relationship between
main contractor and subcontractor. Such unequal
relationships ultimately play themselves out in the
terms that the main contractor is proposed to be
incorporated into subcontracts. Unfortunately, the
regulations have stalled, and it is unknown where
the process stands, despite the clear benefits they
propose.
Putlitz says that to turn things around, the
attitude of clients needs to change to accept their
contractual responsibilities. “Follow the provisions
of the [existing] law and the standard-form
contracts. The UK has passed ‘prompt payment
regulations’, including procedures to ‘pay less’ and
reference to adjudication … endorsed as recently
as 4 January 2019, outlaying a ‘pay now and argue
later’ principle to ensure cash flow. nn
www.civilsonline.co.za
SUPPLY CHAIN NEWS
Wacker Neuson expands dealer network
By Tarren Bolton
In the trail of an expanding dealer network,
Wacker Neuson South Africa hosted its first
Dealer Summit on sub-Saharan Africa soil.
With a business model incorporating light equipment with over
250 product groups and compact equipment with over 40 product
groups, Wacker Neuson has more than 50 affiliates — over 5 200
dealers in over 12 400 sites worldwide.
The company considers its dealer network integral to upholding
customer service excellence. “In Africa, our dealers are our primary
route to market and are perfectly positioned to deliver our
comprehensive product and service portfolio to the customer’s
doorstep quickly and efficiently,” notes Dennis Vietze, managing
director of Wacker Neuson sub-Saharan Africa. “By supplying
superior quality, reliable equipment and reducing lead times, we
assist our customers in maximising their uptime for optimised
productivity and profitability.”
In line with this dealer-centric approach, the past few months
have seen the roll-out of a number of new dealerships, both in South
Africa as well as cross-border. While previous Dealer Summits were
organised at corporate level, Wacker Neuson South Africa took the
initiative to implement the first summit of its kind in the sub-Saharan
Africa region. On 24 and 25 January 2019, 13 dealers from across
South Africa as well as from neighbouring countries Botswana,
Namibia, and Zimbabwe, gathered at Wacker Neuson’s premises on
Johannesburg’s West Rand to share in this milestone event.
“Our dealers are in essence an extension of the Wacker Neuson
brand and we therefore align ourselves exclusively with like-
minded dealer partners who share our vision, our values, and our
commitment to service excellence,” states Vietze. “In line with
this mandate, we pursue a dual strategy that focuses on not only
expanding our dealer network but also, and most importantly, on
consistently strengthening these partnerships.”
Industrial Building Supplies and Plant Hire (IBS) in Windhoek,
Namibia, claims the title of longest-standing dealer, while newest
kid on the block, All Power and Lawn Equipment in the Limpopo
Province, joined the Wacker Neuson dealer fold in January 2019.
“We always strive to reinforce solid relationships with our
customers, and we do not treat our dealers any differently. While
there are many ways to nurture our dealer partnerships, we have
strategically positioned Wacker Neuson to be able to deliver to the
Part of Wacker Neuson’s range
of compact equipment.
BUSINESS INTEL
CEC April 2019 | 39