A framework for the transfer of a departmental road construction unit to a private sector construction company

Abstract

Paper presented at the 20th Annual South African Transport Conference 16 - 20 July 2001 "Meeting the transport challenges in Southern Africa", CSIR International Convention Centre, Pretoria, South Africa. ABSTRACT: The Northern Province Department of Public Works committed itself to improved service delivery. One of the most severe problems experienced by the Department is that the extent of personnel expenses are out of proportion when compared to other expenses. Personnel expenses can be reduced by outsourcing non-core functions of the department, for example road construction. In the case of the departmental road construction unit it has been decided to transfer the unit, including staff and equipment, to a suitable private sector construction company. The paper addresses the composition and performance of the road construction unit, staff issues and the interaction with organised labour, the invitation of expressions of interest from private sector road construction companies and the shortlisting of these companies for the tendering phase. A framework for the process of tendering for and implementation of the transfer of staff and equipment is then addressed. The transfer of the unit is linked to a road construction project, which will facilitate the merging of the unit into the organisation of the successful tenderer. As this is seen as a pilot project it is believed that similar projects will follow in future, and is it anticipated that the experience gained will be of value to those responsible for the implementation of similar projects.