Consultants risk : an investigation into the impact of discounted professional fees on the risk exposure of civil and structural engineering services consultants in South Africa

[摘要] ENGLISH ABSTRACT: Since the intervention of the Competition Commission and the abolition of the mandatory use ofthe government gazetted Engineering Council of South Africa (ECSA) fees scale, engineeringservices consultants in South Africa have been competing based on price for engineering contractsin both the public and private sectors. Discounts benchmarked against ECSA professional feesscale demanded by clients have resulted in declines in professional fees over the years. Thecapacity to deliver professional services that are of such high quality that it meets the client'sexpectation, professional and ethical standards when working at low fees is one of the biggestchallenges facing consulting professionals today. This research studied the risks encountered bycivil and structural engineering services consultants and the impact of discounted professional feeson their risk exposure.The study included a review of literature, discussions with practicing engineers and a questionnairebased survey. A total of 23 practicing consulting engineers representing small, medium and largeconsulting engineering firms participated as respondents in the questionnaire survey.The literature review identified project and organisational level risks particular to civil and structuralengineering services consultants. The study compiled information on the discounting practices ofcivil and structural engineering services consultants in South Africa. It is found that the practice ofdiscounting is widespread, affecting small, medium and large consulting firms. The range ofdiscounts offered in the industry results in a significant decrease in the fee scale recommended byECSA for various engineering project types. Respondents identified the primary reasons why theyare forced to offer discounts and identified project and organisational risks most impacted bydiscounted fees in an order of perceived importance to them. Financial loss on the project,inadequate supervision and quality control on site and inability to perform value engineering wereidentified as project risks with the most impact on respondents' organisation. At the organisationallevel human resource issues such as training and mentoring of young engineers, ability to attractand retain quality/experienced staff and overall business sustenance were identified as risks mostimpacted by discounted fees. Measures adopted by respondents to mitigate risk associated withdiscounted fees on project were also identified and recommended.

[发布机构] Stellenbosch University