Engineering Consulting Tenders: Fees, Risks, and ECSA Guidelines

The Intellectual Capital of Infrastructure

Before any road is paved or bridge built, a Consulting Engineer must design it. Government tenders for Professional Service Providers (PSPs) are distinct from construction tenders. You are selling intellectual property and liability management, not bricks and mortar.

The Fee Dilemma: ECSA vs Reality

The Engineering Council of South Africa (ECSA) publishes guideline fees based on the cost of the works. Example: For a R50 million road project, ECSA might recommend a fee of 12%.

However, in a competitive tender environment, bidding at 100% of the ECSA fee guarantees failure. The market has driven prices down. The Sweet Spot: Successful bids often hover around a 20% to 35% discount on ECSA guidelines. The Danger Zone: If you discount by 50% or more, you are entering dangerous territory. You will not have enough budget to assign a Registered Professional Engineer (Pr.Eng) to the job, leading to design errors and potential Professional Indemnity (PI) claims.

Scope Creep and Disbursements

Consultants often lose money on Disbursements (travel, printing, site labs). Tenders usually have a fixed budget for this. If the project runs over time (which they always do), your travel budget runs dry.

Protecting Yourself

Ensure your proposal strictly defines the 'Standard Services' (Stages 1-6). Anything outside this (e.g., 'Community Facilitation' or 'Land Legal Issues') must be billed as 'Additional Services' on a time-and-cost basis. If you don't clause this, you will be doing hours of unpaid social work.

The Technical Proposal

Engineering tenders are won on the Technical Methodology. Don't just copy-paste the scope. Winning Strategy: Propose an 'Alternative Design' or value-engineering idea in your specific methodology. 'We propose using bit-stabilized base instead of imported G1 crushed stone to save R2m on haulage.' This shows the client you are thinking about their budget before you've even started.

Conclusion

Engineering is a noble profession, but tendering is a commercial fight. Balance your respect for ECSA standards with the commercial reality of the lowest-bidder environment. Never compromise on your PI cover.