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2009-08-01
Omni Struct Nkosi: Beyond tendering
by Staff Journalist

Steel prices are now stabilising after a period of extreme volatility. However, the recession means that the rate of construction is decelerating so itŐs the companies with proven track records for service, reliability and added value that have the edge. Omni Struct Nkosi (OSN) has built a reputation that keeps it top of that list.
Published in:  Succeed in business
“Our focus is on client benefit,” states commercial director, Peter Millar. “So when we tender, we go to great lengths to assist clients get within budget. We develop smart engineering solutions that make a project financially beneficial and increase its ‘buildability’. The expertise and personal touch that we have built up over more than two decades enable us to add considerable engineering value.
“In many cases, we actually get involved with clients’ designing teams because we understand what they want to create. They see the completed vision and we help put the components in place to achieve that. We add significant financial value too, because instead of just taking their drawings and building according to them, we provide advice and recommendations. Their disciplines require different approaches, whereas we are more finely tuned to the nature of our business and can shine light on what will work well engineering-wise and what won’t. That makes us more user-friendly. Our approach is: How can we make this flow more smoothly? How do we make it more financially viable, and above all, how can we ease matters for the client?”
Consequently, OSN embraces those complex projects which unnerve most others in the field. “For instance, many will shy away from more intricate challenges such as those presented by tubular structures.” Millar also bring his considerable experience in managing company operations to the task, adding a further dimension of understanding to the tendering equation.
Engaging with clients from the concept or design stage is one of OSN’s strengths. “Our track record and status in the industry get us through the door,” Millar points out. “Clients such as quantity surveyors will approach us because they know up front exactly what they can expect from us. When we give a commitment, we stick to it. We will not resort to tactics such as tendering at a low price and then once the contract has been signed, adding items and increasing prices. We are completely transparent.”
According to Millar, projects also tend to have less lead time than previously. “This gives us a weighty advantage because we own all our own resources and don’t have to depend on the availability of external resources. Our decision some years ago to automate is definitely paying off now.
“We are also finding that whereas before 80% of our budget work focused on current and 20% on future work, that ratio has now been reversed. The market is heading for recovery, albeit a slow one. I believe that by the end of next year we will be back on track. OSN has been experiencing constant and steady growth because of projects already on board and working to greater efficiencies has been a significant benefit. We are well positioned for the inevitable economic upswing.”
An aspect of tendering which Millar believes has been deteriorating is the quality of information provided to tenderers. “We are represented on one of the Steel Institute’s committees to try to set up standards. The lack of information can mean that prices are under-quoted. Sometimes engineers or architects have insufficient time to produce and detail designs and drawings before they go to tender, and submit what amounts to only a snapshot. This makes it very difficult to come up with accurate tenders.

"Our track record and status in the industry get us through the door"

“Obviously, price still commands the market,” Millar adds, “But we are leaders not only because we are competitive but because of our reliability and the consistency of our quality. Having our own resources also makes us more flexible. We have proven ability to construct large structures on site and transport them, with escorts if size warrants, to our clients’ sites. This saves them considerable time which is crucial where deadlines are tight.”
Millar’s extensive experience in the industry and long-term relationships with players ensure that OSN is in touch with trends and is a regular feature on tender lists. “In our business however, there is no room for complacency,” he stresses. “I have two people working for me now who have developed from within the company and who are introducing new insights and ideas. I also benefit a great deal from the feedback of contract managers who provide in-depth understanding on prices. They let me know where we can be more efficient – and also where I haven’t allowed enough money!”
Millar believes that OSN’s culture and its well-developed social conscience are important contributors towards its sustained commercial success. “We have created an environment where employees know that their livelihood is not threatened. We go the extra mile for them in assisting with financial and personal matters, from school fees to emergency loans, and we add the additional incentive through specials such as corporate clothing and tickets for Cup matches. We consider ourselves accountable for employees’ wellbeing and in turn have stimulated a culture of accountability among employees. Much of our success is thanks to the contribution of committed and enthusiastic people who have seized the challenges we have provided to grow their potential and in turn, have grown the company.”
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