THE construction of Club Mykonos's new R8 275 000 conference centre, which can accommodate up to 500 delegates, has shown that if the client is really committed to an affirmative action/empowerment programme on a construction project, it is possible to ensure that a truly significant percentage of the work is done by companies or organisations owned by historically disadvantaged people. Phil Calothi, MD of Club Mykonos, says that when the project was launched the aim was to ensure that at least 35% of the total outlay went to firms owned by those from historically disadvantaged (HDI) backgrounds. "Now that the final cost analysis has been completed, we are delighted to be able to report that we managed to award 46% of the total cost to HDI organisations. We will continue with our empowerment policy in future projects. Right now, a contract worth R7.5 million is being done by a firm which is 100% HDI owned." By the end of this year, added Calothi, Club Mykonos will have spent R27 million on development projects since 2001 - and R15 million of this will have been paid to empowerment companies - 56% of the total amount spent. With the conference centre, said Calothi, it was one of the goals that the employment of HDI-owned organisations should not cost one cent more than employing more established companies. A further goal was that the quality had to be of the same standard as that of the best firms in the Western Cape, and that the tight five month schedule had to be maintained. "All these goals were achieved. We paid no more for the use of emergent organisations and, as any visitor to the centre will see, the finishes are of a high standard. Furthermore, the contractors finished on schedule. The contract did, in fact, run from July to December 2002." The Western Cape Gambling and Racing Board was initially instrumental in fostering empowerment at Club Mykonos - this was one of their requirements for the construction of the casino at the resort. "Although the scene was initially set by the casino project, we went the empowerment route on our other projects because we believed it to be the right way to go, and because it would be especially beneficial to the sector of the Cape West Coast in which we operate. "We took further action unsolicited, of our own free will - and the good news is it has created a win-win situation for all involved," said Calothi.
Publisher: Weekend Argus
Source: Weekend Argus
Conference centre contracts favour historically disadvantaged firms Mykonos.
Posted On Monday, 19 May 2003 02:00 Published by eProperty News
THE construction of Club Mykonos's new R8 275 000 conference centre, which can accommodate up to 500 delegates, has shown that if the client is really committed to an affirmative action/empowerment programme on a construction project
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