The Association has, over the years engaged in numerous training interventions with new entrants to the sector and can identify that a common minefield facing contractors is the host of legal requirements with which they are faced.

The Compensation for Occupational Injuries and Diseases Act, 130 (COIDA) was signed into South African law to provide compulsory compensation for all employees under contract of employment (with a few exceptions) for death or personal injury suffered in the course of their employment. Employers are required to register for workers’ compensation and any employer who fails to register is guilty of an offence.

The Unemployment Insurance Act (No 63 of 2001) provides for the Unemployment Insurance Fund (UIF). The UIF is an insurance against job losses. If a worker becomes unemployed, the UIF will pay the worker for a period while he/she looks for another job. The contractor must register for UIF with the South African Revenue Services (SARS). Every month contractors must deduct UIF from their employee's wages and pay the funds over to the Department of Employment and Labour. The contractor must also contribute to the UIF Fund.

Value Added Tax (VAT) is charged on taxable supply. Taxable supply is the supply of goods or the supply of services in the course of business. “Goods” are defined as all movable material things, including fixed property or any right to fixed property, e.g., shares in a share block company. “Services” are defined as anything done or to be done. The goods or services must be supplied as part of the taxpayer’s trade or as a result of the taxpayer’s trade before the supply will be a taxable supply.

Companies or persons who are liable to register, and those who have registered voluntarily, are referred to as vendors. Vendors must perform certain duties and take on certain responsibilities if they are registered or liable to register for VAT. For example, vendors are required to ensure that VAT is collected on taxable transactions, that they submit returns and payments on time, that they issue tax invoices where required, that they include VAT in all prices advertised or quoted etc.

The National Home Builders Registration Council (NHBRC) was established in terms of the Housing Consumer Protection Measures Act, 1998 (Act No. 95 of 1998). The Council is mainly established to protect the interest of housing consumers, and to regulate the home building industry. The NHBRC from time to time conducts quality assurance inspections at houses being built by home builders and is not obligated to inspect the progress of every home being built. They rely on the agreement and conditions of registration agreed to by the builder that all work will be done as per the prescribed method as concluded in the NHBRC's Home Building Manual. In terms of section 10 of the Housing Consumer Protection Measures Act 1998 (Act 95 of 1998), any person in the business of home building is required by law to register with the NHBRC.

The short supply of skilled staff is a serious obstacle to the competitiveness of industry in South Africa. The levy grant scheme, imposed by the Skills Development Act, 1998, and the Skills Development Levy Act, 1999, aims to expand the knowledge and competencies of the labour force. Improvements in employability and productivity will be achieved through new approaches to planning for training, learning programmes, incentives and an improved employment service. Participating fully in the scheme will allow you to reap the benefits of a better skilled and more productive workforce.

The Explosives Act (Act 26 of 1956) covers the manufacture, storage, sale, transport, importation, exportation and use of explosives. The Act requires that should any blasting take place, that it be done by a competent and certified person, under several strict regulations. The local inspectorate of explosives handles the control of this. If you need to have blasting done during the course of the project, you will need to contact the local explosives inspector to find out what the requirements are for your area. Before commencing any building works, the inspectorate must be notified of the work. The Building inspectors ensure that the work done complies with the relevant regulations.

Each local or provincial area has slightly different procedures with respect to their Safety Inspectorate. When you are working in a specific area, contact the local safety inspector and get the correct procedural information.

From the above, it is evident that there is a plethora of legal requirements expected of the construction contractor. It becomes incumbent on each business owner to be fully knowledgeable or employ personnel who are conversant with these requirements and to implement them as required.

The Master Builders KwaZulu-Natal Training Academy provides a wide range of training interventions that support business, health & safety and technical competencies.

To find out more about our various courses contact us on 031 831 3238 or training@masterbuilders.co.za

Victor Smith | Training Manager