Construction Industry News and Views Edition 201 07 March 2022
Dear Members and Readers
The Association welcomes the State of the Nation Address (SONA), which prioritises infrastructure projects to support economic growth and improved livelihoods. Honourable President Cyril Ramaphosa announced that “Infrastructure is central to our economic reconstruction and recovery.” It is pleasing to note that there is a commitment to massive infrastructure rollout with a pipeline of projects being prepared. This is underpinned by the Infrastructure Fund with its R 100 billion allocation from the fiscus over 10 years. The Budget Speech reiterated the acceleration of infrastructure investment with “innovative financing and delivery mechanisms.” This augurs well for the construction industry and will impact positively on job creation and economic growth.
The 2017 Preferential Procurement Regulations is currently under the spotlight again, as the Constitutional Court dismissed the appeal against the judgment of the Supreme Court of Appeal (SCA). Members will recall that in 2020, the SCA held that the Regulations were invalid and the declaration of invalidity was suspended for a 12 month period to allow Government time to amend the Regulations. However, when the Constitutional Court dismissed the appeal in February this year, the status of the order of suspension was not addressed. Organs of state have since been advised that tenders advertised after 16 February 2022 be held in abeyance and that no new tenders be advertised pending clarity on the matter. Members can rest assured that the Association will contribute to the efforts to ensure a quick reactivation of tenders.
Members will be pleased to note that 2021 saw a significant increase of 41,2 % in the number of building plans passed (at current prices) as reflected in the recent Stats SA selected building statistics of the private sector. The report reflected a 51% increase for residential buildings, 13.3% for non-residential buildings and 43.6% for additions and alterations. The value of works reported to have been completed during 2021 increased by 20,6%.
Entries for the 2022 Excellence in Construction competition are now open. The competition culminates in a glamorous Annual Awards gala event and is renowned for providing members with a platform to showcase high quality construction. Members are encouraged to be on the lookout for the entry forms and to be sure to enter their projects, as we jointly promote excellence in the industry.
This month’s edition provides insight on a presentation from SANRAL to members on the tender application process and upcoming SANRAL projects. Information is also provided on creating an electrical safety plan and the Budget speech is covered in greater detail.
Enjoy the read!
Vikashnee Harbhajan | Executive Director
SANRAL - Tender applications and upcoming projects
On 16 February 2022, Master Builders KwaZulu-Natal held an online member meeting where Ravi Ronny, Design & Construction Manager for the eastern region of the South African National Roads Agency (SANRAL), delivered an informative presentation on the SANRAL tender application process and upcoming SANRAL projects.
Managing a construction contract: The Pre-Award Phase
The Pre-Award phase is the first phase of the contract management process. This is usually after the scope of works has been sufficiently defined and the Project Owner (“Employer”) is ready to go out to the market to solicit pricing for the works to be executed.
Companies are eligible to be reimbursed 20% of their monthly skills levies if they submit a Workplace Skills Plan (WSP) and an Annual Training Report (ATR) to a Sector Education and Training Authority (SETA).
How to future-proof your business before the next crisis
While the possibility of a global pandemic was always at the back of our minds, its emergence still managed to catch us off-guard and wreaked havoc on every aspect of our lives, particularly the world of work. Therefore, it’s safe to say that Covid-19 has been a wake-up call for organisations to rethink their priorities and strategies to ensure their businesses will survive the next disaster.
The Honourable Finance Minister Enoch Gondongwana delivered his maiden budget speech, which was well received by various sectors of the economy. The budget presented was balanced and sensible, acknowledging that an increased tax burden would threaten economic recovery.
Electrical work in construction can be extremely dangerous and serious concerns have been raised regarding electrical safety. Statistics from the Federated Employers Mutual Assurance Company (FEM) revealed that four employees lost their lives due to being electrocuted in the last quarter of 2021.
Master Builders KwaZulu-Natal Training Academy, a CETA-accredited training provider
Skills gaps in a workplace can negatively impact a company’s revenue and its ability to achieve goals. Employees generally possess skills that were attained through achieving qualifications or previous work experience. However, these skills may need to be enhanced and developed for their current goals.
The training programmes are intended to provide access to currently employed candidates, unemployed candidates and school leavers, as well as to facilitate workplace training.
Members who have current contracts that make provision for Contract Price Adjustment are able to download the latest published indices from Statistics South Africa by clicking on the following link.
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