Jul 23, 2010
Call for legislation to protect contractors, associationBack
Construction|SECURITY|Windhoek|Africa|Security|Africa|Australia|New Zealand|South Africa|United Kingdom|Security|Building|Security|Colin De Kock|Security
© Reuse this
A Master Builders South Africa (MBSA) task team, led by GMBA executive director Colin de Kock, is currently working towards the establishment of security-of-payment legislation in South Africa.
De Kock says that this follows the GMBA’s successful motion for the promulgation of security-of-payment legislation in South Africa, at the 2009 MBSA congress.
“For many years, the livelihood of main contractors and subcontractors has been threatened by erratic or poor payments for building contracts. Subcontractors are also often subjected to poor payment by main contractors,” he says.
He adds that contractors need to be protected and should have some recourse. “The introduction of such legislation is long overdue and is an unequivocal answer to this challenge,” he says.
Further, De Kock explains that the global economic crisis has had a negative impact on the industry and has led to contractors and subcontractors struggling to receive payments on time.
“In many cases, this has led to GMBA members countrywide, already hampered by the economic downturn, having to shut down their businesses, as smaller companies, such as tilers, plumbers and emerging contractors, cannot survive if they are not paid on time,” he explains.
The proposed legislation aims to provide a quick and inexpen- sive way for contractors to obtain a court order to be paid or to recover money owed to them. It will also provide subcontractors with protection against contractors who fail to meet their commitments. The task team will report back to the MBSA on the progress made regarding the new legislation at the yearly congress, in Windhoek, in September, and hopes that the legislation will be in place in two to three years.
He notes that security-of-payment legislation operates successfully in many overseas countries, including Australia, New Zealand and the UK.
De Kock explains that the task team is currently in the process of developing a structured business case for the legislation, before it can be presented to government.
De Kock says that there has been positive response and strong support from members throughout the country.
Meanwhile, De Kock says that tenders for construction work need to be well specified and should clearly and unambiguously state what is included and excluded in the bid.
“A properly specified tender benefits all parties involved in a building contract. The tender is as important as, and forms part of, the building contract,” he says.
He suggests that a check list be used to assess if a tender is adequately specified.
“Any additions or omissions to the contract must be agreed on before execution of the particular work and this must be stipulated in the tender documents, as well as in the contract,” concludes De Kock.
Edited by: Brindaveni Naidoo© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...