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
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu. Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.