http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.31Change: -0.08
R/$ = 10.68Change: -0.06
Au 1294.60 $/ozChange: -0.60
Pt 1477.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 23, 2010

Call for legislation to protect contractors, association

Back
Construction|SECURITY|Windhoek|Africa|Security|Africa|Australia|New Zealand|South Africa|United Kingdom|Security|Security|Colin De Kock|Security
Construction|SECURITY||Africa|Security|Africa||Security|Security|Security
construction|security|windhoek|africa-company|security-company|africa|australia-country|new-zealand|south-africa|united-kingdom|security-facility|security-industry-term|colin-de-kock|security-person
© Reuse this



The Gauteng Master Builders Association (GMBA) reports that it has started an initiative to introduce legislation that will protect South African building contractors against late payment and nonpayment.

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. 

“We are currently reviewing international legislation pro-
cesses and we will extract viable parts from these to assist in compiling a structured document that can be presented to government in the next four to five months,” he adds.

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
Container traffic through Kenya's biggest port grew by 12.8% in the first six months of the year after new cargo handling infrastructure was built to shorten the turnaround time for ships. The Indian Ocean port of Mombasa, the biggest in east Africa and the region's...
South African electricity tariffs are likely to increase by more than the 8% already sanctioned for the year starting April 1, 2015, after the energy regulator determined on Wednesday that Eskom had under recovered R7.82-billion in revenue between 2010 and 2013. The...
The 2014/15 budget for the Gauteng department of human settlements is R5-billion, human settlements MEC Jacob Mamabolo said on Tuesday. "Of this amount, R4.4-billion will go towards all housing programmes within the department and we shall ensure that this allocation...
Article contains comments
More
 
 
Latest News
Nigeria-focused oil and gas explorer Oando Energy Resources (OER) on Wednesday announced that it had completed the acquisition of the Nigerian upstream oil and gas business of New York-listed ConocoPhillips for a total cash consideration of $1.5-billion as well as a...
The disciplinary hearing of telecommunications giant Telkom’s suspended CFO Jacques Schindehütte was set to resume next Wednesday. Telkom said it hoped the hearing would result in a definitive resolution on the matter of Schindehütte’s personal conduct after a...
While unauthorised expenditure by South Africa’s municipalities has declined year-on-year, irregular expenditure has recorded a R2-billion increase as municipalities failed to follow legislated procurement procedures, the latest Auditor-General South Africa audit...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks