After months of collecting certificates and scorecards from companies in the construction sector, the Construction Sector Charter Council (CSCC) launched its first ‘Baseline Report on the State and Progress of Transformation and Empowerment in the Construction Sector from 2009 to 2013’ last month.

The CSCC – the executive authority responsible for overseeing and monitoring the progress of transformation and empowerment in the construction sector – noted that the report contained a factual, qualitative and quantitative assessment of the extent to which construction entities and enterprises had implemented all seven broad-based black economic-empowerment (BBBEE) elements of the construction sector code since 2009.

“The report is intended to provide substantive clarity on the levels of compliance with the construction sector code by designated measured entities. The results highlight areas that require improvement, research and development, with the specific purpose of strengthening efforts to measure empowerment in the sector going forward,” said CSCC CEO Thabo Masombuka at the launch.

The construction value chain is made up of built environmental professionals (BEPs), contractors and construction materials manufacturers and suppliers whose participation in the research was largely based on the Construction Industry Development Board’s registrar of contractors.

Although the industry response in forwarding BBBEE certificates and scorecards was inadequate and disappointing, Masombuka highlighted that the report provided the CSCC with a platform to continue with monitoring and evaluating the state of the sector going forward, noting that it would give the entire industry an opportunity to reflect on the state and progress of transformation, with a view to improving on areas that required strengthening.

Presenting the report at the launch, CSCC chairperson Felix Fongoqa said that the report highlighted that the construction industry was showing progress towards transformation, as over 71% of the sample drawn reflected an upward bias to the overall BBBEE contributor status. Further, the construction industry showed an enhanced and significant level of compliance with the construction sector code, which was indicated by an increase in the number of scorecards recorded yearly and a significant increase in the number of compliant contractors and BEPs.

Also, black and black-women ownership increased for all sizes of entities in the construction sector measured over the reporting period; however, there was polarisation in both extremes (either no black ownership or 100% black ownership).

Speaking during the launch, outgoing Public Works Minister Thulas Nxesi indicated that the state of transformation in the construction industry was a cause for concern, pointing out that some companies in the sector failed to participate in the research for the report.

“Following the release of this report, the real issue and the challenge now confronting the construction industry are not whether or not there should be transformation and empowerment, but the extent to which transformation initiatives must take place,” he said.

Nxesi added that, although the report indicated an improvement in the number of women joining the construction sector, the report also highlighted the insufficiency of skills within the sector, which could affect the sector negatively in the future.