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Transformation in construction still too slow, says monitor

IOL / 22 JANUARY 2018 - 10:30AM / ROY COKAYNE

JOHANNESBURG - The construction Industry Development Board (CIDB) has bemoaned the pace of transformation in the industry, stressing it was showing little signs of improvement.

This follows the release on Friday of the latest CIDB annual construction monitor focusing on transformation of the industry.

Image - IOL

It revealed that despite a steady increase in the number of black-owned contractors at higher grades, less than 40percent of CIDB registered Grade 9 contractors, the highest grading in terms of financial and work capability to carry out construction projects, were black-owned.

Pumelele Qongqo, the project manager for monitoring and evaluation at the CIDB, said that while the contracting sector was transforming in terms of black-ownership at small contractor-level, representation by black-owned medium and large contractors had not increased significantly over the past three years, and did not represent an inclusive industry.

The CIDB report said 36percent of CIDB registered Grade 9 contractors and 48percent of the Grade 7 and 8 contractors had a minimum broad-based black economic empowerment (BBBEE) level of 1 or 2 - the top two transformation levels - which represented some signs of good progress towards broad-based transformation.

In addition, the report said that between 85percent and 90percent of all medium and large contractors had a minimum BBBEE level of 4, which was regarded as being fully compliant with the BBBEE sector codes.

Higher target

However, the CIDB, the industry’s regulator, uses a higher target level.

Its vision of transformation is 90percent or more of the capacity of the construction industry and 90percent or more black-owned, and delivers 90percent or more of construction contracts by value”.

Rodney Milford, the programme manager at the CIDB, said the latest construction monitor showed that progress was being made towards broad-based transformation measured in terms of the elements of the BEE sector codes, but that black and women-ownership remained a critical weakness in the contracting sector.


LINK : https://www.iol.co.za/business-report/companies/transformation-in-construction-still-too-slow-says-monitor-12847081

Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER

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