Pace of transformation in construction still too slow – Monitor

January 24, 2018

INFRASTRUCTURE NEWS / 23 JANUARY 2018 - 11.00 / STAFF REPORTER

 

The pace of transformation in the construction industry is moving too slowly and has shown little sign of improvement according to the latest Construction Monitor by the Construction Industry Development Board (cidb).

 

The monitor points out that despite a steady increase in the number of black-owned contractors in higher grades, less than 40% of cidb registered Grade 9 contractors are black-owned.

 

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Pumelele Qongqo, Project Manager for Monitoring and Evaluation at the cidb says that while the contracting sector is transforming in terms of black-ownership at the level of the small contractor, representation by black-owned medium and large contractors has not increased significantly over the past three years –and does not represent an inclusive industry.

 

Large contractors still missing out
 

Information from the cidb shows that over the past three years, black-owned contractors are accessing around 54% of total public sector contract awards.  Of particular concern is that the Grade9 or large contractors are only accessing around 25% of public sector awards.

 

Things are not much better on the gender front with women-owned contractors accessing around 25% of total public contract awards.

 

According to the cidb, the number of women-owned contractors in Grades 2 to 6, which typically include the small contractors, is decreasing over time.

 

However, the number of women-owned cidb Grades 7 to 9 (medium to large) contractors is increasing.  Qongqo notes that, “This is due in part to a positive sign that women-owned contractors are upgrading to higher grades”.  Women-owned contractors amount to around 30% of all contracting enterprises.

 

Black-and women-ownership still a critical weakness
 

The cidb also notes that only 36% of the cidb registered Grade 9 contractors and 48% of the Grade 7 and 8 have a minimum B-BBEE Level of 1 or 2 –which represents some signs of good progress towards broad-based transformation.

 

Furthermore, around 85% to 90% of all medium and large contractors have a minimum B-BBEE Level of 4, which is regarded as being fully compliant with the Sector Codes.

 

Dr Rodney Milford, Programme Manager at the cidb notes: “This reflects that progress is being made towards broad-based transformation measured in  terms  of  the  elements  of  the  BEE  SectorCodes,  but  that  black-and women-ownership remains a critical weakness in the contracting sector”.

 

“Addressing transformation is not the responsibility of one entity or organisation, and requires the commitment from the established construction industry to transform from within, and from the public sector to support transformation of the construction sector through developmental support and procurement interventions,” the cidb says.

 

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LINK : http://www.infrastructurene.ws/2018/01/23/pace-of-transformation-in-construction-still-too-slow-monitor/

 

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

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