{"id":24499,"date":"2013-10-17T15:51:43","date_gmt":"2013-10-17T13:51:43","guid":{"rendered":"http:\/\/www.myza.co.za\/2013\/10\/construction-sector-faces-many-challenges-gigaba\/"},"modified":"2013-10-17T15:51:43","modified_gmt":"2013-10-17T13:51:43","slug":"construction-sector-faces-many-challenges-gigaba","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/construction-sector-faces-many-challenges-gigaba\/","title":{"rendered":"Construction sector faces many challenges: Gigaba"},"content":{"rendered":"

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Although government considers the construction sector as part of the country\u2019s economic fibre, the sector is confronted with major delivery challenges, says Public Enterprises Minister Malusi Gigaba.<\/p>\n

\u201cThe delays and disruptions, poor site management, time and cost variations, skills and competence issues, lack of quality improvement processes, and lack of worker participation are among the challenges faced in the course of executing construction projects, and there is no doubt that substantial improvements in quality and efficiency are needed and are possible,\u201d said Gigaba.<\/p>\n

He was speaking at the KPMG Global Construction dialogue in Sandton on Wednesday. The minister said the sector was large and complex, and further complicated by the vast number and range of employees.<\/p>\n

Investing in human capital in order to attain improved construction quality was also important.<\/p>\n

Gigaba highlighted the issue of acute shortages of trained artisans and first level supervisory staff, which has an impact on the demands for quality control, standard operating procedures and training, among others.<\/p>\n

\u201cThe shortage of these skills is further exacerbated by the aging profile of artisans in South Africa, the average age of whom is reportedly around 55 years old.<\/p>\n

\u201cThis shows the danger that most of the people available to transfer skills are getting older and older, and there will not be sufficient mentoring for the future generations,\u201d said the minister.<\/p>\n

Although larger contractors were implementing programmes to address skills issues, smaller contractors and new entrants did not have the resources to address quality factors.<\/p>\n

\u201cThe Presidential Infrastructure Coordinating Commission (PICC) has developed a key scarce skills list and the private sector, particularly the construction industry, must more actively and robustly partner so that we can expand our skills base and even train more than the sector itself requires,\u201d Gigaba said.<\/p>\n

In June, the Competition Commission ordered 15 construction firms to pay penalties amounting to R1.46 billion for collusive tendering.<\/p>\n

\u201cThe recent exposure of anti-competitive behaviour through cartels imposes an economic and social cost to South Africa and many developing countries,\u201d he said, adding that such conduct was unacceptable.<\/p>\n

\u201cThis anti-competitive behaviour not only hampers the development of the economy as a whole but it also impedes the employment creation imperatives of government in general.<\/p>\n

\u201cThis requires that there be a review of such public sector procurement processes and active steps are taken by public institutions to minimise the risk of collusive tendering in their procurement processes,\u201d the minister said.<\/p>\n

Because South Africa was a small economy, with a limited number of general contractors who were capable of managing very large projects in the construction sector, Gigaba said this made the sector very prone to competition law infringements.<\/p>\n

Government intends to expand the country\u2019s infrastructure capacity.<\/p>\n

\u201cBy the end of this administration\u2019s term of office, R1 trillion will have been spent on infrastructure expansion,\u201d said Gigaba. \u2013 SAnews.gov.za<\/p>\n

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