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Development of Previously Disadvantaged Individual subcontractors in Public Private partnershipsMokoala, Joseph Rapula January 2017 (has links)
Thesis is submitted in partial fulfilment for the degree of Master of Science in Building to the Faculty of Engineering and the Built Environment, School of Construction Economics and Management at the University of the Witwatersrand, Johannesburg, 2017 / Public Private Partnerships (PPPs) are an innovative method to deliver infrastructural projects without government having to use public funds for funding capital projects. This innovative method has been adopted worldwide and has yielded the intended results, more especially in European countries. This innovative method provides government with an opportunity to focus on governing and take advantage of skills and funding from the private sector to fund capital-intensive infrastructural projects.
Within the South African context, all PPPs are required to comply with the requisites of the BEE Code of Good Practice for PPPs, which states that 10% of the bid weight will be allocated for compliance in terms of BEE. Over the years, this requirement has been met for the majority of PPP projects that reached financial close and complied with the requirements promulgated by the South African Government as a tool to promote, develop and empower up-and-coming entities.
The aim of this study was to investigate the economic advancement occasioned by PPPs on Previously Disadvantaged Individuals (PDI) subcontracting. This was attained through the use of a case study method as a result of the type of questions and objectives to be met.
The study revealed that PPP projects are compliant with the BEE Code of Good Practice for PPPs. However, the requirements are not specific and clear in the PPP agreement to facilitate better monitoring and evaluation.
Keywords: Previously Disadvantaged Individuals, Subcontracting, Black Economic Empowerment, Public Private Partnerships / XL2018
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Sources of disputes in South African construction contracts and the resolution techniques employed between clients and contractorsSithole, Bryne Mandlenkosi January 2016 (has links)
A dissertation report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Science Building (in the Field of Project Management).
School of Construction Economics and Management, University of the Witwatersrand, Johannesburg, 2016 / Disputes are a common characteristic of the construction industry, the underlying sources of disputes, most frequent dispute resolution techniques employed and the responsiveness of the industry towards the available techniques was explored including detailed literature review on disputes in the construction industry. Disputes can lead to the significant waste of resources on contracts; and they thereby undermine the concepts of sustainability and value-for-money in contracts, thus affecting the overall health of the construction industry. The methodology involved interviews conducted among professionals with experience, review of published cases, contracts and media reports on disputes in the construction industry. The scarcity of research in this field is discussed and the empirical work on the sources of disputes, dispute resolution techniques and proficiency in the industry was reviewed. It is concluded that contractual issues need more attention to deter disputes occurrence, while negotiation, arbitration and litigation techniques dominate the industry. The industry lacks professionals with dispute resolution skills, therefore workshops and stringent policies are needed to advise the professionals to acquire the skills for the development and improvement of commercial relationships in contracts. / MT2017
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Challenges facing small and medium enterprises in the low cost housing sector in LimpopoSekoati, Seaparo Charles. January 2010 (has links)
Thesis ( M.Dev.) -- University of Limpopo, 2010 / Refer to document
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The impact of the affirmative procurement policy on affirmable business enterprises in the South African construction industry.Gounden, Sivandran Munsami. January 2000 (has links)
The construction industry in South Africa is envisaged to play a pivotal role in the reconstruction of the
South African economy, via the delivery of economic and social infrastructure. The skewed ownership I
patterns prevalent in the construction sector, resulted in the South African government utilising public
sector procurement as a mechanism to address these imbalances, and to promote wider participation I
in public sector construction opportunities.
This dissertation analyses the role of the construction industry in South Africa, and explores the
rationale behind utilising public sector procurement as a mechanism to promote wider participation in
the construction industry in South Africa. The research then focuses on the application of the
Affirmative Procurement Policy (APP) on construction projects procured by the National Department of
Public Works, in order to evaluate the impact which this policy has had on the growth and
development of Affirmable Business Enterprises (ABEs).
The research evaluates the primary policy outcomes, via the development of appropriate indices and
a diagnostic quadrant comparator, and concludes that the application of the APP has had a positive
impact on ABE participation, with levels of participation varying across construction sub sectors and
categories. It was also found that financial premiums, borne by the State in adopting this policy, were
nominal when compared with the initial projected outcomes and the overall benefits.
The overall performance of ABEs, measured against that of non-ABEs, was then tested to ascertain
whether the adoption of the APP was a necessary and sufficient condition for ABE enablement and
empowerment. The research concludes that there is a difference in overall performance between J
ABEs and non-ABEs, and that supply side interventions and capacitation programmes are required to
mitigate the increased risk exposure by the State, when engaging ABEs on construction projects. The :
research also analyses the variation in the levels of participation of ABEs, in the different construction
sub sectors and concludes that the manner in which ABEs are structured and their internal business
processes tend to establish operational limitations, which influence their scope of activitiies to a larger
extent than the existence of eternal sub sector thresholds. Similar characteristics were,observed in
non-ABEs of a similar size, inferring that the problems encountered relate to business development
and growth of small and medium enterprises, in general.
The research also. analyses the impact that the APP has had on subcontracting relationships and the
promotion of structured joint ventures. It concludes that whilst the requirements of the APP has seen
the development of formalised subcontracting relationships, the form of subcontracts that are currently
utilised do not comply with the requirements outlined in the APP, which are aimed at eradicating unfair
subcontracting conditions. The adoption of the APP has seen an increase in structured joint ventures
between ABEs and larger established contractors. The analysis of these joint ventures concludes that
they provide an effective means of transferring expertise, provided that they are structured appropriately.
The dissertation concludes with recommendations on APP policy refinements, mechanisms to
enhance compliance and opportunities for international application. The recent enactment of the
Preferential Procurement Policy Act (Act 5 of 20(0) in South Africa indicates that several elements of
the APP are likely to be prescribed as mandatory requirements for public sector procurement by
different government institutions and across the different industrial sectors. It is therefore important
that the areas identified for further research be pursued, to ensure optimal policy outcomes across a
range of industrial sectors. / Thesis (Ph.D.)-University of Natal, Durban, 2000.
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Transformation of the civil engineering sector : a review of the response of established civil engineering consultancies to this challenge.Robertshaw, Andrew Mark. January 2006 (has links)
Transformation of the Construction Sector is part of a wider transformation of the social and economic environment of South Africa. Publication of the Broad Based Black Economic Empowerment Act, 2003, Act Number 53 of 2003 (BBBEE) in January 2004, initiated the next phase in transformation (SAACE, 2004b, p1), which required the development and publication of sector specific Transformation Charters. / Thesis (M.B.A.) - University of KwaZulu-Natal, Pietermaritzburg, 2006.
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An investigation into the poor image of the construction industry and its effect on the sustainability of the industry.Human, Jurgen Johannes. 15 September 2014 (has links)
The construction industry is an important role player in any country. Past research has shown that the industry suffers from a poor image which, inter alia, resulted in a lack of new entrants. A quarterly survey conducted by the Construction Industry Development board (CIDB) showed that over 50% of survey respondents recorded a severe shortage in skilled labour.
The objective of this study was to determine how young people viewed the construction industry, how employers and employees within the industry viewed construction, whether companies were involved in promoting the industry, and if the industry was attractive as a career choice to high school students.
The literature reviewed stated that the construction industry was globally suffering from a poor image and critical shortage of skills. The literature provided the researcher with a number of factors which contributed to the industry’s poor image. These factors were empirically tested against the opinions of high school students and employers and employees in construction via questionnaires. Interviews were conducted with industry professionals who had over 20 years of industry experience. The interviews allowed insight into the image and what has made it poor. It also indicated that there was little being done to promote careers in the industry.
The industry did have a poor image from the perceptions of high school students, employers and employees. Very few students indicated a willingness to work in construction. The lack of new entrants, shortage of skilled labour and lack of promotion were not conducive to a sustainable industry.
The dissertation ends with recommendations for addressing the issue of the image from the perspective of high school students and recommendations for further research. / Thesis (M.Sc.Const.Man)-University of KwaZulu-Natal, Durban, 2013.
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An investigation of the potential role of physically challenged persons in constructionTshobotlwane, David Modisaotsile January 2005 (has links)
Thesis (MTech (Construction Management))--Cape Penninsula University of Technology, 2005 / The construction industry contributes to the economy in terms of its labour
intensive nature and status as a major employer of labour in many countries. This pivotal
role is divided by its unappealing status ofbeing an industrial sector with the lowest level
of employment of disabled persons. Despite the South African government's efforts to
diversifY the industry's labour force, these have had little concrete effect on changing the
demographics of construction especially relative to the representation of minority groups
such as women and disabled persons.
The industry presents both a challenging and hostile environment and attitudinal
barrier for persons with disabilities. They have not been seen as part of the pool of people
considered for employment, and when already employed, possible promotion. To change
this negative image, conscious measures are necessary to remove barriers. These
measures should include a change in leadership style and approach, fundamental change
in culture, change in the negative image of the working environment, and full
implementation of equal opportunity policies. This paper reports on the employment
status of disabled persons within the construction industry. To achieve this, the
qualitative methodology was adopted and included surveys, self-administered
questionnaires and interviews as well as the quantitative methodology to validate the
completeness of data
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Defect in the South African construction industryLe Roux, Martyn January 2012 (has links)
Lack of quality in the South African construction industry is causing various problems for different stakeholders. The causes of this lack in quality are due to various different attributes. Corruption has become one of the leading causes with regards to lack of quality. Quality assurance can mitigate or eliminate defects through the implementation of a quality management system. Defects manifest primarily through cracking, dampness, detachment, and water leaks. Defects are categorized as structural, subsidence, acoustic and thermal. In terms of time, defects are either patent or latent, and can be discovered through observation, inspection and various tests. The causes of defects are ultimately due to error or omission, either during design or during the construction phases. Defects may also result due to procurement related factors, such as appointment of incompetent contractors. The result of defects is customer dissatisfaction, rework and disputes. Non-conformance to requirements results in rework and this in turn contributes to time and cost overruns. The aim of this research was to investigate the greatest cause that leads to defects in houses; the most common type of defect; and why projects fail in term of project management terms (due to defects). Results of quantitative research amongst professionals within the construction industry in the Western and Eastern Cape of South Africa as well as literature that has been reviewed form the basis of this study. Architectural practices, consulting engineering practices, and general building contractors were selected on a random sample basis, and surveyed using an online questionnaire. The study revealed that inadequate artisan skills is the biggest cause leading to defects in houses, and that cracks are the most frequent type of defect occurring. Projects fail in project management terms because of defects as the construction time of the projects are increased. The study revealed that construction related causes of defects dominate over design related causes. This study should be of value to both construction industry professionals as well as their clients.
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An evaluation of subjective road classification terminology through interaction modelsMarijnen, Michelle 31 July 2012 (has links)
M.Ing. / South African road infrastructure has developed as product of various influences such as growth in traffic demand, economic and social demand, policies and imperatives, access needs and political ideologies and pressures. A country needs to revisit their road classification model on regular bases to ensure these influences are addressed. This support ensures sustainable economic and social growth in a region. Road classification models internationally and nationally use non-quantified terminology to classify road classes. Terminology such as “key towns” or “important towns” is commonly used. These terms creates misleading interpretations by authorities and transportation planners. This study developed a method to define road classification classes based on the economic activity and social interaction between origin and destination towns. The outcome is to eradicate the non-quantified terminology use in road classes.
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Examining a new approach to cost control methods and mechanisms for SMMEs in construction projects: a case study of a road construction project in LimpopoAdemola, Williams Olawale 14 January 2014 (has links)
M.Ing.(Engineering Management) / A lot have been said and written about how South African Small Micro and Medium Size Enterprises (SMMEs) in the Construction sector of the economy have failed in the delivery of their projects and about how they have not measured up in terms of the requirements needed to be competitive in the global place. Services delivery protests by communities where SMMEs have either failed to deliver their projects adequately or have out rightly abandoned projects are common features in our various electronic and print media, and in many cases these days the most reasons given for this behavior is the total collapse or lack thereof of proper financial management of the project. Because of the ease of procedure required to register construction outfits at the Department of Trade and Industry many have flocked to the opportunity and established business enterprises with the intention that at least they will be considered for one tender or the other to carry out some sort of construction work or the other in their various environments. Others registered such companies because they have links and ties to these opportunities in the various government establishments responsible for creating these works in the name of service delivery to their respective communities. Many of the proprietors of these enterprises, when they eventually get the job, have little or no financial knowledge on how to successfully manage a construction project and sometimes always based their financial judgment on the bottom line without considering the various factors that influence the bottom line profit. Virtual calculations of their financial inputs and relative desired outputs are done with little or no consideration for cost implications of the individual building blocks of the project itself. Safe to say, in many instances, the project fail or is abandoned due to mismanaged funds or the exhaustion of such funds required to carry the project to the completion stage. It has been observed in many instances and in interactions with some SMMEs in the construction sector that not many of the appointed Project Managers and/ or Site Managers have Project Management skills, and those who do have, in most cases are unable to apply these skills to their projects. Usually they just result to invoking personal experiences obtained from their various earlier endeavors in financial projections and decisions involving the management of their projects. More often than not, these financial projections and decisions become inaccurate and tend to drive the project into financial losses. This now begs the question, that if there exits simple mathematical techniques and methods of evaluating the various costs during the project life cycle, and weighing those daily weekly and monthly costs against targeted objectives, both in the planning and execution of the projects, wouldn’t it then be easier to make sensible financial decisions if we are able to control and manage project resource costs so much so that the resultant will always be the desired financial objectives? The aim therefore, of this dissertation is to examine a simple but adequately comprehensive method, of managing resources cost as applied to road construction projects and how, by also weighing the influence of other trade-offs such as quality and time within the life cycle, the project is kept in good financial status and is subsequently able to make a profit at the end of the day. An illustration of the application of this cost control method is highlighted in a case study of a road construction project in Limpopo undertaken by an emerging South African construction company. The financial management style and those factors that govern some of the cost decisions made during the course of the project are taking into account. The resultant financial success of the work so far is evidence that the cost control mechanism employed largely contributes to its present successful state. It can therefore be concluded that if properly implemented, this method will assist SMMEs in the promotion of proper cost control practices, and subsequent financial breakthroughs when applied to other similar projects.
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