Submitted in fulfillment of the academic requirements for the degree of Master of Engineering, Department of Civil Engineering and Surveying, Durban University of Technology. Durban, South Africa, 2016. / Insolvency may be broadly defined as an inability of business entity to meet pending financial commitments. For a construction firm, such a situation creates conditions whereby a business entity is unable to fulfill its contractual obligations with regard to work in progress or creditors owing. There are indications to suggest that during periods of adverse conditions the occurrences of insolvencies are mutually exclusive and remain a subject of debate. The occurrence of these financial failures adversely affect business concerns operating within the civil engineering construction industry. In South Africa, figures released by the South African Federation of Civil Engineering Contractors (SAFCEC) in 1992 suggested an expected general decline in workload handled by this sector. This was a result of scaling down of heavy infrastructure projects because of government shifting focus to housing and other related projects mainly towards meeting the needs of the previously disadvantaged communities. During that period large contractors suffered financially and some went through insolvency. The government had also put emphasis on transformation of the sector to allow participation of emerging and small contractors, but this was not properly regulated, so most of these contractors did not have the experience and skills to operate sustainable construction firms. The Construction Industry Development Board (CIDB) was established in 2000 as a statutory body to provide leadership to stakeholders and to stimulate sustainable growth, reform and improvement of the construction public sector for effective delivery and the industry’s enhanced role in the country’s economy. The CIDB’s regulations were implemented after 2003 and are continuously improving the construction public sector’s growth. This research study investigated and evaluated the factors associated with insolvencies amongst civil engineering contractors in KwaZulu-Natal. The study investigated the hypotheses that “the prominent factors associated with civil engineering contractors insolvencies are related to managerial/operational issues”, the prominent factors associated with civil engineering contractors insolvencies are related to financial issues”, “South African government initiatives create an environment for small to medium contractors to develop through their implementation”, and good management and operation of small to medium construction companies reduce insolvency in construction”. Operational management and strategic factors were found to be amongst the leading causes of companies failures. The study also made some recommendations from the research findings. The findings are relevant to the South African government infrastructure service delivery programs and the general issue of affordable infrastructure services. / M

This research is concerned with the development of independent contractors within the Working for Water Programme over a twenty-four month period. The meaningful participation of previously disadvantaged South Africans fall within the ambit of black economic empowerment. The Government Gazette (1997: No. 1820) defines black economic empowerment as a deliberate programme to achieve the meaningful participation of disadvantaged South Africans in the mainstream economy as managers, owners of capital and employees. The purpose of this research was to evaluate the contractors within the Western Region of the Eastern Cape, in order to assess how they have developed as independent contractors within the developmental framework provided by the Working for Water Programme. This developmental framework takes place over a 462-day period or roughly 24 months. The evaluation aimed to determine whether the two-year development period sufficiently prepared contractors for competition in the open market and if contractors had acquired the necessary skills to run a successful business. A formative programme evaluation was used as a tool of analysis to identify areas of weakness and establish priorities for improvement. A qualitative research approach was followed, guided by an adapted version of the Context, Input, Process and Product approach to evaluation (Parlett and Hamilton cited in Calder, 1995, p.25). Using structured interviews comprising of closed and open ended questions, data was gathered from thirty contractors, five managers and one Senior Executive Officer within the Western Region of the Eastern Cape. An interview was also conducted with the Regional Programme leader of the Eastern Cape. Further data collection techniques included documentary research. Data was analysed using qualitative data analysis techniques described by Thorne (1997, p.118), as relying on inductive reasoning to interpret and structure the meanings that can be derived from the data. Passages of interest were marked so that the data could be reduced to a manageable size as described by Seidman (1991, p.91-1 01) and various categories were developed that had commonalties and thematic connections. The Working for Water Programme aims to exit contractors successfully after a twenty-four month developmental period. The Working for Water Programme has formalised its development framework through a training matrix in which the required training at contractor level is outlined. The finding of the research is that the current contractor development programme do not adequately prepare contractors for independence and entrepreneurship in a competitive market. There is no co-ordinated development of predetermined skills. Contractors are not able to articulate what their plans are after exit from the WFW Programme. No concrete evidence of actively pursuing alternative contract opportunities was evident from contractors who were about to exit the Programme and there is no person to champion the cause of meaningful post exit opportunities. The main recommendations from this research are that contractors be selected via an application system rather that appointment through steering committees. Selected contractors must be medically fit and at least have a matriculation certificate. Contractors should be assessed on a 6-monthly basis and contractors not achieving a minimum competency level must be removed from the programme. Managers should also have basic competency levels in order to facilitate skill transfer through a mentorship process. The charge out rate of equipment should be revised every six months. The charge out rates should also be increased significantly to cater for the harsh conditions under which contractors are operational. A "champion" needs to be appointed which will actively seek exit opportunities for trained contractors. This person will also seek to develop functional partnerships with various private and government institutions to create opportunities for exited contractors.

Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: The Western Cape Education Department (WCED), through the Department of Public Works (DTPW), launched the Grade R classroom programme in 2009 to increase primary school enrolment in less privileged communities. Due to the low construction contract values the programme has attracted SME contractors. These SMEs have stalled the programme by either not delivering on time or by going insolvent whilst building Grade R classrooms. This research investigated the challenges encountered by SME contractors in delivering Grade R classrooms. The objectives of the research were achieved by means of a questionnaire administered through telephonic interviews and face-to-face interviews. Thirteen contractors have taken part in the programme since 2009. All contractors who have built the classrooms in the Cape Metropole region were contacted for a telephonic interview of which 12 agreed to participate in the telephonic interviews. Descriptive statistics were used to collate and discuss the challenges reported by the contractors. The findings are similar to other studies of SME contractors. SME contractors that took part in the survey confirmed that financial factors, economic and external environment, management skills and expansion and growth factors have been affecting their businesses. The fifth factor, which is the project specific factor, had the most interesting data. Nine out of twelve contractors interviewed indicated that they were not satisfied with the grade R contract working environment. If it was not for scarcity of work, they would not tender for Grade R classrooms. Nine out of twelve contractors interviewed indicated that the DTPW and its agents hindered the successful delivery of Grade R projects through their actions. The main reasons given were the late handover of sites, incomplete construction information, unreasonable construction period, numerous specification changes and delays in processing information. What emerges from the data collected is that the DTPW needs to address the challenges highlighted in this research report. Addressing the challenges will ensure the success of the Grade R programme. This will be beneficial to both the SME contractors and the DTPW. The study also makes recommendations on how to address the challenges.

Thesis (MTech(Business Administration))--Cape Technikon, Cape Town, 2004 / The procurement of goods and services in the public sector accounts for a huge portion of domestic spending. An improvement in government procurement has a direct effect on the country's economic performance. Government procurement systems are subject to increasing scrutiny and reform due to domestic and international pressure. Procurement reform is being driven by the principles of democracy and fairness, the opening of the global market, and the small, medium and micro enterprises (SMMEs) that have been excluded from government procurement. Research has been done on the development of SMMEs in South Africa, highlighting the barriers experienced by these enterprises. As only limited research has been done on the barriers experienced by the sub-category of African black SMMEs, this study focuses on those barriers experienced by African black SMMEs in the construction industry in the Western Cape, with specific emphasis on the Emerging Contractor Development Programme (ECDP) of the National Department of Public Works in Cape Town. The purpose of this study was to determine the reasons why African black contractors cannot find the opportunities that they seek. The opportunities may be available, but the financial capacity of these contractors is limited. The lack of finance or the lack of access to finance causes these contractors not to be able to perform as anticipated. The survey was done among African Black contractors to determine from them what their experiences were with the Emerging Contractor Development Programme. It also focused on the number of opportunities given to them by the National Department of Public Works and the effect of the lack of finances.

The purpose of this treatise was to determine the distinction between the contract of service (employment) and the contract of work (independent contractor). A comprehensive literary survey was undertaken so as to establish if such a distinction does indeed exist. A logical point of departure was to study the contract of service and determine how the employment relationship is established by it. It is also necessary to establish under what circumstances a contract may be terminated and what the rights and obligations of the parties to the contract were. The contract between the parties will determine remedies to the breach of contract or applicability of labour legislation. It is also necessary to establish the definition of an employee under various statutes so as to understand what remedies exist should rights be infringed upon. Statutes considered include the Constitution of the Republic of South Africa, Labour Relations Act, Basic Conditions of Employment Act, Employment Equity Act, Unemployment Insurance Act, Compensation for Occupational Injuries and Diseases Act, Skills Development Act and the Income Tax Act. The effect of insolvency of the employer on the employee is also discussed. Outsourcing has played a major role in the emergence of the independent contractor. This phenomenon is considered from the point of the employer in terms of the reasons for choosing the option of outsourcing and the associated risks. The employee perspective is also dealt with in terms of why an employee would change his/her employment status. The various tests historically applied to determine the status of a worker is also discussed. These include the control, organisation, dominant impression and economic tests. Currently the dominant impression test is the one that is being applied to determine the employment relationship. Extensive reference was made to case law. United States of America cases are referred to with specific reference to the 20 Factor Test applied by the Internal Revenue Service. South African case law is dealt wit in terms of enforcement of Bargaining Council agreements, commission-earning persons, payment for services rendered, the intention of the parties and the identity of the true employer. The emergence of the dependent contractor is also addressed. This form of worker normally falls outside of the protection of labour legislation and social security. Amendments have been proposed to various statutes to remedy the situation in South Africa. A final aspect that is dealt with is that of vicarious liability. The applicability of this aspect lies in the liability of the employer for damages inflicted by the employee.

This thesis is an analysis of the law of vicarious liability and its application within the legal framework of delict in South Africa. A brief overview of the historical development of this branch of law is given, with reference to the influences of Roman, Roman-Dutch and English law. That is followed by an exposition of the 'modem' interpretation of vicarious liability as applied in South African courts, highlighting apparent inconsistencies and the need for reform in what has become a persistently controversial area of law. Specific attention is paid to the so-called 'course and scope enquiry' and to the enduring difficulties associated with attributing liability to employers for the deliberate wrongful conduct of their employees. It is argued that the courts have yet to reach consensus on a general principle capable of being applied to the facts of so-called 'deviation cases', and that consequently the legal divergence on these matters gives rise to uncertainty and concern. It is submitted that the way in which the traditional test for vicarious liability is currently applied fails to give true effect to the policy considerations upon which this branch of law is founded. By way of comparison with the South African position, a detailed account of the law of vicarious liability in comparable foreign jurisdictions is given, with emphasis placed on recent developments in England and the British Commonwealth. The study then moves to an analysis of the various policy considerations behind vicarious liability, with particular attention being paid to the role of risk-related liability and the role of risk-assumption in the 'course and scope' enquiry. A comparative analysis follows, highlighting differences between the approaches of the foreign jurisdictions and that taken by the South African courts. The work concludes with a proposal that the South African courts should broaden the scope of vicarious liability and opt for a model similar to that which has recently been adopted in Canada.

Thesis (MScFor)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: The Technology and People: an analysis of the forest workforce, technology and the sourcing decision in forest harvesting in South Africa. M.Sc. Forestry thesis, University of Stellenbosch, South Africa. 124pp. This thesis looks at the profiles of the workforce in forest harvesting in the forestry industry in South Africa. It provides methods and models to measure and understand people (human capital) and technology. It highlights some of the current and strategic challenges in: employee conditions of employment; occupational health and safety; worker nutrition; training; worker dynamics (employee absenteeism and labour turnover); and the technology in forest harvesting. This study puts additional emphasis towards measuring and understanding the grower company/contractor interface (i.e., the contractoring philosophy, contractor profiles and competitive strategies) and discusses the contracting decision by the grower companies. The latter, the contracting decision is important because it forms the foundation and framework upon which forest harvesting contractor businesses are built and the background for both the people and technology dynamics. Forest harvesting employees in South Africa are working in forestry because they cannot get other jobs elsewhere. They have the following profiles and mobility characteristics: median age, 34 years; median completed school level, Standard 3; median time spent working for forest contractors and grower companies, 2 and 7 years, respectively (contractors have been in the business for a median period of 7.5 years); and median labour turnover and absenteeism, 4 % and 6 %, respectively. The employee median daily wage is R24.00 and the budgeted employee training cost per year per employee is R41.40. There is a high level of occupational safety awareness amongst both the contractors and the employees and significantly high injury rates in forest harvesting. Contractors and staff from grower companies believe that the current and future forest harvesting technology depends on the type and nature of contracts between the grower companies and the harvesting contractors, backup services from machine suppliers, the exchange rates between the Rand and other major currencies and worker health linked to HIV/AIDS. The study shows that in forest harvesting, there is a need to develop approaches and business strategies to define and manage the workforce since it is the people and the technology that work together to generate results. The thesis concludes that, human skill and knowledge should form the base of an industry along with logic of systems or operations. The study challenges forest harvesting organisations to measure and integrate human capital and technology with business objectives. Thus, sustainability in forest harvesting in South Africa will depend on the ability of forest harvesting organisations to handle the human dimension and to develop/acquire, exploit and manage technology. / AFRIKAANSE OPSOMMING: Tegnologie en die Mens: 'n Ontleding van technnology, die dinamika van uitkontrakteer en bosontginnings arbeid in Suid Afrika. M.Sc in Bosbou tesis, Universiteit van Stellenbosch, Suid Afrika. 124 bl. Tegnologie en die mensepotensiaal is van uiters belang in alle industrieë. Technologie moet toepasbaar wees en die mens moet van 'n geskikte gehalte wees met 'n paslike profiel. Hierdie proefskif focus op die tegnologie en die menslikehulpbron in bosontginning en evalueer Suid Afrikaanse Bosbou maatskappye se besluit om uit te kontrakteer. Dit bied metodes en modele aan om die menslikepotensiaal en tegnologie te evalueer en te verstaan. Die klem word geplaas op huidige en strategiese uitdagings in: diensvoorwaardes, beroepsgesondheid en -veiligheid, voiding, opleiding, arbeidersdinamika (arbeidsafwesigheid en -omset) en tegnologie in bosontginning. Hierdie studie plaas verdere klem op die ondersoek en begrip van die interaksie tussen bosbou maatskappy en kontrakteur (b.v. kontrakteur's filosofie, profiel van kontrakteurs en mededingende strategie) en om die bosbou maatskappye se besluit, om oor te skakel na kontrakteurs, te evalueer. Laasgenoemde, is van uiter belang, aangesien dit die fondament en raamwerk daarstel waarom die kontrakteurs se besigheid ontwikkel en dit gee agtergrond tot die dinamika van beide die mens en die tegnologie. Die grootste gedeelte van die arbeid in diens van die Suid Afrikaanse bosbou industrie het daarop gewys dat hulle slegs in die industrie werk omdat daar nie ander werksgeleenthede beskikbaar is nie. Kenmerke aspekte van die arbeidersmag in die Suid Afrika se bosbou industrie is die volgende: middellyn vir ouderdom - 34 jaar; middellyn vir skool qualifikasies - standard 3; middellyn vir dienstydperk by bosbou kontrakteurs - 2 jaar, en by bosboumaatskappy - 7 jaar (middellyn vir tydperk as kontakteur - 7.5 jaar); arbeidsomset en -afweesigheidis 4 % en 6 %, onderskeidelik. Daaglikse arbeidsloon is R24.00 en die begrotte opleidingskoste is R41.40 per arbeider per jaar. Beroepsveiligheid geniet 'n hoë vlak van bewustheid by beide die kontrakteurs en arbeiders. Kontrakteurs en maatskappy bestuurders glo dat die huidige en toekomstige tegnologiese ontwikkeling afhanklik is van die aard van kontrakte, ondersteuning en diens van verskaffers, die wisselkoers en arbeiders se gesondheid (gekoppel aan HIVNIGS). Aangesien die mens en tegnologie gesamentlik bydra tot werksproduksie, bestaan daar 'n behoefde in bosonginning vir die ontwikkeling van naderings en besigheids strategieë om die bestuur van mense en tegnologie te defineer. Die werkstuk beslis dat die menslike kennis en vermoeë, saam met logika van stelsels of activiteite, die fondament van die industie daarstel. Bosontginnings maatskappye word aangespoor om die gebruik van tegnologie te ondersoek, en die menslike hulpbron en tegnologie te meet en met die maatskappy se doelstelling te integreer. Ten slotte, die standhoudenheid van bosonginning in Suid Afrika sal afhang van die vermoeë van bosontginnings maaskappye om die menslike dimensie korrek te kan bestuur en om tegnologie effektief te ontwikkel (of aan te koop), te gebruik en te bestuur.