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Cape Town - Preferential procurement is a key driver of overall increased transformation in the construction industry.
This is as a result of multiplied pressure made on sub-contractors to improve their level contributions.
The real challenge confronting the construction industry is, however, not whether or not there should be transformation and empowerment, but the extent to which transformation initiatives must take place, according to Thabo Masombuka, CEO of the Construction Sector Charter Council (CSCC).
The CSCC is the executive authority responsible for overseeing and monitoring the progress of transformation and empowerment in the construction sector.
The CSCC recently released its baseline report on the state of transformation and empowerment in the construction sector for the period 2009-2013.
It presents an assessment of the extent to which construction measured entities and enterprises have implemented all seven broad-based black economic empowerment (B-BBEE) elements of the construction sector code since 2009.
“This baseline report is the first attempt by the CSCC to measure and establish the progress of empowerment and transformation in the construction sector since the gazette of the construction sector code in 2009,” said Masombuka.
“Although the industry response in forwarding B-BBEE certificates and scorecards was rather inadequate and disappointing, this report provides the CSCC with a platform to continue with monitoring and evaluation going forward."
He said it will give the entire industry an opportunity to self-reflect on the state and progress of transformation with the view to improve on areas that require strengthening.
“In line with the founding objectives of the construction charter – which is the overarching transformation blue-print for the sector – this report gives us positive trends and indications towards the economic beneficiation of designated sectors, which are black women, the youth, the jobless and the disabled persons of our country," said Masombuka.
"Beyond this report, construction companies must begin to walk the talk and commit to transformation in a meaningful manner.”
The report shows:
More than 71% of the sample drawn reflected an upward bias to the overall B-BBEE contributor status, according to the report.
There has been a significant increase in compliance with the construction sector code by contractors over the five year period.
Over the period, there was, however, a decrease in compliance with the ownership element and enterprise development and the HRD elements remain at risk.
Black and black women ownership has increased in the construction sector over the period, but shows polarisation in both extremes (either no black ownership or there is 100% black ownership).
Measured entities at the contractor level with over 50% black ownership has shown a steady increase between 2009 and 2012.
Employment Equity (EE), preferential procurement and enterprise development elements have increased popularity across the entire construction sector.
Notwithstanding the trends in improvements, the report points out some challenges that the CSCC will need to attend to as a matter of urgency.
These include an absence of enforcement and regulatory authority to compel submission of compliance information to the CSCC.
The way forward
Going forward, the CSCC will put into place the following measures to improve and strengthen the measurement of the construction industry for ease of reporting.
It plans to introduce industry empowerment programmes to promote meaningful and substantive empowerment.
This is as a result of multiplied pressure made on sub-contractors to improve their level contributions.
The real challenge confronting the construction industry is, however, not whether or not there should be transformation and empowerment, but the extent to which transformation initiatives must take place, according to Thabo Masombuka, CEO of the Construction Sector Charter Council (CSCC).
The CSCC is the executive authority responsible for overseeing and monitoring the progress of transformation and empowerment in the construction sector.
The CSCC recently released its baseline report on the state of transformation and empowerment in the construction sector for the period 2009-2013.
It presents an assessment of the extent to which construction measured entities and enterprises have implemented all seven broad-based black economic empowerment (B-BBEE) elements of the construction sector code since 2009.
“This baseline report is the first attempt by the CSCC to measure and establish the progress of empowerment and transformation in the construction sector since the gazette of the construction sector code in 2009,” said Masombuka.
“Although the industry response in forwarding B-BBEE certificates and scorecards was rather inadequate and disappointing, this report provides the CSCC with a platform to continue with monitoring and evaluation going forward."
He said it will give the entire industry an opportunity to self-reflect on the state and progress of transformation with the view to improve on areas that require strengthening.
“In line with the founding objectives of the construction charter – which is the overarching transformation blue-print for the sector – this report gives us positive trends and indications towards the economic beneficiation of designated sectors, which are black women, the youth, the jobless and the disabled persons of our country," said Masombuka.
"Beyond this report, construction companies must begin to walk the talk and commit to transformation in a meaningful manner.”
The report shows:
More than 71% of the sample drawn reflected an upward bias to the overall B-BBEE contributor status, according to the report.
There has been a significant increase in compliance with the construction sector code by contractors over the five year period.
Over the period, there was, however, a decrease in compliance with the ownership element and enterprise development and the HRD elements remain at risk.
Black and black women ownership has increased in the construction sector over the period, but shows polarisation in both extremes (either no black ownership or there is 100% black ownership).
Measured entities at the contractor level with over 50% black ownership has shown a steady increase between 2009 and 2012.
Employment Equity (EE), preferential procurement and enterprise development elements have increased popularity across the entire construction sector.
Notwithstanding the trends in improvements, the report points out some challenges that the CSCC will need to attend to as a matter of urgency.
These include an absence of enforcement and regulatory authority to compel submission of compliance information to the CSCC.
The way forward
Going forward, the CSCC will put into place the following measures to improve and strengthen the measurement of the construction industry for ease of reporting.
It plans to introduce industry empowerment programmes to promote meaningful and substantive empowerment.
