Housing in Southern Africa May 2016

Industry Buzz

A change of direction

T he summary measured the performance of the industry, focusing on clients, the client’s agent/consultant and clients from 519 construction projects, contrac- tors and subcontractors on 1 331 projects countrywide. Essentially, it’s about assessing client satisfaction with all aspects of the service received. Client needs are summed up comprehensively by Movement for Innovation of the UK: Regular clients expect continuous improvement fromtheir construction team to achieve year on year reduc- tions in project cost and reductions in project time.” The summary revealed that 18% of the work carried out by contractors in 2014 was judged unsatisfactory by clients, with unac- ceptable defects recorded in 13% of these projects. Seen against client dissatisfaction of 13% in 2012 and 16% in 2013, it paints a worrying picture of ongoing deterioration in performance. However, cidb’s Programme Man- ager: Construction Industry Perfor- mance, Dr Rodney Milford says that this dark cloud must be seen against the increasingly stormymarket condi- tions being experienced across South African economic sectors. “Although the trend is of concern, the survey also shows that a large P GBison and Sonae are the only twomanufacturers of particle- board and Medium Density Fi- breboard (MDF) in South Africa. These are wooden products that are used in a variety of applications, including the manufacture of home and office furniture, built in cupboards, kitchen units, coffins and shop fittings. The Commission has reasonable grounds to suspect that PG Bison and Sonae have engaged in collusive practices in contravention of the Competition Act. The search operation is conducted as part of an ongoing investigation against the two firms and with due regard to the rights of all the affected persons. During the search docu- ments and electronic data seized will be analysed together with other information gathered to determine

The latest cidb Construction Industry Indicators summary shows reports that clients want projects delivered on time, on budget and free from defects, right first time and by profitable companies.

proportion of companies in the con- tracting and consulting sector deliver a high-quality and value-for money service.” He continues: “Significantly, our surveys often uncover a mismatch of projects and contractors and this, we believe, is because functionality is not taken into account when contractors are appointed. He continues, “We would like to

see clients undertake risk assess- ments when procuring services. This empowers the client to weigh up the capabilities and track record of the contractor so as tomanage risks early in the process.” As with any industry, ongoing access to work and sustainability in construction hinge on the ability to deliver a superior standard of work consistently. ■

Commission raids PG Bison and Sonae The Competition Commission is conducting a search and seizure operation at the Gauteng premises of PG Bison and Sonae Novobord as part of an investigation into alleged collusion.

whether a contravention of the Com- petition Act has taken place. In terms of the Competition Act, the Commission is authorised to enter and search premises and seize documents which have a bearing on an investigation “Cartels are harmful because they result in high prices for consumers and reduce the incentive for firms to be innovative. It is for this reason that the inves- tigation of cartels continues to be a priority for the Commission. Should this investigationuncover evidence of collusion, we will prosecute the firms

involved for contravening the Compe- tition Act,” saidCompetition Commis- sioner, Tembinkosi Bonakele. ■

May 2016