Business problems facing potential emerging contractors in CIDB grades 5 to 7
- Pretorius, Albertus Johannes Hendrik
- Authors: Pretorius, Albertus Johannes Hendrik
- Date: 2016
- Subjects: Building trades , Project management , Construction industry
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10948/3459 , vital:20432
- Description: Considering the vital part which the construction industry plays in the economy of South Africa, as well as the objectives of the reconstruction and development thereof, the failure of contractors, despite all the interventions to identify and eradicate the root of the problem, is a matter of great concern. In November 2000, the Construction Industry Development Board Act (2000) was promulgated which led to the inception of the cidb with a mandate to implement an integrated strategy for the reconstruction, growth and development of the construction industry. The matter of contractor development has been widely studied and investigated since the inception of the cidb in 2000. However, the purpose of this study was to focus on the business problems faced by Grade 5 to 7 CE / GB Potential Emerging Contractors, with regard to construction organisations that make the move from small to medium businesses. The intention was to contribute to the successful transition from small to medium businesses by means of structured initiatives. In order to achieve this, a new business strategy must be adopted. It was therefore necessary to extensively consider the surface and core competencies required for making the transition. Liquidity problems that the transition entails were explored, as well as contractor misconceptions with regard to contractor development. In the course of the study, unethical practices and entitlement issues experienced in the built environment and the effect of this on contractor success were explored. The study aimed to recommend a structured framework for co-ordination between assistance, mentorship, contractor needs, client departments, cidb NCDP best practice guidelines and the most important of all, self-empowerment. This study further endeavoured to find possible solutions regarding the assistance requirements, as well as self-empowering objectives for emerging contractors taking the challenging step from small to medium business and by implication, becoming sustainable contractor enterprises in Grades 6 to 8. Political imperatives need to be weighed against the high unemployment rate. The Gross Fixed Capital Formation (GFCF) indicates that there are not enough sustainable contracting opportunities to allocate to Contractor Development Programmes (CDPs). This is aggravated by the tendency that too many hopeful aspirant entrepreneurs, lacking construction surface and core competencies, are seeing the built environment as an easy industry to enter. Just less than 50% of cidb registered contractors exited the register of active contractors during the last ten years ending 2nd quarter 2015. 45% exited during the last five years. This indicates that there is a serious sustainability problem in the built environment. Considering the GFCF contractor opportunities there are too many cidb registered contractors. However, enterprise failure is not only an Emerging Contractor (EC) problem, but occurs across the board. A dangerous notion that the large national construction firms should no longer qualify for public contracts can have disastrous implications for an already embattled industry. Large national firms are the trend setters in the built environment, which coach the much needed construction surface and core competencies. If upgrading is the measure of success the current CDP statistics do not confirm that the strategic objectives of the National Contractor Development Programme (NCDP) are being achieved. All contractors, including black owned contractors, are faring substantially better than their EC counterparts participating in CDPs. Upgrading should carry less weight and sustainability and high performance should become the focus. A serious lack of construction surface and core competencies was identified. If contractor development is the objective the structure of the cidb grading system should be reviewed. It is recommended that the broad CDP hierarchical structure should streamlined and partly privatised to focus on the core strategic objective of contractor development.
- Full Text:
- Date Issued: 2016
- Authors: Pretorius, Albertus Johannes Hendrik
- Date: 2016
- Subjects: Building trades , Project management , Construction industry
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10948/3459 , vital:20432
- Description: Considering the vital part which the construction industry plays in the economy of South Africa, as well as the objectives of the reconstruction and development thereof, the failure of contractors, despite all the interventions to identify and eradicate the root of the problem, is a matter of great concern. In November 2000, the Construction Industry Development Board Act (2000) was promulgated which led to the inception of the cidb with a mandate to implement an integrated strategy for the reconstruction, growth and development of the construction industry. The matter of contractor development has been widely studied and investigated since the inception of the cidb in 2000. However, the purpose of this study was to focus on the business problems faced by Grade 5 to 7 CE / GB Potential Emerging Contractors, with regard to construction organisations that make the move from small to medium businesses. The intention was to contribute to the successful transition from small to medium businesses by means of structured initiatives. In order to achieve this, a new business strategy must be adopted. It was therefore necessary to extensively consider the surface and core competencies required for making the transition. Liquidity problems that the transition entails were explored, as well as contractor misconceptions with regard to contractor development. In the course of the study, unethical practices and entitlement issues experienced in the built environment and the effect of this on contractor success were explored. The study aimed to recommend a structured framework for co-ordination between assistance, mentorship, contractor needs, client departments, cidb NCDP best practice guidelines and the most important of all, self-empowerment. This study further endeavoured to find possible solutions regarding the assistance requirements, as well as self-empowering objectives for emerging contractors taking the challenging step from small to medium business and by implication, becoming sustainable contractor enterprises in Grades 6 to 8. Political imperatives need to be weighed against the high unemployment rate. The Gross Fixed Capital Formation (GFCF) indicates that there are not enough sustainable contracting opportunities to allocate to Contractor Development Programmes (CDPs). This is aggravated by the tendency that too many hopeful aspirant entrepreneurs, lacking construction surface and core competencies, are seeing the built environment as an easy industry to enter. Just less than 50% of cidb registered contractors exited the register of active contractors during the last ten years ending 2nd quarter 2015. 45% exited during the last five years. This indicates that there is a serious sustainability problem in the built environment. Considering the GFCF contractor opportunities there are too many cidb registered contractors. However, enterprise failure is not only an Emerging Contractor (EC) problem, but occurs across the board. A dangerous notion that the large national construction firms should no longer qualify for public contracts can have disastrous implications for an already embattled industry. Large national firms are the trend setters in the built environment, which coach the much needed construction surface and core competencies. If upgrading is the measure of success the current CDP statistics do not confirm that the strategic objectives of the National Contractor Development Programme (NCDP) are being achieved. All contractors, including black owned contractors, are faring substantially better than their EC counterparts participating in CDPs. Upgrading should carry less weight and sustainability and high performance should become the focus. A serious lack of construction surface and core competencies was identified. If contractor development is the objective the structure of the cidb grading system should be reviewed. It is recommended that the broad CDP hierarchical structure should streamlined and partly privatised to focus on the core strategic objective of contractor development.
- Full Text:
- Date Issued: 2016
An exploratory study of the ability of small, micro, medium enterprises development to create jobs and serve as centres of skills development in the construction industry : a case study in King WIlliams Town
- Authors: Nkonya, Nolubabalo Grace
- Date: 2012
- Subjects: Business enterprises -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa , Job creation -- South Africa -- Eastern Cape , Construction industry
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9150 , http://hdl.handle.net/10948/d1018927
- Description: The significance of SMME development as a route to creating jobs and enhancing skills development has been and is still on top of South Africa‟s developmental agenda. The escalating unemployment rate and skills shortage to meet with demands of globalization compels the government to develop strategies to respond to the crisis. It is eighteen years since South Africa became a democratic country but the job creation and skills development sectors remain in a crisis. Stagnant economic growth is as a result of high unemployment which is a factor of skills shortage in the black South African labour force. The government creates an enabling environment by developing flexible regulations for equal participation of historically disadvantaged individuals to participate the in mainstream economic activities. Public investment through infrastructure development is one of the labour intensive programmes to promote SMME development, job creation and skills development. It is against this background that this research aims to explore the effect of SMME development in creating jobs and its ability to serve as centres of skills development. Also, it is against this background that this study aims to assess the extent of government support in creating an enabling environment for SMME development to achieve its ultimate goals.
- Full Text:
- Date Issued: 2012
- Authors: Nkonya, Nolubabalo Grace
- Date: 2012
- Subjects: Business enterprises -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa , Job creation -- South Africa -- Eastern Cape , Construction industry
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9150 , http://hdl.handle.net/10948/d1018927
- Description: The significance of SMME development as a route to creating jobs and enhancing skills development has been and is still on top of South Africa‟s developmental agenda. The escalating unemployment rate and skills shortage to meet with demands of globalization compels the government to develop strategies to respond to the crisis. It is eighteen years since South Africa became a democratic country but the job creation and skills development sectors remain in a crisis. Stagnant economic growth is as a result of high unemployment which is a factor of skills shortage in the black South African labour force. The government creates an enabling environment by developing flexible regulations for equal participation of historically disadvantaged individuals to participate the in mainstream economic activities. Public investment through infrastructure development is one of the labour intensive programmes to promote SMME development, job creation and skills development. It is against this background that this research aims to explore the effect of SMME development in creating jobs and its ability to serve as centres of skills development. Also, it is against this background that this study aims to assess the extent of government support in creating an enabling environment for SMME development to achieve its ultimate goals.
- Full Text:
- Date Issued: 2012
Adoption and sustained use of M-Commerce to improve efficacy of construction SMMEs
- Authors: Williams, Zenande
- Date: 2011
- Subjects: Construction industry , Mobile commerce , Small business , Computer-assisted instruction , Interactive videos
- Language: English
- Type: Thesis , Masters , MCom (Information Systems)
- Identifier: vital:11125 , http://hdl.handle.net/10353/528 , Construction industry , Mobile commerce , Small business , Computer-assisted instruction , Interactive videos
- Description: E-commerce has been said to bring value to businesses by improving business efficiency and effectiveness and thus providing business with a competitive advantage through the potential benefits that it offers (Cloete, Courtney & Fintz, 2002). However, despite the potential benefits that e-commerce can offer, the adoption of B2C e-commerce in South African construction SMMEs is low and this is due to the challenges associated with e-commerce (Vaithanathan, 2010; Uzoka, Shemi & Seleka, 2007; Love & Irani, 2004; Anumba & Ruikar, 2002). These e-commerce challenges include: high implementation costs, lack or poor infrastructure, inadequate resources, low use of e-commerce by suppliers and consumers, lack of access to e-commerce, computer illiteracy, deficiency in understanding the potential benefits of e-commerce and security concerns (Vaithanathan, 2010; Uzoka, Shemi, & Seleka, 2007; Mensah, Bahta, & Mhlanga, 2005; Cloete, Courtney, & Fintz, 2002). Therefore, due to these e-commerce challenges, construction SMMEs do not exploit the business advantages that e-commerce offers. In order to assist South African construction SMMEs in their efforts to improve their business effectiveness and efficiency through commercial technologies.
- Full Text:
- Date Issued: 2011
- Authors: Williams, Zenande
- Date: 2011
- Subjects: Construction industry , Mobile commerce , Small business , Computer-assisted instruction , Interactive videos
- Language: English
- Type: Thesis , Masters , MCom (Information Systems)
- Identifier: vital:11125 , http://hdl.handle.net/10353/528 , Construction industry , Mobile commerce , Small business , Computer-assisted instruction , Interactive videos
- Description: E-commerce has been said to bring value to businesses by improving business efficiency and effectiveness and thus providing business with a competitive advantage through the potential benefits that it offers (Cloete, Courtney & Fintz, 2002). However, despite the potential benefits that e-commerce can offer, the adoption of B2C e-commerce in South African construction SMMEs is low and this is due to the challenges associated with e-commerce (Vaithanathan, 2010; Uzoka, Shemi & Seleka, 2007; Love & Irani, 2004; Anumba & Ruikar, 2002). These e-commerce challenges include: high implementation costs, lack or poor infrastructure, inadequate resources, low use of e-commerce by suppliers and consumers, lack of access to e-commerce, computer illiteracy, deficiency in understanding the potential benefits of e-commerce and security concerns (Vaithanathan, 2010; Uzoka, Shemi, & Seleka, 2007; Mensah, Bahta, & Mhlanga, 2005; Cloete, Courtney, & Fintz, 2002). Therefore, due to these e-commerce challenges, construction SMMEs do not exploit the business advantages that e-commerce offers. In order to assist South African construction SMMEs in their efforts to improve their business effectiveness and efficiency through commercial technologies.
- Full Text:
- Date Issued: 2011
Constructability effects of green buildings
- Authors: Hurbissoon, Roneesh Mehta
- Date: 2011
- Subjects: Sustainable construction , Architecture and energy conservation , Construction industry
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9722 , http://hdl.handle.net/10948/1379 , Sustainable construction , Architecture and energy conservation , Construction industry
- Description: The Earth's health is deteriorating and will deteriorate even more rapidly unless people adopt eco-friendly policies. Green building has long been a concept but it has not yet been universally applied in practice. The concept of sustainability emerged in the 1970s and can be associated with the energy crisis and environmental pollution concerns. This research is aimed at investigating whether building “green” is more demanding than non-green buildings in terms of cost and the use of green materials against traditional materials; whether professionals in the construction industry are knowledgeable in terms of green buildings; and lastly, to determine whether green buildings are contributing significantly to the environment. The literature reviewed and results of quantitative research amongst professionals from the Island of Mauritius formed the basis of the study. The study revealed that green building is expensive relative to traditional buildings considering. However, the concepts employed (for example: lower energy use, less waste disposal, lower water usage, and sustainable design) provide green buildings with long term savings. Furthermore, the scarcity of natural materials makes it expensive. The study also showed that contractors and professionals have a preference for traditional materials over green materials thus making them more familiar with traditional materials. Contractors and professionals are believed to understand green materials only on a limited basis. This may be attributed to the specific environmental issues involved; however, the research revealed that the professionals are familiar with the basic concepts of green buildings. Lastly, the research showed that green building is still at its infancy but the benefits of green buildings are understood; resulting in green buildings having a good growth potential. The study should be valuable to construction industry professional and clients.
- Full Text:
- Date Issued: 2011
- Authors: Hurbissoon, Roneesh Mehta
- Date: 2011
- Subjects: Sustainable construction , Architecture and energy conservation , Construction industry
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9722 , http://hdl.handle.net/10948/1379 , Sustainable construction , Architecture and energy conservation , Construction industry
- Description: The Earth's health is deteriorating and will deteriorate even more rapidly unless people adopt eco-friendly policies. Green building has long been a concept but it has not yet been universally applied in practice. The concept of sustainability emerged in the 1970s and can be associated with the energy crisis and environmental pollution concerns. This research is aimed at investigating whether building “green” is more demanding than non-green buildings in terms of cost and the use of green materials against traditional materials; whether professionals in the construction industry are knowledgeable in terms of green buildings; and lastly, to determine whether green buildings are contributing significantly to the environment. The literature reviewed and results of quantitative research amongst professionals from the Island of Mauritius formed the basis of the study. The study revealed that green building is expensive relative to traditional buildings considering. However, the concepts employed (for example: lower energy use, less waste disposal, lower water usage, and sustainable design) provide green buildings with long term savings. Furthermore, the scarcity of natural materials makes it expensive. The study also showed that contractors and professionals have a preference for traditional materials over green materials thus making them more familiar with traditional materials. Contractors and professionals are believed to understand green materials only on a limited basis. This may be attributed to the specific environmental issues involved; however, the research revealed that the professionals are familiar with the basic concepts of green buildings. Lastly, the research showed that green building is still at its infancy but the benefits of green buildings are understood; resulting in green buildings having a good growth potential. The study should be valuable to construction industry professional and clients.
- Full Text:
- Date Issued: 2011
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