Page 8 - KZN BUSINESS SENSE 4.3

DEALING WITH THE LAW AND LAWLESSNESS

Peter Barnard (Partner) & Marikah Calo government when putting projects empowerment of historically municipality’s assistance, these sites. Government is beginning
(Candidate Attorney), Cox Yeats Attorneys out to tender. disadvantaged groups. forums need engagement in the to realise that it will need to
right space and the right manner. take more pro-active steps to
The regulations and the Act still However, this is where
he construction industry in require government to award a lawlessness comes in, and where For now, contractors need ensure contractors safety, and
South Africa is a significant project to the most responsive service delivery and economic to rely on court interdicts and will hopefully be able to roll
Tcontributor to the country’s and lowest price bidder, in growth is hampered. police intervention to prevent out a national strategy in the
employment and economic growth. terms of the 80/20 or 90/10 violence and harm on their foreseeable future. n
Whilst government has given a It is clear from the above that
firm commitment to economic point system – depending on a careful and well thought out
development and transformation the value of the tender. Under plan needs to be created at the
the new regulations, the 80/20
in the private sector, never ending point system will apply to tenders time a bidder submits a bid for a CONSTRUCTION, ENGINEERING
unlawful activity perpetrated by between the value of R30 000 project. By the time a project is
third parties means that service and R50 million. The 90/10 point awarded, all of government’s goals AND INFRASTRUCTURE TEAM
delivery is harder to achieve than system applies to tenders above and requirements will have been
ever before. satisfied, and the proposed plan he Cox Yeats Construction, understand their objectives and
the value of R50 million. can then be set into motion. Engineering & Infra- to deal with their legal affairs
Two of the ways that government Tstructure Team has in the context of their overall
is driving economic transformation However, under the new Unfortunately, what is being extensive experience in all requirements.” The firm’s aim is
is through the revised Broad-Based regulations a host of ‘gate keeper’ experienced throughout KwaZulu- construction related areas of the therefore not simply to give the
Black Economic Empowerment provisions have been created, Natal, and now more and more
Construction Sector Codes and the which contractors must pass frequently throughout the country, law from contracts to bridge and best technical advice, but also to
revised Preferential Procurement through before points are even is that multiple “business forums” building collapses, representing contribute to the development of
Policy Framework Act Regulations. considered. If any of the provisions are insisting that their members individuals, SMEs and large local and international clients’
are not met, the contractor’s bid be involved in projects. Often corporates. strategy and policy. In giving
Construction Sector Codes will automatically be disregarded. with their mafia-style tactics, these The Construction, Engineering advice, Cox Yeats aims to provide
In December 2017, the Revised For example, government groups have successfully shut down & Infrastructure team applies practical and imaginative
Construction Sector Codes in may stipulate that all bidders major construction projects in the their expertise to provide solutions to clients’ problems,
terms of the B-BBEE Codes of have to have a specific B-BBEE attempt to salvage more work for specialist services including: and to present what can often be
Good Practice came into effect. level or may require that at least their constituents and take a bigger advice on different forms complex topics in a clear and non-
The net result of the revised 30% of the value of the project bite of the contract value. This of construction contracts, technical way.
Codes is that organisations have be subcontracted to certain can be frustrating for contractors guarantees and insurance; the Members of the team are listed
to ensure that the ownership, designated groups, such as black who have already jumped through preparation of claims; housing experts in their fields and are
preferential procurement and women or war veterans. For hurdles for government to win and development projects; public recognised for the contribution
supplier development elements contracts over R30 million, the the tender, but still face further procurement; dispute resolution; they make to the construction
of their businesses now meet government is mandated to adhere demands once mobilising on site. project finance; professional industry.
the designated ‘minimum to this requirement. Government finds itself in a appointments; and professional
thresholds’. In the event that precarious position. One the negligence. The Construction, Engineering
the minimum thresholds are In addition, the new regulations one hand, they have committed & Infrastructure Team consists of
not met, organisations will stipulate that if the bidder chooses themselves to economic The team has a particular focus Partners Richard Hoal (Head of
automatically drop one B-BBEE to subcontract more than 25% of upliftment and transformation, in representing professionals in the Team), Randhir Naicker, Peter
level. In order to remain the project work to a subcontractor but on the other, have to ensure the built environment and large Barnard, Kim Edwards; Associates
competitive in the public sphere, with a lower B-BBEE score than service delivery. As stated by construction companies in South Douglas de Jager, Jenna Cubitt,
organisations may well need to their own, that bidder will receive Durban’s City Manager, Sipho Africa and Africa, and have Chantal da Silva and Candidate
restructure their businesses in zero points for B-BBEE, effectively Nzuza, the ‘mafia’ business developed expertise in a variety of Attorney Marikah Calo. n
order to meet these thresholds. taking them out of the race for the forums are a sensitive issue, matters affecting the building and
project.
The Procurement Regulations A successful contractor wanting as the business forums raise construction industries generally. Should you require assistance or
issues that the municipality and
advice on Construction, Engineering &
In April 2017 new regulations to thrive off public sector work government need to address. Richard Hoal, Team Leader Infrastructure matters, please contact us on
under the Preferential Procurement in the modern era will need to be However, as Nzuza indicated, for Construction, Engineering T: 031 - 536 - 8500 or
Policy Framework Act were highly B-BBEE compliant, with the municipality cannot and Infrastructure says, “To give E: rhoal@coxyeats.co.za; mcalo@coxyeats.co.za;
enacted. These regulations must a particular focus on community entertain the forceful tactics of the best service to our clients pbarnard@coxyeats.co.za; jcubitt@coxyeats.co.za;
kedwards@coxyeats.co.za; ddejager@coxyeats.co.za;
be adhered to by all spheres of upliftment and economic the business forums – with the we believe that it is essential to cdasilva@coxyeats.co.za or rnaicker@coxyeats.co.za.

Richard Hoal Randhir Naiker Peter Barnard Kim Edwards Douglas de Jager
Team Leader, Partner Partner Partner Partner Associate

Jenna Cubitt Chantel da Silva Marikah Calo
Associate Associate Candidate Attorney

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