Architect and Builder April 2017 | Page 23

by Ian Massey MDA Consulting Director www.mdaconsulting.co.za “Industry more comfortable with conflict than collaboration” don’t trust the contractors to agree to a fair deal for the workforce? Such project labour agreements have had disastrous consequences, with contractor’s man- agement being undermined. A second development is the pro- posed CIDB Prompt Payment Act due to be passed into law shortly. Smaller contractors will benefit from the requirement that subcontractors must get paid timeously (paid-when-paid clauses will be banned) as well as the requirement for real-time resolution of disputes via adjudication. Local community involvement has caused disruption on a number of contracts and cost contractors millions of Rand to secure their site. Possible Game Changers Following the findings of collusion, a voluntary rebuild programme has been agreed between the country’s top seven construction groups and Government. In terms of the agreement, large chunks of the companies will be sold to black- owned entities. Alternatively, black-owned enterprises will be mentored to develop Polarisation their skills and increase their turnover ten-fold by 2024. While some industry commentators indicate that the programme addresses transformation at the same time as imposing punitive sanctions on collusive companies, the problem with achieving transformation by growing mentored black owned entities is that it requires that work be made available. You can only grow competition if there is work available. The alternative is that the mentor organisation must shrink to allow the mentored company to grow. In my view, ownership is not the issue. Listed companies already have relatively high BEE ratings. What it boils down to is opportunity and participation across the board, not ownership. A more inclusive arrangement relies on the availability of skills, education, training and experience, which is in short supply. communication, contractors have to be more careful who they do work for. As an industry, we also need to look at the implementation strategy that has been adopted, analyse the outcome of our contracts and decide whether the implementation strategy worked. An excessively adversarial model does not provide a workable platform for the achievement of successful contract outcomes. We need to move away from adversarial contract implementation strategies and adopt a collaborative approach, which requires a new culture. We need to transform our cultures to align with the other parties to the contract, for the overall good of the contract, rather than putting our own interests ahead of the other stakeholders. This requires strong leadership and the re- establishment of trust. Looking Forward – Dealing with Polarisation In a dysfunctional environment which mani- fests in a lack of trust and a breakdown in 23