Efficient, accountable and profitable construction is possible

The construction industry in South Africa does not have a sterling reputation. Whether it is shoddy workmanship, not working according to accepted standards, poorly trained employees, poor health and safety precautions or overcharging, there is no shortage of complaints within the industry.

David Dworcan, MD of The Sandpit (Pty) Ltd believes that the whole industry is not rotten to the core as some may perceive, but suffers from bad behaviour amongst certain fraternities. “It is, in my view, a small section of companies that deny the rest of the reliable, honest and conscientious builders and developers a good name.”

He also notes that the industry itself can not take all the blame for its perceived unprofessionalism.

“On the other side of the coin is the lack of professionalism and structure from government,” says Dworcan. “I have seen, on many occasions that government ensures that entrepreneurship is stimulated through the tender process it has instituted over the past few years, from RDP housing through to road infrastructure.”

David adds that, “To give credit where due, employment is created through these processes, but the structures and processes are onerous when it comes to payment for work done. This results in many entrepreneurs failing soon after starting due to a lack of funding from government, and in some instances, no funding at all.”

This situation sees employment opportunities drying up almost as soon as they start. Moreover, the structures created have a knock on effect for those that manage to survive as they can only continue by taking many shortcuts in the building processes, and then both quality and pride take a knock.

“The result is structures that need to be broken down, costing the taxpayers as much as R1 billion,” Dworcan adds. “I personally feel these failures occur due to the fact that jobs are not monitored correctly and therefore processes only reach 50% and then laziness sets in.”

“A similar thing happens in the private sector where builders pitch for tender on jobs and have to cut prices to the bone in order to get the work, only to find out three-quarters of the way through that they have run through their profit and have still not finished the project. They then abscond and leave the client with an unfinished product and little recourse.”

Potential solutions

There are various boards at work at the moment, presiding over the quality of work undertaken in the industry. These are mere guidelines, however, and have no power to enforce certain standards or take action to support or reprimand poor performers.

Dworcan feels these organisations are unproductive and ineffective. In addition, the skills of board members are generally low, while business processes are virtually nonexistent.

There is no silver bullet for solving the problems the construction industry faces, but Dworcan believes there is a starting point to changing the industry for the better.

“Training, training and training! I think that companies have forgotten what it means to train and invest in their staff,” he states. “Too often companies complain that the skills development fund does not pay out or simply pays out too slowly.”

David states that “What we have all forgotten is that we have a responsibility toward our own staff which does not include blaming others for not getting the job done. Construction training is universal and we can all contribute to improving the results of our business operations by investing in good training.”

He adds that effective training will result in improved efficiencies and productivity across the board. More importantly, training must also include health and safety education, which will result in an improvement in the safety record of the industry.

Changing the industry

Dworcan believes clients can also play a role in changing the industry by only working with companies that meet certain criteria and are registered with local associations. Before signing a contract, he suggests customers ask the following questions:

·         What credentials do you have?

·         Are you a member of any construction association? Phone the association and verify membership.

·         What are the requirements and mission statement of this association?

·         Can I have references from your last three clients including telephone numbers?

·         Are you willing to allow me to meet with these clients without you being there?

·         Are you willing to sign a contract with penalty and bonus clauses?

The answers to these questions can be more revealing than an in-depth background check. They can also save the customer time, hassles and money in the end.

Changing the construction industry into a business sector that operates according to efficient processes and procedures and delivers results that meet or exceed standards is possible. It takes commitment from the majority of the industries players who already operate along ethical principles, as well as cooperation in establishing meaningful associations that have the authority to enforce rules and regulations.

“There will always be cowboys looking to take someone for a ride,” says Dworcan, “but with the right associations, resources and business practices in place they do not have to create a poor image for an entire industry.”

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