The Construction Industry provides the physical infrastructure which is fundamental to the economic development of South Africa. The industry operates in a complex, highly specialised, project-specific environment which leaves it open to risk. The construction industry is therefore strictly regulated to improve efficiency and effectiveness, enhance quality, productivity, health, safety, environmental outcomes and value for money to South African society. The industry is governed by The Construction Development Board Act of 2000 (CIDB Act) which provided for the establishment of the Construction Industry Development Board and implemented an integrated strategy for the reconstruction, growth and development of the construction industry and to provide for matters connected therewith.

There are many stakeholders involved in construction. Its project-based nature necessitates combining different investors, clients, contractual arrangements and consulting professions; combining different site conditions, design, materials and technologies; combining different contractors. specialist subcontractors and the workforce assembled for each project. This presents a complex business environment that necessitates leadership and the promotion of best practices. However, these practices are promulgated by numerous pieces of construction legislation including, but not limited to:

  • Adjustments to Tender Value Ranges in terms of the CIDB Regulations 2004 (as amended)
  • Auditor-General Act of 1995 (Act No. 12 of 1995)
  • The Broad-Based Black Economic Empowerment Act of 2003 (Act No. 53 of 2003)
  • The Competition Act of 1998 (Act No. 89 of 1998)
  • The Preferential Procurement Policy Framework Act of 2000 (Act No. 5 of 2000)
  • The Municipal Finance Management Act (MFMA) of 2003
  • The Prevention and Combating of Corrupt Activities Act of 2004 (Act No. 12 of 2004)

Contact Greyvensteins Attorneys to help you stay compliant with all regulations that affect public procurement and your participation in the supply chain.