Build thugs just want to work

SOLUTION: INVOLVE THEM, SAYS CONSTRUCTION BOSS

Violence on sites is the result of frustrated small business owners who have been excluded.

Achievable because big contractors normally hire low-skilled labour as needed. Moneyweb

Violent action on construction sites is the result of frustration among small business owners who have been excluded for too long. This is the view of Tollo Nkosi, chief executive of Umso Construction, whose grading by the Construction Industry Development Board (CIDB) qualifies it for public-sector civil engineering tenders and general building tenders without limit on the value.

Nkosi contacted Moneyweb in response to an article in which the South African National Roads Agency (Sanral) disclosed its road-building operations had come to a virtual standstill due to so-called business forums demanding control over 30% of the contract value without following a formal process. These groups are collectively referred to as the “construction Mafia”.

According to Nkosi, Umso Construction had R800 to R900 million worth of active projects at any given time. Many of its road projects were done in joint ventures, or as a subcontractor to Sanral’s principal contractors.

He said business forums were part of the community, but were often ignored. Members of these forums were typically “bakkie builders”, who hope to benefit from these projects.

“This is achievable. No big contractor carries staff to do bricklaying and other low-skilled labour. You hire them as you need them.”

Umso achieved 40% local subcontracting while working on the Rustenburg Bus Rapid Transit system. “There were enough small companies and they were capable,” said Nkosi.

He added the CIDB had encouraged smaller operators to register as contractors, which had raised expectations. However, the organisation had failed to incorporate a development aspect and only played a regulatory role.

Nkosi said working with business forums could be challenging, but if one understood where they were coming from, it was easier to achieve.

The members of the business forums are “quite genuine. They just want to work”.