Construction industry under siege

Armed gangs are
increasingly invading construction sites across the country, harassing workers
and threatening violence unless their employment demands are met. Unless
contractors take a firm stand against these so-called business forums, also
known as the construction mafia, the scourge will only get worse.

The violence first
reared its ugly head in KwaZulu-Natal but soon spread to Gauteng, the Eastern
Cape, Mpumalanga and eventually other provinces.

Preferential Procurement Policy Framework Act

The attacks stem from the
promulgation in 2017 of new regulations to the Preferential Procurement Policy
Framework Act (PPPFA), which stipulate that 30% of all contract value on state
construction contracts must be allocated to certain designated groups,
including black South Africans, women and people with disabilities.

Even though the regulations specifically refer to government contracts, private
sector construction sites have also fallen prey to the violence.

The gangs demand either a 30% stake in the project or 30% of the total contract
value in cash as “protection” against further violent disruptions and work
stoppages. Recently, they have begun targeting shopping centres with demands to
be employed as tellers or refuse collectors.

PPPFA regulations misunderstood

Their actions amount to nothing
more than extortion and giving in to these thugs only serves to encourage the
abuse. The fact is the perpetrators of these site disruptions have
misunderstood the PPPFA regulations, which are geared to including designated
groups in state contracts on a national level and do not necessarily refer to
local communities.

The damage inflicted by these gangs often means that projects are delayed for
months, which causes costs to spiral. Additionally, construction insurance
policies do not always cover damage or loss in these circumstances.
Consequently, many businesses, including black-owned small and medium
enterprises, are facing financial ruin.

Law enforcement needs to be more proactive when it comes to the policing of
construction sites to ensure the safety of workers and infrastructure and
assist contractors in standing up to the gangs. The police cannot work in
isolation, however. Contractors have a responsibility to ensure that sites are
properly demarcated with access-controlled entry and exit points. Effective
safety and emergency measures, which include a communication plan, must be set
up and additional security can also be employed, if necessary.

Politicians creating unrealistic expectations

Furthermore, politicians should refrain from creating unrealistic expectations for employment on construction projects. While the involvement of local contractors is essential, egotistical attempts to win popularity points merely fuel the disruptive attacks when false hopes cannot be met.

There are also legal avenues to follow to mitigate the violence. Leading attorneys have won numerous court interdicts on behalf of construction companies against those inflicting the disruptions and claim significant success in radically minimising delays resulting from violence committed by business forum members.

Harassment, violence and extortion are not the means to achieve transformation in the construction industry. Such actions are criminal in every sense of the word and cause more harm than good.https://www.bizcommunity.com/Article/196/494/197987.html