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IOL News
2 days ago
- Business
- IOL News
Navigating material shortages and price hikes: challenges for South Africa's construction industry
The site of the Mooikloof Mega-City residential development, which was launched east of Pretoria in 2020. Image: Jacques Naude / Independent Newspapers The construction and built environment buyers in South Africa are facing material shortages, steep price increases, and longer lead times for essentials such as steel, aluminium, solar panels, and electrical components. This was as the sweeping US tariffs are being felt across the globe, even affecting the construction industry at the southern tip of Africa. 'Although these are taxes on imports into the US, they have a ripple effect on local building costs as Chinese and other suppliers redirect their materials to markets without tariffs and disrupt our supply chains,' said Nolubabalo Tsolo, the executive director of the Association of South African Quantity Surveyors (ASAQS). She explained that contractors are struggling to manage the rising costs and add risk premiums to tenders. This means that projects from roads and bridges to schools and affordable housing risk exceeding their budgets. In addition, currency fluctuations are making dollar-priced imports even more expensive. All this puts strain on both public and private projects, with affordability and delivery timelines being reassessed. According to the organisation that represents members who have interests in the construction industry and built environment, amidst this uncertainty, quantity surveyors (QS) were playing a crucial role in stabilising the construction sector and keeping costs under control. 'We're the only profession specialising in the finances of the construction industry, also referred to as 'building accountants' (Bou-rekenaare) in Afrikaans.' The QS's initial estimate of the project cost-including labour, material, time, and profit-is based on information from the architects, engineers and other industry specialists. Tsolo said they look at the current market prices in construction, combined with historical data, as well as statistical forecasts and construction and material price indices. Ideally, the estimate also includes reserves for contingencies and escalations to cover unforeseen risks and costs during the project. However, ASAQS said National Treasury currently does not accept contingencies (typically 5% to 10% of project value) in the public sector, and QS have to formally request additional funds for unexpected costs. It's meant to boost accountability, Tsolo says, adding that this spelt onerous bureaucracy, which delayed construction and drove costs even higher. The ASAQS suggested responses to the tariff-related challenges in SA's construction sector that included embracing dynamic pricing strategies. Together with other industry bodies, the ASAQS said it is engaging with government departments for more flexible public sector procurement frameworks to address price volatility. But this requires regulatory clarity. 'The Standard for Infrastructure Procurement and Delivery Management stated that no escalations and contingencies should be included in the contract price (clause 14.5.9). 'However, when this regulation was replaced in 2019 with the Framework for Infrastructure Delivery and Procurement Management, it didn't mention the escalations and contingencies,' Tsolo said She said the sector must also focus on strengthening local supply chains. The government has been encouraging local manufacturing, but it should use the US tariffs to actively help local producers of construction materials, for example, through tax breaks and other incentives. This would reduce reliance on imports, she said. The executive director also suggested the training of QS on integrating global economic indicators into cost planning. ASAQS members were said to be already benefitting from evolving continuous professional improvement programmes and webinars that also tackle macroeconomic topics. Other industry bodies and partners could add value to this, she added. 'By building resilience, we intend to lessen global economic shocks on the local construction sector,' Tsolo said. 'Quantity surveyors are central to this, ensuring that construction projects remain feasible, efficient, and financially sound, even in uncertain times.' Last month, the National Home Builders Registration Council(NHBRC) told this publication that whilst high interest rates inevitably impact the affordability, or lack thereof, and increase in home construction costs, as the NHBRC, they recognised economic and environmental realities and, accordingly, encourage alternatives such as the usage of Alternative Building Technology (ABT) and Innovative Building Technologies (IBT). The NHBRC said it is actively encouraging the usage and uptake of ABT and IBT, which are unconventional building methods or materials which are not covered by the National Building Regulations and Building Standards. These are assessed for fitness for purpose by Agreement SA, a certification body and custodian of IBTs in the country. Some of the notable advantages of ABT and IBT included reduced construction time, reduced life cycle cost, environmental impact, as well as innovative architectural options. Independent Media Property
IOL News
3 days ago
- Politics
- IOL News
Gauteng High Court's mediation directive faces legal action from accident victim
A car accident victim is challenging a directive by the Gauteng high court which makes mediation mandatory before civil trials are heard. She demands her day in court and says she cannot afford mediation. Image: Jacques Naude / Independent Newspapers WHILE the Constitutional Court has declined leave to a law firm to directly approach the apex court in an urgent bid to overturn a directive introducing mandatory mediation in the Gauteng Division of the High Court, a vehicle accident victim who is also objecting to the directives will take her plight to court. The Durban-based woman, who is left a paraplegic following the accident, will turn to the Gauteng High Court, Pretoria later in June to ultimately have the directives issued by the head of the court overturned. She said her accident occurred six years ago and she eventually obtained a court date issued in 2023 for her hearing. Her matter is scheduled to be heard in August this year, but her case is now first subject to arbitration in terms of the directive. This follows a directive issued by Judge President Dunstan Mlambo earlier this year that the Johannesburg and Pretoria high courts no longer allocate trial dates for civil cases (cases where evidence is being led, such as damages claims). Litigants, who in these cases want a judge to determine their issues, must first prove that they have tried to resolve their issues via mediation. A trial date will be allocated only if mediation does not resolve the issues, and they can prove via a certificate that they did try it. The Office of the Chief Justice earlier explained that there are no alternatives as the Gauteng Divisions simply cannot cope with the heavy workload. Judge Mlambo also commented in his directive that the bulk of these cases are, in any event, settled on the day of the trial. Thus, the mediation route is the practical solution so that judges can be freed to adjudicate over other matters. The woman will meanwhile bring her application in two parts - the first is that she and others may retain the court dates they have secured before the new directive came into force in April. The second part in which she is contesting the legality of the directive, will be heard at a later stage. The accident victim in this new legal challenge explained that it is expected of her (and others) to first pay the mediation fees before a mediator can adjudicate her case. She explained that before the accident she was a hairdresser. As she is now wheelchair-bound, her only income is a social grant. She is also HIV-positive and struggles with health issues. She said in an affidavit that this application is to ensure that she has her day in court. The applicant stated that the directive differentiates between plaintiff litigants and the RAF regarding the amount payable for mediation and when it's payable. The RAF, she claims, is only liable for R15,000 per mediation, which only becomes payable 30 days after the receipt of the mediation report. A plaintiff, on the other hand, must pay the balance of the mediation fee upfront. 'If a plaintiff litigant does not pay, no mediation can be conducted and no trial date can be obtained,' she stated. According to the plaintiff, she cannot pay for mediation and this will result in her being denied justice. She also questioned the constitutional validity of the directive. Gert Nel Inc Attorneys, through its director Gert Nel, in his now failed bid to the ConCourt, questioned whether this move for mandatory mediation is constitutionally sound. In an affidavit accompanying his urgent application, Nel said there are constitutional limits on judicial power.
IOL News
28-05-2025
- Business
- IOL News
Gauteng High Court rules against controversial CaseLines tender
The Gauteng High Court, Pretoria, overturned the controversial tender of the Office of the Chief Justice relating to its online case filing system. Image: Jacques Naude / Independent Newspapers The Gauteng High Court, Pretoria, has overturned the tender awarded by the Office of the Chief Justice regarding the procurement of the online CaseLines project, following the subcontract which was earlier awarded to three senior OCJ officials who had, meanwhile, resigned. The matter involved the award of a departmental tender to a company, Thomson Reuters (Professional) UK Ltd (TR), which had subcontracted to a local company whose shareholders were the three senior OCJ officials. The OCJ lodged the self-review application after it emerged that some OCJ officials who were involved in various stages of the procurement process that led to the appointment of TR as the preferred supplier of CaseLines, stood to benefit from the contract as subcontractors to TR. Meanwhile, the court this week declared the tender to be inconsistent with the Constitution, unlawful, and invalid. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The interim contract between the OCJ and TR, made by an order of court in August 2023, remains effective, pending the conclusion and coming into effect of a new contract for the provision of CaseLines between OCJ and TR. The OCJ's procurement of the CaseLines software, licences, resources, support, and maintenance from TR for the implementation of the Court Online solution was, meanwhile, declared to be a sole-source service provision. In a statement issued by the OCJ, it welcomed the ruling and said the order vindicated the justice office's longstanding opposition to the impugned contract and reaffirmed the organisation's zero tolerance of fraud and corruption. 'The department looks forward to putting in place a lawful and valid contract for CaseLines in fulfilment of its mandate to provide support to the judicial system by rendering effective and efficient court administration services,' the OCJ said. The court online system, where all matters before the court are filed electronically, is currently in use in Gauteng, and it is due to be rolled out to other provinces. A procurement process was initiated in 2021 for the evidence management part of the court online system. Following a sole-source procurement process, the OCJ awarded a contract to Thomson Reuters to provide software, licences, resources, support, and maintenance for 60 months, commencing in April 2022. The OCJ later noted that the three directors involved in the tender were its employees. By then, the three directors had already submitted their resignation letters to the OCJ and were serving their notice period. Their subcontract between their company, ZA Square Consulting, and TR has, meanwhile, been cancelled. The three former employees are Nicolaas Coetzer, Nkosikhona Mncube, and Yvonne van Niekerk.
IOL News
25-05-2025
- Business
- IOL News
Gauteng High Court to review OCJ tender amid procurement irregularities
The Gauteng High Court, Pretoria will this week hear an application by the Office of the Chief Justice for a self review regarding a tender issued for its online court system. Image: Jacques Naude / Independent Newspapers While the Office of the Chief Justice (OCJ) will on Tuesday turn to the Gauteng High Court, Pretoria for the self-review of a tender awarded by its office relating to procurement irregularities in the CaseLine project, three senior OCJ officials who had meanwhile resigned asked to intervene in the application. The matter involved the award of a departmental tender to a company - Thomson Reuters (Professional) UK Ltd (TR) - which had subcontracted to a local company whose shareholders were the three senior OCJ officials. The court online system - where all matters before court are filed electronically - is currently in use in Gauteng and it is due to be rolled out to other provinces. A procurement process was initiated during 2021 for the evidence management part of the court online system. Following a sole source procurement process, the OCJ awarded a contract to Thomson Reuters to provide software, licences, resources, and support and maintenance for a period of 60 months, commencing in April 2022. The OCJ later noted that the three directors involved in the tender were its employees. By then, the three directors had already served their resignation letters to the OCJ and were serving their notice period. Their subcontract between their company ZA Square Consulting and TR has meanwhile been cancelled. The OCJ initiated an application for self-review of the tender awarded to TR. The OCJ, through its then Secretary General, also filed an affidavit in which certain allegations and concerns about the role of the now three former employees - Nicolaas Coetzer, Nkosikhona Mncube, and Yvonne van Niekerk - were raised. The three now asked to be joined in this week's application. They do not oppose the setting aside of the main tender, but they say there are allegations being made in the OCJ's court papers regarding them stemming from the time when they still worked for this office. They maintained that these allegations are defamatory of them and done purely to bring them into disrepute and to harm their future commercial prospects. Thus, they argued, they should be part of the main application so that they could defend themselves. Judge Anthony Millar, however, said to his mind, the main review proceedings will be decided based on the record of the proceedings which are under review. 'Their position is no different from any past employee of any institution whose conduct while employed is to be considered. The right to dignity is not in issue. Either the grounds of review premised on the conduct of the applicants have merit or they do not. The application to intervene lacks any merit and must be refused.' But this is not the end of the matter, the judge said, as Coetzer in his affidavit called into question the honesty and integrity of the Secretary General of the OCJ, who had deposed to the affidavits on its behalf in the review proceedings. The OCJ called these allegations 'scandalous and vexatious,' and Judge Millar chose not to repeat the allegations in his judgment.
IOL News
25-05-2025
- Business
- IOL News
South Africa urges G20 to address illicit financial flows costing Africa over R1. 58 trillion annually
South Africa has urged the world's largest economies to take more decisive action against illicit financial flows Image: Jacques Naude / Independent Newspapers South Africa urged the world's largest economies to take more decisive action against illicit financial flows depriving African countries of essential resources needed for their development. During her opening address at the G20 Development Working Group meeting in KwaZulu-Natal on Sunday, Maropene Ramokgopa, the Minister in the Presidency for Planning, Monitoring, and Evaluation, emphasised that the continent around $88.6 billion (over R1.58 trillion) each year due to illegal financial activities. South Africa has urged the world's largest economies to take more decisive action against illicit financial flows Image: GCIS Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ "The issue of Illicit Financial Flows remains a critical challenge for many countries, especially on the African Continent. According to the African Union Economic Commission for Africa's High-Level Panel on the Illicit Financial Flows, led by former President of South Africa, His Excellency, President Thabo Mbeki, the African Continent loses an estimated $88.6 billion annually due to the Illicit Financial Flows," she said. "Evidence from sources such as Transparency International and Corruption Watch find that many cases of Illicit Financial Flows coming out of Africa end up in wealthy nations, far from where the corruption originated from." South Africa has also voiced strong support for the continued work of the Financial Action Task Force Image: GCIS
