My Experience with Business Forums – Part 2

My Experience with Business Forums – Part 2

The Hard Hat Professional has recently asked our community members to share their views on the hot topic of ‘business forums’ and their impact on construction projects around the country.

In this post, Mulalo F Ratshisuka, Project Control Manager at Redis Construction, shares his experience in dealing with business forums.

The Hard Hat Professional has recently asked our community members to share their views on the hot topic of ‘business forums’ and their impact on construction projects around the country.

In this post, Mulalo F Ratshisuka, Project Control Manager at Redis Construction, shares his experience in dealing with business forums.

 

Have you dealt with “Business Forums”? Share your experience.

In dealing with business forums particularly within South Africa, one can say that it has impacted the Construction industry both positively and negatively. It is, however, not possible to accurately determine the extent to which these forums affect the industry either positively or negatively. 

I have learnt that there will always be a gap when it comes to business forums, particularly on government procurement policies. The issue cannot be dealt with to the point of not having these negative impacts on the industry. Regarding how much the procurement policy has boosted SMMEs, there is still no visibility on whether the implementation is working accordingly. 

The tension between large Contractors and SMMEs will always exist in the form of competition where established contractors who are heading these projects do not want to fully support SMMEs lest they become their competitors in the near future and limit their profits.

Similarly, SMMEs will continue to believe that there is less compliance from large contractors and thus will be interrupting Construction Projects continuously. This tension cannot be easily dealt with without visibility on financial records. 

Furthermore, appointments conducted between contractors and business forums in the industry are always problematic in as far as agreements are concerned. With the resistance from contractors to fully engage and the lack of transparency on information therein, there will always be issues identified whereby the contractors and business forums will disagree on.

Do you have any solutions on how the construction industry can deal with this phenomenon?

In my view, there should be a much more transparent way of auditing the execution of projects in as far as the policies are concerned. It can be done to strengthen SMME’s chances of developing and not only those enterprises that are already big competitors in the market. 

There is a need to develop competitive strategies that are fair and favourable to all. In so doing, SMMEs can get a chance to breakthrough in the industry. It would limit the interruptions seen to be causing these issues wherein business forums have to get involved, which ultimately could result in delays and corruption within the industry. 

Also, ensure local beneficiation at all times and not necessarily going against the engagement of established contractors. However, ensure that the distributions as per the policies are implemented in a fair and justifiable manner that favours all who are involved. 

Is the industry doing enough to deal with this problem? Share your views on how the industry and government can deal with it.  

The government can provide nurturing and mentorship for small businesses to succeed and limit the chances of failure. There must be stricter policies in the bidding and selection process taking place. Also, strengthen the development of SMMEs in ensuring that the business forums are operating within the stipulated policies and governance.

Why do we see a trend around these business forums lately? Do you have any inside info to share?

Corruption is the number one factor that brings about these trends in my opinion; established businesses do not necessarily give fair chances to the upcoming SMMEs, and thus creating tension leading to the trends we have seen lately in the industry. 

Most bidding processes for construction projects are flawed, and most are affected by corruption, unfairness and selective bidding processes that are generally not favourable to SMMEs. It is what causes project delays and interruptions that we have witnessed in recent times.

 

 

 

 

 

 

 

Spread the love

Leave a Reply

  Subscribe  
Notify of