Lifeline for emerging contractors
Large and established construction businesses, municipalities and government have always thought twice about sub-contracting emerging construction businesses.
Says Carel van der Merwe, Executive Leader, Alexander Forbes Commercial Solutions, “Traditionally smaller contractors are risks. They don’t have the cash, contacts or back-up to deliver – especially when things go wrong.”
The horror stories of large contractors and especially municipalities failing to deliver because they sub-contracted to emerging players are legion.
“Minimizing the emerging contractors chances of failure, by removing the risk from the equation, is the only way to ensure that the larger municipalities and big contractors start sub-contracting to emerging contractors on a large enough scale to transform the construction sector in
Transformation aside, smaller players are critical to delivery in
The legislative carrot in the equation has been that larger players and municipalities stand to improve their BEE ratings by appointing black-owned sub-contractors. The thinking goes that while this stands to improve their bottom line and chances of winning (especially government) contracts it will also contribute to the transformation and expansion of the construction sector and, ultimately, create jobs. Says van der Merwe, “Finding a way to make appointing emerging contractors less risky is critical not only to transformation – but also for delivery and growth”. Having worked with large construction players and municipalities as well as the smaller emerging contractors for many years now Alexander Forbes Commercial Solutions is familiar with the risks that emerging contractors pose. Equally van der Merwe and his team are familiar with the weaknesses, needs and problems faced by emerging contractors. Being familiar with both sides of the equation has enabled Alexander Forbes Commercial Solutions to minimise the barriers to appointing emerging sub-contractors by covering their: Furthermore, a critical weakness with emerging contractors is compliance with the Compensation for Occupational Injuries and Diseases (COID) Act, especiallyregistering with COID and procuring letters of general standing. Training to meet the requirements of the Occupational Health and Safety Act pose additional challenges for emerging contractors. Says van der Merwe, “If basic training can be provided in these areas, including worker safety, basic first aid, fire fighting and specialised vehicle driving skills, many of the legislative, legal and safety barriers that prevent emerging contractors from succeeding go away.” More importantly cover of this nature provides larger contractors and municipalities with the confidence to hire emerging contractors. With traditional pitfalls removed the ability of emerging contractors to successfully manage and deliver sub-contracting projects is almost guaranteed. But perhaps most importantly, says van der Merwe, “Emerging contractors can rest assured that the legislative, legal liability and basic training barriers thatmake the big guys think twice about appointing themcan be avoided or taken care of.” ENDS The legislative carrot in the equation has been that larger players and municipalities stand to improve their BEE ratings by appointing black-owned sub-contractors. The thinking goes that while this stands to improve their bottom line and chances of winning (especially government) contracts it will also contribute to the transformation and expansion of the construction sector and, ultimately, create jobs. Says van der Merwe, “Finding a way to make appointing emerging contractors less risky is critical not only to transformation – but also for delivery and growth”. Having worked with large construction players and municipalities as well as the smaller emerging contractors for many years now Alexander Forbes Commercial Solutions is familiar with the risks that emerging contractors pose. Equally van der Merwe and his team are familiar with the weaknesses, needs and problems faced by emerging contractors. Being familiar with both sides of the equation has enabled Alexander Forbes Commercial Solutions to minimise the barriers to appointing emerging sub-contractors by covering their: Furthermore, a critical weakness with emerging contractors is compliance with the Compensation for Occupational Injuries and Diseases (COID) Act, especiallyregistering with COID and procuring letters of general standing. Training to meet the requirements of the Occupational Health and Safety Act pose additional challenges for emerging contractors. Says van der Merwe, “If basic training can be provided in these areas, including worker safety, basic first aid, fire fighting and specialised vehicle driving skills, many of the legislative, legal and safety barriers that prevent emerging contractors from succeeding go away.” More importantly cover of this nature provides larger contractors and municipalities with the confidence to hire emerging contractors. With traditional pitfalls removed the ability of emerging contractors to successfully manage and deliver sub-contracting projects is almost guaranteed. But perhaps most importantly, says van der Merwe, “Emerging contractors can rest assured that the legislative, legal liability and basic training barriers thatmake the big guys think twice about appointing themcan be avoided or taken care of.” ENDS
Transformation aside, smaller players are critical to delivery in
The legislative carrot in the equation has been that larger players and municipalities stand to improve their BEE ratings by appointing black-owned sub-contractors. The thinking goes that while this stands to improve their bottom line and chances of winning (especially government) contracts it will also contribute to the transformation and expansion of the construction sector and, ultimately, create jobs. Says van der Merwe, “Finding a way to make appointing emerging contractors less risky is critical not only to transformation – but also for delivery and growth”. Having worked with large construction players and municipalities as well as the smaller emerging contractors for many years now Alexander Forbes Commercial Solutions is familiar with the risks that emerging contractors pose. Equally van der Merwe and his team are familiar with the weaknesses, needs and problems faced by emerging contractors. Being familiar with both sides of the equation has enabled Alexander Forbes Commercial Solutions to minimise the barriers to appointing emerging sub-contractors by covering their: Furthermore, a critical weakness with emerging contractors is compliance with the Compensation for Occupational Injuries and Diseases (COID) Act, especiallyregistering with COID and procuring letters of general standing. Training to meet the requirements of the Occupational Health and Safety Act pose additional challenges for emerging contractors. Says van der Merwe, “If basic training can be provided in these areas, including worker safety, basic first aid, fire fighting and specialised vehicle driving skills, many of the legislative, legal and safety barriers that prevent emerging contractors from succeeding go away.” More importantly cover of this nature provides larger contractors and municipalities with the confidence to hire emerging contractors. With traditional pitfalls removed the ability of emerging contractors to successfully manage and deliver sub-contracting projects is almost guaranteed. But perhaps most importantly, says van der Merwe, “Emerging contractors can rest assured that the legislative, legal liability and basic training barriers thatmake the big guys think twice about appointing themcan be avoided or taken care of.” ENDS
The legislative carrot in the equation has been that larger players and municipalities stand to improve their BEE ratings by appointing black-owned sub-contractors. The thinking goes that while this stands to improve their bottom line and chances of winning (especially government) contracts it will also contribute to the transformation and expansion of the construction sector and, ultimately, create jobs.
Says van der Merwe, “Finding a way to make appointing emerging contractors less risky is critical not only to transformation – but also for delivery and growth”.
Having worked with large construction players and municipalities as well as the smaller emerging contractors for many years now Alexander Forbes Commercial Solutions is familiar with the risks that emerging contractors pose.
Equally van der Merwe and his team are familiar with the weaknesses, needs and problems faced by emerging contractors.
Being familiar with both sides of the equation has enabled Alexander Forbes Commercial Solutions to minimise the barriers to appointing emerging sub-contractors by covering their:
- Assets (e.g. building, plant, machinery vehicles etc.)
- Material losses and Third Party Liability
- The risk of non-performance
- Third party claims for death or injury and loss of or damage to property
- Disability or death of employees
Furthermore, a critical weakness with emerging contractors is compliance with the Compensation for Occupational Injuries and Diseases (COID) Act, especiallyregistering with COID and procuring letters of general standing. Training to meet the requirements of the Occupational Health and Safety Act pose additional challenges for emerging contractors.
Says van der Merwe, “If basic training can be provided in these areas, including worker safety, basic first aid, fire fighting and specialised vehicle driving skills, many of the legislative, legal and safety barriers that prevent emerging contractors from succeeding go away.”
More importantly cover of this nature provides larger contractors and municipalities with the confidence to hire emerging contractors. With traditional pitfalls removed the ability of emerging contractors to successfully manage and deliver sub-contracting projects is almost guaranteed.
But perhaps most importantly, says van der Merwe, “Emerging contractors can rest assured that the legislative, legal liability and basic training barriers thatmake the big guys think twice about appointing themcan be avoided or taken care of.”
ENDS
