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New PPPFA boosts transformation in construction sector

Public Works Minister Nathi Nhleko

Public Works Minister Nkosinathi Nhleko says set-asides have boosted transformation within the construction and property sectors.

According to the minister, women, youth and people with disabilities are already benefitting from a mandatory 30% sub-contracting subjected to all tenders above R30 million, with over R94.2 million already awarded in the current financial year

“This is in line with the new Preferential Procurement Policy Framework Act (PPPFA) on Set-Asides that we are implementing to promote socio-economic transformation, small enterprises, cooperatives, rural and township enterprises as well as local industrial development,” declared Nhleko at the media briefing on his five pillar policy and transformation of construction and property sectors in Pretoria.

Nhleko emphasised that in order to mitigate risks of underperformance, sub-contractors are required to possess relevant accreditation where applicable, be registered with relevant bodies.

“They must possess capabilities to deliver the sub-contracted work, meet the requirements in terms of the stipulated designated groups and be geographically located at the place where the project will be delivered,” he stressed.

A Property Empowerment Policy has also been developed to address the skewed patterns of ownership and break the inequitable access to property opportunities, actively direct the advancement majority black-owned, managed and controlled entities and create an enabling environment and support for black-owned property enterprises, he said.

The policy follows the Property Sector Charter launched in partnership with the Property Sector Council in June 2017 to deepen meaningful participation of the previously disadvantaged in the main stream of the South African economy while at the same time contributing to an equitable society.

“It will also contribute towards government achieving its strategic goals of Black Economic Empowerment and alignment of transformation initiatives towards the realisation of the property sector codes,” said Nhleko.

The minster is putting in place a Transformation Coordinating Committee composed of industry players as well as government representatives to develop a policy document to address developmental challenges of the construction industry.

 

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