CONSTRUCTION INDUSTRY
Construction sector's transformation deal awaits finishing touches
Great change is imminent in the sector; less certain is where this leads
A settlement agreement between the government and major construction firms to fast-track transformation in the industry is still being held up, despite sea changes in the sector. In late 2016, seven construction and engineering groups agreed "voluntarily" to pay R1.5bn over 12 years into a transformation trust administered by the government, the companies and the South African Forum of Civil Engineering Contractors. Murray & Roberts had said the settlement agreement was conditional on the South African National Roads Agency (Sanral) withdrawing legal claims against the construction companies, after which the agreement became binding. The parties to the settlement — Aveng, Murray & Roberts, Group Five, Wilson Bayly Holmes-Ovcon (WBHO), Stefanutti Stocks, Raubex and Basil Read — say the agreement settles their exposure to potential claims for damages from "identified public entities". These arose primarily from the fast-track settlement process launched by SA’s competition authorities...
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