The Most Important Laws in the South African Construction Industry
Law in the construction sector serves as one of the most essential variables in the industry. Every day it is implemented to adhere to both national and international industry standards, and most importantly, to protect construction professionals against any harm that may be caused to them on the construction site, not to mention possible disputes contractors may face upon making a mistake with a contract/ project.
The South African Forum of Civil Engineering (SAFCEC), provides all of the laws and regulations currently implemented in the construction industry. Hard copies are also available for purchase on the site.
The following laws are crucial to protect the entire construction industry, its businesses and employees.
5 Construction Laws You Need to Know About in South Africa
1. The Broad-Based Black Economic Empowerment Act of 2003
The Broad-Based Black Economic Empowerment Act of 2003 (Act No. 53 of 2003), also known as the BBBEEE Act, requires the public and state entities to take into account and apply any and all relevant code of proper practices issued according to the terms of the BBBEEE Act, which is to be done by developing and implementing a preferential procurement policy.
2. Auditor-General Act of 1995
The Auditor-General Act of 1995 (Act No. 12 of 1995), also known as the AG Act, requires the Auditor General to satisfy themselves that satisfactory management rules are implemented to ensure resources are economically procured and utilized effectively and efficiently.
3. The Construction Industry Development Board Act of 2000
The Construction Industry Development Board act of 2000 (CIDB ACT), suggests that the construction industry is a broad conglomeration of sectors and industries combined, which works together to add value to the creational aspects and maintenance of fixed assets in a building environment. The Act suggests that the industry not only includes engineering and construction contracts but also includes supply contracts related to the purchase of equipment and materials, professional services, demolitions and the disposal of surplus materials.
4. The Competition Act of 1998
The Competition Act of 1998 (Act No. 89 of 1998), also known as the Competition Act, refers to the establishment of a Competition Commission, which is responsible for the investigation, evaluation, and control of restrictive practices, the abuse of dominant positions, as well as mergers.
5. The Prevention and Combating of Corrupt Activities
The Prevention of Combating of Corrupt Activities Act of 2004 (Act No. 12 of 2004), also refers to the Prevention of Construction Act, which is implemented to make corruption and other related activities serve as an offense, to establish a Register of Tender Defaulters to restrict individuals and enterprises that have previously been convicted of corrupt activities in the country/ related to contracts and tenders, as well as to place duties on certain individuals holding an authoritative position, to report corrupt transactions.