Construction Industry Development Board investigates KZN Transport department's contractor failure claims

The Construction Industry Development Board (CIDB) has initiated a probe into the allegations of a possible link between project failures within the KwaZulu-Natal Department of Transport and the grading of contractors appointed to execute these infrastructure projects.

The organisation said in a statement that it has noted concerns reportedly raised regarding contractors who, despite holding higher CIDB gradings, have failed to deliver on projects within the expected timelines and quality standards.

The KwaZulu-Natal Department of Transport recently complained that companies graded very highly by the CIDB were not meeting project deadlines.

It noted that among the challenges is that some companies were “buying” certificates with higher grades that made it seem like they had the capacity to handle work when, in reality, they did not.

“These allegations are serious, as they strike at the core of the CIDB's mandate to ensure a credible, transparent and efficient construction industry. We take these allegations very seriously. Our grading system exists to ensure that contractors possess the capability to execute the projects they are awarded. Any suggestion that this system may be compromised, misused or misunderstood warrants immediate attention,” said Dladla.

It said the probe will focus on understanding the nature of the allegations, evaluating the grading processes applied to the contractors in question, and assessing whether any irregularities or gaps in compliance may have contributed to project underperformance.

The CIDB said it will also seek further engagement with the KwaZulu-Natal Department of Transport to obtain detailed information on the affected projects and the contractors involved. This collaborative approach will enable both parties to establish the facts and ensure that corrective actions are taken where necessary.

“We will remain committed to safeguarding the integrity of our grading system and ensuring that public infrastructure projects are delivered by capable and compliant contractors. Where wrongdoing or misrepresentation is identified, the CIDB will not hesitate to take decisive action,” Dladla added. 

In a statement, the CIDB and Department of Public Works and Infrastructure said that a summit held this month brought into sharp focus the deficiencies in performance that stand between the substantial investment the government continues to make annually in infrastructure and our ability to deliver schools, hospitals, roads, railways, bridges, and other assets meant to facilitate service delivery, improve lives, grow the economy, and enhance the attractiveness of the country to private investors.

“But improving efficiency is not the role of just one stakeholder. Contractors, consultants, labour, and clients all have a crucial role to play. Clients, more so, as the owners and initiators of infrastructure development, are the people who source the services of others to build the nation’s dreams.”

“The CIDB, along with other regulators, plays a crucial role in establishing the regulatory systems and framework for governance in the sourcing of contractor services to ensure performance and accountability. Through the Register of Contractors, the CIDB implements and manages a grading system that ranks contractors according to their capability to carry out construction projects based on their work experience and financial resources.

The CIDB stated that individual classes of construction work, such as general building and civil engineering, encompass a wide variety of specialisations and expertise, requiring the client to conduct a thorough analysis of the experience and expertise required by the individual project when deciding on a contractor. 

It said clients must register project cancellations, terminations, or abandoned projects for both the CIDB and other clients to know who the poor-performing contractors are. This is an empowering tool that all clients must comply with and use to provide the CIDB with essential data to act against poor-performing contractors, thus protecting the wider industry from serial failures.

“A common cause of project failure is contractors biting off more than they can chew by accepting projects well beyond their capacity to deliver. This is where the CIDB Register of Projects provides real insight to the client regarding the contractor’s existing commitments, serving as an early warning system to heighten due diligence and avert potential project failure.

“The CIDB is committed to providing clients with a reliable contractor grading system that has integrity and promotes high standards of performance in the construction sector.

The CIDB remains vigilant in the fight against fraud and corruption, and its zero-tolerance approach is at the centre of the recent deregistration of 40 contractors who attempted to acquire grades through ill-gotten means. These 40 contractors were further blacklisted by the Department of Public Works, barring them from doing business with the state,” it said. 

THE MERCURY