The latest round of member meetings took place across KZN province and hot topics presented included ‘Role of Social Facilitator in Construction’ and ‘Addressing concerns with Financial Institutions’.
At these meetings, members were informed that the Association had recently met with the Banking Association and that the following points had been noted:
- Construction loans is the division that constitutes the highest risk for banks.
- Construction loans of under R3 million are the most problematic.
- Banks need to be a party to the building agreement as all parties are intrinsically linked during the building phase.
- With regard to amended or new contracts, the banks need to give input in order to allow them to incorporate clauses that would protect them and the builder from the actions of the client.
One of the outcomes achieved was that the banks realised the implications of demanding the builder sign a “Waiver of Builders Lien” without a Payment Guarantee being in place.
In the Midlands, the Association met with a local loss adjuster to discuss the role of the Association in the KZN construction industry. Loss adjusters are appointed by insurance companies to investigate complex claims and are thus pivotal in the process of contractor sourcing. The meeting centered around why insurance companies should look no further than the Association for sourcing reputable contractors.
News out of Zululand that bodes well for the local economy and industry in that area, is that the next stage in the development of Richards Bay Minerals (RBM) has been approved. Rio Tinto (74% stakeholder) announced that it had approved the $463 million investment that will see the construction of the RBM Zulti South project commence in mid-2019, subject to the granting of all necessary permits.
As part of its Provincial Growth Development Plan, the KZN provincial government led by the KZN Treasury undertook to establish four strategically placed Techno hubs across the province.
In the South Coast, the Association attended the official opening of the Shelly Beach Techno Hub which promises to boost economic development on the KZN South Coast by offering a range of incentives, rebates and assistance for investors. The initiative is expected to attract high-tech entrepreneurs, researchers, property developers, business owners and academia to the area.
Members of the Association in the South Coast had indicated a need for consultations with Ray Nkonyeni Municipality, specifically with respect to the processing of building plans and SPLUMA applications. In April 2019, the Association initiated a meeting of built environment consultants from that area with a view to allowing concerned parties to air possible constraints within these processes. The meeting proved fruitful and the Association is to engage with the relevant officials of Ray Nkonyeni Municipality to address concerns that were raised.




