Last modified: 2011-08-31
Abstract
South Africa's administration of construction procurement has changed drastically since 2000 when the Construction Industry Development Board (CIDB) was established. Contractor selection in the past was also based mainly on the lowest priced tender only which lead to project failure due to a contractor under pricing a tender as they did not have experience in that type of project. However the CIDB regulations ensure that a contractor only gets awarded tenders for which they qualify for according to their grading. Public sector clients only award tenders to contractors who are registered with the CIDB. The CIDB regulations evaluate a contractor according to their work and financial capability. However currently it has not been investigated if there is a relationship between CIDB regulations and project performance. The research results indicate that contractors who are not registered with the CIDB tend to perform projects over budget. This investigation also revealed that the years of experience of the respondent has more impact on project success than CIDB registration. This investigation indicates that the current requirement for CIDB registration is ineffective in ensuring a successful project therefore public sector clients need to reassess the necessity of having such a requirement and perhaps explore other requirements for the procurement of contractors.