The South African National Roads Agency SOC Limited (SANRAL) wants to see emerging contractors elevated to higher Construction Industry Development Board (CIDB) gradings and participating in contracts of high value.
SANRAL made the commitment at a workshop it convened for small, medium and micro enterprises (SMMEs) of the Buffalo City Metropolitan Municipality at the Steve Biko Centre, Ginsberg, in Qonce recently where it reaffirmed its dedication to fostering transformation and inclusivity in road infrastructure development.
Welekazi Ndika, SANRAL’s Regional Stakeholder Relations Coordinator, said “SANRAL is going to be working in the Metro for the next five years, with an investment estimated at close to R3 billion,” adding that the roads agency had established sound working relations with local business formations over the years.
“We called CIDB and SARS today to educate emerging contractors on how to navigate the sector to enable progress in your CIDB grading. SANRAL’s transformation agenda is intended to ensure your participation as emerging contractors in all its road infrastructure development projects. We are invested in your growth as targeted enterprises and designated groups,” she added.
During the workshop, SANRAL announced several of its programmes intended for targeted enterprises (SMMEs). Thandile Makwabe, SANRAL’s Regional Transformation Officer, said that SANRAL was in the process of drafting its preferential procurement policy which will further facilitate transformation and ensure opportunities for more emerging enterprises.
He mentioned that SANRAL would soon be launching its Contractor Development Programme, working together with the CIDB and is aimed at SMMEs with a CIDB grading of 5CE to 7CE, to ensure growth and address the stagnation within this bracket.
Makwabe further stated that SANRAL’s ongoing Black Industrialists Scheme, is intended to create opportunities for black material and yellow plant suppliers, in the main. Furthermore, SANRAL will be entering into a Memorandum of Understanding (MOU) with the Department of Military Veterans to ensure that its opportunities earmarked for this designated group are maximally leveraged.
The SMMEs welcomed the announcement that SANRAL would now be taking over the mentoring and training of targeted enterprises, which was previously done by the main contractors.
“SANRAL is a learning organisation and values your input in order to improve and implement change in our road infrastructure service delivery and transformation efforts,” said Makwabe.
The South African Revenue Service outlined its tax requirements and some of the benefits intended for SMMEs.
“SARS has changed its systems to keep up with the times. We have initiated a convenient e-filing system for a centralised approach that does not require physical contact with our offices. However, you need to be registered for e-filing to enjoy the benefits of this system,” said Boitumelo Ngcozela from SARS, further emphasising the importance of annual tax returns and issues of compliance.
The CIDB explained how its grading system works and what the requirements are for elevating to higher CIDB grades. It touched on its grading criteria which includes measurement of financial capacity and works capacity. It stressed the importance of maintaining a healthy financial and work track record to enable advancing to the next level.
“It is important to ensure that you pay your annual CIDB registration fee as you will get deregistered after two years of non-payment. This means you will re-enter the system as a grade one contractor, regardless of your previous CIDB grading,” said Lusindiso Nocha.
He mentioned that registration could be done online for all the grades. CIDB further announced its training programme for SMMEs and that in future, this training would be a prerequisite to register with them.
SMMEs in attendance appreciated SANRAL’s efforts and acknowledged the opportunities the roads agency has created for SMMEs to date. Some of the issues they raised, include challenges with upgrading from 1CE to 2CE. SANRAL was urged to intervene to ensure that emerging contractors advance from this entry level.
Some SMMEs said that although they were participating on SANRAL projects, this did not translate in monetary terms because of the low rates applied by the main contractors, as well as contract charges. Furthermore, SANRAL was requested to share briefing documents for its tender briefing sessions on its website ahead of time.
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