AS 2010 Volume 17 Issue 2

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http://hdl.handle.net/11660/2503

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    The impact of corruption on the Malawian construction industry
    (University of the Free State, 2010) Phiri, Mulima; Smallwood, John
    English: The background of corruption dates back to 2000 years ago. Corruption takes the form of bribery, extortion, cronyism, nepotism, graft, and embezzlement. The main medium of corruption is poorly functioning institutions, with policies that undermine free trade and competition. The objectives of this article are as follows: first, to establish the impact of corruption regarding tender procurement; secondly, to evaluate corrupt practices which create dominance of particular contractors over others, and lastly, to examine corruption regarding the maintenance of the built environment. The survey was limited to community development projects based in and around the Blantyre commercial district. The respondents were sampled for their knowledge, experience, education and expertise regarding community development projects. The findings indicate that all tender board officials are imminently enticed into corrupt practices relating to their respective positions held in the organisation; oligopolism is the main factor in the dominance of contractors over others in the Malawian construction industry, and corruption leads to relatively lower fund allocation for the maintenance of the built environment. The article concludes that corruption does impact on the Malawian construction industry in various ways. Recommendations to limit corruption include the implementation of the following corruption-mitigating measures: break the taboo against discussing corruption; demonstrate how corruption occurs; mobilise key constituencies, and implement anti-corruption policies.
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    The status of business social responsibility among SMMEs in the built environment of Gauteng Province, South Africa
    (University of the Free State, 2010) Ladzani, Watson; Seeletse, Solly
    English: Many small, micro- and medium-sized enterprises (SMMEs) of South Africa in the built environment do not use business social responsibility as a necessary management performance function to market and sustain their businesses. It appears that the implementation of this important management performance function is hampered by a lack of knowledge regarding the important role that business social responsibility plays. Another challenge that is faced is limited financial and human resources. A study was undertaken to investigate and establish the status of SMMEs’ business social responsibility in order to promote an awareness of this management performance function in the community, and on SMMEs’ growth, continuous performance improvement and sustainability. A quantitative comparative design was used to collect primary data from 326 respondents. These respondents were from 64 randomly selected SMMEs in the study area. Structured interviews were used for this purpose. The main findings revealed an underperformance of business social responsibility among the sampled SMMEs. More than a third (39%) of SMMEs had not yet started implementing social responsibility activities in their businesses as opposed to only 7.2% who had high scores of involvement with business social responsibility activities. This low performance confirms the findings of other studies on SMMEs reported in the literature. It is recommended that government policies be designed to support business social responsibility and that all stakeholders promote social responsibility awareness. In addition, it is recommended that reward systems be implemented to recognise SMMEs that implement businesses social responsibility in their communities.
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    The impact of hyperinflation on the Zimbabwean construction industry
    (University of the Free State, 2010) Moyo, Admire; Crafford, Gerrit
    English: The purpose of this article is to indicate the effects of hyperinflation on the Zimbabwean construction industry. The latter, much like its successful regional and international counterparts, contributes towards the country’s gross domestic product, improving employment levels, economic growth, and restructuring the unfavourable balance of payment. In the last decade, however, this has not been the case in Zimbabwe as the country has grappled with severe hyperinflation that has led to the lack of a stable national currency accompanied by shortages of investors and labour which have resulted in the collapse of the construction industry. Regardless of other debatable causes of the crises the Zimbabwean government has labelled hyperinflation the country’s foremost enemy, the root cause of the construction industry crises. The article presents the findings of a Masters study whose primary objectives were to determine the cause of hyperinflation in Zimbabwe, investigate the relationship between hyperinflation and the collapse of the Zimbabwean construction industry, and determine whether hyperinflation is indeed responsible for the collapse of the Zimbabwean construction industry. The significant findings of the study (conducted at the peak of Zimbabwe’s hyperinflation) are as follows: the Zimbabwean government and the Reserve Bank of Zimbabwe arbitrarily printing money are the root cause of hyperinflation; hyperinflation has resulted in the lack of a stable national currency; investors and labour factors have led to business closures; stunted economic growth, and a collapsed construction industry. The article concludes that hyperinflation shares an inverse relationship with the construction industry; in other words, as hyperinflation increases, construction industry performance decreases up to a point where the industry collapses and vice versa. The article demonstrates how this phenomenon has led to the collapse of the Zimbabwean construction industry. The article recommends that the variables that are lacking in Zimbabwe be replenished as a precondition for the revival of the construction industry and that the merits of a stable socio-economic environment, a new government, dollarisation and an infrastructure stimulus package to address or counteract the effects of hyperinflation on the construction sector be investigated.
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    State involvement in self-help housing: reflections from the Free State
    (University of the Free State, 2010) Ntema, John; Marais, Lochner
    English: When John Turner forwarded his theories on self-help housing, he emphasised the concept of dweller control and argued that the state should not be involved in housing construction processes. Although there was worldwide acknowledgement of his ideas, a large number of self-help programmes developed with a fair amount of state-involvement. South Africa’s self-help programme, called the People’s Housing Process, is no exception in this respect. Although designed to ensure larger degrees of ownership by people, evidence of large-scale government influence is clear. This article assesses the application of self-help housing in the Free State province and argues that a technocratic rather than a people-centred approach (envisaged in policy documents) dominated the People’s Housing Process. The levels of influence by local people in project design, project implementation and housing design remain low, and the housing outcomes do not differ much from the normal project subsidy approach.
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    ’n Verkennende meting van die kommunikasievolwassenheid van die bourekenaars- en ingenieursprofessies in die konstruksiebedryf
    (University of the Free State, 2010) Berry, Frank; Verster, Basie; Zulch, Benita
    English: The possible lack of scientific analyses with reference to the maturity of the quantity surveyor and engineering professions’ communication capabilities and communication instruments in the construction industry initiated the study. The reason for the survey on both professions is due to the fact that they perform almost similar functions. This article aims to measure the determinants of a communication maturity model in respect of the communication capabilities of these professions. Research undertaken by the University of the Free State in collaboration with the Wirtschafts University in Vienna, Austria in 2005/6 revealed the proposed most important determinants used. The results of the survey show that respondents were positive in respect of the professions’ communication in general. This can therefore influence the construction industry with continuous advantages for the property development environment. The survey results show that the determinant ‘instruments communication (supportive)’ of the quantity surveyor is experienced as the most positive. The determinants ‘verbal communication‘ and ‘written communication’ of the quantity surveyor are experienced as the least positive. In addition, the survey results show that the determinant ‘knowledge’ capabilities of the engineer is experienced as the most positive. The determinants ‘contractual communication’, ‘written communication’ and ‘instruments communication (clearness)’ of the engineer are experienced as the least positive. A communication maturity model, developed in previous research and consisting of the identified determinants for effective communication, has been used to measure the maturity of the two professions’ communication capabilities in the construction industry. The implementation of the communication maturity model in practice can have a positive influence to improve the communication capabilities of the profession in the construction industry.
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    The South African property industry: overview and issues for research
    (University of the Free State, 2010) Mooya, Manya
    English: The South African property industry is unique in that it has both ‘first’- and ‘third’-world characteristics in close juxtaposition. This article engages with two related questions. First, it provides an overview of the defining characteristics of the South African property industry. Secondly, it outlines key issues for research arising from these characteristics. The article therefore assesses the possibility of defining and projecting, in global terms, a sufficiently distinct South African property research programme.
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    The impact of affordability on house price dynamics in South Africa
    (University of the Free State, 2010) Boshoff, Douw
    English: Lately, the residential property market in South Africa has experienced much turbulence. Some perceived growth as a ‘property bubble’, while others considered it a healthy investment opportunity. This article considers the fundamental drive behind residential property demand and analyses the recent property cycle compared to the past. It also considers the effects of residential property demand on the construction industry. The study investigates the variables that drive property demand and uses methods of statistical fit of historical macro-economic variables to apply to a South African context and to explain recent residential property activity. Research found that residential property demand and subsequent market prices are to a large extent influenced by affordability, which is indicated by capitalising rent as part of disposable income with the prime lending rate of banks. Gross domestic product, as the main indicator of growth within the country, is the main driver of disposable income for households, and can subsequently be used to foresee growth and its effect on affordability and residential property values. The article provides insight into the spending behaviour of households, and shows how that behaviour flows over into spending on housing, and the subsequent influence on residential property values.