Planact and the Development Action Group (DAG) are reshaping the construction industry by empowering emerging contractors and small-scale developers.
The construction industry in South Africa has served as a pivotal engine of economic growth and job creation, particularly in Gauteng, where soaring economic migration has led to an unprecedented demand for housing. In response to this demand, small-scale rental developments in townships have emerged as a vital solution to address housing shortages. However, emerging contractors have faced formidable barriers, including the dominance of powerful business forums, a critical skills deficit, and concerns over quality standards.
Against this background, DAG partnered with Planact to scale up the contractor, small scale rentals, and developer project into Gauteng.
Addressing Industry Challenges
To address these challenges, Planact, a non-governmental organisation with its focus on community development in partnership with DAG hosted the Emerging Contractors Training Program from 26 – 30 August 2024. The program aimed to empower emerging contractors by equipping them with essential skills, knowledge, and strategies to navigate the complexities of the construction landscape. The initiative aligns with Planact’s mission to drive meaningful change and uplift South Africa’s most vulnerable populations, fostering responsive living environments through its core programs.
Expert Insights and Support from NHBRC and CIDB
To ensure that participants gained a comprehensive understanding of the industry landscape, Planact and DAG invited representatives from two key industry bodies: the National Home Builders Registration Council (NHBRC) and the Construction Industry Development Board (CIDB). These organizations delivered presentations on crucial topics such as regulatory requirements, industry standards, and available support mechanisms. NHBRC and CIDB representatives were also available to respond to participants’ questions, addressing specific concerns and offering tailored advice. This direct engagement was instrumental in clarifying the complex processes of registration and compliance, providing practical solutions to the challenges faced by emerging contractors.
Training Outcomes and Impact
The program offered targeted training in key areas such as business administration and management, financial management, and construction project management to help emerging contractors overcome these barriers. By focusing on these modules, the training course aimed to equip contractors with the skills needed to not only navigate the industry’s complexities but also establish sustainable, compliant businesses capable of competing in the market. Upon completing the training, participants were awarded certificates, marking a significant milestone that not only acknowledged their hard work and commitment but also enhanced the credibility of their professional profiles. Additionally, the contractors took a proactive step toward mutual support by forming an association among themselves. This newly formed group aims to provide ongoing support, share resources, and collectively address the challenges they face as they continue to grow in the industry.
Participant Feedback
The participants expressed their heartfelt gratitude for being part of the Emerging Contractors Training Program. They shared transformative feedback, with one participant noting, “I can now differentiate between a contractor and a contract. Now I am a businessman who can manage a contract.” This sentiment reflects the significant impact the program had on their professional development and confidence.
Through this training program, Planact and DAG, with the support of key industry bodies like NHBRC and CIDB, have played an essential role in mitigating the challenges that stifle the growth and development of emerging contractors and small-scale developers within the construction industry. By empowering emerging contractors, these organizations are not only fostering economic growth but also promoting equity and transformation in an industry that is difficult for new players to enter without an established network.