2.1 2 Search for development strategy in the process of empowerment 2.1 .3 Definition of development - understand development in 21sI. Status and contribution of the BEE sector Top five BEE companies in the sector BEE Risk Barometer.
Emergence in System Thinking
Microscopic examination of plant tissues gave the new science its central discovery, that of the cell. This is done to demonstrate that empowerment and partnership are essentially part of the systems paradigm and should be understood in this domain.
Systems Thinking in the Empowerment and Partnering Philosophy
A system (construction) shows the sum of cells within which empowerment and partnership manifest as essential parts of the system. When the sum of cells in a system does not provide effective feedback, it results in system failure.
Introduction to the South Africa Construction Industry
General Concerns in the South African Construction Industry - A Story Line
This, as indicated by Basil (1995), must be fully addressed at the project evaluation stage in order to avoid potential inefficiencies during the life of the project. Another area of concern highlighted by Basil (1995) is changes in the law and how these relate to the construction industry.
Flip side or Utilities of Empowerment in the Construction
The previously disadvantaged individuals then assume the debt and hope to make up the shortfall over a significant number of years through capital gains and some dividends (Mokeona, 1998). Much more must therefore be done to create a class of independent, previously disadvantaged contractors capable of sustaining the delivery of the end product.
Problem Statement
They believe there is no deliberate exclusion of the small contractor from projects and add that skill training is a mammoth task. Judging by recent developments, black empowerment is still insignificant in the construction industry and unless racial and economic imbalances are addressed, any initiatives will eventually fall apart (Strydom, 1998).
Hypothesis
Are partnerships formed by correctly aligning themselves internally and externally with the goals set for empowerment and choosing the right business to enter with the right mix of skills and experience.
Scope and Objectives of the Research
Limitation of the Research
Approach to Research Methodology
Research Methodology
A comprehensive literature review • Establish a solid foundation for the research that includes the Internet and journals. • Highlight concerns and general aspects of books and conference proceedings from the research. Also the concept of collaboration in construction and possible future research to cover areas. • Recommend the possible format to expand the highlighted constraints.
Literature Review
The research methodology is considered to exist in five distinctive phases and is further discussed where appropriate in the text. The following is drawn from the above methodology to provide a broad outline of phases mentioned.
Evaluation of Research Methods
Data Collection
Synthesis and conclusions
Structure of the Dissertation
LITERATURE REVIEW ON EMPOWERMENT
A Transition for South Africa's Development and Empowerment Focus
- Development creating a new focus in the Empowerment Process
- Basic Elements of Development
- Conceptualisation of empowerment
- Extrinsic aspect of empowerment
According to Ackoff (1974), development must be sustainable, especially with regard to the economic and social needs of the population. Understanding the relationship between these factors provides a clearer understanding of empowerment and the application of empowerment interventions, particularly in the South African context.
Empowerment in the South African Context
It is also important to consider the four principles above when examining issues related to previously disadvantaged economic empowerment. High hopes are reflected in definitions of black economic empowerment as ["ownership and control of businesses and thus the economy by black people"] (Qunta in Shubaneet al., 1999). At one end of the continuum, the processes proposed by established companies seem to take too long and are designed to keep black economic empowerment out of the economic mainstream for as long as possible.
Current issues in Black Economic Empowerment in South Africa
- Government Patronage
The Norwegian Tender Board further defines authorization as including both previously disadvantaged share ownership and previously disadvantaged management. The common sense approach of the previously disadvantaged owners, who retain existing managerial and operational expertise in the companies so that there is continuity and consistency, has been given little credit. However, there is evidence that some of the financial institutions may be overly conservative and even unsympathetic to the cause of previously disadvantaged empowerment.
Empowerment in the South African Construction Industry
A root cause of some empowerment failures in the sector is the use of the archaic British system of separating the 'design' and 'construction' phases of construction management. Moreover, empowerment mainly takes place in the value-added component of construction, which amounts to approximately 20 percent of construction costs (i.e. the high-risk area of construction and project management). Improving public sector capacity should be added to the empowerment goals set for the private sector to increase its commitment.
South African BEE construction sector information and indicators
Most companies in the sector have not made stock profiles or other related information public. Almost all companies in the sector announced their focus on skills development, but only a few disclosed the details of their development initiatives. However, some companies in the sector have significant African or offshore revenues that can limit their empowerment risk.
GENERAL PERSPECTIVE OF PARTNERING
Background to Partnering
This ranges from a regular review process to determine how the parties work together to a full commercial arrangement written outside the contract, with the parties using the contract in the event the commercial arrangement/partnership falls through. However, there will be no recourse to the agreement if the commercial agreement breaks down, as it would already be built into the agreement. In the above categories, the number of parties need not necessarily be limited to the client and consultant, but can include the entire procurement chain of suppliers, subcontractors and support services.
Definition of Partnering
34; Partnership involves two or more organizations working together to improve performance through mutually agreed objectives, establishing a way of resolving disputes and committing to continuous improvement, measuring progress and sharing gains. 34; A relationship between two or more organizations which is formed with the express intention of improving performance in the on-time delivery of projects”. 34; A mutually directed relationship between two or more organizations with a primary objective of improving each other's performance by utilizing the services and resources of each individual and successfully solving problems in delivering a project on time within uncertain constraints.
A Simple Guide to Partnering Philosophy
This is the specific role of 'partnering' as it explores the effective use of participants and their techniques in creating the client's project. This results in a hostile and uncompromising team environment, which is often not resolved at the end of the project, but merely pushed aside. This is one of the main reasons for project failure, especially within the South African context.
Why is Partnering being mentioned so often in the construction industry these days?
All these developments in the philosophy of improved performance led to the birth of what came to be called the "Seven Pillars of Partnering". Professor John Bennett was the lead author of both reports and is regarded as Britain's leading expert on partnering. The reports were recognized as definitive works and played an important role in the revival of cooperation in Britain.
Key Features of Partnering Methodology
These criteria are not presented to measure the individual performance of the parties, but are rather an overall measure of the project's outcome (Scott, 2001). However, it is again necessary to look at the team structure and the matrix of responsibilities of each member in order to achieve the overall success of the project. The mindset of the team must be changed from traditional methods in order to look at the partnership from a new perspective.
Forming a Construction Partnering System
The system is defined and established by a special task force selected from among the project's stakeholders. By carrying out the final evaluation, it is confirmed that the project to which partnering was applied has been carried out with the full cooperation of the signatories of the project charter. A special task force of evaluators, consisting of the project manager and members selected from the professional teams in each project, carries out the evaluation.
Implementing Partnering on Projects
Clarity of roles and responsibilities of the owner's team must be addressed and considered in the design of the partnership structure. The owner's team must feel confident that resources are readily available for the project, otherwise they may unconsciously begin to act negatively if only to try to save the organization money as the project progresses. If the owner's team takes a leadership role, the entire project team will be favorably affected.
Selection of the Partnering Team
The owner must encourage an open and honest review of the internal strengths of his organization and team, and be willing to acknowledge weaknesses and adapt his team's role accordingly.
Partner selection/project appraisal Section 2: Alliance and business case development
- Process and Criteria
- Assessment of the Results Based on Selection Criteria
- Legal issues of partnering
- Contractual structures of the partnering arrangements
- Project Organisation and Procedures in Partnering
- Partnering Relationships Between Members
- Partnering Workshops
- Targets can be qualified or set for capital projects
The purpose of the incentive program is to strengthen cooperation and develop commitment and trust between the owner and the cooperating members. One of the objectives of the collaboration is that all information is exchanged in a timely manner. The final phase is the implementation of the project where the involvement of the parties is fully developed.
CASE STUDY
- Introduction
- Background
- Principles of Partnering - The Application of the ECC Management Contract
- Advantages to the employer
- Project Management Framework
- Selection of Professional Team
- Challenges and Successes in the Management of Subcontractors at the CTICC
- Construction procurement
- Conclusion
The second stage in the project planning process was the development of the basic technical document. The process was definitely one of the key success factors of the project (Partnership Workshop). These workshops were held throughout the project to remind participants of the project's objectives.
CONCLUSION AND RECOMMENDATIONS
Conclusion
Finally, empowerment in the South African construction industry needs an application of the key characteristics of partnership and to compare them with local content. This is probably the biggest single barrier to forming empowerment partnerships on the broadest possible scale. Unresolved, this conflict is likely to inhibit the unlocking of the full potential of enabling companies in all partnerships, not just those in the construction industry.
Recommendations
- For improved construction processes
- For previously disadvantaged enterprises
- Empowerment companies
- For government
Do your best to help empowerment companies realize as many of the benefits of empowerment partnership opportunities as possible, including assisting with access to development capital. Empowerment companies need to find a way to quickly familiarize themselves with the principles of good corporate governance and operationalize them. Empowerment companies with empowerment experience must start working according to the principles of broad stakeholder consultation and accountability to clients.
Recommendations for further research
Capacity Building in Developing Countries, Cape Town, October 1993, proceedings of the Eighth World Conference of the International Development Association, pp Qualitative Research and Research Design - Closure between Five Traditions": Sage Publications Incorporation, Thousand Oaks London New Delhi 30. Fourie L & Mohr P (1995) : Economics for South African Students: University of South Africa, JL van Schkaik Publishers, Pretoria: pp.580-607. Dissertation summarizes International Section A: Humanities and Social Sciences, 59(9A Partnering in Europe: Incentive Based Alliancing for projects, Pitman Publishing.
