The South African Construction Industry at Cross Roads: Building Gateways to the

Future – A Primitive Path?, AF Path? or A Modern Path?

P D Rwelamila Graduate School of Business

LeadershipUniversity of South Africa (UNISA)

The SACI

“……..the industry & Government to join ……..clients to do it entirely differently. …..radical change in the way we build.”

- Egan (1998)

The SACI & ‘Construction for Life’

“…….building & civil engineering projects to maintain a proper balance between capital & operating expenditure while seeking to increase client & user satisfaction …….”

- UK Technology Foresight Report (1995)

The Principal Agent

“……..8 out of 10 experts referred to as CPMs are accidental CPM…...”

- Rwelamila & Kaggwa (2010)

Education & Training in South Africa

“…….versatile people who are able to draw from a wide range of technical specialization.”

- Stuart Green (2003)

SA Higher Learning Institutions & Research

“…..research into innovation and the establishment of Chairs of Innovation in University construction departments to encourage multidisciplinary research.”

-UK Technology Foresight Report (1995)

SACI at Cross Roads – What are the Issues?

The Procurement Question (1):Supply chains are poorly managed – traditional approaches always influencing procurement The duo role syndrome Poor linkage of delivery systems/risk management/contractsConventional methods of business are still dominant (only trappings of E-commerce/E-based design & engineering)Larger/Mega firms being international seem to exist in an environment of ‘us and them’

SACI at Cross Roads – What are the Issues?Roles & Relationships of the Professions Question (2):

The professional straitjacket is becoming tighter - @ profession jealously guarding its so-called autonomy to the detriment of the SACIInterdisciplinary working remain in the peripheral (dominance of technical arrogance) – broadly based education is considered to be madness! – Gann & Salter’s (1999) ‘professional silos’ are promoted at Universities level with all the forces available Potential SACI leaders belong to ‘professional silos’ – they ‘hate’ career paths that provide a broad qualification across the process of design, environmental planning, project planning, construction and beyond

SACI at Cross Roads – What are the Issues?

The SACI Performance Question (3a)Issues of standardization of units are not on the agenda? – the SACI is not learning from other industries (fashion, cars, etc.) where customization is seen as fashionable – they have pioneered ways of moving from mass production to mass customization – the SACI could move to standardization & this could be accompanied with bespoke facades providing individuality to the built landscapeYou don’t hear much about rationalization of design and construction methods & integrating professional roles – towards improving T, C, U & Q!

SACI at Cross Roads – What are the Issues?The SACI Performance Question (3b)

You don’t hear much about issues of measuring performance in terms of quality of life and ‘well-being’ issues – zero tolerance of accidents and deleterious occupational diseases (e.g., stress, overwork and aggression) are not critical dimensions of performance measures.Issues of eliminating ‘dirty work’ at construction sites, heavy lifting, spraying, exposure to sun, creating dust by sweeping, etc. are in most situations acceptable No real debates about construction work to be done in factories & assembled in much the same way, e.g., as large aircraft

SACI at Cross Roads – What are the Issues?

The SACI Performance Question (3c)Issues of customization through facade engineering are still at an infancy? Features of performance improvement in the SACI are primarily driven by concepts of wealth creations – very little on creation of better sense of well-being; less tress, more leisure & more harmonious professional relationshipsThe present model falls under what Green (1999) refers to as ‘management by stress’ – no greater sense of reward, in its widest sense, to those already engaged in the industry and providing a vision that is attractive to idealistic young people.

SACI at Cross Roads – What are the Issues?

We need to decide – which way?

‘Kiasu’ will not help us because it will take us to a combination of ‘Primitive & AF Path’ ( primarily this is our current state – status quo)

We need to take the ‘Modern Path’

BUT what are these ‘Paths’???

Which Path? – 3 Paths & 3 Areas of Influence

The SA Construction Industry (SACI) Policy: Strategy & the Construction Industry Development Board (CIDB): The Think TankThe Government (as a client & conducive environment facilitator):OverseerPrivate Sector: (Team member) with Overseer The South African Higher Learning Institutions (esp. Universities): Suppliers of Experts/Thinkers?

The Primitive Path (1)Remain with archaic leadership (SACI Policy & CIDB + Private sector – pick what is convenient !)Adversarial relationships (Universities- keep them apart & remain traditional in project value creation with bits & pieces of ‘innovation’) Parochial (SACI policy reduced to ‘now’ & Universities training for now but pretending for long-term)

The Primitive Path (2)Fragmented industry (Public client remain a ‘novice’, private sector dealing with a ‘novice’ is good & Universities keep them apart & narrow)Inadequate owner involvement in project value creation (Public client remain a ‘novice’ & Private sector like it, technical arrogance rules in procurement and at Universities)Increasing scarcity of skilled labour (Short term-strategies clothed in long-term garb)

The AF Path Same characteristics as ‘Primitive Path’ but with peculiar tendencies:

‘Monarchist tendencies’ – The King/or Queen, prince & princess – as the inner circle & if you are outside this circle, please follow instructions & keep your mouth shut – Universities & public sector institutions are vulnerable If you don’t endorse the ‘monarch’ you will not be recognised – you could be banished

The Modern Path (1)The need for strategic leadership (SACI Policy & CIDB + Private sector – CIDB –running when others are walking)Teamwork as a fundamental cultural requirement (Universities- integrate degree programmes; appropriate procurement + modern contracts; minimize technical arrogance – aim for EQ + IQ) Avoid tunnel vision (SACI policy – focus on the future & Universities training for the future: an organic graduate with a broader view of the SACI)

The Modern Path (2)A seamless Industry (Public client should have a core 1st class expertise, private sector dealing with a knowledgeable client & Universities to strive for balanced programmes & integrated)Owner involvement in project value creation (Smart Public client & Private sector dealing with a smart client, balanced knowledge base + skills rules in procurement and at Universities)Solution to skilled labour shortage (short/medium/long-term strategies clothed in reality)

WHERE TO FROM HERE?“….to ensure that this has not just been a temporary intervention, but that the process is sustainable & that it will lead to a new enabling environment where the SACI can fulfill its promise.” – B. Bruce (April 2001)

“….a focused & energized intervention by the CIDB that would rejuvenate the SACI. The industry is in need of resuscitation & I believe the CIDB will provide an institutional framework in which energies can be harnessed to the benefit of the industry.”

– P.Silinga (April 2001)

The Modern Path Will Bring Benefits

“…the benefits will be felt in a less disputatious industry that is

concerned with shared problem solving and mutual respect for the contribution made by each party.”

- Murray & Langford(2003)

THANK YOU FOR LISTENING