Name: Tanushree Pillay Student No: 20801555 Abstract: Procurement (tendering) in the Public Sector of the Construction Industry

Academic Moderator: E.F La Vita Industry Sponsor: H.L Patel Date: 23 March 2012

PROCUREMENT (TENDERING) IN THE PUBLIC SECTOR OF THE CONSTRUCTION INDUSTRY The South African government dedicates a considerable percentage of public money to provide physical infrastructure that the country needs for economic and social development. In conjunction, with the worldwide ethics of integrity, transparency and accountability, individuals who procure any physical infrastructure for government has to ensure that public money is spent efficiently and wisely. South Africa has a legal framework that guides government spending. The Construction Industry Development Board (cidb) Act is part of this framework and prescribes the rules applicable to construction procurement where public money is spent. What is Construction Procurement? Construction Procurement can be defined as procurement that includes the invitation, award and management of construction contracts. It covers supplies, services, works and disposals within the construction industry. The purpose of this study is to explore the current construction process and technical difficulties within South Africa, applicable in the public sector, as the complexity of the preparation and interpretation of the tender documentation seems not only to confuse the contractor into being compliant but a lack of understanding and interpretation from a clients perspective could place consultants in a laborious situation when structuring and streamlining the document. To establish the data for this report, the information will be based on Construction Industry Development Board guidelines and articles (cidb), as well as the interpretation from a contractors, consultants and clients perspective. In conclusion, the solution to this dilemma would be to establish a standarised document pertaining to different types of contracts within the public and private sectors to eliminate the non-responsiveness of the contractor and confusion by the client.