Property Reporter

THE construction industry may well have its own charter to fast track transformation, rather than be included under the planned property charter.

Mohlaleng Strategy & Investment Consultancy CEO Andrea Brown says that there have been a number of consultations with industry stakeholders and the emerging view is that there should be two charters, one for property and another for construction.

"The property charter could encompass property owners, managers, practitioners, developers and estate agents, while the construction charter could encompass builders, contractors and consultants to the industry,"

Brown says.

However, Brown says that continuing consultations with government and other stakeholders is required. "We would foresee the process unfolding in a similar manner to the financial services charter. One of the issues is to look at alignment with the financial services charter as a number of the larger property players are from the financial sector," he says.

"We would have to look at issues of enterprise development in quite a lot of detail and mechanisms to support black-owned and operated businesses as practitioners, owners and developers in the sector."

Brown says the charter will be led by a steering committee representing the sector.

Pierre Blaauw, co-ordinator of the construction business charter grouping, said the construction sector launched a process of developing a transformation charter in line with the broad-based black economic empowerment strategy of the trade and industry department.

Blaauw says presentation in the private sector construction grouping includes bodies such as the Building Industries Federation of SA, the National Federation for the Building Industry, the South African Federation of Civil Engineering Contractors, the Black Contractors Federation, the South African Association of Consulting Engineers and the South African Institute of Steel Construction.

He says these stakeholders are "committed to seeing a transformed sector and view a charter as a vehicle that will help to achieve this in a meaningful way".

This group has been actively involved in doing groundwork for a construction charter over the past year. "It is seen as a participative process in which all relevant stakeholders, from private business, government in particular the public works department private clients and social partners should participate," says Blaauw.

He says the construction transformation charter process should not be confused with the current construction sector summit process. The summit process will focus on a variety of issues, transformation being one.

As far as the potential content of a charter is concerned, Blaauw says nothing has been finalised as indepth deliberations and research must still take place. "This deliberation process will take cognisance of the other charter processes already finalised or currently under way. The property charter is one such process where there will be certain common issues as various private clients of the construction sector are involved in that charter."

In January this year, it was announced that the historically white property sector was next in line for a charter to fast track black economic empowerment, as government starts to close the door on potential business partners who have been tardy in transforming.

It is likely to have far-reaching consequences in the multibillionrand industry, affecting everything from property funds on the JSE Securities Exchange SA to property developers and estate agents. Analysts say it will make sense for the property and the construction sectors, including engineering, to have separate charters.

Provest MD Angelique de Rauville the says the property and construction sectors are two "very different industries".

Andisa Securities property analyst Len van Niekerk agrees, saying the two industries are "different businesses" and that "it sits better" to have two charters.

Mar 10 2004 07:52:30:000AM Nick Wilson Business Day 1st Edition